Army awards $29.3M for oil and gas support, with 6 bids received under full and open competition

Contract Overview

Contract Amount: $29,324,678 ($29.3M)

Contractor: Tetra Tech-Maytag Aircraft Corporation Joint Venture

Awarding Agency: Department of Defense

Start Date: 2014-07-28

End Date: 2019-03-04

Contract Duration: 1,680 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MINOR/EMERGENCY REPAIR FUNDING

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91107

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE for work described as: IGF::OT::IGF MINOR/EMERGENCY REPAIR FUNDING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1680 days indicates a long-term need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The award was a Delivery Order, implying it was part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 213112 points to specific support activities for oil and gas operations. 6. The contract was awarded to a joint venture, potentially indicating specialized capabilities required.

Value Assessment

Rating: fair

Benchmarking the value of this $29.3 million contract is challenging without specific service details or comparable contract data. However, the firm fixed-price structure provides cost predictability. The number of bids (6) suggests a reasonable level of competition, which can contribute to fair pricing. Further analysis would require understanding the scope of 'Support Activities for Oil and Gas Operations' and comparing unit costs or labor rates to industry standards or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that six bids were received indicates a healthy level of interest and competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition process, coupled with multiple bids, is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment.

Public Impact

The primary beneficiaries are likely the Department of the Army, which receives essential support for its oil and gas operations. Services delivered include support activities crucial for the functioning of oil and gas infrastructure or related governmental functions. The geographic impact is specified as California (SN: CALIFORNIA), indicating the operational area for these services. Workforce implications would involve skilled labor in the oil and gas support sector, potentially creating or sustaining jobs in that field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on 'Support Activities for Oil and Gas Operations' makes it difficult to assess the full scope and potential risks.
The long contract duration (1680 days) could present risks if operational needs or technologies change significantly during its term.
Reliance on a joint venture might introduce complexities in management, communication, or accountability if not clearly defined.

Positive Signals

Awarded under full and open competition, which typically fosters competitive pricing.
Firm Fixed Price contract type offers cost certainty and reduces the risk of cost overruns for the government.
The receipt of six bids suggests a robust competitive environment for this requirement.
The contract was awarded to a joint venture, which may bring specialized expertise to the task.

Sector Analysis

The oil and gas support services sector is a critical component of the energy industry, encompassing a wide range of activities from exploration support to operational maintenance. This contract, falling under NAICS code 213112, specifically addresses support activities. The market for such services can be influenced by energy prices, regulatory environments, and government energy policies. Comparable spending benchmarks would typically be found within broader energy or defense logistics categories, but specific data for this niche is often proprietary or requires deep industry analysis.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside (SS: false, SB: false). Therefore, small businesses were not specifically targeted for this award. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor (TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE), but this is not guaranteed or mandated by the contract terms presented. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant Department of the Army administrative contracting officer's representative (COR). Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed price. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Army Operational Support Services
Energy Infrastructure Support Contracts
Government Oil and Gas Operations Support

Risk Flags

Potential for undefined scope in 'Support Activities for Oil and Gas Operations'.
Long contract duration may not align with evolving technological or operational needs.
Joint venture structure could introduce management complexities.
Geographic concentration in California might limit broader applicability or scalability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE. IGF::OT::IGF MINOR/EMERGENCY REPAIR FUNDING

Who is the contractor on this award?

The obligated recipient is TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2014-07-28. End: 2019-03-04.

What specific 'Support Activities for Oil and Gas Operations' were included in this contract?

The provided data does not specify the exact nature of the 'Support Activities for Oil and Gas Operations' covered under this contract (NAICS 213112). These activities can broadly include services such as drilling support, well servicing, pipeline support, geological and geophysical surveying, and other technical services essential for the exploration, extraction, and transportation of oil and gas. Without the detailed Statement of Work (SOW) or contract line item details, it is impossible to ascertain the precise services rendered. This lack of specificity limits a granular assessment of value and performance.

How does the $29.3 million award compare to similar contracts for oil and gas support services within the Department of Defense?

Comparing this $29.3 million award requires access to a comprehensive database of similar contracts, including their scope, duration, and specific services. The Department of Defense (DoD) engages in various activities that might require oil and gas support, particularly in logistics, base operations, or specialized engineering roles. However, without specific details on the services provided and comparable contract data, a direct benchmark is difficult. The fact that it was a Delivery Order suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could influence its comparability to standalone contracts. The number of bidders (6) and the firm fixed-price nature are positive indicators of a potentially competitive and cost-controlled award.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

The provided summary data does not include the specific Key Performance Indicators (KPIs) established for this contract. Typically, for support services contracts, KPIs might relate to timeliness of service delivery, quality of work performed, adherence to safety standards, and responsiveness to task orders. For a firm fixed-price contract, meeting the defined scope of work within the agreed price is a primary performance metric. The government contracting officer and COR would monitor performance against the contract's requirements and any specified metrics, potentially impacting future contract awards or options.

What is the track record of TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE with the Department of Defense for similar services?

Assessing the track record of the TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE requires examining their past performance on contracts with the Department of Defense (DoD) and other federal agencies. TETRA TECH is a large engineering and construction firm with extensive government contracting experience, often performing complex projects. Maytag Aircraft Corporation also has a history of government contracts, particularly in aviation support. Their joint venture status for this specific contract suggests a combined capability. A thorough review would involve looking at past performance evaluations, any contract disputes, and the successful completion of similar scope work to gauge their reliability and expertise in oil and gas support operations.

How has spending on oil and gas support services by the Department of the Army evolved over the past five years?

Analyzing the evolution of spending on oil and gas support services by the Department of the Army over the past five years would require accessing historical contract data. This specific contract was awarded in 2014 and completed in 2019. To understand trends, one would need to aggregate spending data for NAICS code 213112 and potentially related codes across the Army for fiscal years preceding and following this award. Factors influencing spending could include geopolitical events, energy market fluctuations, changes in military operational requirements, and shifts in domestic energy production policies. Without this aggregated historical data, it's impossible to provide a trend analysis.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Support Activities for Mining › Support Activities for Oil and Gas Operations

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3475 E FOOTHILL BLVD, PASADENA, CA, 91107

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,324,678

Exercised Options: $29,324,678

Current Obligation: $29,324,678

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0010

IDV Type: BOA

Timeline