Naval Station Rota Tank Repair Contract Awarded for $13.37M to WSP USA

Contract Overview

Contract Amount: $13,371,719 ($13.4M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2026-05-29

Contract Duration: 984 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PERFORM CLEANING, INSPECTION, AND REPAIR ON TANKS 4, 9, 10, 127, AND 202 AT NAVAL STATION ROTA, SPAIN

Plain-Language Summary

Department of Defense obligated $13.4 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: PERFORM CLEANING, INSPECTION, AND REPAIR ON TANKS 4, 9, 10, 127, AND 202 AT NAVAL STATION ROTA, SPAIN Key points: 1. Contract focuses on essential infrastructure maintenance at a key naval base. 2. The award value is significant for specialized tank repair services. 3. No small business participation noted, potentially limiting broader economic impact. 4. The sector involves critical infrastructure construction and maintenance.

Value Assessment

Rating: good

The contract value of $13.37M for tank cleaning, inspection, and repair appears reasonable given the scope and location. Benchmarking against similar large-scale infrastructure maintenance contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and identify the most capable contractor.

Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure maintenance, ensuring operational readiness.

Public Impact

Ensures operational readiness of Naval Station Rota by maintaining critical fuel storage infrastructure. Supports U.S. Navy's presence and operations in a strategic European location. Potential for follow-on work or similar projects at other naval facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of small business participation.
  • Long duration of the contract (984 days).

Positive Signals

  • Awarded under full and open competition.
  • Addresses critical infrastructure needs.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically related to oil and gas infrastructure. Spending benchmarks for similar large-scale infrastructure projects at military installations would be relevant for comparison.

Small Business Impact

The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. This is a missed opportunity to leverage small business capabilities and support economic growth.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The firm fixed price contract type provides cost certainty, but ongoing monitoring of performance and adherence to specifications is crucial.

Related Government Programs

  • Oil and Gas Pipeline and Related Structures Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of small business participation.
  • Long contract duration may increase risk of scope creep or unforeseen issues.
  • Potential for environmental hazards during cleaning and repair operations.
  • Dependency on a single contractor for critical infrastructure maintenance.

Tags

oil-and-gas-pipeline-and-related-structu, department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. PERFORM CLEANING, INSPECTION, AND REPAIR ON TANKS 4, 9, 10, 127, AND 202 AT NAVAL STATION ROTA, SPAIN

Who is the contractor on this award?

The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE 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 $13.4 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-05-29.

What is the historical cost performance for similar tank maintenance contracts at naval facilities?

Historical cost performance data for similar tank maintenance contracts at naval facilities is crucial for validating the current award's value. Analyzing past projects' cost overruns, change orders, and final costs against initial estimates can reveal trends in pricing, efficiency, and potential risks associated with this type of specialized infrastructure work.

What are the specific risks associated with performing tank maintenance in a foreign military installation?

Performing tank maintenance at a foreign military installation like Naval Station Rota introduces unique risks. These include navigating foreign regulations, potential logistical challenges for personnel and equipment, security protocols, and coordination with host nation authorities. Ensuring compliance with both U.S. military and local environmental and safety standards is paramount.

How effectively will this contract contribute to the long-term operational readiness of Naval Station Rota?

The effectiveness of this contract in ensuring long-term operational readiness hinges on the quality of the cleaning, inspection, and repair work performed. Thorough inspections should identify underlying issues, and robust repairs should prevent future failures. Regular performance reviews and post-completion assessments will be key to verifying the sustained integrity of the tanks.

Industry Classification

NAICS: ConstructionUtility System ConstructionOil and Gas Pipeline and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N3943019R2101

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 751 ARBOR WAY, BLUE BELL, PA, 19422

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

Financial Breakdown

Contract Ceiling: $13,371,719

Exercised Options: $13,371,719

Current Obligation: $13,371,719

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $7,713,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3943020D2228

IDV Type: IDC

Timeline

Start Date: 2023-09-18

Current End Date: 2026-05-29

Potential End Date: 2026-05-29 00:00:00

Last Modified: 2025-09-09

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