Army awards $41M for oil and gas support, with 8 bidders competing for firm-fixed-price delivery order

Contract Overview

Contract Amount: $40,958,860 ($41.0M)

Contractor: Tetra Tech-Maytag Aircraft Corporation Joint Venture

Awarding Agency: Department of Defense

Start Date: 2016-12-16

End Date: 2022-06-15

Contract Duration: 2,007 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MINOR/EMERGENCY REPAIR IGF::CT::IGF

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91107

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $41.0 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE for work described as: MINOR/EMERGENCY REPAIR IGF::CT::IGF Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. The contract duration of over 2000 days highlights a long-term need for these services. 4. Awarded by the Department of the Army, indicating a focus on defense-related infrastructure or operations. 5. The North American Industry Classification System (NAICS) code 213112 points to support activities for oil and gas operations. 6. The joint venture nature of the contractor, TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE, may indicate specialized capabilities. 7. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award amount of approximately $41 million for support activities in oil and gas operations appears reasonable given the contract's duration and scope. Benchmarking against similar long-term support contracts for defense infrastructure or energy sector services would provide further context. The firm-fixed-price structure generally offers good value by transferring cost risk to the contractor, provided the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with eight bidders participating. This level of competition is generally positive, suggesting that multiple capable firms vied for the work, which can lead to better pricing and service offerings for the government. The presence of eight bidders indicates a healthy market for these specialized support services.

Taxpayer Impact: A competitive bidding process with multiple bidders typically results in taxpayer savings by driving down prices and encouraging efficiency from the winning contractor.

Public Impact

The primary beneficiaries are likely the Department of the Army and its operational readiness, through the provision of essential support services for oil and gas operations. Services delivered include critical support activities necessary for maintaining or enhancing oil and gas infrastructure relevant to defense needs. The geographic impact is specified as California, indicating the services are localized to this region. Workforce implications may include employment opportunities for skilled labor in the oil and gas support sector within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed-price estimates do not accurately reflect the complexity of long-term support activities.
Dependence on a joint venture contractor may introduce coordination challenges or risks if one partner underperforms.
The long duration could lead to contractor complacency or a decrease in service quality over time without diligent oversight.

Positive Signals

Firm-fixed-price contract type locks in costs, providing budget certainty for the government.
Full and open competition with eight bidders suggests a strong market and competitive pricing.
The contract's long duration indicates a sustained need and potentially a reliable service provider for critical operations.

Sector Analysis

The contract falls within the broader energy sector, specifically focusing on support activities for oil and gas operations. This niche often involves specialized equipment, logistics, and technical expertise. Comparable spending benchmarks would involve looking at other government contracts for similar support services, particularly those awarded by defense agencies for operational infrastructure maintenance or development in energy-related areas. The market size for such specialized support can vary significantly based on geopolitical factors and domestic energy policies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a joint venture, it is unclear if any small businesses are involved as subcontractors. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to manage costs effectively. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Infrastructure Support
Energy Sector Services
Oil and Gas Field Services
Logistics and Support Contracts
California State Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or obsolescence.
Joint venture structure requires careful management of partner contributions and responsibilities.
Specific details on service deliverables and performance metrics are not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.0 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE. MINOR/EMERGENCY REPAIR IGF::CT::IGF

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 $41.0 million.

What is the period of performance?

Start: 2016-12-16. End: 2022-06-15.

What is the historical spending pattern for similar oil and gas support contracts awarded by the Department of the Army?

Analyzing historical spending for similar contracts by the Department of the Army requires accessing and processing extensive federal procurement data. Typically, such contracts are awarded under specific NAICS codes related to oil and gas support services (like 213112) or broader categories like facilities support or construction. Spending patterns can fluctuate based on defense priorities, energy market conditions, and specific operational needs in regions like California. For instance, periods of increased military activity or infrastructure development might correlate with higher spending. Comparing the $41 million award to the average value and frequency of past awards for comparable services would reveal if this contract represents a significant investment or a routine expenditure. Without direct access to a historical database query for this specific context, a precise pattern cannot be detailed, but general trends suggest that long-term, high-value contracts are common for critical support functions.

How does the per-unit cost or pricing structure of this contract compare to industry benchmarks for oil and gas support services?

Determining the precise per-unit cost or pricing structure requires detailed knowledge of the specific services rendered under the contract, which are not fully elaborated in the provided data. The contract is a firm-fixed-price delivery order, meaning the price was set upfront. To benchmark this against industry standards, one would need to identify comparable services (e.g., drilling support, pipeline maintenance, geological surveying) and their typical market rates. Factors like geographic location (California), specialized equipment requirements, and the duration of the contract (over 2000 days) significantly influence pricing. A comparison would involve analyzing the contractor's proposed rates against those of other firms offering similar services in the same region. Given the competitive bidding process with eight bidders, it is likely that the pricing reflects a competitive market rate, but without specific service details, a definitive benchmark is challenging.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

Key Performance Indicators (KPIs) for a contract like this, focused on 'Support Activities for Oil and Gas Operations,' would typically be established within the contract's Performance Work Statement (PWS). While not detailed in the summary data, common KPIs in such service contracts often include timeliness of service delivery, quality of work performed (e.g., adherence to safety standards, technical accuracy), cost control (especially relevant for fixed-price contracts where efficiency is key), and responsiveness to task orders or emergency requests. For a long-duration contract, KPIs might also track equipment uptime, environmental compliance, and personnel qualifications. The Department of the Army would monitor these KPIs through regular progress reports, site inspections, and potentially user feedback from the operational units being supported. Failure to meet KPIs could result in penalties or impact future contract awards.

What is the track record of TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE in performing similar government contracts?

Assessing the track record of the TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE requires examining their past performance on government contracts, particularly those involving oil and gas support, infrastructure, or large-scale project management. Both Tetra Tech and Maytag Aircraft Corporation have separate histories with government contracting, and their joint venture's performance would build upon these foundations. Information on past performance, including contract awards, completion history, and any documented issues (e.g., disputes, performance deficiencies), can often be found in federal procurement databases like the Federal Procurement Data System (FPDS) or through agency-specific performance evaluation systems. A positive track record typically involves successful completion of similar contracts on time and within budget, with minimal disputes or negative performance reviews. Conversely, a history of issues could raise concerns about the joint venture's capability to execute this specific $41 million contract effectively.

What are the potential risks associated with the long duration (2007 days) of this contract?

The long duration of this contract, approximately 2007 days (over 5.5 years), presents several potential risks. Firstly, the cost of materials, labor, and equipment can fluctuate significantly over such an extended period, potentially impacting the contractor's profitability or leading to requests for equitable adjustments if not adequately accounted for in the initial fixed-price agreement. Secondly, technological advancements in oil and gas support services could render the initially contracted methods or equipment obsolete, requiring costly upgrades or modifications. Thirdly, personnel turnover within the contractor's organization could lead to a loss of institutional knowledge and experience, potentially affecting service quality. Finally, the extended timeline increases the risk of unforeseen geopolitical events, regulatory changes, or shifts in defense priorities that could alter the scope or necessity of the services required, leading to contract modifications or termination.

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

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: $40,958,860

Exercised Options: $40,958,860

Current Obligation: $40,958,860

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