Navy awarded $18.4M for fuel supply facilities construction, completed in 2007

Contract Overview

Contract Amount: $13,434,897 ($13.4M)

Contractor: Reliable Contracting Group, LLC

Awarding Agency: Department of Defense

Start Date: 2005-02-02

End Date: 2007-02-02

Contract Duration: 730 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200505!118407!1700!N62467!NAVY FACILITIES ENGINEERING COMM!N6246704C0086 !A!N! !N! ! !20050202!20070202!128567216!128567216!128567216!N!RELIABLE CONTRACTING GROUP, LL!13035-B MIDDLETOWN INDUSTR!LOUISVILLE !KY!40223!39364!273!48!KINGSVILLE NAS !KLEBERG !TEXAS !+000012494000!N!N!000012494000!Y241!FUEL SUPPLY FACILITIES !C2 !CONSTRUCTION !000 !* !237120!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!004!B! !D!N!C! ! !N!B!N!N! ! !Z! !A!A!000!A!B!Y!S!Y! !Y!97AS!N60241!0001! !

Place of Performance

Location: KINGSVILLE, KLEBERG County, TEXAS, 78363

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to RELIABLE CONTRACTING GROUP, LLC for work described as: 200505!118407!1700!N62467!NAVY FACILITIES ENGINEERING COMM!N6246704C0086 !A!N! !N! ! !20050202!20070202!128567216!128567216!128567216!N!RELIABLE CONTRACTING GROUP, LL!13035-B MIDDLETOWN INDUSTR!LOUISVILLE !KY!40223!39364!273!48!KINGSVILLE NAS !KLEB… Key points: 1. Contract value of $18.4M for construction services. 2. Completed in 2007, indicating a historical project. 3. Awarded by the Department of the Navy, part of DoD. 4. NAICS code 237120 points to pipeline and related structures construction. 5. Firm Fixed Price contract type suggests predictable costs. 6. Full and Open Competition indicates broad market participation.

Value Assessment

Rating: fair

The contract value of $18.4 million for fuel supply facilities construction appears to be a moderate investment for the Department of the Navy. Without specific details on the scope of work, such as the size and complexity of the facilities, it is difficult to benchmark against similar contracts. The firm fixed-price nature of the contract suggests cost certainty for the government, but the ultimate value for money depends on the quality of the delivered facilities and their long-term operational efficiency. The contract was awarded in 2005 and completed in 2007, making direct price comparisons to current market rates challenging due to inflation and market shifts.

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 data indicates there were 4 bids received. This level of competition is generally positive as it allows for a wider range of potential contractors to participate, potentially leading to more competitive pricing and innovative solutions. The presence of multiple bidders suggests that the market for this type of construction service was accessible and that the government had a reasonable selection of qualified firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received. The government's ability to solicit bids from numerous qualified contractors increases the likelihood of securing the best value for public funds.

Public Impact

The primary beneficiaries of this contract are the U.S. Navy personnel and operations at Kingsville NAS, Texas, who rely on secure and functional fuel supply facilities. The contract delivered construction services for fuel supply facilities, crucial for military aviation and vehicle operations. The geographic impact is localized to the Kingsville Naval Air Station in Kleberg County, Texas. The project likely involved a construction workforce, contributing to employment in the local Texas economy during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen construction challenges.
Risk of delays in project completion impacting operational readiness if the contractor faced issues.
Ensuring the long-term durability and maintenance needs of the fuel facilities were adequately addressed in the construction.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and Open Competition suggests a competitive bidding process likely resulted in a fair price.
Awarded to Reliable Contracting Group, LLC, whose performance on this contract would be a key indicator.

Sector Analysis

The construction industry, particularly for specialized infrastructure like fuel supply facilities, is a significant sector within the U.S. economy. This contract falls under the heavy and civil engineering construction sub-sector, specifically related to pipeline and related structures (NAICS 237120). The market for such projects is often influenced by government spending, especially defense-related infrastructure. Benchmarking this $18.4 million contract would ideally involve comparing it to similar military fuel depot or pipeline construction projects awarded around the same period (2005-2007) to assess its relative cost-effectiveness.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, Reliable Contracting Group, LLC, likely managed the project directly or subcontracted portions of the work. Without specific subcontracting plans or data, it's difficult to assess the direct impact on the small business ecosystem. However, larger federal construction contracts often involve significant subcontracting opportunities for specialized trades and services, which could have benefited small businesses if they were engaged by the prime contractor.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of the Navy's contracting and engineering departments. As a construction project, regular site inspections, progress reports, and quality assurance checks would be standard oversight mechanisms. Accountability would be tied to the terms of the Firm Fixed Price contract, including adherence to specifications, schedule, and quality standards. Transparency is typically facilitated through contract award databases like FPDS, which provide basic information on contract value, type, and parties involved. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Fuel Storage and Distribution Infrastructure
Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts

Risk Flags

Historical Contract Data
Limited Scope Detail
No Performance Feedback Available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to RELIABLE CONTRACTING GROUP, LLC. 200505!118407!1700!N62467!NAVY FACILITIES ENGINEERING COMM!N6246704C0086 !A!N! !N! ! !20050202!20070202!128567216!128567216!128567216!N!RELIABLE CONTRACTING GROUP, LL!13035-B MIDDLETOWN INDUSTR!LOUISVILLE !KY!40223!39364!273!48!KINGSVILLE NAS !KLEBERG !TEXAS !+000012494000!N!N!000012494000!Y241!FUEL SUPPLY FACILITIES !C2 !CONSTRUCTION !000 !* !237120!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is RELIABLE CONTRACTING GROUP, LLC.

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: 2005-02-02. End: 2007-02-02.

What was the specific scope of work for the 'Fuel Supply Facilities' at Kingsville NAS?

The contract data identifies the project as 'FUEL SUPPLY FACILITIES' under NAICS code 237120 (Oil and Gas Pipeline and Related Structures Construction). This suggests the work involved the construction, repair, or modification of infrastructure related to the storage and distribution of fuel at the Naval Air Station Kingsville. This could include the installation or upgrade of fuel tanks, pipelines, pumping stations, and associated control systems necessary for aviation fuel or other operational fuels. The exact specifications, capacity, and technical requirements would have been detailed in the contract's Statement of Work (SOW), which is not provided in the summary data. Understanding the precise scope is crucial for evaluating the value and complexity of the $18.4 million award.

How does the $18.4 million contract value compare to similar Navy fuel facility construction projects around 2005-2007?

Benchmarking the $18.4 million contract value requires comparison with similar projects undertaken by the Navy or other military branches for fuel supply facilities during the 2005-2007 timeframe. Without access to a comprehensive database of comparable projects with detailed scope and cost data, a precise comparison is challenging. However, $18.4 million represents a significant investment, suggesting a project of substantial scale or complexity. Factors influencing cost include the type of fuel, storage capacity, environmental regulations, site conditions, and the specific technologies employed. A thorough analysis would involve identifying projects with similar square footage, tank capacities, pipeline lengths, and geographical considerations to determine if the price was competitive for the scope delivered.

What was the track record of Reliable Contracting Group, LLC, prior to or during this contract?

Information on the specific track record of Reliable Contracting Group, LLC, prior to or during this 2005-2007 contract is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on other federal contracts, including ratings from past performance questionnaires (PPQs), any documented instances of contract disputes, awards, or terminations. Understanding their experience with similar fuel infrastructure projects, their financial stability, and their safety records would provide further insight into their capability to execute such a project successfully. Reliable Contracting Group, LLC, was the prime contractor for this $18.4 million definitive contract.

What are the potential risks associated with constructing fuel supply facilities, and how might they have been mitigated?

Constructing fuel supply facilities carries inherent risks, including environmental hazards (spills, soil contamination), safety concerns (fire, explosion), regulatory compliance issues (EPA, OSHA), and technical challenges related to material compatibility and system integrity. For this $18.4 million Navy contract, risks could have included unforeseen site conditions, material cost fluctuations (though mitigated by FFP), and potential delays. Mitigation strategies likely involved rigorous site assessments, adherence to strict environmental and safety protocols, detailed engineering designs, robust quality assurance/quality control (QA/QC) plans, and contingency planning. The firm fixed-price nature of the contract incentivized the contractor to manage these risks effectively to maintain profitability.

How has spending on construction for fuel infrastructure evolved within the Department of the Navy since 2007?

Spending on construction for fuel infrastructure within the Department of the Navy has likely evolved significantly since 2007, influenced by factors such as aging infrastructure requiring upgrades, changes in fuel types (e.g., biofuels), increased emphasis on energy security and sustainability, and fluctuating geopolitical demands. Post-2007, there has been a broader trend in federal contracting towards incorporating advanced technologies, stricter environmental standards, and potentially more complex project management due to evolving operational needs. Analyzing trends would involve examining annual spending data for relevant NAICS codes (like 237120) and specific contract types related to fuel facilities awarded by the Navy over the past decade and a half.

What is the significance of the NAICS code 237120 (Oil and Gas Pipeline and Related Structures Construction) for this contract?

The assignment of NAICS code 237120, 'Oil and Gas Pipeline and Related Structures Construction,' to this $18.4 million Navy contract is significant as it categorizes the primary nature of the work performed. This code specifically covers establishments primarily engaged in constructing oil and gas pipelines, including offshore pipelines, and related structures such as oil and gas storage facilities, and pumping and metering stations. For the 'Fuel Supply Facilities' at NAS Kingsville, this implies the project likely involved the installation, repair, or modification of systems for transporting and storing fuel, which could include underground or above-ground tanks, piping networks, and associated infrastructure critical for military operations. This classification helps in comparing the contract's scope and cost to industry benchmarks within this specialized construction segment.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13035-B MIDDLETOWN INDUSTR, LOUISVILLE, KY, 40223

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline