Department of the Army awarded $78.6M for life support services at FOB Phoenix and Blackhawk

Contract Overview

Contract Amount: $78,650,200 ($78.7M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2008-09-24

End Date: 2008-09-24

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W914NS05D9027} LIFE SUPPORT FOR FOB PHOENIX AND BLACKHAWK AUG 07

Plain-Language Summary

Department of Defense obligated $78.7 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W914NS05D9027} LIFE SUPPORT FOR FOB PHOENIX AND BLACKHAWK AUG 07 Key points: 1. Contract awarded to a miscellaneous foreign awardee, raising questions about domestic economic impact. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. A firm-fixed-price contract type indicates that the price was set at the outset. 4. The contract duration was a single day, suggesting a very specific, short-term need. 5. The award was made by the Department of the Army, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 921190 points to general government support services.

Value Assessment

Rating: fair

The contract value of $78.6 million for a single day of life support services appears exceptionally high, suggesting potential inefficiencies or a highly specialized, albeit brief, requirement. Without comparable single-day contracts for similar services in conflict zones, a direct value-for-money assessment is difficult. The firm-fixed-price structure, however, implies that the government agreed to a set cost, which could be advantageous if the services were delivered as expected, but potentially disadvantageous if costs were lower than anticipated by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a degree of competition, though the specific number does not inherently guarantee the best possible price. The open competition framework is designed to foster price discovery and ensure that the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

Service members stationed at FOB Phoenix and Blackhawk likely benefited from essential life support services. The services provided were critical for maintaining operational readiness and morale in a deployed environment. The geographic impact is localized to the specific operating bases in a foreign theater. While not directly creating domestic jobs, the contract supported the logistical chain for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extremely high cost for a single day of service warrants scrutiny for potential overpricing or scope creep.
The use of a 'miscellaneous foreign awardee' raises questions about the vetting process and potential risks associated with non-US entities.
The short duration of the contract could indicate a rushed or emergency procurement, potentially leading to suboptimal pricing.
Lack of detailed service descriptions makes it difficult to fully assess the value delivered for the funds expended.

Positive Signals

The contract was awarded through full and open competition, indicating a commitment to a fair and transparent process.
The firm-fixed-price contract type provides cost certainty for the government, assuming the scope was well-defined.
The award to a foreign entity might reflect the specific operational needs or logistical realities of the deployment location.

Sector Analysis

This contract falls under the broader 'Other General Government Support' sector, which encompasses a wide range of services essential for government operations. Within the defense sector, such contracts are crucial for enabling military personnel to perform their duties effectively by providing necessary logistical and life support. Comparable spending benchmarks are difficult to establish due to the unique nature of deployed base support and the short, single-day duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have significant subcontracting implications for small businesses based on the limited information. The awardee is listed as 'MISCELLANEOUS FOREIGN AWARDEES,' suggesting the primary contractor is not a U.S. small business.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Department of Defense Inspector General. Transparency is limited by the publicly available data, which lacks detailed service breakdowns. Accountability would be tied to the firm-fixed-price terms and the contractor's adherence to the contract's specifications.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Contingency Contracting
Foreign Military Sales Support

Risk Flags

High Cost for Short Duration
Foreign Awardee Vetting
Lack of Service Specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.7 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W914NS05D9027} LIFE SUPPORT FOR FOB PHOENIX AND BLACKHAWK AUG 07

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $78.7 million.

What is the period of performance?

Start: 2008-09-24. End: 2008-09-24.

What specific life support services were included in this $78.6 million contract for a single day?

The provided data does not specify the exact life support services covered under this contract. However, typical life support services in deployed environments include provisions for food, water, shelter, sanitation, power generation, waste management, and potentially security or medical support. Given the substantial value for a single day, the services might have involved a large-scale, immediate logistical requirement, such as setting up or dismantling critical infrastructure, or providing specialized support for a significant event or personnel surge at FOB Phoenix and Blackhawk. Further details from the contract's statement of work would be necessary for a precise understanding.

How does the cost per day of this contract compare to similar life support contracts in deployed environments?

Directly comparing the cost of this contract ($78.6 million for one day) to similar life support contracts is challenging due to the limited data and the contract's unusual single-day duration. Contracts for base operations support typically span longer periods (months or years) and have daily costs that are orders of magnitude lower. The exceptionally high daily cost here suggests either a highly specialized, non-recurring service, a significant setup or teardown cost bundled into a single day, or potentially an emergency procurement where urgency drove up prices. Without more context on the specific services rendered and the operational circumstances, benchmarking this cost is not feasible.

What are the potential risks associated with awarding a contract to a 'miscellaneous foreign awardee'?

Awarding contracts to 'miscellaneous foreign awardees' can introduce several risks. These include challenges in vetting the contractor's reliability, financial stability, and adherence to ethical standards. There may be difficulties in enforcing contract terms or seeking recourse in case of disputes due to differing legal jurisdictions. Furthermore, depending on the country of origin, there could be geopolitical risks, potential for corruption, or concerns about the security of sensitive information. Ensuring compliance with U.S. regulations and standards can also be more complex. The Department of Defense typically has specific procedures for vetting foreign contractors, but inherent risks remain.

Given the firm-fixed-price contract type, how was the government protected if the services were not fully delivered?

In a firm-fixed-price (FFP) contract, the government agrees to pay a set price regardless of the contractor's actual costs. Protection against non-delivery or substandard delivery relies heavily on the contract's terms, conditions, and performance standards. The government would typically have mechanisms to withhold payment, assess penalties, or terminate the contract for default if the contractor fails to meet the specified requirements. Quality assurance personnel are usually assigned to monitor performance. If the services were not delivered as specified, the government could invoke contract clauses related to non-performance, potentially leading to financial remedies or legal action, though the effectiveness depends on the contract's clarity and enforcement.

What does the award of 3 bids under 'full and open competition' imply about the market for these services?

The award of three bids under full and open competition suggests that there is a market capable of providing the required services, and that multiple entities were willing and able to compete for this contract. However, the number 'three' alone does not definitively indicate a highly competitive market. A robust competition typically involves a larger number of bidders, which generally leads to better price discovery and potentially lower prices for the government. The fact that it was competed openly is positive, but the relatively low number of bidders might warrant further investigation into potential barriers to entry or market concentration for this specific type of service.

What is the significance of the NAICS code 921190 ('Other General Government Support') in the context of this contract?

The North American Industry Classification System (NAICS) code 921190, 'Other General Government Support,' categorizes establishments primarily engaged in providing services that support the general operations of government entities, but are not elsewhere classified. This includes activities like legislative bodies, public finance, tax administration, and government administration. In the context of this contract for life support at military bases, it signifies that the services provided were essential for the functioning of the Department of the Army's operations, falling under the broad umbrella of government administrative and support functions rather than direct combat or specific program execution.

Industry Classification

NAICS: Public Administration › Executive, Legislative, and Other General Government Support › Other General Government Support

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $78,650,200

Exercised Options: $78,650,200

Current Obligation: $78,650,200

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W91GEU05D0011

IDV Type: IDC

Timeline