DoD's $40.8M Tank Repair Contract Awarded to APTIM FEDERAL SERVICES for Naval Supply Facility

Contract Overview

Contract Amount: $40,826,518 ($40.8M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-25

End Date: 2025-05-30

Contract Duration: 2,501 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REPAIRS TO TANKS 2,4,6, AND 31 NAVSUP-E DFSP DIEGO GARCIA, BIOOT (BRITISH ATOLL)

Plain-Language Summary

Department of Defense obligated $40.8 million to APTIM FEDERAL SERVICES, LLC for work described as: IGF::OT::IGF REPAIRS TO TANKS 2,4,6, AND 31 NAVSUP-E DFSP DIEGO GARCIA, BIOOT (BRITISH ATOLL) Key points: 1. The contract value of $40.8 million represents a significant investment in critical infrastructure maintenance. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of approximately 2501 days (over 6 years) indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The work is categorized under Commercial and Institutional Building Construction, a broad sector. 6. The award was made by the Department of the Air Force for the Naval Supply Systems Command. 7. The project involves repairs to multiple tanks at a Defense Fuel Support Point.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of repairs and the condition of the tanks. However, the substantial dollar amount suggests a complex and extensive project. The fixed-price nature of the contract implies that APTIM FEDERAL SERVICES is responsible for managing costs to remain within the awarded amount, which can be a positive indicator of value if the work is completed efficiently. Further analysis would require comparing the cost per tank or per square foot of repair to similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level appears moderate. This suggests that while there was some level of price discovery, it may not have reached the intensity seen in contracts with a larger number of bidders. The agency likely received multiple proposals to evaluate.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The primary beneficiaries are the U.S. Navy and Department of Defense, ensuring the operational readiness of fuel storage at a critical naval supply facility. The services delivered include essential repairs to tanks, crucial for safe and efficient fuel storage and distribution. The geographic impact is localized to Diego Garcia, British Indian Ocean Territory, a strategic military location. The contract supports the construction and maintenance workforce, likely involving skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential scope creep or unforeseen cost increases if not managed tightly.
Reliance on a single contractor for an extended period might reduce future competitive opportunities.
Geographic remoteness of Diego Garcia could introduce logistical challenges and potentially higher operational costs.

Positive Signals

Full and open competition suggests a fair process and potential for competitive pricing.
Fixed-price contract type incentivizes contractor efficiency and cost control.
The contract addresses critical infrastructure needs, ensuring operational readiness.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on commercial and institutional building maintenance and repair. The market for large-scale government infrastructure projects is often characterized by a few large, specialized contractors capable of handling complex, high-value work. The Department of Defense is a significant client in this space, awarding numerous contracts for facility maintenance and upgrades globally. Benchmarking would involve comparing the cost per unit of repair or the overall project cost against similar tank repair or industrial facility maintenance contracts within the federal government.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the prime contract was awarded to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by APTIM FEDERAL SERVICES, rather than through a direct set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices, with potential involvement from the Naval Supply Systems Command. Inspector General (IG) jurisdiction would likely reside with the Department of Defense Inspector General, who investigates waste, fraud, and abuse in defense spending. Transparency is facilitated through contract award databases, but detailed project progress and specific cost breakdowns may be less publicly accessible.

Related Government Programs

Naval Supply Systems Command Facility Maintenance
Department of Defense Infrastructure Projects
Defense Fuel Support Point Operations
Commercial and Institutional Building Construction Contracts
Global Military Base Maintenance

Risk Flags

Long-term contract duration
Remote overseas location
Potential for unforeseen site conditions
Reliance on specialized construction services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to APTIM FEDERAL SERVICES, LLC. IGF::OT::IGF REPAIRS TO TANKS 2,4,6, AND 31 NAVSUP-E DFSP DIEGO GARCIA, BIOOT (BRITISH ATOLL)

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, 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 $40.8 million.

What is the period of performance?

Start: 2018-07-25. End: 2025-05-30.

What is the track record of APTIM FEDERAL SERVICES in performing similar large-scale infrastructure repair contracts for the Department of Defense?

APTIM FEDERAL SERVICES has a history of performing various construction and engineering services for government agencies, including the Department of Defense. Their portfolio often includes facility maintenance, repair, and construction projects. To assess their track record specifically for large-scale tank repairs, a deeper dive into their past performance evaluations, contract history, and any reported issues or successes on similar projects would be necessary. This would involve reviewing contract databases for past awards, performance reports (like Contractor Performance Assessment Reporting System - CPARS), and any public records of litigation or disputes. A strong track record in managing complex projects, adhering to schedules, and maintaining quality standards would be positive indicators for this current contract's success.

How does the cost per tank repair compare to industry benchmarks or similar government contracts?

Determining a precise cost per tank repair benchmark is difficult without granular data on the scope of work for each tank (e.g., size, material, type of repair needed – lining, structural, etc.) and the specific conditions encountered. However, the total contract value of $40.8 million spread across four tanks (Tanks 2, 4, 6, and 31) suggests a significant investment per tank. For context, major tank rehabilitation projects can range from hundreds of thousands to several million dollars per tank, depending heavily on the factors mentioned. Comparing this contract's implied per-tank cost to publicly available data on similar large-scale fuel tank repair projects, particularly those awarded by the DoD or other federal agencies, would be the most effective way to assess value for money. The fixed-price nature also implies the contractor is expected to manage these costs effectively.

What are the primary risks associated with performing repairs on tanks at a remote overseas location like Diego Garcia?

Performing repairs at a remote overseas location like Diego Garcia presents several significant risks. Logistical challenges are paramount, including the transportation of personnel, equipment, and materials, which can be costly and time-consuming, potentially leading to delays. The availability of specialized labor and local support services may be limited, requiring extensive planning and potentially higher costs for mobilization. Environmental conditions, such as weather patterns and the need for strict environmental controls during repair work, can also pose risks. Furthermore, security considerations and compliance with local regulations or base operating procedures add layers of complexity. These factors can increase the overall cost and schedule risk for the contractor, which may have been factored into the bid price.

What is the expected impact of these tank repairs on the operational readiness of the Defense Fuel Support Point?

The repairs to Tanks 2, 4, 6, and 31 are critical for maintaining and enhancing the operational readiness of the Defense Fuel Support Point (DFSP) at Diego Garcia. Aging or damaged fuel storage tanks pose risks of leaks, contamination, and structural failure, which could lead to costly environmental remediation, supply disruptions, and safety hazards. By addressing these issues, the repairs ensure the integrity and capacity of the fuel storage infrastructure. This directly supports the logistical needs of military operations in the region by guaranteeing a reliable supply of fuel. The project's completion will mitigate risks associated with infrastructure failure and bolster the facility's ability to meet demand, thereby enhancing overall mission effectiveness.

How has spending on similar infrastructure repair contracts by the Department of the Air Force trended over the past five years?

Analyzing spending trends for similar infrastructure repair contracts by the Department of the Air Force over the past five years would require access to detailed historical contract data. Generally, federal agencies like the Air Force maintain significant budgets for facility maintenance, repair, and construction to support their global operations. Spending in this category can fluctuate based on infrastructure age, modernization initiatives, and overall defense budget allocations. It is common to see consistent, substantial investment in maintaining critical assets like fuel storage facilities. Trends might show an increase in spending if aging infrastructure requires more frequent or extensive repairs, or a shift towards more sustainable or technologically advanced repair methods. A review of historical spending patterns would provide context for the $40.8 million award, indicating whether it aligns with or deviates from typical investment levels.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1725 DUKE ST STE 400, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $40,826,518

Exercised Options: $40,826,518

Current Obligation: $40,826,518

Actual Outlays: $3,239,635

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $3,103,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890317D0037

IDV Type: IDC

Timeline