DoD's $17.3M storm-proofing contract awarded to Southern Services & Equipment Inc. for water infrastructure

Contract Overview

Contract Amount: $17,337,128 ($17.3M)

Contractor: Southern Services & Equipment Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2012-02-02

Contract Duration: 496 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STORM PROOFING DPS 13

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to SOUTHERN SERVICES & EQUIPMENT INC for work described as: STORM PROOFING DPS 13 Key points: 1. Contract value of $17.3M for storm-proofing water and sewer lines. 2. Awarded to Southern Services & Equipment Inc. under full and open competition. 3. Performance period spanned from September 2010 to February 2012. 4. The contract was a firm-fixed-price type, indicating price certainty. 5. Located in Louisiana, a region prone to significant weather events. 6. The North American Industry Classification System (NAICS) code is 237110. 7. This contract was not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $17.3 million for storm-proofing water and sewer lines appears to be within a reasonable range for large-scale infrastructure projects, especially in a region susceptible to severe weather. Without specific benchmarks for similar storm-proofing efforts in Louisiana or comparable military installations, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government aimed to control costs upfront. The duration of the contract (496 days) also provides context for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potential limitation on the breadth of competition. The number of bidders is not explicitly stated, but the 'limited' competition level might imply fewer than ideal participants, potentially impacting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: The limited competition could mean that taxpayers did not benefit from the lowest possible prices that might have been achieved with broader outreach to all potential qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed in Louisiana, ensuring the continuity of essential water and sewer services during and after storm events. The contract delivered critical infrastructure improvements to protect vital water and sewer lines from storm damage. The geographic impact is localized to the specific military installation(s) in Louisiana where the work was performed. The contract supported construction and related services, potentially impacting the local workforce in the construction sector in Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted the pool of potential bidders, potentially leading to higher costs for taxpayers.
The exclusion of certain sources, even if justified, reduces the transparency of the procurement process.
The firm-fixed-price contract, while offering cost certainty, could lead to contractor profit if costs are lower than anticipated, without direct benefit to the government.
The contract was awarded in 2010, and market conditions or material costs may have changed significantly since then, affecting the perceived value today.

Positive Signals

The contract was awarded under a full and open competition framework, aiming for broad participation.
The firm-fixed-price contract type provides budget certainty for the government.
The project addressed critical infrastructure needs related to storm resilience, enhancing operational readiness.
The contractor, Southern Services & Equipment Inc., was selected to perform this specific task, implying they met the required qualifications.

Sector Analysis

The construction sector, particularly heavy and civil engineering construction (NAICS 237110), is a significant area of federal spending, especially for infrastructure resilience and maintenance. This contract fits within the broader category of defense infrastructure spending, which often involves large-scale projects to ensure operational capabilities. Comparable spending benchmarks for storm-proofing water infrastructure on military bases can vary widely based on location, scale, and specific requirements, but projects in the multi-million dollar range are common for significant upgrades.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, Southern Services & Equipment Inc., would have had the discretion to subcontract portions of the work, but there is no specific requirement mandated by a set-aside provision in this instance. The impact on the small business ecosystem is therefore indirect, depending on the prime contractor's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported during the contract's lifecycle.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Infrastructure Modernization
Federal Emergency Management Agency (FEMA) Disaster Preparedness Funding
Public Works and Utilities Construction
Military Base Resiliency Projects

Risk Flags

Limited Competition
Potential for Unforeseen Costs
Weather-Related Delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to SOUTHERN SERVICES & EQUIPMENT INC. STORM PROOFING DPS 13

Who is the contractor on this award?

The obligated recipient is SOUTHERN SERVICES & EQUIPMENT INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2010-09-24. End: 2012-02-02.

What was the track record of Southern Services & Equipment Inc. with the Department of Defense prior to this contract?

Information regarding Southern Services & Equipment Inc.'s specific track record with the Department of Defense prior to this $17.3 million storm-proofing contract is not detailed in the provided data. However, the award of such a significant contract suggests that the company met the necessary qualifications, experience, and financial stability requirements set forth by the Department of the Army for this type of infrastructure project. A deeper dive into historical contract awards and performance reviews would be necessary to fully assess their past performance and reliability with the DoD.

How does the $17.3 million contract value compare to similar storm-proofing projects for water infrastructure?

The $17.3 million contract value for storm-proofing water and sewer lines is substantial, reflecting the scale and complexity typically associated with infrastructure projects on military installations, especially in regions prone to severe weather like Louisiana. Without access to a comprehensive database of comparable storm-proofing projects specifically for water infrastructure on military bases, a precise benchmark is difficult. However, projects of this magnitude are not uncommon for critical infrastructure upgrades aimed at ensuring operational continuity and resilience against natural disasters. The firm-fixed-price nature of this contract also suggests a defined scope and budget.

What were the primary risks associated with this storm-proofing contract, and how were they mitigated?

Primary risks for this storm-proofing contract likely included unforeseen subsurface conditions, weather delays impacting the construction schedule, potential cost overruns (though mitigated by firm-fixed-price), and ensuring minimal disruption to base operations. Mitigation strategies would typically involve thorough site investigations before award, contingency planning for weather events, strict adherence to the fixed-price agreement, and close coordination with base authorities to schedule disruptive work during less critical periods. The exclusion of certain sources in the competition might also indicate specific technical requirements or security concerns that posed risks if not met by all potential bidders.

How effective was this contract in enhancing the resilience of water and sewer systems against storm events?

The effectiveness of this contract in enhancing the resilience of water and sewer systems against storm events can be inferred from its completion and the nature of the work performed. By investing $17.3 million in storm-proofing these critical utilities, the Department of the Army aimed to prevent damage, service interruptions, and costly repairs following storms. While the long-term effectiveness would depend on the quality of the construction and the severity of subsequent weather events, the project's objective was to significantly improve the system's ability to withstand adverse conditions, thereby ensuring continued operational support for the military installation.

What are the historical spending patterns for storm-proofing infrastructure at this specific military installation or within the Department of the Army?

Historical spending patterns for storm-proofing infrastructure at this specific military installation or within the Department of the Army are not detailed in the provided data. However, federal agencies, particularly the Department of Defense, allocate significant funds towards maintaining and upgrading infrastructure to ensure operational readiness and resilience against environmental threats. Spending on storm-proofing is often driven by risk assessments, the age of existing infrastructure, and the frequency and severity of weather events in specific geographic locations. This $17.3 million contract represents a specific investment in addressing these needs at a particular time.

What was the rationale behind the 'exclusion of sources' in the competition for this contract?

The rationale behind the 'exclusion of sources' in the competition for this contract, despite being labeled 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' typically stems from specific technical requirements, security mandates, or unique capabilities needed for the project that not all potential bidders could meet. For instance, the project might have required specialized equipment, specific certifications, or experience with particular military standards or site conditions unique to the installation. This exclusion aims to ensure that only qualified contractors capable of meeting stringent project demands participate, thereby safeguarding the integrity and success of the infrastructure upgrade.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P808R0047

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 321 BAYOU RD, SAINT BERNARD, LA, 01

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Hispanic American Owned Business, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,337,128

Exercised Options: $17,337,128

Current Obligation: $17,337,128

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P808D0083

IDV Type: IDC

Timeline