Transportation awards $3.6M for vegetation control at Saipan facilities, with 4 bids received

Contract Overview

Contract Amount: $35,976 ($36.0K)

Contractor: Luis E. Bustamante

Awarding Agency: Department of Transportation

Start Date: 2024-09-24

End Date: 2026-09-30

Contract Duration: 736 days

Daily Burn Rate: $49/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF CONTRACT IS TO PROVIDE VEGETATION CONTROL SERVICES AT SAIPAN FACILITIES (NDB AND MALSR 6 LIGHT STATIONS)

Place of Performance

Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950

Plain-Language Summary

Department of Transportation obligated $35,976 to LUIS E. BUSTAMANTE for work described as: THE PURPOSE OF CONTRACT IS TO PROVIDE VEGETATION CONTROL SERVICES AT SAIPAN FACILITIES (NDB AND MALSR 6 LIGHT STATIONS) Key points: 1. Contract value appears reasonable for landscaping services in a remote location. 2. Full and open competition suggests a healthy market for these services. 3. Definitive contract type indicates a clear scope of work. 4. Firm fixed-price structure transfers risk to the contractor. 5. Contract duration of over two years provides stability for service delivery. 6. Performance location in the Northern Mariana Islands may influence costs and logistics.

Value Assessment

Rating: good

The contract value of $3.6 million for vegetation control over approximately two years seems aligned with the scope of services for remote facilities. Benchmarking against similar landscaping contracts in island territories or for specialized infrastructure maintenance would provide a more precise value assessment. The firm fixed-price nature suggests that the contractor has factored in potential cost fluctuations, which is a positive sign for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with four bids received. This level of competition is generally favorable, indicating that multiple vendors were aware of and interested in the opportunity. The presence of four bidders suggests a reasonably competitive market for vegetation control services in the region, which should contribute to fair pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging providers to offer their best pricing.

Public Impact

The Federal Aviation Administration benefits from maintained facilities essential for air navigation. Vegetation control services ensure the operational integrity and safety of NDB and MALSR 6 light stations. The geographic impact is localized to Saipan in the Northern Mariana Islands. The contract supports local or regional employment through the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs due to the remote island location.
Ensuring consistent service quality over the contract duration.
Logistical challenges associated with delivering services in the Northern Mariana Islands.

Positive Signals

Clear contract type (Definitive Contract) and pricing structure (Firm Fixed Price).
Awarded through full and open competition, indicating market interest.
Sufficient duration for sustained service delivery and operational stability.

Sector Analysis

This contract falls within the broader category of facilities maintenance and support services, specifically focusing on landscaping and vegetation management. The market for such services can vary significantly based on geographic location, with remote or island locations often commanding higher prices due to logistical complexities and limited local vendor pools. Comparable spending benchmarks would ideally look at similar contracts for maintaining critical infrastructure in island territories or for specialized environmental services.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses had the opportunity to participate either as prime contractors or subcontractors in this procurement.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Transportation's Federal Aviation Administration. Oversight would typically be managed by the contracting officer and program officials within the FAA. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

FAA Facility Maintenance Contracts
Vegetation Management Services
Infrastructure Support Contracts
Northern Mariana Islands Federal Contracts

Risk Flags

Remote Location Logistics
Potential for Cost Overruns
Environmental Factor Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $35,976 to LUIS E. BUSTAMANTE. THE PURPOSE OF CONTRACT IS TO PROVIDE VEGETATION CONTROL SERVICES AT SAIPAN FACILITIES (NDB AND MALSR 6 LIGHT STATIONS)

Who is the contractor on this award?

The obligated recipient is LUIS E. BUSTAMANTE.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $35,976.

What is the period of performance?

Start: 2024-09-24. End: 2026-09-30.

What is the historical spending by the FAA on vegetation control services, particularly in remote locations like Saipan?

Analyzing historical spending data for the Federal Aviation Administration (FAA) on vegetation control services, especially in geographically isolated areas such as Saipan, is crucial for contextualizing the current $3.6 million award. While specific historical figures for Saipan vegetation control are not provided in the data, a broader review of FAA landscaping and grounds maintenance contracts over the past five to ten years could reveal spending trends. This analysis should consider contract values, durations, and the specific services rendered. For instance, if similar contracts in Guam or other Pacific territories have averaged higher per-year costs due to logistical challenges, the current award might be considered reasonable. Conversely, a significant increase in spending compared to previous periods or similar contracts could warrant further investigation into potential cost drivers or market shifts.

How does the per-unit cost or annual cost of this contract compare to industry benchmarks for similar landscaping and vegetation control services?

Benchmarking the per-unit or annual cost of this $3.6 million contract against industry standards for landscaping and vegetation control is essential for assessing value for money. Given the contract's duration of approximately two years (736 days), the annual cost is roughly $1.8 million. This figure needs to be compared with market rates for similar services, considering factors like the specific scope of work (e.g., clearing, mowing, herbicide application), the size of the area maintained, and the type of vegetation. Remote island locations like Saipan often incur higher costs due to transportation, specialized equipment import/export, and potentially limited local labor availability. Therefore, a direct comparison with mainland U.S. contracts might be misleading. Researching industry reports or databases that track landscaping costs in Pacific territories or for similar government infrastructure maintenance would provide a more accurate benchmark.

What are the specific risks associated with a definitive contract of this duration for vegetation control in a remote island environment?

A definitive contract for vegetation control in a remote island environment like Saipan presents several specific risks. Firstly, the remote location can lead to logistical challenges, including difficulties in transporting personnel, equipment, and materials, potentially increasing costs and causing delays. Secondly, the duration of over two years (736 days) means that unforeseen environmental changes (e.g., invasive species, extreme weather events) could impact the effectiveness of the planned vegetation control methods, requiring adaptive strategies or scope adjustments. Thirdly, the firm fixed-price nature, while beneficial for budget certainty, transfers the risk of cost overruns to the contractor; if unexpected challenges arise, the contractor might face financial strain, potentially impacting service quality or leading to disputes. Finally, ensuring consistent access to skilled labor and specialized equipment in the Northern Mariana Islands could be a persistent risk throughout the contract term.

What is the track record of the contractor, LUIS E. BUSTAMANTE, in performing similar government contracts, particularly for the FAA or in remote locations?

Evaluating the track record of the contractor, LUIS E. BUSTAMANTE, is critical for assessing the likelihood of successful contract performance. Information regarding past performance, including previous contracts with the FAA or other federal agencies, contract values, and client feedback (e.g., past performance evaluations), would provide insight into their capabilities. Specifically, experience with vegetation control, landscaping, or facilities maintenance in remote or island environments like the Northern Mariana Islands would be highly relevant. A review of their history could reveal patterns of on-time delivery, adherence to budget, quality of work, and responsiveness to issues. If the contractor has a history of successful, similar engagements, it increases confidence in their ability to meet the requirements of this contract. Conversely, a history of performance issues or contract disputes would raise concerns.

How does the level of competition (4 bidders) for this contract influence the potential for cost savings or service quality compared to sole-source or limited-competition awards?

The fact that this vegetation control contract was awarded under full and open competition with four bidders is a significant positive indicator for both cost savings and service quality. A competitive environment typically drives down prices as contractors strive to offer the most attractive bids to win the contract. The presence of multiple interested parties suggests a healthy market for these services, reducing the risk of inflated pricing that can occur with sole-source or limited-competition awards. Furthermore, competition often incentivizes contractors to deliver higher quality services and demonstrate superior performance to secure future contracts. With four bidders, the FAA has a reasonable basis for comparison to ensure they are receiving fair market value and that the selected contractor is well-positioned to meet the service requirements effectively.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-24-R-00442

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 351 ALAGETA STREET BELLO RD, DEDEDO, GU, 96929

Business Categories: Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,940

Exercised Options: $53,964

Current Obligation: $35,976

Actual Outlays: $20,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline