DoD Awards $14.2M Engineering Services Contract to Advania Island EHF for Grindavik Technical Support
Contract Overview
Contract Amount: $14,234,135 ($14.2M)
Contractor: Advania Island EHF.
Awarding Agency: Department of Defense
Start Date: 2021-02-11
End Date: 2026-01-31
Contract Duration: 1,815 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LABOR IN SUPPORT OF THE PWS FOR GRINDAVIK TECHNICAL SERVICES
Plain-Language Summary
Department of Defense obligated $14.2 million to ADVANIA ISLAND EHF. for work described as: LABOR IN SUPPORT OF THE PWS FOR GRINDAVIK TECHNICAL SERVICES Key points: 1. Contract value of $14.2M over 5 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Engineering services sector is critical for technical support and infrastructure. 4. Risk of limited competition impacting price discovery and value for money.
Value Assessment
Rating: fair
The contract value of $14.2M for 5 years suggests a moderate annual spend. Without specific benchmarks for Grindavik technical services, it's difficult to definitively assess pricing. However, the lack of competition may have led to a higher price than could be achieved through a competitive process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers. The justification for sole-source is not provided, which is a concern.
Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying more than necessary due to the absence of competitive bidding.
Public Impact
Taxpayers may be overpaying due to lack of competition. Essential technical services for Grindavik may be procured at a suboptimal price. Lack of transparency in the sole-source justification warrants further scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential technical services secured
- Long-term contract provides stability
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector vital for supporting complex technical operations and infrastructure. Spending in this sector can vary widely based on project scope and criticality. The annual spend of approximately $2.8M is moderate for specialized engineering support.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award. Opportunities for small business participation appear to have been missed.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering services effectively and at a fair price. The lack of competition raises concerns about accountability for cost efficiency.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for non-competitive pricing.
- Lack of transparency regarding justification.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to ADVANIA ISLAND EHF.. LABOR IN SUPPORT OF THE PWS FOR GRINDAVIK TECHNICAL SERVICES
Who is the contractor on this award?
The obligated recipient is ADVANIA ISLAND EHF..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.2 million.
What is the period of performance?
Start: 2021-02-11. End: 2026-01-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically require detailed documentation outlining the necessity of a single source, such as unique capabilities or urgent needs. Without this justification, it's impossible to assess if fair pricing was achieved or if alternative solutions were explored to foster competition and potentially reduce costs for the government.
How does the pricing of this contract compare to similar engineering services contracts awarded competitively?
Benchmarking this contract's pricing against similar, competitively awarded engineering services contracts is essential for evaluating value for money. If this sole-source contract's rates are significantly higher, it indicates a potential loss of taxpayer funds. A thorough analysis would involve comparing labor categories, overhead rates, and overall project costs to establish a fair market price.
What are the potential risks associated with a sole-source award for critical technical services, particularly regarding long-term cost-effectiveness and innovation?
Sole-source awards carry inherent risks, including the potential for inflated prices due to a lack of competitive pressure. For critical technical services, this can lead to long-term cost inefficiencies. Furthermore, without the drive of competition, there may be less incentive for the contractor to innovate or improve service delivery, potentially impacting the overall effectiveness and value over the contract's duration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018921R0002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: GUDRUNARTUNI 10, REYKJAVIK
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $15,695,009
Exercised Options: $14,179,638
Current Obligation: $14,234,135
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-02-11
Current End Date: 2026-01-31
Potential End Date: 2026-07-25 00:00:00
Last Modified: 2026-01-15
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