DoD's $11M Water Utility Contract Faces Limited Competition, Raising Cost Concerns

Contract Overview

Contract Amount: $11,060,176 ($11.1M)

Contractor: Foreign Utility Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $30.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CONSOLIDATED REPORT FOR UTILITY SERVICES (WATER) FY25 OCT - AUG

Plain-Language Summary

Department of Defense obligated $11.1 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR UTILITY SERVICES (WATER) FY25 OCT - AUG Key points: 1. Significant spending on essential water utility services for the Department of the Army. 2. Contract awarded under 'NOT AVAILABLE FOR COMPETITION', indicating potential lack of robust price discovery. 3. Fixed Price with Economic Price Adjustment (EPA) contract type introduces risk of cost escalation. 4. The $11M expenditure for a 12-month period warrants scrutiny for value and efficiency.

Value Assessment

Rating: questionable

The contract's $11M value for 12 months of water utility services is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to ensure fair pricing. The EPA clause adds further uncertainty to the final cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competitive environment. This lack of competition can lead to higher prices as there is less incentive for the contractor to offer the most cost-effective solution.

Taxpayer Impact: Limited competition may result in taxpayers paying more than necessary for essential water utility services.

Public Impact

Ensures critical water supply for military operations. Potential for increased costs due to limited competition and EPA. Transparency in pricing and service delivery is crucial for accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Economic Price Adjustment (EPA)
Lack of clear benchmark for pricing

Positive Signals

Ensures essential service delivery
Definitive contract provides clear terms

Sector Analysis

This contract falls under utility services, specifically water supply, which is critical for base operations. Spending benchmarks for such services can vary widely based on location, infrastructure needs, and service scope. The $11M for a single year suggests a significant operational requirement.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses had an opportunity to compete or participate as subcontractors.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status requires robust oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements. Regular reviews of the EPA adjustments are also essential.

Related Government Programs

Water Supply and Irrigation Systems
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
Economic Price Adjustment (EPA)
Potential for cost overruns
Lack of transparency in pricing justification
No clear small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR UTILITY SERVICES (WATER) FY25 OCT - AUG

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 $11.1 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' determination for this water utility contract?

The determination of 'NOT AVAILABLE FOR COMPETITION' typically arises from unique circumstances, such as the existence of a single capable provider due to geographic isolation, specialized infrastructure, or proprietary technology. Without further details, it's difficult to ascertain the precise justification. Understanding this reason is key to assessing whether the limited competition was unavoidable or a result of inadequate market research.

How will the Economic Price Adjustment (EPA) clause impact the final cost, and what mechanisms are in place to control potential inflation?

The EPA clause allows for adjustments to the contract price based on fluctuations in specific economic indicators, such as labor or material costs. This introduces uncertainty regarding the final expenditure. Effective oversight requires clear, pre-defined indices for adjustment and regular reviews to ensure that increases are justified and do not exceed reasonable market trends, thereby protecting taxpayer funds from excessive inflation.

What performance metrics and quality assurance measures are in place to ensure the effectiveness and reliability of the water utility services provided?

Ensuring the effectiveness of water utility services necessitates clearly defined performance standards, service level agreements, and rigorous quality assurance protocols. This includes regular testing of water quality, monitoring of supply reliability, and prompt response to any service disruptions. Robust oversight should involve independent verification of these metrics to guarantee that the services meet the required operational standards and public health regulations.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

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: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,060,176

Exercised Options: $11,060,176

Current Obligation: $11,060,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline