DoD's $41.6M Runway Repair Contract Awarded to Great Mills Trading Post Co., Inc

Contract Overview

Contract Amount: $41,649,506 ($41.6M)

Contractor: Great Mills Trading Post CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-06

End Date: 2021-12-03

Contract Duration: 1,733 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONTRACT FOR RUNWAYS REPAIR PHASES 2&3

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to GREAT MILLS TRADING POST CO., INC. for work described as: IGF::OT::IGF CONTRACT FOR RUNWAYS REPAIR PHASES 2&3 Key points: 1. The contract value is substantial at over $41.6 million. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process. 3. The contract spans over 3 years, indicating a significant project duration. 4. The sector is Highway, Street, and Bridge Construction, a critical infrastructure area.

Value Assessment

Rating: fair

The contract's firm fixed price structure aims to control costs. However, without specific per-unit data or comparison points for similar runway repair projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, but the limited competition aspect warrants scrutiny to ensure the best value was achieved.

Public Impact

Ensures operational readiness of naval airfields through critical infrastructure repair. Supports local employment and economic activity in Maryland through construction services. Addresses potential safety hazards and operational disruptions from degraded runway conditions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition after source exclusion
  • Lack of detailed per-unit cost data for benchmarking
  • Long contract duration could introduce unforeseen cost escalations

Positive Signals

  • Firm fixed price contract type
  • Awarded by Department of the Navy
  • Significant investment in critical infrastructure

Sector Analysis

This contract falls within the construction sector, specifically focusing on critical infrastructure like highways, streets, and bridges. Spending in this sector is often driven by government needs for maintenance, repair, and new development, with benchmarks varying widely based on project scope and location.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The contract's duration and value necessitate robust oversight to ensure adherence to the fixed price terms and quality of work. The 'exclusion of sources' clause in the competition method may require additional justification and review.

Related Government Programs

  • Highway, Street, and Bridge Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Limited competition after source exclusion
  • Lack of detailed cost breakdown for benchmarking
  • Potential for cost escalation over the contract duration
  • No small business participation noted

Tags

highway-street-and-bridge-construction, department-of-defense, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to GREAT MILLS TRADING POST CO., INC.. IGF::OT::IGF CONTRACT FOR RUNWAYS REPAIR PHASES 2&3

Who is the contractor on this award?

The obligated recipient is GREAT MILLS TRADING POST CO., 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 $41.6 million.

What is the period of performance?

Start: 2017-03-06. End: 2021-12-03.

What was the rationale for excluding specific sources prior to the full and open competition, and did this exclusion limit the potential for cost savings?

The rationale for excluding sources prior to full and open competition is not detailed in the provided data. This exclusion could potentially limit the number of bidders, thereby reducing competitive pressure and potentially leading to higher costs than if all qualified sources had been allowed to compete from the outset. Further investigation into the justification for exclusion is warranted.

How does the per-unit cost of this runway repair compare to industry benchmarks for similar projects, considering the firm fixed price?

Without specific per-unit cost breakdowns or access to detailed project specifications, a direct comparison to industry benchmarks is not feasible. The firm fixed price contract aims to cap costs, but the overall value proposition depends on the efficiency and pricing strategies of Great Mills Trading Post Co., Inc. Benchmarking would require detailed cost data and analysis of similar repair projects.

What mechanisms are in place to ensure the long-term effectiveness and durability of the runway repairs completed under this contract?

The contract's effectiveness and durability rely on the quality of materials used and the execution of the repair work by Great Mills Trading Post Co., Inc. While the firm fixed price incentivizes completion, oversight mechanisms, quality assurance inspections, and adherence to construction standards are crucial. Warranties and post-completion performance monitoring would further ensure long-term effectiveness.

Industry Classification

NAICS: ConstructionHighway, Street, and Bridge ConstructionHighway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008017R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20294 POINT LOOKOUT RD, GREAT MILLS, MD, 20634

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

Financial Breakdown

Contract Ceiling: $41,649,506

Exercised Options: $41,649,506

Current Obligation: $41,649,506

Actual Outlays: $1,930,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2017-03-06

Current End Date: 2021-12-03

Potential End Date: 2021-12-03 00:00:00

Last Modified: 2023-05-01

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