DoD Awards $515K for Process Equipment, Totaling $97M in Contract Value
Contract Overview
Contract Amount: $97,279,703 ($97.3M)
Contractor: Bechtel Parsons Blue Grass, a Joint Venture
Awarding Agency: Department of Defense
Start Date: 2007-04-05
End Date: 2013-09-30
Contract Duration: 2,370 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 1. PROVIDE FUNDS IN THE AMOUNT OF $515,374.00 FOR PROCESS EQUIPMENT PART 1. 2. THE PERIOD OF PERFORMANCE FOR PROCESS EQUIPMENT PART 1 IS: FROM: JANUARY 15, 2007 TO: JUNE 30, 2007
Place of Performance
Location: RICHMOND, MADISON County, KENTUCKY, 40475
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $97.3 million to BECHTEL PARSONS BLUE GRASS, A JOINT VENTURE for work described as: 1. PROVIDE FUNDS IN THE AMOUNT OF $515,374.00 FOR PROCESS EQUIPMENT PART 1. 2. THE PERIOD OF PERFORMANCE FOR PROCESS EQUIPMENT PART 1 IS: FROM: JANUARY 15, 2007 TO: JUNE 30, 2007 Key points: 1. Contract value significantly exceeds initial award, indicating potential scope expansion or cost overruns. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans a long period, raising questions about long-term cost control and evolving needs. 4. Hazardous waste treatment and disposal sector is critical but often complex and costly.
Value Assessment
Rating: questionable
The initial award of $515,374.00 is a small fraction of the total contract value of $97,279,702.59. This substantial increase suggests significant scope changes, cost growth, or multiple modifications over the contract's life, making a direct pricing assessment difficult without further detail.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the vast difference between the initial award and the final value warrants scrutiny to ensure the competitive process remained effective throughout the contract's duration.
Taxpayer Impact: The significant increase in contract value from the initial award to the final amount suggests a substantial taxpayer investment, the full justification and efficiency of which require further examination.
Public Impact
Taxpayers funded a substantial increase in spending beyond the initial contract amount. The extended performance period may impact the long-term efficiency and relevance of the procured equipment. The hazardous waste sector involves specialized services with inherent cost complexities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Significant cost growth from initial award to final value.
- Long contract duration (2007-2013) for process equipment.
- Lack of clarity on the nature of 'Process Equipment Part 1'.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical hazardous waste treatment and disposal.
Sector Analysis
This contract falls within the hazardous waste treatment and disposal sector, a specialized area often involving high costs due to regulatory compliance, safety protocols, and complex technologies. Benchmarks for process equipment in this sector can vary widely based on specific capabilities and scale.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as neither the prime contractor nor the contract itself is flagged as such. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The significant difference between the initial award and the final contract value necessitates robust oversight to ensure funds were used efficiently and appropriately. Tracking modifications and justifications for cost increases is crucial for accountability.
Related Government Programs
- Hazardous Waste Treatment and Disposal
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Significant cost growth.
- Long contract duration.
- Lack of detail on 'Process Equipment Part 1'.
- Potential for scope creep.
Tags
hazardous-waste-treatment-and-disposal, department-of-defense, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.3 million to BECHTEL PARSONS BLUE GRASS, A JOINT VENTURE. 1. PROVIDE FUNDS IN THE AMOUNT OF $515,374.00 FOR PROCESS EQUIPMENT PART 1. 2. THE PERIOD OF PERFORMANCE FOR PROCESS EQUIPMENT PART 1 IS: FROM: JANUARY 15, 2007 TO: JUNE 30, 2007
Who is the contractor on this award?
The obligated recipient is BECHTEL PARSONS BLUE GRASS, A 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 $97.3 million.
What is the period of performance?
Start: 2007-04-05. End: 2013-09-30.
What factors contributed to the substantial increase in contract value from $515,374.00 to over $97 million?
The significant escalation in contract value likely stems from a combination of factors such as scope expansion, unforeseen technical challenges, changes in regulatory requirements, inflation over the extended performance period, or the inclusion of multiple delivery orders and taskings under the original contract vehicle. Detailed contract modification records would be necessary to pinpoint the exact drivers.
How did the full and open competition ensure cost-effectiveness given the large final contract value?
While full and open competition is designed to promote competitive pricing, the substantial increase in value over time raises questions about whether the initial competitive advantage was maintained. It's possible that subsequent modifications or task orders were not subject to the same level of competition, or that market conditions evolved. A review of all contract actions would be needed to assess ongoing cost-effectiveness.
What is the specific nature of the 'Process Equipment Part 1' and its criticality to the Department of Defense's mission?
The provided data does not specify the exact nature or function of 'Process Equipment Part 1'. Understanding its role in hazardous waste treatment and disposal is essential to evaluating its criticality and justifying the significant investment. Further details on the equipment's capabilities and its contribution to the DoD's operational readiness or environmental compliance would be required.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: SALVAGE SERVICES › DEMOLITION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 830 EASTERN BYPASS STE 106, RICHMOND, KY, 40475
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $97,279,703
Exercised Options: $97,279,703
Current Obligation: $97,279,703
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAA0903D0023
IDV Type: IDC
Timeline
Start Date: 2007-04-05
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 12:09:00
Last Modified: 2022-10-26
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