DoD's $91.8M Construction Machinery Contract Awarded to IAP Worldwide Services, Inc
Contract Overview
Contract Amount: $91,784,723 ($91.8M)
Contractor: IAP Worldwide Services, Inc
Awarding Agency: Department of Defense
Start Date: 2005-03-20
End Date: 2006-06-17
Contract Duration: 454 days
Daily Burn Rate: $202.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 28
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Plain-Language Summary
Department of Defense obligated $91.8 million to IAP WORLDWIDE SERVICES, INC for work described as: Key points: 1. Contract value of $91.8M for construction machinery. 2. Awarded under full and open competition. 3. Potential risk associated with firm fixed-price contract. 4. Sector is Construction Machinery Manufacturing.
Value Assessment
Rating: fair
The contract value of $91.8M for construction machinery appears substantial. Benchmarking against similar contracts is difficult without more specific details on the machinery procured and the contract duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the firm fixed-price nature could lead to cost overruns if initial estimates were inaccurate.
Taxpayer Impact: Taxpayer funds were utilized through a competitive bidding process, aiming for the best value. The final cost reflects the market price for the specified construction machinery.
Public Impact
Ensures availability of essential construction machinery for military operations. Supports the construction machinery manufacturing sector. Potential for cost savings through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm Fixed Price contract risk
- Lack of specific machinery details for benchmarking
Positive Signals
- Full and open competition
- Significant contract value
Sector Analysis
This contract falls within the Construction Machinery Manufacturing sector, which is vital for infrastructure development and military support operations. Spending benchmarks are highly dependent on the specific types and quantities of machinery.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to IAP Worldwide Services, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made under full and open competition, suggesting a degree of oversight in the procurement process. However, the firm fixed-price contract warrants monitoring to ensure cost efficiency.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Firm Fixed Price contract risk
- Lack of specific machinery details
- Potential for cost escalation if market conditions change
- Limited visibility into subcontractor participation
Tags
construction-machinery-manufacturing, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.8 million to IAP WORLDWIDE SERVICES, INC. See the official description on USAspending.
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 $91.8 million.
What is the period of performance?
Start: 2005-03-20. End: 2006-06-17.
What specific types of construction machinery were procured under this contract, and how do their unit costs compare to industry averages?
The provided data does not specify the exact types of construction machinery. To assess value, a detailed breakdown of the machinery (e.g., excavators, bulldozers, cranes) and their quantities would be necessary. Unit costs would then need to be compared against current market rates for similar equipment, considering factors like new vs. used, manufacturer, and specific features.
What were the primary risks identified during the bidding process for this firm fixed-price contract, and how were they mitigated?
For a firm fixed-price contract of this magnitude, risks likely included potential cost overruns if market prices for materials or labor increased unexpectedly, or if the contractor underestimated project complexity. Mitigation strategies might have involved thorough pre-bid market research, detailed technical specifications, and robust contractor vetting to ensure capacity and experience.
How effectively did the full and open competition process ensure the best value for taxpayers in this $91.8M contract?
Full and open competition is generally designed to ensure best value by fostering a competitive environment that drives down prices and encourages innovation. The success in this case depends on the number and quality of bids received, the transparency of the evaluation process, and whether the final award price was demonstrably lower than what might have been achieved through other procurement methods.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 28
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)
Address: 413 WESTERN LANE, IRMO, SC, 02
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W916QW04D0011
IDV Type: IDC
Timeline
Start Date: 2005-03-20
Current End Date: 2006-06-17
Potential End Date: 2006-06-17 00:00:00
Last Modified: 2009-04-06
More Contracts from IAP Worldwide Services, Inc
- Award a CLS Contract — $422.9M (Department of Defense)
- O&M for Complete Distribution System, Joint Base Balad — $94.0M (Department of Defense)
- Reach-Back HVY Lift VI Optyr4 — $84.9M (Department of Defense)
- Rtep 1032_U.S. Army Fixed Wing Project Office (fwpo), Sema Aircraft Product Directorate HAS a Requirement for Contractual Services to BE Provided in the Area of Pilot and Flight Operations Support for Deployed Government Owned ISR Aircraft. This Effort Requires the Management and Deployment of Pilots and Flight Operations Managers (foms) to Fully Support Outside the Continental United States (oconus) Contingency Operations — $76.7M (Department of Defense)
- ANP C4isr Fielding and Training Support Services — $75.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)