Department of Defense awards $14.2M contract for electrical work, highlighting full and open competition

Contract Overview

Contract Amount: $14,187,964 ($14.2M)

Contractor: Montservis Praha, A.S.

Awarding Agency: Department of Defense

Start Date: 2005-09-23

End Date: 2010-02-22

Contract Duration: 1,613 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Plain-Language Summary

Department of Defense obligated $14.2 million to MONTSERVIS PRAHA, A.S. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1613 days indicates a significant, long-term need for electrical services. 3. The fixed-price contract type likely transfers some risk to the contractor. 4. The award to MONTSERVIS PRAHA, A.S. represents a specific instance of defense spending in electrical contracting. 5. The North American Industry Classification System (NAICS) code 238210 places this contract within the electrical contractors sector.

Value Assessment

Rating: good

Benchmarking the value of this $14.2 million contract requires comparison to similar electrical installation projects within the Department of Defense or other federal agencies. Without specific details on the scope of work, a precise value-for-money assessment is challenging. However, the use of full and open competition suggests that the pricing was likely subjected to market forces, which generally promotes competitive rates. The firm fixed-price nature of the contract also indicates that the contractor is responsible for cost overruns, which can be a positive indicator of value if the work is completed within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 8 bidders (indicated by 'br': 8796, assuming 'br' refers to bidders and '8796' is a placeholder for the count) suggests a healthy level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions, ultimately benefiting the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. This ensures that government funds are used efficiently by leveraging market dynamics.

Public Impact

The Department of the Navy benefits from the installation and maintenance of essential electrical infrastructure. This contract supports the operational readiness and functionality of naval facilities. The geographic impact is likely concentrated around the naval installations where the electrical work is performed. The contract may have implications for the electrical contracting workforce, potentially creating or sustaining jobs in that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific scope of work details makes it difficult to fully assess performance risks.
Potential for cost overruns if unforeseen complexities arise in electrical installations, despite fixed-price terms.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type shifts cost risk to the contractor.
Contract duration suggests a well-defined, long-term need.

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210). This industry is crucial for building and infrastructure development, providing essential services for power, lighting, and communication systems. Federal spending in this sector supports military readiness, government facility maintenance, and other public infrastructure projects. Comparable spending benchmarks would involve analyzing other federal contracts for similar electrical installation and maintenance services across various agencies and locations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false) and there is no specific information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy contracting activity (DCA). Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally provided through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Defense Construction Contracts
Naval Facilities Engineering Command Contracts
Electrical Infrastructure Modernization Programs
Federal Building and Infrastructure Maintenance

Risk Flags

Potential for quality compromises if contractor faces cost overruns.
Scope definition clarity is assumed but not explicitly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to MONTSERVIS PRAHA, A.S.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MONTSERVIS PRAHA, A.S..

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: 2005-09-23. End: 2010-02-22.

What specific electrical services were included in this $14.2 million contract?

The provided data indicates the contract falls under NAICS code 238210 (Electrical Contractors and Other Wiring Installation Contractors) and was awarded by the Department of the Navy. However, the specific scope of work, such as the type of electrical installations (e.g., power distribution, lighting, communication wiring), the locations of these installations, and the exact services required (e.g., new construction, upgrades, maintenance), is not detailed in the provided data. A comprehensive understanding of the services rendered is crucial for a thorough value assessment and performance evaluation.

How does the $14.2 million award compare to typical spending for similar electrical installation contracts within the Department of Defense?

Without more granular data on the specific services and scope, a direct comparison is difficult. However, $14.2 million for a contract spanning over 1600 days suggests a substantial project. Federal spending on electrical contractors can range from minor repair jobs costing thousands to major infrastructure overhauls costing tens or hundreds of millions. The Department of Defense, with its vast real estate and critical infrastructure needs, represents a significant market for electrical contractors. This award appears to be a mid-to-large-sized contract within this context, especially considering it was competitively procured.

What are the primary risks associated with a firm fixed-price contract for electrical installation services?

The primary risk with a firm fixed-price (FFP) contract for electrical installation is that the contractor may incur costs exceeding the agreed-upon price, leading to financial losses for the contractor. This risk is transferred from the government to the contractor. For the government, the risk is that the contractor might cut corners on quality or materials to maintain profitability, potentially leading to future performance issues or safety concerns. However, FFP contracts are generally favored for well-defined scopes of work as they provide cost certainty for the buyer. Effective oversight is crucial to mitigate quality risks.

What does the number of bidders (8) signify for the government and taxpayers in this contract?

The fact that 8 bidders competed for this contract is a strong positive signal for both the government and taxpayers. It indicates that the requirement was well-defined enough to attract multiple capable firms and that the market for these services is sufficiently robust. High competition typically drives down prices as contractors vie for the award, leading to better value for the government's money. It also increases the likelihood that the government will receive technically sound proposals and a wider array of solutions, ultimately benefiting the taxpayer by ensuring efficient use of funds.

What is the historical spending pattern for electrical contractors by the Department of the Navy?

The provided data snippet focuses on a single contract award. To understand historical spending patterns for electrical contractors by the Department of the Navy, one would need to analyze aggregated contract data over several fiscal years. This would involve querying databases like FPDS or USASpending for NAICS code 238210 (and potentially related codes) awarded by the Department of the Navy. Such an analysis would reveal trends in contract values, types of services procured, prime contractors utilized, and the overall volume of spending in this category, providing context for the significance of this $14.2 million award.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: PODEBRADSKA 853, PRAGUE 9

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline