DoD Obligates $29M for Radford Army Plant Nitric Acid Tanks Replacement
Contract Overview
Contract Amount: $29,020,660 ($29.0M)
Contractor: BAE Systems Ordnance Systems Inc
Awarding Agency: Department of Defense
Start Date: 2014-10-30
End Date: 2018-01-31
Contract Duration: 1,189 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OBLIGATE FUNDING FOR THE STRONG NITRIC ACID TANKS REPLACEMENT PROJECT (DESIGN AND ENGINEERING SERVICES) AT RADFORD ARMY AMMUNITION PLANT.
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.0 million to BAE SYSTEMS ORDNANCE SYSTEMS INC for work described as: OBLIGATE FUNDING FOR THE STRONG NITRIC ACID TANKS REPLACEMENT PROJECT (DESIGN AND ENGINEERING SERVICES) AT RADFORD ARMY AMMUNITION PLANT. Key points: 1. Significant investment in critical infrastructure at Radford Army Ammunition Plant. 2. BAE Systems Ordnance Systems Inc. awarded the contract. 3. Project focuses on design and engineering services for tank replacement. 4. Potential for long-term operational improvements and safety enhancements.
Value Assessment
Rating: good
The contract value of $29.02M for design and engineering services appears reasonable for a project of this nature, considering the specialized requirements of handling nitric acid at a military facility. Benchmarking against similar large-scale industrial facility design projects would provide further context.
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. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive bidding process.
Public Impact
Ensures continued safe and efficient operations at Radford Army Ammunition Plant. Supports the modernization of critical infrastructure for national defense. Project completion will mitigate risks associated with aging tank systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen design challenges arise.
- Dependence on BAE Systems for successful project execution.
Positive Signals
- Addresses critical infrastructure needs.
- Utilizes competitive procurement.
- Focuses on safety and operational efficiency.
Sector Analysis
This contract falls within the Facilities Support Services sector, which includes a wide range of services for maintaining and operating government facilities. Spending in this sector is often driven by infrastructure modernization and safety compliance needs.
Small Business Impact
The data indicates that small businesses were not directly involved as the prime contractor in this specific award. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The award was made by the Department of the Army, part of the Department of Defense, which has established oversight mechanisms for major procurement projects. The use of a delivery order under a larger contract structure implies some level of pre-existing oversight.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting plant operations.
- Risk of design flaws leading to costly rework.
- Dependency on contractor's technical expertise.
- Environmental risks associated with nitric acid handling.
Tags
facilities-support-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to BAE SYSTEMS ORDNANCE SYSTEMS INC. OBLIGATE FUNDING FOR THE STRONG NITRIC ACID TANKS REPLACEMENT PROJECT (DESIGN AND ENGINEERING SERVICES) AT RADFORD ARMY AMMUNITION PLANT.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS ORDNANCE SYSTEMS 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 $29.0 million.
What is the period of performance?
Start: 2014-10-30. End: 2018-01-31.
What is the projected long-term cost savings or operational efficiency gain expected from replacing the nitric acid tanks?
The primary benefit of replacing aging nitric acid tanks is expected to be enhanced safety and reliability, reducing the risk of leaks or failures that could lead to costly environmental remediation and operational downtime. While direct cost savings are not explicitly stated, improved operational efficiency and avoidance of potential catastrophic failures represent significant long-term value.
What are the key performance indicators (KPIs) for the design and engineering services phase, and how will their achievement be measured?
Key performance indicators for design and engineering services typically include adherence to project timelines, meeting technical specifications, quality of deliverables (e.g., blueprints, engineering reports), and compliance with safety and environmental regulations. Measurement would involve regular progress reviews, independent technical reviews of design documents, and final acceptance of all engineering outputs by the Army.
How does the cost of this design and engineering contract compare to similar projects for hazardous material containment systems at other federal facilities?
Without specific benchmark data for comparable hazardous material containment system design contracts, a precise comparison is difficult. However, the $29M obligation for design and engineering suggests a complex and potentially large-scale replacement project. Factors like the specific type of acid, tank capacity, site conditions, and regulatory requirements significantly influence costs in this specialized field.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
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: STATE RT 114, RADFORD, VA, 24141
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,020,660
Exercised Options: $29,020,660
Current Obligation: $29,020,660
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W52P1J11G0002
IDV Type: BOA
Timeline
Start Date: 2014-10-30
Current End Date: 2018-01-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2018-02-05
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