DOD's $55.7M IGF contract for oil and gas support activities awarded to a joint venture, with 6 orders issued

Contract Overview

Contract Amount: $55,710,206 ($55.7M)

Contractor: Tetra Tech-Maytag Aircraft Corporation Joint Venture

Awarding Agency: Department of Defense

Start Date: 2016-12-29

End Date: 2022-09-12

Contract Duration: 2,083 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $55.7 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 of $55.7 million for support activities in oil and gas operations suggests a significant need for specialized services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The duration of the contract (2083 days) indicates a long-term requirement for the services provided. 4. The contract's focus on 'Support Activities for Oil and Gas Operations' positions it within a critical infrastructure sector. 5. The absence of small business set-aside flags suggests the primary awardee was not a small business, though subcontracting opportunities may exist. 6. The firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs for the government.

Value Assessment

Rating: fair

Benchmarking the value of this $55.7 million contract is challenging without specific service details and comparable contract data. However, the award to a joint venture (TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE) suggests a need for combined expertise. The firm-fixed-price structure is a positive indicator for cost control, but the overall value-for-money assessment depends heavily on the delivered performance and market rates for these specialized support activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 6 orders issued against the contract, it suggests a sustained need and potentially multiple opportunities for the contractor to perform. The level of competition at the initial award phase is not detailed, but full and open competition generally fosters a robust price discovery process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of bidders, which can drive down prices and improve the quality of services received.

Public Impact

The primary beneficiaries are likely the Department of Defense and its operational units requiring support in oil and gas activities. Services delivered likely include specialized technical, logistical, or maintenance support related to oil and gas infrastructure or operations. The geographic impact is specified as California (SN: CALIFORNIA), indicating the primary area of service delivery. Workforce implications could involve skilled labor in the oil and gas sector, potentially including engineers, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The joint venture structure could introduce complexities in management and accountability.
The broad category of 'Support Activities for Oil and Gas Operations' may obscure the specific nature and criticality of the services rendered.
Limited information on the competitive landscape at the time of award hinders a full assessment of price reasonableness.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type helps in cost predictability for the government.
The contract has been active for a significant period, indicating sustained demand for the services.
The contract is associated with the Department of the Army, a major component of the Department of Defense, implying strategic importance.

Sector Analysis

The contract falls under the 'Support Activities for Oil and Gas Operations' category, which is a niche but critical sector supporting energy infrastructure. This sector often requires specialized technical expertise and adherence to stringent safety and environmental regulations. Comparable spending benchmarks are difficult to establish without more granular data on the specific services provided, but contracts in this domain can range significantly in value depending on the scope and duration.

Small Business Impact

The contract indicates 'SB: false', meaning it was not set aside for small businesses. This suggests that the primary awardee was not a small business. There is no explicit information regarding subcontracting plans or performance. Without this data, it's difficult to assess the impact on the small business ecosystem, though larger prime contracts often have subcontracting requirements that could benefit small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes contractor performance to meet agreed-upon terms. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Oil and Gas Field Services
Defense Logistics Support
Energy Infrastructure Support
Government Contracting Support Activities
Military Base Operations Support

Risk Flags

Contract duration is lengthy, increasing potential for cost escalation or performance degradation if not managed.
Specific services rendered are not detailed, making value assessment difficult.
Joint venture structure may introduce management complexities.
No small business set-aside noted, potentially limiting broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.7 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 $55.7 million.

What is the period of performance?

Start: 2016-12-29. End: 2022-09-12.

What specific services were provided under this contract for 'Support Activities for Oil and Gas Operations'?

The provided data abbreviates the contract's description to 'Support Activities for Oil and Gas Operations' (ND: 213112). This North American Industry Classification System (NAICS) code typically encompasses a range of services including oil and gas well drilling, completion, and field services. However, without more detailed contract line item numbers (CLINs) or a statement of work (SOW), the precise nature of the services rendered under this specific $55.7 million award remains unspecified. It could range from operational support, maintenance, logistics, or specialized technical assistance related to energy infrastructure managed or utilized by the Department of the Army.

How does the $55.7 million value compare to similar contracts for oil and gas support activities within the Department of Defense?

Direct comparison of the $55.7 million value is difficult without knowing the exact scope of services and the specific operational context within the Department of Defense (DOD). Contracts for oil and gas support can vary widely based on factors like geographic location, duration, and the specific needs (e.g., exploration support, pipeline maintenance, fuel logistics). However, $55.7 million over approximately five years (based on the award and end dates) suggests a substantial, ongoing requirement. Larger DOD contracts often run into hundreds of millions or even billions, but this figure indicates a significant, focused investment in this particular support category.

What are the key risks associated with a firm-fixed-price contract of this magnitude and duration?

For a firm-fixed-price (FFP) contract, the primary risk to the government is that the contractor may cut corners on quality or performance to maximize profit if the price is set too high relative to the actual cost of performance. Conversely, if the price is set too low, the contractor may incur losses, potentially leading to performance issues or contract disputes. Given the duration (2083 days) and value ($55.7M), risks include potential for scope creep if not managed tightly, contractor financial instability over the long term, and the possibility that market prices for the services could significantly decrease, making the fixed price less advantageous for the government over time. Effective oversight is crucial to mitigate these risks.

What does the 'Support Activities for Oil and Gas Operations' designation imply about the contractor's required expertise?

The NAICS code 213112, 'Support Activities for Oil and Gas Operations,' implies that the contractor must possess specialized knowledge and capabilities relevant to the energy sector. This could include expertise in areas such as drilling, well servicing, pipeline operations, geological surveying, environmental compliance, and logistical support for energy extraction or transportation. The award to a joint venture (TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE) suggests that the required expertise might be diverse, necessitating a combination of skills that neither entity could provide alone, or that the scale of the contract warranted a larger, more capable entity.

How has historical spending in 'Support Activities for Oil and Gas Operations' by the Department of the Army trended?

Analyzing historical spending trends for 'Support Activities for Oil and Gas Operations' (NAICS 213112) specifically by the Department of the Army requires access to comprehensive historical contract data. Without that granular data, it's impossible to provide a specific trend analysis. Generally, defense spending in this area can fluctuate based on geopolitical factors, energy security concerns, and the operational tempo of military forces. Periods of increased global energy demand or instability might correlate with higher spending on related support services. However, the Army's direct involvement in oil and gas operations support, as opposed to fuel procurement, might be more specialized and less voluminous than broader energy sector spending.

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: W912DY16R0063

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: $55,710,206

Exercised Options: $55,710,206

Current Obligation: $55,710,206

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