DoD's $26.6M contract with IAP Worldwide Services for electric power generation services awarded under full and open competition

Contract Overview

Contract Amount: $26,567,203 ($26.6M)

Contractor: IAP Worldwide Services, Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-23

End Date: 2017-04-30

Contract Duration: 2,046 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION 1

Plain-Language Summary

Department of Defense obligated $26.6 million to IAP WORLDWIDE SERVICES, INC for work described as: OPTION 1 Key points: 1. Contract awarded for electric power generation services, indicating a need for reliable energy infrastructure. 2. The contract duration of 2046 days suggests a long-term requirement for these services. 3. Awarded by the Department of the Army, highlighting a specific military operational need. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The absence of small business set-aside suggests the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: fair

The contract value of $26.6 million over approximately 5.6 years averages to about $4.7 million per year. Without specific details on the scope of services, it's challenging to benchmark against similar contracts. However, the firm-fixed-price structure suggests an attempt to control costs. The lack of detailed performance metrics makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this requirement. While competition is generally positive, the specific number of bidders is relatively low for a contract of this size, which could imply some barriers to entry or a niche market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive reliable electric power for operations. Services delivered include electric power generation, crucial for maintaining military readiness and infrastructure. The geographic impact is likely concentrated at the military installation(s) where the power generation services are provided. Workforce implications include employment for personnel involved in operating and maintaining the power generation facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to the specialized nature of electric power generation for military installations.
Risk of cost overruns if unforeseen operational or maintenance issues arise, despite the fixed-price structure.
Dependence on a single primary contractor for a critical utility service.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost predictability for the government.
Long contract duration indicates a stable and ongoing need, potentially leading to efficiencies through contractor experience.

Sector Analysis

The electric power generation sector is critical for national infrastructure, including military bases. This contract falls within the broader energy and utilities market, which is often characterized by specialized technical requirements and significant capital investment. Benchmarking this contract's value against other federal electric power generation contracts would require detailed service scope and location data, but the $26.6 million value over five years suggests a substantial, ongoing operational requirement.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contractor, IAP Worldwide Services, Inc., is likely a large business. There is no explicit information on subcontracting plans or performance, so the impact on the small business ecosystem is unclear, but typically large prime contracts may offer subcontracting opportunities if planned.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring would be crucial to ensure the contractor meets the firm-fixed-price requirements for electric power generation. Transparency is generally maintained through contract award databases like FPDS, but detailed operational oversight specifics are not publicly available.

Related Government Programs

Military Base Operations Support
Energy Infrastructure Contracts
Utility Services Contracts
Department of Defense Procurement

Risk Flags

Long contract duration may increase exposure to changing technological needs or market conditions.
Dependence on a single contractor for critical infrastructure could pose a risk if performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to IAP WORLDWIDE SERVICES, INC. OPTION 1

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $26.6 million.

What is the period of performance?

Start: 2011-09-23. End: 2017-04-30.

What specific type of electric power generation technology was utilized under this contract?

The provided data does not specify the exact technology used for electric power generation. Contracts for military installations can encompass a range of technologies, including diesel generators, natural gas turbines, or even renewable energy sources integrated with backup systems. The specific technology would depend on the base's location, existing infrastructure, environmental regulations, and energy demands. Further investigation into the contract's statement of work or technical specifications would be necessary to determine the precise generation methods employed.

How does the annual cost of this contract compare to commercial utility rates for similar power output?

The annual cost for this contract is approximately $4.7 million ($26.6M / 5.6 years). Comparing this to commercial utility rates is complex without knowing the exact power output (kilowatt-hours) and the specific location's commercial rates. Military installations often have unique demands, may require on-site generation for resilience, and could face different pricing structures than typical commercial customers. Commercial rates vary significantly by region and demand profile. A direct comparison would require detailed energy consumption data and local commercial pricing benchmarks.

What were the key performance indicators (KPIs) used to evaluate IAP Worldwide Services, Inc.'s performance?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. For electric power generation contracts, typical KPIs might include power availability (uptime percentage), response time to outages, fuel efficiency, adherence to environmental standards, and maintenance schedule compliance. The contracting officer and the requiring activity would establish and monitor these KPIs to ensure the contractor meets the terms of the firm-fixed-price agreement and delivers reliable power.

What is the historical spending trend for electric power generation services by the Department of the Army?

The provided data only pertains to this single contract award. To analyze historical spending trends for electric power generation by the Department of the Army, one would need to query federal procurement databases (like FPDS) for similar contracts over multiple fiscal years. This would involve filtering by agency (Department of the Army), product/service code (if available and relevant), and contract type. Analyzing trends would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify major contractors or types of services procured.

Were there any significant challenges or disputes during the performance of this contract?

Information regarding specific challenges or disputes during the performance of this contract is not available in the provided data. Contract performance issues, such as delays, quality problems, or financial disagreements, are typically documented within agency contract files and may be reflected in contract performance reports or past performance reviews. Without access to these internal records or public dispute dockets, it is impossible to ascertain if any significant challenges occurred.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912BU10R0020

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC (UEI: 079492183)

Address: 1212 WEST 19TH STREET, PANAMA CITY, FL, 32405

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

Financial Breakdown

Contract Ceiling: $26,567,203

Exercised Options: $26,567,203

Current Obligation: $26,567,203

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BU10D0018

IDV Type: IDC

Timeline