DoD's Navy Awards $27.8M for Utility Infrastructure Assessment, Facing Potential Cost Overruns

Contract Overview

Contract Amount: $27,821,648 ($27.8M)

Contractor: Utility Works a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2022-08-23

End Date: 2026-11-30

Contract Duration: 1,560 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTILITY INFRASTRUCTURE AND CONDITION ASSESSMENT PROGRAM (UICAP) I

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to UTILITY WORKS A JOINT VENTURE for work described as: UTILITY INFRASTRUCTURE AND CONDITION ASSESSMENT PROGRAM (UICAP) I Key points: 1. The contract value of $27.8 million is significant for engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1560 days indicates a long-term project. 4. The 'VA' status code might warrant further investigation into its implications.

Value Assessment

Rating: questionable

The contract's total award amount is $27,821,648. Without specific per-unit cost data or benchmarks for similar utility infrastructure assessment programs, it's difficult to definitively assess pricing. However, the duration and scope suggest a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows all responsible sources to submit offers. This method is expected to yield fair and reasonable prices through market forces.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Ensures critical utility infrastructure is assessed for condition and potential improvements. Supports the Department of the Navy's operational readiness and long-term asset management. The program's success could lead to more efficient energy and water usage within naval facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the long duration and complexity of infrastructure assessment.
The 'VA' status code requires clarification regarding its impact on the contract's execution or oversight.
Lack of specific performance metrics makes it challenging to gauge the program's effectiveness upfront.

Positive Signals

Awarded through full and open competition, indicating a robust market engagement.
Addresses a critical need for infrastructure maintenance and modernization.
Firm Fixed Price contract type helps control costs if scope is well-defined.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to utility infrastructure. Spending in this area is crucial for maintaining aging government facilities and ensuring operational continuity. Benchmarks for similar large-scale infrastructure assessment programs can vary widely based on scope and complexity.

Small Business Impact

The data provided does not indicate any specific set-asides for small businesses. Therefore, it is unclear what, if any, opportunities were made available to small businesses for this contract.

Oversight & Accountability

The contract is managed by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially inspectors general to ensure compliance with terms and conditions.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration increases risk of cost escalation and performance issues.
Ambiguity surrounding the 'VA' status code requires clarification.
Lack of defined performance metrics makes effectiveness assessment difficult.
Potential for unforeseen infrastructure issues not covered by initial scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to UTILITY WORKS A JOINT VENTURE. UTILITY INFRASTRUCTURE AND CONDITION ASSESSMENT PROGRAM (UICAP) I

Who is the contractor on this award?

The obligated recipient is UTILITY WORKS A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2022-08-23. End: 2026-11-30.

What specific criteria define 'excellent' or 'good' for the utility infrastructure assessment, and how will these be measured?

The effectiveness of the assessment hinges on clearly defined metrics for infrastructure condition, risk identification, and recommended remediation strategies. Without explicit performance standards and measurable outcomes, it's challenging to determine if the program achieves 'excellent' or 'good' status. Future reviews should focus on the actionable insights and the long-term impact of the assessments on infrastructure longevity and operational efficiency.

What are the primary risks associated with the long duration (1560 days) of this infrastructure assessment contract?

The primary risks associated with a 1560-day duration include potential scope creep, evolving technological requirements for assessment, and the possibility of contractor performance degradation over time. Furthermore, market conditions and material costs could fluctuate, impacting the firm fixed price if not adequately managed. Ensuring continuous oversight and clear communication channels will be vital to mitigate these long-term execution risks.

How will the findings of this assessment program directly translate into cost savings or improved operational effectiveness for the Navy?

The assessment program's value is realized when its findings lead to data-driven decisions on infrastructure upgrades, maintenance prioritization, and resource allocation. Cost savings can be achieved through optimized repair schedules, reduced energy/water consumption, and avoidance of costly emergency repairs. Improved operational effectiveness stems from enhanced reliability of essential utilities, supporting the Navy's core mission requirements without interruption.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5041 CORPORATE WOODS DR STE 250, VIRGINIA BEACH, VA, 23462

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

Financial Breakdown

Contract Ceiling: $27,821,648

Exercised Options: $27,821,648

Current Obligation: $27,821,648

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $71,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247021D0005

IDV Type: IDC

Timeline