DoD awards $21.5M for pipeline inspection and repair, with 7 bids received
Contract Overview
Contract Amount: $21,527,572 ($21.5M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2021-07-06
End Date: 2025-02-25
Contract Duration: 1,330 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: OOS API INSPECTION AND REPAIR TSU 305, 307
Plain-Language Summary
Department of Defense obligated $21.5 million to WESTON SOLUTIONS INC for work described as: OOS API INSPECTION AND REPAIR TSU 305, 307 Key points: 1. Contract value appears reasonable given the scope of infrastructure maintenance. 2. Strong competition with 7 bidders suggests a healthy market for these services. 3. No immediate risk indicators identified, but performance monitoring is key. 4. This contract supports critical naval infrastructure maintenance. 5. Positioned within the specialized construction and maintenance sector for energy infrastructure.
Value Assessment
Rating: good
The contract value of $21.5 million for pipeline inspection and repair seems aligned with the scope of work, which includes multiple locations and a multi-year duration. Benchmarking against similar large-scale infrastructure maintenance contracts within the Department of Defense would provide a more precise value-for-money assessment. However, the presence of 7 bidders suggests a competitive environment that likely contributed to a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bids received. This indicates a robust bidding process where multiple qualified contractors had the opportunity to compete. The high number of bidders suggests that the market is capable of supporting such requirements and that the government likely received competitive pricing due to the breadth of interest.
Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it drives down costs through market forces, ensuring the government obtains services at a competitive rate.
Public Impact
Benefits the Department of the Navy by ensuring the integrity and operational readiness of critical oil and gas pipeline infrastructure. Services include inspection and repair of pipelines at specified locations (TSU 305, 307). Geographic impact is localized to the facilities where the pipelines are located. Workforce implications include skilled labor for inspection, repair, and project management within the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition, indicating broad market engagement.
- Multiple bids received (7), suggesting a competitive landscape.
- Firm Fixed Price contract type helps control costs.
- Contract duration of over 3 years allows for sustained support.
Sector Analysis
This contract falls within the specialized construction and maintenance sector, specifically focusing on oil and gas pipeline infrastructure. This is a critical sub-sector supporting energy distribution and operational readiness for military installations. The market for such services is often specialized, requiring specific expertise and certifications. Comparable spending benchmarks would involve looking at other large-scale pipeline maintenance contracts awarded by federal agencies or major energy companies.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting requirements in the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. Further investigation into the contract's specific clauses would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Naval Facilities Engineering Command (NAVFAC) Contracts
- Department of Defense Infrastructure Maintenance
- Oil and Gas Pipeline Services
- Federal Construction Contracts
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Risk of environmental hazards during repair operations.
- Dependency on contractor performance for maintaining operational readiness.
Tags
defense, department-of-defense, department-of-the-navy, construction, pipeline-maintenance, oil-and-gas, infrastructure, full-and-open-competition, firm-fixed-price, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to WESTON SOLUTIONS INC. OOS API INSPECTION AND REPAIR TSU 305, 307
Who is the contractor on this award?
The obligated recipient is WESTON SOLUTIONS 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 $21.5 million.
What is the period of performance?
Start: 2021-07-06. End: 2025-02-25.
What is the track record of WESTON SOLUTIONS INC with the Department of Defense?
WESTON SOLUTIONS INC has a history of contracts with the Department of Defense, primarily in environmental services, engineering, and construction. Analyzing their past performance on similar infrastructure projects, particularly those involving pipeline maintenance or repair, would provide insight into their capabilities and reliability. Reviewing past performance evaluations and any documented issues or successes would be crucial for a comprehensive assessment. Their experience with firm-fixed-price contracts and managing projects of this scale is also a key consideration.
How does the per-unit cost of this contract compare to similar pipeline repair services?
The provided data does not include specific per-unit cost breakdowns (e.g., cost per foot of pipe repaired, cost per inspection point). Therefore, a direct per-unit cost comparison is not feasible with the current information. To conduct such an analysis, one would need detailed line-item data from this contract and comparable contracts. Benchmarking would involve identifying similar pipeline repair and inspection projects, noting their scope, location, and contract type, and then comparing the cost metrics if available. Without this granular data, the assessment relies on the overall contract value relative to its duration and scope.
What are the primary risks associated with this type of infrastructure maintenance contract?
Primary risks include unforeseen site conditions that could increase repair costs or extend timelines, potential environmental hazards during repair work, and the possibility of contractor performance issues impacting operational readiness. Schedule delays are also a significant risk, especially for critical infrastructure. Furthermore, the aging nature of some pipelines could present unexpected complexities. Mitigation strategies typically involve thorough site assessments, robust safety protocols, clear performance metrics, and contingency planning within the contract.
How effective has the Department of the Navy been in managing pipeline maintenance contracts historically?
The effectiveness of the Department of the Navy in managing pipeline maintenance contracts can be assessed by examining historical contract performance data, including on-time completion rates, budget adherence, and the number of contract disputes or modifications. Agencies often leverage various oversight mechanisms, such as quality assurance surveillance plans (QASPs) and regular progress meetings, to ensure contractor performance. Trends in spending for pipeline maintenance can also indicate proactive management versus reactive repairs. A detailed analysis would require reviewing specific contract close-out reports and performance metrics over several fiscal years.
What is the historical spending trend for oil and gas pipeline construction and repair within the Department of the Navy?
Historical spending trends for oil and gas pipeline construction and repair within the Department of the Navy would reveal patterns of investment in this specific infrastructure. Analyzing data over multiple years would show whether spending is increasing, decreasing, or remaining stable, potentially indicating shifts in maintenance priorities, aging infrastructure needs, or budget allocations. This contract's value of $21.5 million should be viewed in the context of this broader spending history. Significant deviations from historical averages might warrant further investigation into the underlying causes.
Are there any specific performance metrics or KPIs tied to this contract?
The provided data does not specify the Key Performance Indicators (KPIs) or specific performance metrics for this contract. Typically, firm-fixed-price contracts for services like pipeline inspection and repair include performance standards related to timeliness, quality of work, safety compliance, and reporting accuracy. The contracting officer's representative (COR) or quality assurance personnel would monitor adherence to these standards. A review of the contract's Statement of Work (SOW) and any associated Performance Work Statement (PWS) would detail these specific requirements and how performance is measured.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N3943019R2101
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings Inc
Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,527,572
Exercised Options: $21,527,572
Current Obligation: $21,527,572
Actual Outlays: $1,084,027
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $10,571,061
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3943020D2227
IDV Type: IDC
Timeline
Start Date: 2021-07-06
Current End Date: 2025-02-25
Potential End Date: 2025-02-25 00:00:00
Last Modified: 2025-09-23
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