USMMA Sewage Service Contract Exceeds $12M Over 10 Years, Awarded Sole-Source

Contract Overview

Contract Amount: $12,146,152 ($12.1M)

Contractor: Great Neck, Village of

Awarding Agency: Department of Transportation

Start Date: 2008-06-01

End Date: 2018-05-31

Contract Duration: 3,651 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEWAGE SERVICE AT USMMA

Place of Performance

Location: GREAT NECK, NASSAU County, NEW YORK, 11024, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $12.1 million to GREAT NECK, VILLAGE OF for work described as: SEWAGE SERVICE AT USMMA Key points: 1. Contract value of $12.15M for sewage services at USMMA. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (10 years) may limit opportunities for re-evaluation. 4. Spending falls within the 'Sewage Treatment Facilities' NAICS code.

Value Assessment

Rating: questionable

The contract value of $12.15M over 10 years for sewage services is difficult to benchmark without comparable contracts. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, indicating no competition was sought. This method limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award suggests potential for overpayment and reduced value for taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the lack of competitive bidding. The long-term nature of the contract could mean outdated technology or service levels. Ensuring essential services like sewage treatment are procured efficiently is vital for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of competition

Positive Signals

Essential service provided
Long-term stability for service provider

Sector Analysis

This contract falls under sewage treatment facilities, a critical but often overlooked sector. Benchmarking is difficult without specific data on similar municipal or institutional contracts.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, limiting opportunities for them.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value and that competition was not improperly excluded.

Related Government Programs

Sewage Treatment Facilities
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.1 million to GREAT NECK, VILLAGE OF. SEWAGE SERVICE AT USMMA

Who is the contractor on this award?

The obligated recipient is GREAT NECK, VILLAGE OF.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2008-06-01. End: 2018-05-31.

What was the justification for awarding this sewage service contract sole-source?

The justification for a sole-source award typically involves a determination that only one responsible source is capable of providing the required service. This could be due to unique capabilities, proprietary technology, or specific site requirements. Without further documentation, it's difficult to ascertain the precise rationale, but it's a key area for oversight.

Could a competitive bidding process have resulted in significant cost savings for this sewage service contract?

Yes, competitive bidding generally leads to lower prices as vendors vie for the contract. A sole-source award removes this pressure, potentially allowing the awarded vendor to charge a premium. The $12.15M value over 10 years suggests that even a small percentage saved through competition could amount to substantial taxpayer savings.

What are the risks associated with a 10-year contract for sewage services?

A 10-year contract for sewage services carries risks such as potential technological obsolescence, changes in regulatory requirements, and the vendor's performance degradation over time. It also locks the government into a single provider, limiting flexibility to adapt to new needs or seek better service or pricing if market conditions change.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 61 BAKER HILL RD, GREAT NECK, NY, 11023

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

Financial Breakdown

Contract Ceiling: $12,146,152

Exercised Options: $12,146,152

Current Obligation: $12,146,152

Contract Characteristics

Cost or Pricing Data: NO

Timeline