DoD Spends $29.7M on Mechanical Equipment for Water Systems via Follow-On Action
Contract Overview
Contract Amount: $29,671,321 ($29.7M)
Contractor: Mechanical Equipment Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-15
End Date: 2011-04-26
Contract Duration: 2,141 days
Daily Burn Rate: $13.9K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TAS::21 2035::TAS
Place of Performance
Location: COVINGTON, SAINT TAMMANY County, LOUISIANA, 70433
Plain-Language Summary
Department of Defense obligated $29.7 million to MECHANICAL EQUIPMENT COMPANY, INC. for work described as: TAS::21 2035::TAS Key points: 1. Significant spending on mechanical equipment for water supply and irrigation. 2. Follow-on action suggests potential for competitive pricing, but details are limited. 3. Contract duration of 2141 days indicates a long-term need. 4. Fixed-price contract type aims to control costs, but requires careful monitoring.
Value Assessment
Rating: fair
The total award amount of $29.7 million over approximately 6 years suggests a substantial investment. Benchmarking against similar contracts for water supply and irrigation systems is necessary to determine if this pricing is competitive, especially given it's a follow-on action.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was a 'FOLLOW ON TO COMPETED ACTION,' indicating that the initial award was competed. However, the specifics of the competition for this particular delivery order are not detailed, making it difficult to assess the price discovery achieved.
Taxpayer Impact: The use of a follow-on action to a competed contract aims to leverage prior competition to secure fair pricing for taxpayers. The final price achieved will depend on the effectiveness of the competition for this specific order.
Public Impact
Ensures critical water supply and irrigation infrastructure is maintained and operational. Supports the Department of Defense's operational readiness and base infrastructure. Potential impact on local economies through the contractor's supply chain and workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition specifics for this follow-on order.
- Long contract duration could lead to scope creep or unforeseen cost increases.
- Potential for price escalation over the contract's extended period.
Positive Signals
- Follow-on to a competed action suggests a foundation of competitive pricing.
- Firm fixed-price contract type provides cost certainty.
- Contract awarded to a specific company, indicating a known supplier.
Sector Analysis
This contract falls within the Defense sector, specifically related to infrastructure maintenance and equipment. Spending on water supply and irrigation systems is crucial for base operations and resilience, with benchmarks varying widely based on system complexity and scale.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The firm fixed-price nature of the contract and the follow-on to a competed action suggest some level of established oversight and accountability.
Related Government Programs
- Water Supply and Irrigation Systems
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of detailed competition data for the follow-on order.
- Long contract duration increases risk of cost escalation and obsolescence.
- Potential for price increases not fully captured in the initial award.
- Limited insight into small business participation.
Tags
water-supply-and-irrigation-systems, department-of-defense, la, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.7 million to MECHANICAL EQUIPMENT COMPANY, INC.. TAS::21 2035::TAS
Who is the contractor on this award?
The obligated recipient is MECHANICAL EQUIPMENT COMPANY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $29.7 million.
What is the period of performance?
Start: 2005-06-15. End: 2011-04-26.
What was the competitive landscape for the original competed action, and how did that influence the pricing for this follow-on delivery order?
Understanding the original competition is key. If the initial competition was robust with multiple bidders, it likely established a strong baseline for fair pricing. For this follow-on order, the agency may have relied on that established pricing, potentially with adjustments for inflation or minor scope changes. However, without details on the number of bidders or the price spread in the original competition, it's hard to definitively assess the value achieved here.
Given the 2141-day duration, what are the primary risks associated with price escalation and material obsolescence for this mechanical equipment?
The extended duration presents significant risks. Material costs for mechanical equipment can fluctuate considerably over more than five years, potentially eroding the value of a firm fixed-price contract if not adequately accounted for. Obsolescence is also a concern; older components may become unavailable or require costly replacements. Robust contract management, including provisions for price adjustments or material sourcing strategies, would be crucial to mitigate these risks.
How effectively does this contract ensure the long-term operational readiness of DoD water supply and irrigation systems?
This contract directly supports operational readiness by ensuring the availability of necessary mechanical equipment. The follow-on nature to a competed action suggests a degree of reliability in the supplier and the process. However, true effectiveness hinges on the quality of the equipment supplied, the timeliness of delivery, and the contractor's ability to meet evolving technical requirements over the contract's lifespan.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems
Product/Service Code: WATER PURIFICATION/SEWAGE TREATMENT
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 12505 REED ROAD, SUGAR LAND, TX, 77478
Business Categories: Category Business, Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0702DT019
IDV Type: IDC
Timeline
Start Date: 2005-06-15
Current End Date: 2011-04-26
Potential End Date: 2011-04-26 00:00:00
Last Modified: 2019-10-04
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