DoD's $4.9M water pump repair contract awarded to Blue Oak Projects, LLC for a 4-year term

Contract Overview

Contract Amount: $4,928,536 ($4.9M)

Contractor: Blue OAK Projects, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-13

End Date: 2026-04-30

Contract Duration: 1,417 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR REPLACE WATER TREATMENT PLANT SERVICE AND BACKWASH PUMPS BUILDING 1504

Place of Performance

Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $4.9 million to BLUE OAK PROJECTS, LLC for work described as: REPAIR REPLACE WATER TREATMENT PLANT SERVICE AND BACKWASH PUMPS BUILDING 1504 Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust bidding process, potentially driving favorable pricing. 3. Risk indicators include contract duration and the specific nature of infrastructure repair. 4. Performance context relies on successful completion of pump repair and system functionality. 5. Sector positioning within facility maintenance and repair services for government infrastructure.

Value Assessment

Rating: good

The contract's firm fixed-price nature provides cost certainty for the government. Benchmarking against similar infrastructure repair contracts for water treatment facilities would offer a clearer picture of value. Given the specialized nature of pump repair, the price appears reasonable, though a detailed cost breakdown would be ideal for a more precise assessment. The total award amount of $4.9M over approximately four years suggests a moderate annual expenditure for critical infrastructure maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, suggesting that while initial exclusions may have occurred, the final award was made through a broad competitive process. The number of bidders is not specified, but the 'full and open' designation implies multiple interested parties were considered. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel at the facility requiring reliable water treatment. Services delivered include the repair and replacement of essential water treatment plant service and backwash pumps. Geographic impact is localized to the specific Air Force installation in Tennessee where the facility is located. Workforce implications may involve skilled tradespeople for the repair and maintenance work, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen issues during repair of aging infrastructure leading to cost overruns if not managed strictly under fixed-price terms.
Dependence on contractor's specialized expertise for critical pump systems.

Positive Signals

Firm fixed-price contract limits government exposure to cost increases.
Full and open competition suggests a competitive market for these services.
Award to a specific LLC indicates a focused provider for this type of work.

Sector Analysis

This contract falls within the broader construction and facility maintenance sector, specifically focusing on specialized mechanical repairs for critical infrastructure. The market for such services involves contractors with expertise in industrial pump systems and water treatment facilities. Comparable spending benchmarks would typically be found in facility operations and maintenance budgets for large government installations, where regular upkeep of essential systems is paramount.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and the contractor, Blue Oak Projects, LLC, is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The absence of a set-aside suggests the competition was open to all qualified offerors, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract administration office within the Department of the Air Force. Performance monitoring, quality assurance checks, and adherence to the firm fixed-price terms are key accountability measures. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Facility Maintenance and Repair Contracts
Water Treatment Infrastructure Services
Department of Defense Construction Projects
Air Force Base Operations Support

Risk Flags

Potential for unforeseen infrastructure issues impacting cost and schedule.
Contractor performance risk on specialized equipment repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.9 million to BLUE OAK PROJECTS, LLC. REPAIR REPLACE WATER TREATMENT PLANT SERVICE AND BACKWASH PUMPS BUILDING 1504

Who is the contractor on this award?

The obligated recipient is BLUE OAK PROJECTS, 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 $4.9 million.

What is the period of performance?

Start: 2022-06-13. End: 2026-04-30.

What is the track record of Blue Oak Projects, LLC in performing similar federal contracts?

Information regarding the specific track record of Blue Oak Projects, LLC in performing similar federal contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Federal procurement databases often contain contractor performance information, which would be crucial for evaluating their reliability and capability in executing complex repair and replacement projects for critical infrastructure like water treatment pumps. Without this historical data, it is difficult to definitively assess their past performance.

How does the awarded price compare to market rates for similar pump repair services?

The provided data does not include specific cost breakdowns or detailed service descriptions necessary to benchmark the $4.9M award against market rates for similar pump repair services. The 'firm fixed price' indicates a ceiling, but the actual value depends on the scope of work, complexity of the pumps, and labor involved. To conduct a thorough comparison, one would need to research pricing for comparable pump repair and replacement projects in the Tennessee region or for similar Department of Defense facilities. Factors such as the age and condition of the existing pumps, the required performance specifications for new or repaired pumps, and the contractor's overhead and profit margins would all influence the final price. A detailed analysis would involve comparing unit costs for specific pump types or labor hours against industry averages.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential unforeseen issues arising during the repair or replacement of aging water treatment plant pumps, which could lead to scope creep or delays if not managed under the firm fixed-price terms. Contractor performance failure, such as delays or substandard work, is another risk. Mitigation strategies likely include robust contract oversight by the Air Force, clear performance standards outlined in the contract, and the firm fixed-price structure which incentivizes the contractor to manage costs and timelines effectively. Pre-award assessments of the contractor's technical capabilities and financial stability would also serve to mitigate performance risks. The contract duration of over three years also presents a risk of market price fluctuations for materials, which the fixed-price contract aims to absorb.

How effective is the 'full and open competition after exclusion of sources' method for this type of specialized repair contract?

The 'full and open competition after exclusion of sources' method, while seemingly complex, aims to balance specialized needs with broad competition. In this case, it suggests that initial market research or pre-qualification might have identified specific capabilities required, leading to an initial exclusion of some potential bidders. However, the subsequent 'full and open' phase allowed any responsible source meeting the criteria to compete. For specialized repair contracts like water treatment pumps, this method can be effective if the initial exclusions were justified by unique technical requirements, ensuring that only capable contractors participate while still allowing for a competitive bidding environment among those qualified. This approach can prevent a sole-source situation while ensuring the government secures a contractor with the necessary expertise.

What is the historical spending pattern for water treatment pump maintenance and repair at this Air Force facility?

The provided data does not contain historical spending patterns for water treatment pump maintenance and repair at this specific Air Force facility. To determine this, one would need to access historical contract data for the facility, looking for previous awards related to pump maintenance, repair, or replacement. Analyzing past expenditures would reveal trends in spending, frequency of major repairs versus routine maintenance, and potentially identify any significant increases or decreases in costs over time. Understanding historical spending is crucial for budgeting, identifying potential cost efficiencies, and assessing whether the current $4.9M contract represents a significant deviation from previous investment levels in this critical infrastructure.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA910122R3002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 S SHEPHARD ST, WINCHESTER, TN, 37398

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,131,125

Exercised Options: $5,131,125

Current Obligation: $4,928,536

Actual Outlays: $436,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA910118D0037

IDV Type: IDC

Timeline