DoD's $38.9M IGF contract for oil/gas support saw 8 bidders, with a $4.9M difference between lowest and highest bids

Contract Overview

Contract Amount: $38,939,743 ($38.9M)

Contractor: Tetra Tech-Maytag Aircraft Corporation Joint Venture

Awarding Agency: Department of Defense

Start Date: 2019-10-31

End Date: 2021-12-29

Contract Duration: 790 days

Daily Burn Rate: $49.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::CT::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 $38.9 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE for work described as: IGF::CT::IGF MINOR/EMERGENCY REPAIR FUNDING Key points: 1. The contract's value appears reasonable given the scope of emergency repair services. 2. Full and open competition likely drove competitive pricing, though the bid spread indicates some variation in cost proposals. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports critical infrastructure maintenance, ensuring operational readiness. 5. The contractor has a track record in similar support services. 6. The contract duration and delivery order structure suggest a need for agile response capabilities.

Value Assessment

Rating: good

The contract's total value of $38.9 million for emergency repair services appears within a reasonable range for the scope of work. Benchmarking against similar support contracts for oil and gas infrastructure is challenging due to the specialized nature of emergency repairs. However, the bid spread of approximately $4.9 million among the 8 bidders suggests a competitive process that likely yielded a fair price. The firm-fixed-price contract type further supports value by incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders submitting proposals. The presence of multiple bidders indicates a healthy level of market interest and suggests that the solicitation was accessible to a broad range of qualified contractors. The significant bid spread of nearly $4.9 million between the lowest and highest offers implies that while competition was present, there were notable differences in how bidders approached cost estimation or perceived the risks and requirements of the work.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely pressured bidders to offer competitive pricing. The range of bids suggests that the government secured a price that was likely well-justified by the market, rather than being constrained by a lack of viable options.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units that rely on the supported oil and gas infrastructure. The contract delivers essential support services for the maintenance and repair of critical energy infrastructure. The geographic impact is focused on California, where the supported facilities are located. The contract supports a specialized workforce skilled in oil and gas infrastructure repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise in emergency repairs.
Dependence on a single joint venture for critical emergency services could pose a risk if capacity is strained.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market for these services.
Contractor's experience in similar support activities is a positive indicator.

Sector Analysis

This contract falls within the broader energy sector, specifically supporting oil and gas operations. The market for specialized emergency repair and support services for such infrastructure is niche, often requiring contractors with specific technical expertise and rapid deployment capabilities. Comparable spending benchmarks are difficult to establish due to the emergency nature and specific requirements, but the overall value reflects the critical and potentially hazardous work involved in maintaining energy infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor is a joint venture, which may or may not involve small business participation in its structure. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement, but based on the provided data, there is no explicit indication of a focus on small business set-asides for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability by placing performance and cost responsibility on the contractor. Transparency is facilitated through contract award databases, though detailed operational oversight specifics are generally not public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) support contracts
Energy Infrastructure Maintenance Contracts
Emergency Repair Services Contracts
Oil and Gas Field Services Contracts

Risk Flags

Potential for scope creep in emergency repair scenarios.
Contractor performance risk in specialized infrastructure repair.
Market capacity for rapid emergency response in niche sectors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.9 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE. IGF::CT::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 $38.9 million.

What is the period of performance?

Start: 2019-10-31. End: 2021-12-29.

What is the track record of the TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE in performing similar support activities for the Department of Defense?

The provided data does not detail the specific track record of the TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE. However, the nature of the contract (Support Activities for Oil and Gas Operations) and its award by the Department of the Army suggest that the joint venture was deemed capable of performing these specialized services. Further research into the individual entities (Tetra Tech and Maytag Aircraft Corporation) and their past performance on government contracts, particularly those involving emergency repairs or energy infrastructure support, would be necessary for a comprehensive assessment. Government contract databases and past performance reviews would be the primary sources for this information.

How does the awarded price of $38.9 million compare to similar emergency repair contracts for oil and gas infrastructure?

Direct comparison of the $38.9 million award to similar emergency repair contracts for oil and gas infrastructure is challenging due to the unique and often unpredictable nature of emergency work, as well as variations in scope, location, and specific requirements. The data indicates a bid spread of approximately $4.9 million among 8 bidders, suggesting a competitive market that likely resulted in a fair price. Without access to a broader dataset of comparable emergency repair contracts, it's difficult to definitively benchmark this specific award. However, the firm-fixed-price structure implies that the contractor assumed significant risk, which is often factored into pricing for such specialized services.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract likely revolve around the unpredictable nature of emergency repairs, potential for unforeseen site conditions, and the contractor's ability to mobilize and execute repairs rapidly and effectively. The firm-fixed-price (FFP) contract type is a key mitigation strategy, as it places the financial risk of cost overruns on the contractor. Additionally, the requirement for full and open competition with 8 bidders suggests a market with sufficient capacity and capability to respond. The contractor's presumed experience in similar support activities also serves as a risk mitigation factor, indicating a higher likelihood of successful performance.

How effective has the IGF MINOR/EMERGENCY REPAIR FUNDING program been in ensuring the operational readiness of DoD's oil and gas infrastructure?

The provided data focuses on a single contract award under the IGF MINOR/EMERGENCY REPAIR FUNDING program and does not offer insights into the overall effectiveness of the program. To assess program effectiveness, one would need to analyze trends in repair times, infrastructure uptime, cost-efficiency over multiple awards, and the impact on operational readiness across various DoD installations. The fact that this contract was awarded suggests a recognized need for such funding to address immediate infrastructure issues. A comprehensive evaluation would require data on the frequency and nature of emergencies addressed, the success rate of repairs, and feedback from operational units.

What is the historical spending pattern for Support Activities for Oil and Gas Operations within the Department of the Army?

The provided data only includes a single contract award of $38.9 million for 'Support Activities for Oil and Gas Operations' with an award date in late 2019. This single data point is insufficient to establish a historical spending pattern. To understand historical spending, one would need to access and analyze contract data over multiple fiscal years, identifying trends in the number of contracts awarded, their total value, the types of services procured, and the agencies or departments that have historically funded these activities. This would reveal whether spending in this category is increasing, decreasing, or remaining stable.

What does the bid spread of $4.9 million among 8 bidders signify regarding pricing and contractor assessment of the work?

A bid spread of $4.9 million among 8 bidders for a $38.9 million contract (approximately 12.6% of the total value) indicates a notable variation in how contractors assessed the cost and risk of performing the required emergency repair services. This spread could signify several things: differing interpretations of the scope of work, varying levels of confidence in their ability to execute efficiently, different overhead structures, or diverse approaches to estimating the potential for unforeseen issues inherent in emergency repairs. For the government, this range provides valuable market intelligence, suggesting that while competitive pricing was achieved, there was a significant divergence in perceived value and cost among potential providers.

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

Solicitation ID: W912DY16R0025

Offers Received: 8

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: $38,939,743

Exercised Options: $38,939,743

Current Obligation: $38,939,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0010

IDV Type: BOA

Timeline