DOD's $14.2M Sewage Treatment Facility Contract Awarded to Development Authority of the North Country
Contract Overview
Contract Amount: $14,248,486 ($14.2M)
Contractor: Development Authority of the North Country
Awarding Agency: Department of Defense
Start Date: 1999-10-31
End Date: 2011-04-30
Contract Duration: 4,199 days
Daily Burn Rate: $3.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Construction
Place of Performance
Location: FORT DRUM, JEFFERSON County, NEW YORK, 13602
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to DEVELOPMENT AUTHORITY OF THE NORTH COUNTRY for work described as: Key points: 1. The contract value is substantial at $14.2 million. 2. Competition was not available for this contract. 3. The contract duration is over 11 years, indicating a long-term need. 4. The sector is related to infrastructure/construction for the Department of the Army.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which can lead to cost overruns as the contractor is reimbursed for costs without a fixed profit margin. The award amount is significant, but without a benchmark for similar sewage treatment facilities, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive bidding process to drive down prices.
Taxpayer Impact: The lack of competition for a $14.2 million contract raises concerns about potential overspending of taxpayer funds due to the absence of market forces.
Public Impact
Taxpayers may have paid more than necessary due to the sole-source nature of the award. The long contract duration (over 11 years) means sustained potential for inefficient spending. Lack of transparency in pricing due to no-bid award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type (implied by 'COST NO FEE')
- Long contract duration
- Lack of competition
Positive Signals
- Addresses a necessary infrastructure need for the Army.
- Contract awarded to a regional development authority, potentially supporting local economic interests.
Sector Analysis
This contract falls under infrastructure development, specifically sewage treatment facilities, which are critical for military base operations. Spending benchmarks for such projects can vary widely based on location, scale, and specific technological requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a development authority suggests a focus on larger entities for this specific project.
Oversight & Accountability
The 'COST NO FEE' contract type requires robust oversight to ensure costs are reasonable and necessary. Without competitive bidding, the government must rely heavily on its own auditing and monitoring capabilities to prevent waste.
Related Government Programs
- Sewage Treatment Facilities
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type (implied) can incentivize higher spending.
- Long contract duration increases exposure to cost escalation.
- Lack of transparency in pricing due to no-bid award.
- Potential for inefficient resource allocation without competitive pressure.
Tags
sewage-treatment-facilities, department-of-defense, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to DEVELOPMENT AUTHORITY OF THE NORTH COUNTRY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DEVELOPMENT AUTHORITY OF THE NORTH COUNTRY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.2 million.
What is the period of performance?
Start: 1999-10-31. End: 2011-04-30.
What was the justification for awarding this contract on a sole-source basis, and were any alternatives explored?
The justification for a sole-source award is critical for understanding why competition was bypassed. Without this information, it's difficult to assess if the government truly received the best value. Exploring alternatives, even if ultimately deemed unsuitable, is a key part of responsible procurement.
How were costs validated and controlled under the 'COST NO FEE' structure to ensure taxpayer funds were used efficiently?
The 'COST NO FEE' structure necessitates stringent government oversight to validate all incurred costs. This includes detailed audits and reviews to ensure expenses are reasonable, allocable, and necessary for contract performance. Without effective cost control mechanisms, this contract type poses a significant risk of overspending.
What performance metrics were established to measure the effectiveness of the sewage treatment facilities over the contract's long duration?
Measuring effectiveness over a long-term infrastructure contract is crucial. Key performance indicators (KPIs) related to treatment efficiency, environmental compliance, operational reliability, and maintenance costs should have been established. Regular performance reviews against these metrics would ensure the facilities meet their intended purpose and provide value.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: COST NO FEE (S)
Contractor Details
Address: 317 WASHINGTON ST, WATERTOWN, NY, 90
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,414,306
Exercised Options: $12,414,306
Current Obligation: $14,248,486
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1999-10-31
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2011-06-21
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