Department of Defense awards $21.9M contract for sewage pumping units to Evac North America Inc

Contract Overview

Contract Amount: $21,936,054 ($21.9M)

Contractor: Evac North America Inc

Awarding Agency: Department of Defense

Start Date: 2024-05-14

End Date: 2025-07-29

Contract Duration: 441 days

Daily Burn Rate: $49.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PUMPING UNIT,SEWAGE

Place of Performance

Location: CHERRY VALLEY, BOONE County, ILLINOIS, 61016

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to EVAC NORTH AMERICA INC for work described as: PUMPING UNIT,SEWAGE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The contract duration of 441 days suggests a significant need for these specialized pumping units. 3. The North American Industry Classification System (NAICS) code 333998 indicates a focus on general purpose machinery manufacturing. 4. The firm fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 5. The contract is not set aside for small businesses, indicating a focus on specialized capabilities. 6. The award is for a single definitive contract, suggesting a specific project or requirement.

Value Assessment

Rating: questionable

The contract value of $21.9 million for sewage pumping units appears substantial. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition raises concerns about whether the government secured the best possible value. Further analysis would be needed to compare this price to industry standards for similar equipment and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Evac North America Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in higher prices and reduced transparency compared to full and open competition. The absence of multiple bidders means there was no direct price comparison to drive down costs.

Taxpayer Impact: Taxpayers may be paying a premium for these sewage pumping units due to the lack of competition. The government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to a less cost-effective outcome.

Public Impact

The Department of Defense, specifically the Department of the Navy, will benefit from the acquisition of these sewage pumping units. The contract will ensure the proper functioning and maintenance of sewage systems within military facilities. The geographic impact is likely concentrated within the operational areas of the Department of the Navy, potentially in Illinois given the state code. The contract supports the manufacturing sector, specifically in the production of specialized industrial machinery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Difficulty in assessing value for money without comparable bids.
Potential for contractor lock-in if specialized equipment requires unique maintenance or parts.

Positive Signals

Firm fixed-price contract type helps to establish a ceiling on costs.
Award to a specific manufacturer suggests a potentially specialized or required product.
Contract duration indicates a sustained need and commitment to the equipment.

Sector Analysis

The contract falls within the 'All Other Miscellaneous General Purpose Machinery Manufacturing' sector (NAICS 333998). This sector encompasses establishments primarily engaged in manufacturing machinery, equipment, and supplies not elsewhere classified. The market for specialized sewage pumping units is likely niche, with a limited number of manufacturers capable of meeting specific defense requirements. Benchmarking spending in this specific sub-sector is challenging without more granular data on comparable defense contracts for similar equipment.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contractor, Evac North America Inc., is likely a larger entity, and the specialized nature of the equipment may not lend itself to easy subcontracting opportunities for smaller firms within this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Infrastructure Maintenance
Naval Facilities Engineering Command Contracts
Industrial Machinery Procurement
Environmental Systems for Military Bases

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to EVAC NORTH AMERICA INC. PUMPING UNIT,SEWAGE

Who is the contractor on this award?

The obligated recipient is EVAC NORTH AMERICA INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2024-05-14. End: 2025-07-29.

What is the track record of Evac North America Inc. with federal contracts, particularly with the Department of Defense?

A review of federal procurement data would be necessary to fully assess Evac North America Inc.'s track record. This would involve examining past contract awards, performance reviews, and any reported issues or disputes. Understanding their history with the Department of Defense and other federal agencies can provide insights into their reliability, pricing practices, and ability to deliver on complex requirements. Without specific historical data, it's difficult to gauge their performance beyond this single award. However, the sole-source nature of this award might suggest a pre-existing relationship or a unique capability that the DoD has relied upon previously.

How does the $21.9 million contract value compare to similar sewage pumping unit procurements by the federal government?

Benchmarking this $21.9 million contract value against similar federal procurements for sewage pumping units is challenging without access to a broader dataset of comparable contracts. The sole-source nature of this award further complicates direct comparison, as competitive bids often drive prices down. To perform a robust comparison, one would need to identify other contracts for similar equipment (e.g., capacity, type, intended use) awarded by various federal agencies, ideally through competitive processes. Factors such as unit specifications, quantity, warranty, and delivery timelines would need to be standardized for a meaningful analysis. The absence of such comparative data makes it difficult to definitively state whether this contract represents a good or fair value.

What are the specific risks associated with a sole-source award for essential equipment like sewage pumping units?

Sole-source awards for essential equipment like sewage pumping units carry several risks. Primarily, there is a significant risk of paying an inflated price due to the lack of competitive pressure, which can lead to inefficient use of taxpayer funds. Another risk is reduced transparency in the procurement process, making it harder to scrutinize the justification for the award and the pricing. Furthermore, reliance on a single supplier can create vendor lock-in, making it difficult and potentially costly to switch providers in the future, especially if specialized parts or maintenance are required. There's also a risk that the government might not be receiving the most innovative or technologically advanced solutions available on the market, as competition often drives innovation.

What is the expected effectiveness and performance of these sewage pumping units in supporting Department of Defense operations?

The effectiveness and performance of these sewage pumping units are critical for maintaining sanitary conditions and operational readiness within Department of Defense facilities. As a sole-source award, it implies that Evac North America Inc. likely possesses specific capabilities or technologies that meet the unique requirements of the Navy. The firm fixed-price contract type suggests that the performance expectations and deliverables are clearly defined. However, without detailed specifications of the units and the operational context, a precise assessment of their effectiveness is difficult. Post-award performance monitoring and user feedback would be essential to validate their actual impact on DoD operations and infrastructure.

How has the Department of Defense historically spent on sewage pumping units or related environmental infrastructure?

Assessing the Department of Defense's historical spending on sewage pumping units requires a detailed analysis of past contract awards across various branches and agencies. This would involve searching procurement databases for keywords related to sewage pumps, wastewater management systems, and environmental infrastructure. Understanding historical spending patterns can reveal trends in procurement strategies (e.g., competitive vs. sole-source), average contract values, and the prevalence of specific manufacturers. Such analysis could highlight whether this $21.9 million award is an outlier or part of a consistent investment in maintaining critical infrastructure. Without this historical context, it's hard to determine if this specific contract represents a significant shift or a continuation of past practices.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery Manufacturing

Product/Service Code: WATER PURIFICATION/SEWAGE TREATMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0010422RJB32

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1445 HUNTWOOD DR, CHERRY VALLEY, IL, 61016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,936,054

Exercised Options: $21,936,054

Current Obligation: $21,936,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline