DoD's Army Spent $21M on Sewage Treatment in FY14 with No Competition
Contract Overview
Contract Amount: $21,010,626 ($21.0M)
Contractor: Foreign Utility Consolidated Reporting
Awarding Agency: Department of Defense
Start Date: 2013-10-01
End Date: 2014-09-30
Contract Duration: 364 days
Daily Burn Rate: $57.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: FY 14 UTILITY SERVICES (SEWAGE) OCTOBER IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $21.0 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: FY 14 UTILITY SERVICES (SEWAGE) OCTOBER IGF::OT::IGF Key points: 1. Significant spending on essential utility services ($21M). 2. Lack of competition raises concerns about price discovery. 3. Fixed Price with Economic Price Adjustment contract type adds potential cost volatility. 4. Sewage treatment is a critical but often overlooked infrastructure need.
Value Assessment
Rating: questionable
The contract value of $21M for sewage treatment is substantial. Without available competition data, it's difficult to benchmark pricing effectively against similar services. The fixed-price with economic price adjustment structure suggests potential for cost increases beyond initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or potentially sole-source scenario. This lack of competitive bidding likely resulted in higher prices than could have been achieved through a more open procurement process, impacting price discovery.
Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure, as the government did not explore alternative providers or negotiate based on market rates.
Public Impact
Essential public health service: sewage treatment ensures environmental protection and public well-being. Potential for cost overruns: Economic price adjustments can increase the final cost to taxpayers. Infrastructure reliance: Government facilities depend on reliable utility services, highlighting the importance of these contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Economic price adjustment
- Limited transparency on pricing benchmarks
Positive Signals
- Essential service provision
- Defined contract duration
Sector Analysis
Spending on utility services like sewage treatment is crucial for maintaining government infrastructure and operations. Benchmarks for such services can vary widely based on location, scale, and specific treatment requirements, making direct comparisons challenging without detailed context.
Small Business Impact
No information is available regarding the participation of small businesses in this contract. The limited competition suggests that opportunities for small businesses may have been restricted.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would focus on ensuring service delivery and managing the economic price adjustment clauses to mitigate excessive cost increases for taxpayers.
Related Government Programs
- Sewage Treatment Facilities
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost escalation due to economic price adjustment
- Limited transparency on pricing justification
- No clear indication of small business participation
Tags
sewage-treatment-facilities, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to FOREIGN UTILITY CONSOLIDATED REPORTING. FY 14 UTILITY SERVICES (SEWAGE) OCTOBER IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is FOREIGN UTILITY CONSOLIDATED REPORTING.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.0 million.
What is the period of performance?
Start: 2013-10-01. End: 2014-09-30.
What was the justification for limiting competition on this essential sewage treatment service?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. This implies a specific reason, such as a unique service requirement, existing infrastructure integration, or a prior determination that competition was not feasible or cost-effective. Further investigation into the contract file would be needed to ascertain the precise justification and ensure it was appropriate.
How were the economic price adjustments calculated and what was their impact on the final cost?
The contract type is 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT'. The specific formula or index used for these adjustments is not detailed in the provided data. Understanding the calculation method is crucial to assess whether the adjustments were reasonable and to quantify the final cost impact on taxpayers beyond the initial fixed price.
What is the typical cost range for similar sewage treatment services to assess the $21M expenditure?
Benchmarking this $21M expenditure is challenging without more specific details on the scope of services, treatment volume, facility size, and geographic location. However, for context, municipal sewage treatment costs can range from tens of thousands to millions of dollars annually depending on these factors. The lack of competition here makes a direct comparison difficult and raises questions about potential overpayment.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 1275 FIRST ST NE, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,010,626
Exercised Options: $21,010,626
Current Obligation: $21,010,626
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2013-10-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2014-10-01
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