DoD awards $3.4M for 35-foot galvanized poles, raising questions on value and competition

Contract Overview

Contract Amount: $31,983,902 ($32.0M)

Contractor: Asrc Federal Facilities Logistics, LLC

Awarding Agency: Department of Defense

Start Date: 2017-10-21

End Date: 2018-01-23

Contract Duration: 94 days

Daily Burn Rate: $340.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8504864701!POLE 35FT GALVANIZED

Place of Performance

Location: FAIRFIELD, ESSEX County, NEW JERSEY, 07004

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to ASRC FEDERAL FACILITIES LOGISTICS, LLC for work described as: 8504864701!POLE 35FT GALVANIZED Key points: 1. The contract for galvanized poles was awarded to ASRC Federal Facilities Logistics, LLC for $3.4 million. 2. Competition was limited, with 'Full and Open Competition After Exclusion of Sources' suggesting potential restrictions. 3. The short duration (94 days) and fixed-price nature suggest a need for timely delivery but may limit long-term value. 4. The sector is Electrical Apparatus and Equipment, a niche but essential component for infrastructure.

Value Assessment

Rating: questionable

The contract value of $3.4 million for 35-foot galvanized poles appears high, especially considering the short 94-day duration. Benchmarking against similar contracts for utility poles is difficult without more specific data, but the price per pole seems elevated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. This method can lead to less competitive pricing and potentially higher costs for taxpayers.

Taxpayer Impact: The limited competition and potentially high unit cost suggest that taxpayers may not have received the best possible value for these galvanized poles.

Public Impact

Taxpayers may have overpaid for essential infrastructure components due to limited competition. The short contract duration raises questions about the long-term planning and strategic sourcing of these materials. The specific exclusion of sources warrants further investigation into the fairness and effectiveness of the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potentially high unit cost
Short contract duration

Positive Signals

Firm fixed price contract
Awarded to a known entity

Sector Analysis

The procurement falls under the Electrical Apparatus and Equipment sector, which is critical for infrastructure projects. Spending benchmarks in this area can vary widely based on material, size, and specific requirements, but consistency in pricing is generally expected.

Small Business Impact

The data indicates that this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or if set-asides were considered.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' clause suggests a need for robust oversight to ensure the exclusion criteria were justified and that the process did not unduly restrict competition, thereby impacting accountability.

Related Government Programs

Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Limited competition
Potentially inflated unit cost
Lack of justification for source exclusion
Short contract duration may not align with strategic needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to ASRC FEDERAL FACILITIES LOGISTICS, LLC. 8504864701!POLE 35FT GALVANIZED

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL FACILITIES LOGISTICS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2017-10-21. End: 2018-01-23.

What was the justification for excluding specific sources in this 'Full and Open Competition After Exclusion of Sources' award, and did this exclusion impact the final price paid?

The justification for excluding sources is not provided in the data. However, such exclusions typically occur due to specific technical requirements, existing relationships, or unique capabilities. If the excluded sources could have offered competitive pricing or superior alternatives, their exclusion likely resulted in a higher cost to the government and potentially less optimal value.

How does the unit cost of these galvanized poles compare to market rates or similar government contracts, considering the short duration and firm fixed price?

Without specific market data or comparable contract details, a precise unit cost comparison is challenging. However, the total award of $3.4 million for 35-foot poles over 94 days suggests a potentially high unit price. Firm fixed-price contracts can sometimes lead to higher costs if the contractor assumes significant risk, or lower costs if the government overpays for perceived risk.

What is the strategic importance of these galvanized poles, and does the short contract duration align with the Department of Defense's long-term infrastructure needs?

Galvanized poles are essential for various infrastructure needs, including power distribution and lighting. The 94-day duration suggests a short-term need or a specific project phase. If these poles are part of a larger, ongoing infrastructure strategy, a series of short-term contracts might indicate a lack of long-term planning or a reactive procurement approach, potentially impacting overall efficiency and cost.

Industry Classification

NAICS: Wholesale Trade › Household Appliances and Electrical and Electronic Goods Merchant Wholesalers › Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation (UEI: 078745061)

Address: 155 PASSAIC AVE, FAIRFIELD, NJ, 07004

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

Financial Breakdown

Contract Ceiling: $31,983,902

Exercised Options: $31,983,902

Current Obligation: $31,983,902

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline