DOD's $477.8M Facilities Support Contract Awarded to Shaw Infrastructure, Inc. for Georgia Operations

Contract Overview

Contract Amount: $477,852,166 ($477.9M)

Contractor: Shaw Infrastructure, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-08-29

End Date: 2010-09-18

Contract Duration: 2,942 days

Daily Burn Rate: $162.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $477.9 million to SHAW INFRASTRUCTURE, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. Duration of over 8 years indicates a long-term need for these services. 4. The contract is a significant award within the Facilities Support Services sector. 5. The award value represents substantial federal investment in infrastructure support. 6. The contract was awarded by the Department of the Army, a major component of the DOD.

Value Assessment

Rating: good

The contract's value of over $477 million over nearly 8 years suggests a substantial investment in facilities support. While specific cost breakdowns are not provided, the Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, potentially driving value for money. Benchmarking against similar large-scale facilities support contracts would be necessary for a definitive value assessment, but the duration and scope indicate a significant, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, though the exact number of bidders is not fully detailed. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it aims to secure the best possible value by encouraging multiple companies to offer their services and pricing.

Public Impact

The Department of Defense benefits from consistent and comprehensive facilities support services. Military installations in Georgia receive essential maintenance, operations, and support. The contract supports the operational readiness of military personnel and equipment. Local economies in Georgia may benefit from job creation and subcontracting opportunities related to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not managed rigorously.
Long contract duration could lead to vendor lock-in or reduced flexibility over time.
Dependence on a single contractor for critical facilities support services poses a risk.

Positive Signals

The Cost Plus Award Fee structure incentivizes high performance and efficiency.
Award through full and open competition suggests a robust vetting of potential contractors.
The long duration indicates a stable, long-term partnership for essential services.

Sector Analysis

Facilities Support Services is a broad category encompassing a wide range of activities necessary for the operation and maintenance of physical infrastructure. This sector is critical for government agencies, particularly defense, which relies on secure and functional facilities. The market size for such services is substantial, with significant federal spending allocated annually. This contract fits within the larger trend of outsourcing non-core functions to specialized service providers to ensure operational efficiency and cost-effectiveness.

Small Business Impact

The provided data indicates that small business participation was not a primary set-aside component for this contract (ss: false, sb: false). While this specific award may not directly benefit small businesses through set-asides, large prime contractors like Shaw Infrastructure, Inc. are often required to subcontract portions of the work. This can create opportunities for small businesses to participate indirectly, provided there are robust subcontracting plans and oversight in place.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Award Fee structure implies performance metrics and award criteria that require monitoring and evaluation. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering and Maintenance Services
Logistics and Support Services
Department of Defense Contracts
Government Facilities Management

Risk Flags

Cost Overruns Risk
Performance Monitoring Challenges
Long-Term Contract Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $477.9 million to SHAW INFRASTRUCTURE, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SHAW INFRASTRUCTURE, 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 $477.9 million.

What is the period of performance?

Start: 2002-08-29. End: 2010-09-18.

What is the historical spending pattern for facilities support services by the Department of the Army in Georgia?

Analyzing historical spending patterns for facilities support services by the Department of the Army in Georgia is crucial for understanding the context of this $477.8 million award. Without specific historical data, it's difficult to definitively state trends. However, large-scale military installations often require consistent, long-term support for their facilities. Spending in this category typically fluctuates based on infrastructure upgrades, maintenance cycles, and operational tempo. A contract of this magnitude and duration suggests a sustained need and potentially an increase or stabilization of federal investment in maintaining these critical assets within the state. Further analysis would involve examining prior contracts for similar services, their values, and durations to identify any significant shifts or consistent investment levels.

How does the performance of Shaw Infrastructure, Inc. on previous contracts compare to industry benchmarks?

Assessing Shaw Infrastructure, Inc.'s performance on previous contracts against industry benchmarks requires access to detailed performance reviews, past performance questionnaires, and potentially debriefing information from prior solicitations. The fact that they were awarded this significant Department of Defense contract suggests a positive past performance record. However, 'good' or 'excellent' performance is subjective and can vary by contract type and scope. Industry benchmarks for facilities support services often focus on metrics such as on-time completion, adherence to budget (where applicable), safety records, client satisfaction, and responsiveness. A comprehensive analysis would involve reviewing their performance on similar government contracts, looking for any patterns of excellence or areas where they may have faced challenges, and comparing these against established metrics within the facilities management sector.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude, like the $477.8 million award to Shaw Infrastructure, Inc., revolve around cost control and potential for contractor inefficiency if not managed properly. CPAF contracts reimburse the contractor for allowable costs and provide a fixed fee, plus an award amount based on performance against predetermined criteria. The risk for the government is that the contractor may not be sufficiently motivated to control costs if the award fee is perceived as easily attainable, or conversely, may incur excessive costs in pursuit of higher award fees. Effective oversight, clear and measurable performance metrics, and rigorous auditing are essential to mitigate these risks and ensure the government receives good value. The long duration of this contract amplifies these risks, necessitating continuous monitoring.

What is the estimated value per year of this contract, and how does it compare to similar facilities support contracts?

This contract has a total value of $477,852,166.13 and a duration of 2942 days, which is approximately 8.06 years. To estimate the value per year, we divide the total value by the duration in years: $477,852,166.13 / 8.06 years ≈ $59.3 million per year. Comparing this to similar facilities support contracts requires access to a database of federal contract awards with detailed scope and duration. However, for a large-scale, long-term contract supporting significant Department of Defense infrastructure, an annual value in the tens of millions is not uncommon. The specific nature of the services (e.g., maintenance, operations, security, IT support within facilities) and the geographic scope (Georgia) would influence comparability. Without direct benchmarks for comparable contracts, it's challenging to definitively state if $59.3 million annually is high or low, but it represents a substantial commitment.

What are the potential implications for workforce development and local employment in Georgia due to this contract?

This contract, valued at over $477 million and spanning nearly 8 years, is likely to have significant implications for workforce development and local employment in Georgia. As Shaw Infrastructure, Inc. provides facilities support services, it will require a substantial workforce encompassing various skill sets, including maintenance technicians, engineers, administrative staff, security personnel, and potentially specialized trades. The long-term nature of the contract suggests stable job creation. Furthermore, the company may prioritize hiring locally to reduce relocation costs and leverage existing community expertise. There's also potential for indirect job creation through local suppliers and service providers that Shaw Infrastructure, Inc. may engage. The scale of the contract indicates a considerable economic impact on the region where the supported facilities are located.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shaw Group Inc., the (UEI: 180038382)

Address: 2790 MOSSIDE BLVD, MONROEVILLE, PA, 12

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $477,540,755

Exercised Options: $477,540,754

Current Obligation: $477,852,166

Contract Characteristics

Cost or Pricing Data: NO

Timeline