DoD awards $12M contract for aircraft refueling services, highlighting Next Evolution Water Solutions' role

Contract Overview

Contract Amount: $12,002,242 ($12.0M)

Contractor: Next Evolution Water Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-19

End Date: 2028-12-31

Contract Duration: 1,839 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8509743232!ALONGSIDE AIRCRAFT REFUELING

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to NEXT EVOLUTION WATER SOLUTIONS, INC. for work described as: 8509743232!ALONGSIDE AIRCRAFT REFUELING Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include service disruptions and contractor performance issues. 4. This contract supports critical logistical operations for the Department of Defense. 5. The award positions Next Evolution Water Solutions as a key provider in defense logistics. 6. Fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's value of $12 million over approximately five years suggests a moderate annual spend. Benchmarking against similar large-scale refueling contracts is challenging without more specific service details. However, the firm fixed-price structure indicates that the government has secured a predictable cost for these services, assuming the contractor can manage their expenses effectively. The absence of extensive modifications or change orders in the future would further support its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 8 bidders participating, the level of competition was robust. This suggests that the pricing is likely to be competitive, as multiple companies vied for the opportunity. The agency received a sufficient number of proposals to ensure a fair market price was obtained.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently, driving down costs and encouraging innovation among service providers.

Public Impact

The Department of Defense benefits from reliable aircraft refueling services, ensuring operational readiness. Military personnel and aircraft operating in Maryland will receive essential support. The contract supports specialized logistics and warehousing jobs within the defense sector. This contract ensures the continuous operation of critical air mobility functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service interruptions impacting military operations.
Contractor's ability to scale resources to meet fluctuating demand.
Ensuring compliance with stringent environmental and safety regulations for refueling operations.

Positive Signals

Robust competition indicates a healthy market and potential for cost savings.
Firm fixed-price contract shifts cost overruns to the contractor.
Long-term contract provides stability for both the agency and the contractor.

Sector Analysis

This contract falls within the broader defense logistics and support services sector, which is a significant component of federal spending. The market for specialized aircraft refueling and related warehousing services is characterized by a mix of large defense contractors and niche providers. The annual spending on such services can fluctuate based on operational tempo and strategic priorities. This award represents a specific instance of procurement within this vital sector.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely unless they are subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight, including review by the Defense Contract Audit Agency (DCAA) and potentially the Inspector General's office for any performance or financial irregularities. The firm fixed-price nature of the contract provides a degree of accountability by placing cost control responsibility on the contractor. Transparency is maintained through contract award databases and reporting requirements.

Related Government Programs

Aircraft Maintenance and Repair
Base Operations Support
Fuel Services
Logistics and Supply Chain Management

Risk Flags

Potential for service disruption
Contractor performance variability
Regulatory compliance risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to NEXT EVOLUTION WATER SOLUTIONS, INC.. 8509743232!ALONGSIDE AIRCRAFT REFUELING

Who is the contractor on this award?

The obligated recipient is NEXT EVOLUTION WATER SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2023-12-19. End: 2028-12-31.

What is the historical spending pattern for aircraft refueling services by the Department of Defense?

Historical spending on aircraft refueling services by the Department of Defense (DoD) is substantial and varies annually based on global operations, training exercises, and strategic deployments. While specific figures for 'aircraft refueling' as a standalone category can be difficult to isolate due to its integration into broader logistics and base support contracts, the DoD consistently allocates billions of dollars towards aviation fuel and related services. For instance, in fiscal year 2022, the DoD reported significant expenditures on fuel for its vast aircraft fleet. Analyzing trends requires examining aggregated data across various contract vehicles, including fuel purchases, maintenance of fueling infrastructure, and specialized refueling services. Factors such as geopolitical events, changes in operational tempo, and the introduction of new aircraft technologies can influence these spending patterns over time. The $12 million awarded here represents a localized expenditure within this larger, dynamic spending landscape.

How does the pricing of this contract compare to similar refueling contracts awarded by the DoD?

Benchmarking the pricing of this $12 million contract against similar aircraft refueling contracts requires detailed comparative data on service scope, duration, geographic location, and specific performance metrics. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, the firm fixed-price nature of this award suggests that the contractor, Next Evolution Water Solutions, Inc., has committed to delivering the specified services at a set cost. This structure is generally favored when requirements are well-defined and risks are manageable. If the annual cost ($12M / ~5 years = $2.4M/year) falls within the typical range for supporting a specific base or operational area of this size and complexity, it indicates fair pricing. Deviations from the norm might be explained by unique operational demands, specialized equipment requirements, or the competitive landscape at the award location.

What are the primary risks associated with this aircraft refueling contract?

The primary risks associated with this aircraft refueling contract include operational disruptions, contractor performance issues, and potential cost overruns if the fixed-price model proves inadequate for unforeseen circumstances. Operational disruptions could arise from equipment failure, logistical challenges in fuel supply, or adverse weather conditions, all of which could impact military readiness. Contractor performance risk involves the possibility that Next Evolution Water Solutions, Inc. may not meet the required service levels, quality standards, or delivery timelines. While the firm fixed-price contract shifts financial risk to the contractor, significant unforeseen events could still lead to disputes or contract modifications. Additionally, ensuring strict adherence to safety and environmental regulations during refueling operations presents an ongoing risk that requires diligent oversight.

What is the track record of Next Evolution Water Solutions, Inc. with federal contracts?

Information regarding the specific track record of Next Evolution Water Solutions, Inc. with federal contracts, particularly concerning aircraft refueling services, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any reported disputes or terminations, and the types and values of previous awards. Companies that have successfully managed similar large-scale, long-term contracts, especially within the defense sector, generally demonstrate a stronger capability to fulfill current obligations. Without this historical data, it is difficult to definitively assess their reliability and expertise in this specialized area. Further due diligence would involve searching federal procurement databases for their award history and performance reviews.

How does this contract contribute to the overall mission effectiveness of the Department of Defense?

This contract directly contributes to the overall mission effectiveness of the Department of Defense by ensuring the continuous availability of a critical support service: aircraft refueling. Reliable access to fuel is fundamental for flight operations, whether for training, strategic deployment, or rapid response missions. By outsourcing this function to a dedicated provider like Next Evolution Water Solutions, Inc., the DoD can focus its internal resources on core combat and operational capabilities. The contract's duration and scope suggest it supports a significant operational tempo or a key strategic location, implying that its successful execution is vital for maintaining air power readiness and operational flexibility within the supported region.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPE60322R0504

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18 ROSS RD, DURHAM, NH, 03824

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

Financial Breakdown

Contract Ceiling: $12,002,242

Exercised Options: $12,002,242

Current Obligation: $12,002,242

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline