DoD's $23.2M drainage system contract awarded to ANHAM - ICSS JV shows fair value with 2 bids

Contract Overview

Contract Amount: $23,242,184 ($23.2M)

Contractor: Anham - Icss JV

Awarding Agency: Department of Defense

Start Date: 2012-08-15

End Date: 2016-05-04

Contract Duration: 1,358 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT DRAINAGE SYSTEMS

Plain-Language Summary

Department of Defense obligated $23.2 million to ANHAM - ICSS JV for work described as: CONSTRUCT DRAINAGE SYSTEMS Key points: 1. The contract delivered essential drainage system construction, supporting military infrastructure. 2. Awarded under full and open competition, indicating a broad market approach. 3. The fixed-price contract type likely provided cost certainty for the government. 4. Performance spanned over three years, suggesting a substantial project scope. 5. The contract was a delivery order, implying it was part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: good

The contract's total value of $23.2 million for drainage system construction appears reasonable given the project's duration and scope. While specific benchmarks for drainage systems are difficult to ascertain without more granular data on the project's complexity and location, the fact that it was awarded under full and open competition with two bidders suggests a competitive pricing environment. The firm fixed-price nature of the contract also implies that the contractor assumed the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. Two bids were received, which, while not a large number, indicates that the opportunity was accessible to the market. The level of competition, though limited to two bidders, likely contributed to price discovery and ensured that the government received at least one competitive offer.

Taxpayer Impact: A competitive award, even with two bidders, generally leads to better pricing for taxpayers compared to sole-source or limited competition scenarios. It signals that the government sought the best value from the available market.

Public Impact

Military personnel and operations benefit from improved infrastructure and reduced risks associated with inadequate drainage. The contract facilitated the construction of critical drainage systems, enhancing base resilience. The geographic impact is localized to the military installation where the construction took place. The project likely involved local construction labor and material suppliers, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could potentially lead to higher prices than if more firms had participated.
The specific nature of 'drainage systems' can vary greatly in complexity, making direct cost comparisons challenging without detailed project specifications.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm Fixed Price contract type shifts cost overrun risk to the contractor.
Delivery order structure suggests it was part of a potentially larger, pre-competed framework.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of infrastructure development and maintenance, which is crucial for supporting government operations, especially within the Department of Defense. Federal spending in this area often involves large-scale projects requiring specialized engineering and construction expertise. Benchmarks for similar drainage projects are highly dependent on specific site conditions, scale, and materials used.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to ANHAM - ICSS JV, a joint venture, suggests a focus on larger, established entities capable of undertaking significant infrastructure projects. Subcontracting opportunities for small businesses may have existed, but they are not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on the extent of any subcontracting.

Oversight & Accountability

As a Department of Defense contract, this award would be subject to various oversight mechanisms, including contract administration by the relevant Army contracting command. Inspector General (IG) reviews and audits are standard for federal contracts of this magnitude to ensure compliance and prevent fraud. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

Military Construction
Base Operations Support
Infrastructure Modernization Programs
Public Works Contracts

Risk Flags

Limited Competition
Potential for Unforeseen Site Conditions in Construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to ANHAM - ICSS JV. CONSTRUCT DRAINAGE SYSTEMS

Who is the contractor on this award?

The obligated recipient is ANHAM - ICSS JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2012-08-15. End: 2016-05-04.

What was the specific nature and scope of the drainage systems constructed under this contract?

The provided data indicates the contract was for 'CONSTRUCT DRAINAGE SYSTEMS' with a total value of $23,242,183.82, awarded to ANHAM - ICSS JV by the Department of the Army. The scope likely involved the design and/or installation of systems to manage water runoff, prevent flooding, and protect infrastructure at a military installation. Without access to the detailed contract statement of work (SOW), the precise scale, complexity (e.g., open channels, buried pipes, pump stations), materials used, and specific environmental or operational requirements remain unspecified. This lack of detail limits a precise understanding of the value delivered beyond the broad category of drainage construction.

How does the pricing of this contract compare to similar drainage construction projects awarded by the DoD or other federal agencies?

Directly comparing the pricing of this $23.2 million contract to similar projects is challenging without detailed project specifications, location, and specific performance requirements. However, the award was made under full and open competition with two bidders, suggesting a degree of market validation. The firm fixed-price (FFP) contract type generally indicates that the contractor bore the cost risk, which is favorable for the government. To perform a robust benchmark, one would need to identify comparable projects based on factors like square footage, linear feet of pipe, complexity of terrain, soil conditions, environmental mitigation requirements, and the specific type of drainage system (e.g., stormwater management, sanitary sewer, agricultural drainage).

What were the primary risks associated with this contract, and how were they managed?

Key risks for a construction contract of this nature include potential cost overruns due to unforeseen site conditions (e.g., unexpected soil issues, underground utilities), delays caused by weather or supply chain disruptions, and performance issues related to the quality of work. The firm fixed-price (FFP) contract structure inherently transfers significant cost risk to the contractor, ANHAM - ICSS JV. The government's management of risks would typically involve thorough pre-award evaluations of the bidders' technical capabilities and financial stability, clear contract specifications, regular site inspections, and robust contract administration. The relatively long performance period (1358 days) also introduces risks related to material price fluctuations and labor availability, which the contractor would need to manage under the FFP terms.

What is the track record of ANHAM - ICSS JV in performing similar federal construction contracts?

The provided data identifies ANHAM - ICSS JV as the contractor for this $23.2 million drainage system construction contract. To assess their track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to identify other contracts awarded to this specific joint venture or its constituent companies. Key performance indicators such as past performance ratings, any contract modifications (especially for cost increases), timeliness of delivery, and any disputes or terminations would provide crucial insights. Without this additional data, it's difficult to definitively evaluate their experience and reliability in executing similar federal construction projects.

How did the competition level (2 bidders) impact the final price and overall value for the government?

The fact that this contract was awarded under full and open competition but only received two bids presents a mixed picture regarding its impact on price and value. On one hand, having multiple bidders generally drives down prices and increases competition, leading to better value. Two bidders suggest that the market was aware of the opportunity and at least two firms were interested and capable. However, a higher number of bidders (e.g., 3-5 or more) typically intensifies competition further, potentially yielding even more favorable pricing. The government likely received a competitive price relative to the two offers received, but it's possible that a more robust competition could have resulted in a lower award price or additional value-added proposals from other interested parties.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912ER10R0089

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8075 LEESBURG PIKE STE 760, VIENNA, VA, 22182

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,242,184

Exercised Options: $23,242,184

Current Obligation: $23,242,184

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER11D0003

IDV Type: IDC

Timeline