Air Force Water Utility Contract for DAFB Exceeds $5.7M, Awarded to Tidewater Utilities Inc
Contract Overview
Contract Amount: $5,703,117 ($5.7M)
Contractor: Tidewater Utilities Inc
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2026-09-30
Contract Duration: 4,383 days
Daily Burn Rate: $1.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF PRIVATIZATION OF WATER UTILITY SYS AT DAFB, DE. (SHELL CONTRACT FOR ADMIN PURPOSES) THIS WAS A DLA CONTRACT TRANSFERRED TO DAFB UNDER SP0600-13-C-8282.
Place of Performance
Location: DOVER AFB, KENT County, DELAWARE, 19902
State: Delaware Government Spending
Plain-Language Summary
Department of Defense obligated $5.7 million to TIDEWATER UTILITIES INC for work described as: IGF::CT::IGF PRIVATIZATION OF WATER UTILITY SYS AT DAFB, DE. (SHELL CONTRACT FOR ADMIN PURPOSES) THIS WAS A DLA CONTRACT TRANSFERRED TO DAFB UNDER SP0600-13-C-8282. Key points: 1. Contract value is $5.7M over 12 years, indicating significant long-term investment. 2. Full and open competition was used, suggesting a potentially competitive bidding process. 3. The contract is for water supply and irrigation systems, a critical infrastructure service. 4. No small business participation is noted, which could be a missed opportunity for economic inclusion.
Value Assessment
Rating: fair
The contract value of $5.7M over 12 years averages to approximately $475k annually. Benchmarking against similar water utility contracts is difficult without more specific service details, but the duration suggests a stable, long-term need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. The use of a definitive contract suggests a clear scope of work.
Taxpayer Impact: Taxpayers are funding a critical infrastructure service over a long period. While competition is positive, the lack of small business involvement means potential economic benefits may not be as broadly distributed.
Public Impact
Ensures a consistent supply of water for base operations and personnel. Supports irrigation systems, likely for grounds maintenance and potentially agricultural uses on or near the base. Long-term contract provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Long contract duration may limit future flexibility
Positive Signals
- Full and open competition utilized
- Definitive contract type implies clear scope
Sector Analysis
This contract falls under the 'Other' sector, specifically public utilities and infrastructure. Spending on water systems is essential for government operations, with benchmarks varying widely based on system size, complexity, and location.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss: false, sb: false). This suggests that the prime contractor, Tidewater Utilities Inc., is likely a larger entity, and opportunities for subcontracting to small businesses were either not pursued or not available.
Oversight & Accountability
The contract's long duration and significant value warrant ongoing oversight to ensure performance standards are met and costs remain justified. Reviewing annual performance reports and any contract modifications will be key to accountability.
Related Government Programs
- Water Supply and Irrigation Systems
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration (12 years)
- No small business participation identified
- Limited detail on specific services provided
- Potential for technological obsolescence or regulatory changes impacting long-term value
Tags
water-supply-and-irrigation-systems, department-of-defense, de, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 million to TIDEWATER UTILITIES INC. IGF::CT::IGF PRIVATIZATION OF WATER UTILITY SYS AT DAFB, DE. (SHELL CONTRACT FOR ADMIN PURPOSES) THIS WAS A DLA CONTRACT TRANSFERRED TO DAFB UNDER SP0600-13-C-8282.
Who is the contractor on this award?
The obligated recipient is TIDEWATER UTILITIES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $5.7 million.
What is the period of performance?
Start: 2014-09-30. End: 2026-09-30.
What specific services are included in the 'Water Supply and Irrigation Systems' to justify the $5.7M price tag over 12 years?
The provided data lacks granular detail on the specific services encompassed by 'Water Supply and Irrigation Systems.' This could include maintenance, repair, upgrades, water treatment, distribution management, and irrigation system upkeep. A comprehensive understanding of these services is crucial for accurately assessing the contract's value and ensuring the price is competitive relative to the scope of work performed.
How did the 'full and open competition' process ensure the best possible price and value for this long-term utility contract?
Full and open competition theoretically allows multiple bidders to submit proposals, driving down prices through market forces. However, for specialized infrastructure like water utilities, the number of capable bidders might be limited. The effectiveness of the competition in securing the best value depends on the clarity of the solicitation, the evaluation criteria used, and the actual number and competitiveness of the bids received.
What is the potential risk associated with a 12-year contract for water utility systems, particularly regarding technological advancements or changing environmental regulations?
A 12-year contract term carries inherent risks. Technological advancements in water management or treatment could render current systems or practices obsolete, requiring costly upgrades or modifications not initially accounted for. Similarly, evolving environmental regulations might necessitate changes in operations or infrastructure. The contract's flexibility and provisions for addressing such changes are critical to mitigating these long-term risks and ensuring continued compliance and efficiency.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1100 S LITTLE CREEK RD, DOVER, DE, 19901
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,408,675
Exercised Options: $6,408,675
Current Obligation: $5,703,117
Actual Outlays: $1,461,923
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-10
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