Air Force awards $18.6M contract for Vandenberg AFB power line work to Four Tribes Enterprises

Contract Overview

Contract Amount: $18,627,471 ($18.6M)

Contractor: Four Tribes Enterprises, LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-11

End Date: 2025-07-31

Contract Duration: 1,997 days

Daily Burn Rate: $9.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE OVERHEAD DISTRIBUTION LINE CIRCUIT D1 ON VANDENBERG AIR FORCE BASE, CALIFORNIA

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to FOUR TRIBES ENTERPRISES, LLC for work described as: REPLACE OVERHEAD DISTRIBUTION LINE CIRCUIT D1 ON VANDENBERG AIR FORCE BASE, CALIFORNIA Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of nearly 2000 days suggests a long-term need for infrastructure maintenance. 3. Fixed-price contract type aims to control costs, but the lack of competition may limit savings. 4. The project focuses on critical infrastructure at a major military installation. 5. Geographic concentration in California for this specific project. 6. No indication of small business participation or set-aside.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable sole-source contracts for similar power line construction at military bases. The fixed-price nature is a positive indicator for cost control. However, without competitive bidding, it's difficult to definitively assess if the $18.6 million represents optimal value for the taxpayer. The contract's duration and scope will be key factors in determining overall cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there was no opportunity for price discovery through bidding, which could potentially lead to higher costs than if multiple firms had competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible pricing for taxpayers. This can result in less favorable terms compared to a fully competed contract.

Public Impact

The primary beneficiary is the Department of the Air Force, ensuring the operational readiness of Vandenberg Air Force Base. The contract delivers essential power and communication line construction and maintenance services. The geographic impact is localized to Vandenberg Air Force Base in California. Workforce implications are likely to involve skilled labor in electrical and construction trades, potentially benefiting local or specialized workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises concerns about justification and potential for better value elsewhere.
Long contract duration could present risks if requirements change or if contractor performance falters over time.

Positive Signals

Fixed-price contract type helps to cap costs.
Contract is for essential infrastructure maintenance at a critical military installation.
Contractor is Four Tribes Enterprises, LLC, which may have specialized capabilities for this work.

Sector Analysis

The construction and maintenance of utility infrastructure, such as power and communication lines, is a critical component of the broader construction and engineering sector. This contract falls within the specialized niche of utility construction, often involving significant technical expertise and adherence to stringent safety and operational standards, particularly within a defense context. Comparable spending benchmarks for similar sole-source utility projects at military installations are not readily available, making direct comparison difficult.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information available regarding subcontracting plans. The sole-source nature of the award further suggests that opportunities for small business participation through subcontracting may be limited unless specifically mandated by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms. Transparency regarding the justification for the sole-source award and performance monitoring would be key areas for oversight. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Vandenberg Air Force Base Infrastructure Projects
Department of Defense Utility Modernization
Power and Communication Line Construction Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Long contract duration may introduce performance and scope risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to FOUR TRIBES ENTERPRISES, LLC. REPLACE OVERHEAD DISTRIBUTION LINE CIRCUIT D1 ON VANDENBERG AIR FORCE BASE, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is FOUR TRIBES ENTERPRISES, LLC.

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 $18.6 million.

What is the period of performance?

Start: 2020-02-11. End: 2025-07-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. While the specific justification is not detailed in the provided data, common reasons for sole-source awards include unique capabilities of the contractor, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. For a contract of this magnitude and duration, a thorough justification would typically be required by the Department of Defense, outlining why competitive procedures could not be used and why Four Tribes Enterprises, LLC is the only viable option. Further investigation into the contract file or agency justifications would be necessary to ascertain the precise rationale.

How does the fixed-price contract type mitigate risks for the government?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the government and incentivizes the contractor to manage their costs efficiently to maximize profit. For this $18.6 million contract, the FFP structure means the Air Force knows its maximum expenditure upfront, protecting against cost overruns that could occur with cost-reimbursement contracts. However, the effectiveness of FFP in ensuring value is diminished when there is no competition, as the initial price may not be as competitive as it could be.

What are the potential risks associated with the nearly 2000-day contract duration?

A contract duration of approximately 1997 days (over 5 years) presents several potential risks. Firstly, there's the risk of scope creep or evolving requirements. Over such a long period, the needs of Vandenberg Air Force Base for power and communication lines might change due to technological advancements, new regulations, or shifts in operational priorities. Managing these changes under a fixed-price contract can become complex. Secondly, contractor performance can degrade over extended periods, or the contractor might face financial instability or changes in key personnel, impacting project continuity. Lastly, market conditions and material costs can fluctuate significantly over five years, potentially impacting the contractor's ability to maintain profitability without seeking contract modifications, which could negate some of the benefits of the fixed-price structure.

Are there any comparable sole-source contracts for similar utility construction at other military bases?

Identifying directly comparable sole-source contracts for utility construction at other military bases is challenging without access to comprehensive federal procurement databases and detailed contract justifications. Sole-source awards are, by definition, exceptions to the norm of competitive bidding, and their specific circumstances (e.g., unique site conditions, urgent needs, specific contractor qualifications) often make them difficult to directly benchmark. While the Department of Defense frequently awards contracts for infrastructure maintenance, the specifics of power and communication line construction, especially on a sole-source basis, vary widely. A detailed analysis would require searching for contracts with similar North American Industry Classification System (NAICS) codes (like 237130) and filtering for sole-source awards at other Air Force or DoD installations, followed by a qualitative assessment of their scope and justification.

What is the track record of Four Tribes Enterprises, LLC in performing similar government contracts?

Information regarding the specific track record of Four Tribes Enterprises, LLC in performing similar government contracts is not provided in the data. To assess their capabilities and past performance, one would typically need to consult federal procurement databases like SAM.gov (System for Award Management) or the Contractor Performance Assessment Reporting System (CPARS). These resources often contain details on past contract awards, performance evaluations, and any history of disputes or issues. Without this information, it's difficult to gauge their experience level and reliability for a project of this scale and importance.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA461019RA002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 814 W DIAMOND AVE STE 310 A, GAITHERSBURG, MD, 20878

Business Categories: 8(a) Program Participant, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,627,471

Exercised Options: $18,627,471

Current Obligation: $18,627,471

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $824,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline