DoD Awards $16.3M for Iowa Army Ammunition Plant Wastewater Facility Construction

Contract Overview

Contract Amount: $16,285,771 ($16.3M)

Contractor: American Ordnance LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-06

End Date: 2026-09-25

Contract Duration: 780 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IAAAP - BOA W52P1J-09-G-0001 IS FOR THE ACQUISITION OF SERVICES RELATED TO THE OPERATION AND MAINTENANCE OF IAAAP, TO W519TC24F0371 IS FOR THE CONSTRUCTION PORTION OF THE NEW WASTEWATER TREATMENT FACILITY AT IAAAP.

Place of Performance

Location: MIDDLETOWN, DES MOINES County, IOWA, 52638

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to AMERICAN ORDNANCE LLC for work described as: IAAAP - BOA W52P1J-09-G-0001 IS FOR THE ACQUISITION OF SERVICES RELATED TO THE OPERATION AND MAINTENANCE OF IAAAP, TO W519TC24F0371 IS FOR THE CONSTRUCTION PORTION OF THE NEW WASTEWATER TREATMENT FACILITY AT IAAAP. Key points: 1. The contract focuses on constructing a new wastewater treatment facility, a critical infrastructure upgrade. 2. Competition was full and open, suggesting a competitive bidding process for the construction services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. This spending falls under Facilities Support Services, a broad category with varying cost benchmarks.

Value Assessment

Rating: good

The award amount of $16.3M for a wastewater treatment facility construction project appears reasonable given the scope. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The firm-fixed-price structure and competitive bidding aim to ensure taxpayer funds are used efficiently for this essential infrastructure project.

Public Impact

Ensures compliance with environmental regulations for wastewater discharge. Supports the operational readiness of the Iowa Army Ammunition Plant. Modernizes critical infrastructure, potentially improving long-term operational efficiency. Contributes to local economic activity through construction jobs and material procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large construction projects.
Dependency on contractor performance for timely completion.
Long-term maintenance costs of the new facility are not detailed.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract type.
Addresses critical environmental and operational needs.
Supports a key defense installation.

Sector Analysis

This contract falls under Facilities Support Services, specifically construction for a wastewater treatment plant. Spending in this sector can vary widely based on project complexity, location, and regulatory requirements. Benchmarks for similar DoD infrastructure projects would be relevant.

Small Business Impact

While the contract was awarded under full and open competition, it is unclear if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award is a delivery order against a broader Basic Ordering Agreement (BOA), suggesting a pre-established framework for services. Oversight would focus on the execution of this specific delivery order and adherence to contract terms.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for construction delays.
Uncertainty regarding long-term operational costs.
Dependency on contractor performance.
Environmental compliance risks during construction phase.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to AMERICAN ORDNANCE LLC. IAAAP - BOA W52P1J-09-G-0001 IS FOR THE ACQUISITION OF SERVICES RELATED TO THE OPERATION AND MAINTENANCE OF IAAAP, TO W519TC24F0371 IS FOR THE CONSTRUCTION PORTION OF THE NEW WASTEWATER TREATMENT FACILITY AT IAAAP.

Who is the contractor on this award?

The obligated recipient is AMERICAN ORDNANCE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2024-08-06. End: 2026-09-25.

What is the estimated lifecycle cost of the new wastewater treatment facility, including maintenance and operational expenses?

The provided data focuses solely on the initial construction cost. A comprehensive lifecycle cost analysis would be necessary to understand the total financial commitment over the facility's lifespan. This analysis should include projected costs for staffing, energy, chemicals, repairs, and eventual decommissioning, providing a more complete picture of the long-term taxpayer impact beyond the initial $16.3 million award.

Are there any identified risks associated with the specific construction methods or materials chosen for this facility?

The data does not specify the construction methods or materials selected. A thorough risk assessment would typically evaluate potential issues related to material durability, environmental impact of construction processes, and the contractor's experience with the chosen techniques. Understanding these factors is crucial for mitigating potential delays, cost overruns, and ensuring the facility's long-term effectiveness and compliance.

How does the cost per unit of wastewater treated by this new facility compare to industry benchmarks or similar government facilities?

Benchmarking the cost per unit of wastewater treated requires operational data not yet available as this is a construction contract. Once the facility is operational, its performance metrics, including treatment volume and associated operating costs, can be compared. This comparison will be essential to determine the long-term cost-effectiveness and efficiency of the new infrastructure against established industry standards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17575 HIGHWAY 79, MIDDLETOWN, IA, 52638

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,285,771

Exercised Options: $16,285,771

Current Obligation: $16,285,771

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,898,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J09G0001

IDV Type: IDC

Timeline