DoD's $32.5M Steam Plant Contract with MESA ENERGY SYSTEMS Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $32,472,183 ($32.5M)

Contractor: Mesa Energy Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2015-09-29

End Date: 2019-06-28

Contract Duration: 1,368 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-520 STEAM PLANT DECENTRALIZATION AT MARINE CORPS RECRUIT DEPOT, SAN DIEGO, CALIFORNIA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92140

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to MESA ENERGY SYSTEMS, INC for work described as: IGF::OT::IGF P-520 STEAM PLANT DECENTRALIZATION AT MARINE CORPS RECRUIT DEPOT, SAN DIEGO, CALIFORNIA Key points: 1. The contract awarded to MESA ENERGY SYSTEMS, INC for steam plant decentralization at MCRD San Diego represents a significant investment. 2. While awarded under full and open competition, the effectiveness of price discovery and overall value require further examination. 3. The absence of small business participation is a notable concern. 4. The IT sector is not directly involved, but infrastructure projects of this scale often have broader economic implications.

Value Assessment

Rating: fair

The contract's value of $32.5M for plumbing, heating, and air-conditioning services needs to be benchmarked against similar large-scale infrastructure projects. Without detailed cost breakdowns or comparisons, assessing its fairness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a broad search for qualified bidders. However, the final price and the number of bids received (10) warrant analysis to ensure robust price discovery and prevent potential overpayment.

Taxpayer Impact: Taxpayer funds totaling $32.5M were expended. Ensuring this expenditure achieved optimal value for money is crucial for fiscal responsibility.

Public Impact

Military base infrastructure upgrades impact readiness and quality of life for service members. Large construction and contracting awards can stimulate local economies through job creation and material sourcing. The lack of small business involvement in this significant contract may limit opportunities for smaller enterprises in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential for price overruns in fixed-price contracts
Long contract duration (1368 days) increases risk exposure

Positive Signals

Awarded under full and open competition
Clear project objective (steam plant decentralization)

Sector Analysis

This contract falls within the construction and infrastructure sector, specifically focusing on mechanical systems for a military installation. Spending benchmarks for similar base modernization projects would provide context for the $32.5M award.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This indicates a missed opportunity to engage smaller firms, potentially limiting competition and economic benefits for the small business sector.

Oversight & Accountability

Oversight would focus on contract performance, adherence to schedule and budget, and the effectiveness of the competition process. The Department of the Navy's contracting activity suggests established oversight mechanisms are in place.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of small business participation
Potential for cost overruns impacting quality
Long contract duration increases exposure to unforeseen issues
Need for detailed cost-benefit analysis to confirm value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to MESA ENERGY SYSTEMS, INC. IGF::OT::IGF P-520 STEAM PLANT DECENTRALIZATION AT MARINE CORPS RECRUIT DEPOT, SAN DIEGO, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is MESA ENERGY SYSTEMS, 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 $32.5 million.

What is the period of performance?

Start: 2015-09-29. End: 2019-06-28.

Was the $32.5M contract price competitive given the scope of work for steam plant decentralization at MCRD San Diego?

Assessing the competitiveness of the $32.5M price requires detailed analysis of the bids received and comparison with industry standards for similar projects. While awarded under full and open competition, the number of bids (10) and the firm fixed-price nature necessitate a review to ensure value for money was achieved and taxpayers were not overcharged.

What are the primary risks associated with this firm fixed-price contract, and how were they mitigated?

The primary risk with a firm fixed-price contract is that the contractor may incur cost overruns, potentially leading to reduced quality or disputes if not managed effectively. Mitigation strategies could include robust contract oversight, clear performance metrics, and contingency planning by the Department of the Navy to ensure project completion within the agreed-upon price.

How effectively did the full and open competition process ensure the best value for the government?

The full and open competition process theoretically maximizes the chances of obtaining the best value by soliciting offers from all responsible sources. However, the ultimate effectiveness depends on the clarity of the solicitation, the evaluation criteria, and the number and quality of bids received. Further analysis of the bidding process and award decision is needed to confirm optimal value.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N6247315R3602

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roberts Immigration LAW Group, LLC (UEI: 017106386)

Address: 2 CROMWELL, IRVINE, CA, 92618

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

Financial Breakdown

Contract Ceiling: $32,472,183

Exercised Options: $32,472,183

Current Obligation: $32,472,183

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline