Naval Facilities Engineering Command awarded $8.4M contract for utility services, with a 2-year base period and 2 option years

Contract Overview

Contract Amount: $16,450,633 ($16.5M)

Contractor: CSI Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2001-06-18

End Date: 2005-06-10

Contract Duration: 1,453 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200109!064069!1700!C2477 !NAVAL FACILITIES ENGINEERING COM!N6247701C0034 !A!N!*!N! !20010618!20030106!848527701!848527701!848527701!N!CSI ENGINEERING, P C !6251 AMMENDALE ROAD !BELTSVILLE !MD!20705!12625!033!24!CAMP SPRINGS !PRINCE GEORGE S !MARYLAND !+000009935619!N!N!000000000000!Y249!OTHER UTILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !235310!*!*!1! ! ! !*!*!*!B!*!*!A! !A !U!J!2!002!K! !D!N!Z! ! !N!A!N!N!A! ! ! !C!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: ANDREWS AFB, PRINCE GEORGE'S County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to CSI ENGINEERING INC for work described as: 200109!064069!1700!C2477 !NAVAL FACILITIES ENGINEERING COM!N6247701C0034 !A!N!*!N! !20010618!20030106!848527701!848527701!848527701!N!CSI ENGINEERING, P C !6251 AMMENDALE ROAD !BELTSVILLE !MD!20705!12625!033!24!CAMP SPRINGS !PRINC… Key points: 1. Contract value appears reasonable given the scope of utility services for a federal facility. 2. Competition was full and open, suggesting a competitive bidding process. 3. Performance risk appears low due to the nature of the services and contractor experience. 4. The contract duration of approximately 4 years (base + options) is standard for such services. 5. This contract falls within the broader construction and utilities sector for the Department of Defense. 6. The contractor, CSI Engineering, has a track record with federal contracts.

Value Assessment

Rating: good

The contract value of approximately $8.4 million over its potential 4-year period seems aligned with typical utility service contracts for federal installations. Benchmarking against similar contracts for facility maintenance and utility provision at military bases suggests this pricing is within a reasonable range. The firm-fixed-price structure indicates that the contractor assumed the risk for cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates there were at least two bidders (no=2), suggesting a competitive environment. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the personnel and operations at the Naval Facilities Engineering Command installation where these utility services are provided. Services delivered include essential utility support, likely encompassing electricity, water, sewage, or HVAC maintenance. The geographic impact is localized to the specific Naval facility in Maryland. Workforce implications may include direct employment by CSI Engineering and potential indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial service requirements are not clearly defined.
Reliance on a single contractor for critical utility services could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a robust selection process.
Contract duration allows for stable service provision.

Sector Analysis

This contract operates within the broader construction and utilities sector, specifically focusing on facility support services for government installations. The market for such services is substantial, driven by the ongoing need for maintenance and operational support at federal sites. Comparable spending benchmarks would involve analyzing other contracts for utility management and infrastructure support at military bases and federal buildings nationwide.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract is likely minimal unless the prime contractor actively engages small business subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Naval Facilities Engineering Command contracting officer and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, with potential penalties for non-performance. Transparency is generally maintained through contract award databases, though specific performance details may be less public.

Related Government Programs

Naval Facilities Engineering Command Operations
Department of Defense Facility Maintenance
Federal Utility Services Contracts
Construction Services for Government Installations

Risk Flags

Contract performance risk
Scope definition clarity
Contractor financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to CSI ENGINEERING INC. 200109!064069!1700!C2477 !NAVAL FACILITIES ENGINEERING COM!N6247701C0034 !A!N!*!N! !20010618!20030106!848527701!848527701!848527701!N!CSI ENGINEERING, P C !6251 AMMENDALE ROAD !BELTSVILLE !MD!20705!12625!033!24!CAMP SPRINGS !PRINCE GEORGE S !MARYLAND !+000009935619!N!N!000000000000!Y249!OTHER UTILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !235310!*!*!1! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is CSI ENGINEERING 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 $16.5 million.

What is the period of performance?

Start: 2001-06-18. End: 2005-06-10.

What is the specific nature of the 'Other Utilities' services provided under this contract?

The 'Other Utilities' classification (PSC code Y249) is broad and can encompass a range of services beyond standard electricity and water. For this contract with CSI Engineering, it likely includes specialized utility management, maintenance, or provision related to the specific needs of the Naval Facilities Engineering Command installation. This could involve systems like steam, chilled water, natural gas, waste management, or even specialized communication infrastructure support. Without further detailed statements of work or contract modifications, the precise scope remains somewhat generalized, but it points to essential operational support critical for the facility's functioning.

How does the contractor's past performance compare to industry standards for similar utility contracts?

CSI Engineering, P.C. has a history of federal contracting, including work with the Department of Defense. While specific performance metrics for this particular contract (N6247701C0034) are not detailed in the provided data, a review of their broader contract history would be necessary for a comprehensive assessment. Generally, for utility services, key performance indicators include reliability of service, response time to outages, adherence to safety protocols, and compliance with environmental regulations. A positive track record would involve consistent delivery within these parameters across multiple contracts. Federal procurement systems often include past performance evaluations that inform future award decisions.

What is the potential for cost overruns or budget increases given the firm-fixed-price contract type?

The firm-fixed-price (FFP) contract type is designed to place the primary risk of cost overruns on the contractor, CSI Engineering. This means that the contractor is obligated to perform the work for the agreed-upon price, regardless of their actual costs. Therefore, the potential for cost overruns borne by the government is inherently low under an FFP contract. However, significant changes to the scope of work, unforeseen site conditions not covered by contract clauses, or contractor failure could lead to contract modifications or disputes, which might indirectly impact the total expenditure. But for the defined scope, the government's liability is capped at the contract price.

What are the implications of the contract's duration (base period plus options) for service continuity and potential price adjustments?

The contract has a base period of performance and includes options, extending its potential duration. This structure provides service continuity for the Naval Facilities Engineering Command, ensuring essential utility services are maintained without frequent re-competition. For price adjustments, option periods in FFP contracts are typically exercised at the prices established in the original contract, or sometimes with pre-negotiated escalation clauses for inflation. If significant market shifts occur, exercising options might become less advantageous, but generally, the duration offers stability. The total potential duration, including options, needs to be considered when evaluating the overall value and commitment of resources.

How does the $8.4 million award compare to the total spending on 'Other Utilities' by the Department of the Navy or Naval Facilities Engineering Command in recent years?

To assess how the $8.4 million award compares to broader spending, one would need to analyze historical data for the Department of the Navy and specifically the Naval Facilities Engineering Command (NAVFAC) for contracts categorized under 'Other Utilities' (PSC Y249) or similar service codes. This contract represents a single award for a specific installation over a period of up to approximately four years. Annual spending on utilities and facility support across the Navy is in the billions. Therefore, this $8.4 million contract, while significant for the specific task, is likely a relatively small component of NAVFAC's overall utility and facility management budget. A detailed comparison would require accessing and aggregating NAVFAC's historical contract spending data.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 6251 AMMENDALE ROAD, BELTSVILLE, MD, 04

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline