DoD's $19.4M contract for Guam tank inspection and repair awarded to Cape-Burns & McDonnell JV

Contract Overview

Contract Amount: $19,395,006 ($19.4M)

Contractor: Cape-Burns & Mcdonnell JV

Awarding Agency: Department of Defense

Start Date: 2017-06-12

End Date: 2024-03-01

Contract Duration: 2,454 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CLEAN, INPSECT&REPAIR TANKS IN SASA VALLEY, GUAM.

Place of Performance

Location: BARRIGADA, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Defense obligated $19.4 million to CAPE-BURNS & MCDONNELL JV for work described as: IGF::OT::IGF CLEAN, INPSECT&REPAIR TANKS IN SASA VALLEY, GUAM. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2454 days (over 6 years) indicates a long-term need for services. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The contract is for construction of oil and gas pipeline and related structures. 5. The contract was awarded to a joint venture, potentially indicating specialized capabilities required. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work for tank inspection and repair. However, the total value of $19.4 million spread over approximately 6.7 years suggests an average annual expenditure of around $2.9 million. This figure needs to be compared against the cost of similar services in the region and for similar types of infrastructure. The firm-fixed-price nature of the contract provides cost certainty, but the overall value-for-money depends heavily on the quality of work performed and the necessity of the repairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 5 bidders, which suggests a healthy level of competition for this requirement. A competitive process like this is generally expected to drive down prices and ensure the government receives fair market value for the services procured. The presence of multiple bidders also implies that the market has sufficient capacity to meet the government's needs.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that aims to secure the best possible price and quality for the services rendered.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Navy, ensuring the operational readiness of critical infrastructure. The services delivered include inspection and repair of tanks, crucial for maintaining the integrity of fuel or other storage facilities. The geographic impact is localized to the U.S. Naval Base Guam (Sasa Valley), supporting military operations in the Pacific. The contract supports the workforce employed by Cape-Burns & McDonnell JV and potentially its subcontractors, contributing to local employment in Guam.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to potential cost overruns if not managed effectively.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen.
Reliance on a joint venture might introduce complexities in management and accountability.
The specific nature of 'tank inspection and repair' can be highly variable, making precise cost estimation difficult.

Positive Signals

Awarded through full and open competition with 5 bidders, indicating a competitive market and likely fair pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses critical infrastructure maintenance, ensuring operational readiness.
The joint venture structure may bring together specialized expertise for complex tasks.

Sector Analysis

The contract falls within the Construction of Oil and Gas Pipeline and Related Structures (NAICS 237120) sector. This sector is vital for maintaining energy infrastructure, including storage facilities. Spending in this area is often driven by regulatory requirements, aging infrastructure, and the need for operational safety and environmental protection. Comparable spending benchmarks would typically be found within large-scale industrial construction and maintenance contracts, particularly those supporting government or military installations.

Small Business Impact

The data indicates that small business participation (sb) is false, and there was no specific small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, a joint venture, is likely a larger entity. There is no information provided on subcontracting plans, so the extent to which small businesses might be involved as subcontractors remains unknown. This could mean limited opportunities for small businesses to participate in this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm-fixed-price contract, the focus of oversight would be on ensuring adherence to the contract scope, quality standards, and delivery schedules. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, with the DoD IG being the relevant body.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Defense Infrastructure Projects
Guam Military Construction
Energy Infrastructure Maintenance
Oil and Gas Storage Facility Construction

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep if not managed tightly.
Firm-fixed-price contracts can incentivize cost-cutting that may impact quality if oversight is insufficient.
Joint venture structure requires clear lines of responsibility and accountability.
Geographic remoteness of Guam can add logistical complexities and potential cost risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to CAPE-BURNS & MCDONNELL JV. IGF::OT::IGF CLEAN, INPSECT&REPAIR TANKS IN SASA VALLEY, GUAM.

Who is the contractor on this award?

The obligated recipient is CAPE-BURNS & MCDONNELL JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2017-06-12. End: 2024-03-01.

What is the specific scope of work for the tank inspection and repair services, and what types of tanks are involved?

The contract is categorized under NAICS code 237120, 'Oil and Gas Pipeline and Related Structures Construction.' While the description mentions 'INSPECT & REPAIR TANKS IN SASA VALLEY, GUAM,' the precise nature of these tanks (e.g., fuel storage, water, chemical) and the specific inspection methods and repair techniques are not detailed in the provided data. This information is crucial for understanding the technical complexity and potential risks associated with the contract. Without this, it's difficult to assess if the $19.4 million value is appropriate for the services rendered. Further details would likely be found in the contract's statement of work.

How does the $19.4 million contract value compare to similar tank inspection and repair contracts awarded by the Department of Defense or other federal agencies?

Direct comparison is difficult without knowing the exact scope, location, and duration of similar contracts. However, $19.4 million over approximately 6.7 years averages to about $2.9 million annually. This figure needs to be benchmarked against contracts for similar infrastructure maintenance in the Pacific region or for military installations. Factors like specialized materials, environmental compliance, and remote location (Guam) can significantly influence costs. A review of recent NAVFAC or DoD contracts for large-scale tank maintenance or construction would be necessary for a robust comparison.

What are the key performance indicators (KPIs) and quality assurance measures in place for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or detailed quality assurance (QA) measures for this contract. For a firm-fixed-price contract involving critical infrastructure like tanks, robust QA processes are essential. These typically include regular inspections, adherence to technical specifications, material testing, and performance reporting. The Department of the Navy would have established procedures for monitoring contractor performance against the contract's statement of work and any specified acceptance criteria. The effectiveness of these measures directly impacts the value derived from the contract.

What is the track record of Cape-Burns & McDonnell JV in performing similar large-scale infrastructure repair and construction contracts, particularly for the DoD?

The provided data identifies 'CAPE-BURNS & MCDONNELL JV' as the contractor. To assess their track record, one would need to examine their past performance history, including previous contracts with the Department of Defense or other federal agencies. Key aspects to investigate would include on-time delivery, budget adherence, quality of work, and any history of disputes or contract terminations. Information on their experience with tank inspection and repair, especially in remote or challenging environments like Guam, would be particularly relevant for evaluating their capability to successfully execute this contract.

What is the historical spending trend for tank inspection and repair services by the Department of the Navy in Guam or similar Pacific installations?

The provided data is for a single contract award. To understand historical spending trends, a broader analysis of the Department of the Navy's procurement data for similar services in Guam and other Pacific installations over several fiscal years would be required. This would involve identifying all contracts related to infrastructure maintenance, specifically tank services, and aggregating their values. Such an analysis could reveal patterns in spending, identify key contractors, and highlight any significant increases or decreases in demand or cost for these services in the region.

Given the 6+ year duration, what mechanisms are in place to manage potential scope creep or changes in requirements over the life of the contract?

Contracts with long durations, like this 2454-day (approx. 6.7 years) delivery order, often include provisions for contract modifications or change orders. The firm-fixed-price nature generally aims to limit changes, but unforeseen circumstances or evolving operational needs can necessitate adjustments. Oversight mechanisms would typically involve a Contracting Officer's Representative (COR) responsible for monitoring performance and managing any proposed changes. Any modifications would likely require formal documentation, negotiation, and approval by the Contracting Officer, ensuring that changes are justified and their cost implications are assessed before implementation.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures 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

Solicitation ID: N3943014R1405

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9400 WARD PKWY, KANSAS CITY, MO, 64114

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

Financial Breakdown

Contract Ceiling: $19,395,006

Exercised Options: $19,395,006

Current Obligation: $19,395,006

Actual Outlays: $5,913,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3943015D1631

IDV Type: IDC

Timeline