Department of the Army awards $33.5M for utility services, including steam and air-conditioning supply

Contract Overview

Contract Amount: $33,457,802 ($33.5M)

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: $91.9K/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 (HEAT) FY25 OCT - AUG

Plain-Language Summary

Department of Defense obligated $33.5 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR UTILITY SERVICES (HEAT) FY25 OCT - AUG Key points: 1. The contract value of $33.5 million for a 12-month period suggests a significant operational requirement. 2. The fixed-price with economic price adjustment (FPEPA) contract type introduces potential for cost fluctuations. 3. The absence of a specific Product Service Code (PSC) makes direct benchmarking challenging. 4. The contract's duration of 364 days aligns with typical annual service agreements. 5. The award was made to a single entity, raising questions about competitive pricing. 6. The contract is for consolidated reporting of utility services, indicating a need for integrated management.

Value Assessment

Rating: fair

The contract value of $33.5 million for a 364-day period for utility services, including steam and air-conditioning, appears substantial. Without specific details on the scope of services, location, and quantity of utilities provided, a direct comparison to similar contracts is difficult. The FPEPA pricing structure introduces uncertainty regarding the final cost to the government, as economic adjustments can increase the total expenditure beyond the initial fixed price. Benchmarking the per-unit cost is not feasible with the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in situations where competition is deemed not practicable. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not benefit from potential price reductions that could arise from multiple offers.

Public Impact

The Department of the Army benefits from consolidated utility reporting and services, ensuring operational continuity. Services include the supply of steam and air-conditioning, critical for maintaining facilities. The geographic impact is likely localized to a specific military installation or complex managed by the Department of the Army. The contract supports the operational readiness of military personnel and infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Economic price adjustment clause introduces uncertainty in final contract cost.
Lack of detailed service scope and performance metrics hinders value assessment.
Absence of small business subcontracting goals needs further investigation for potential impact.

Positive Signals

Consolidated reporting streamlines utility management for the Department of the Army.
Fixed-price with economic price adjustment provides some cost certainty while allowing for market fluctuations.
Contract duration of nearly a year ensures consistent service delivery.

Sector Analysis

The utility services sector is a critical component of government operations, encompassing the provision of essential resources like steam, heating, and cooling. This contract falls within the broader category of facilities management and infrastructure support. The market for such services is often characterized by regional providers and specialized expertise. Benchmarking this specific contract's value is challenging without more granular data on the scope and scale of services provided, but the $33.5 million award for a year indicates a significant operational footprint.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. This suggests that the primary awardee is likely a larger entity. There is no information available regarding subcontracting plans or goals for small businesses. Consequently, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Department of the Army's contract management division. Transparency is limited by the sole-source nature of the award and the lack of publicly available performance reports. Accountability measures would be defined within the contract terms and conditions, including any service level agreements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Management Contracts
Utility Infrastructure Services
Steam and Air-Conditioning Supply Contracts
Government Consolidated Reporting Services

Risk Flags

Sole-source award may limit cost savings.
Economic price adjustment introduces cost uncertainty.
Lack of detailed performance metrics hinders oversight.
Limited public information on contractor selection justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR UTILITY SERVICES (HEAT) 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 $33.5 million.

What is the period of performance?

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

What is the specific geographic location and scope of the utility services being provided under this contract?

The provided data does not specify the geographic location or the detailed scope of utility services. It broadly mentions 'CONSOLIDATED REPORT FOR UTILITY SERVICES (HEAT)' and 'Steam and Air-Conditioning Supply.' To fully assess the contract's value and necessity, understanding the specific facilities, installations, or complexes being served, as well as the precise quantities and types of utilities (e.g., steam generation capacity, cooling tons, distribution networks), is crucial. This information would allow for a more accurate comparison with similar contracts and an evaluation of the efficiency of the service delivery.

How was the contractor, FOREIGN UTILITY CONSOLIDATED REPORTING, selected for this sole-source award, and what is their track record with similar contracts?

The data states the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. The specific justification for this sole-source award (e.g., unique capabilities, urgent need, lack of alternatives) is not detailed in the provided information. FOREIGN UTILITY CONSOLIDATED REPORTING's track record with similar large-scale utility service contracts, particularly for the Department of Defense, would need to be independently verified through contract databases and performance reviews. Without this, it's difficult to assess their experience and reliability in fulfilling this $33.5 million award.

What are the specific economic factors that will trigger adjustments under the 'Economic Price Adjustment' clause, and what is the potential impact on the total contract cost?

The data indicates the contract type is 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA). The specific economic factors that trigger adjustments are not detailed but typically include indices related to fuel costs, labor rates, or material prices relevant to utility services. The potential impact on the total contract cost can be significant, as these adjustments can lead to increases beyond the initial fixed price, especially in volatile market conditions. A thorough review of the contract's 'Economic Price Adjustment' clause would be necessary to understand the caps, triggers, and calculation methodologies, which are critical for assessing the ultimate financial exposure for the government.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance being monitored?

The provided data does not include information on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are essential components for measuring the contractor's performance and ensuring the government receives the expected quality and reliability of utility services. Without defined KPIs and SLAs, it is challenging to objectively assess whether the contractor is meeting its obligations and delivering value for money. Standard oversight mechanisms would involve regular performance reviews, site inspections, and monitoring of service delivery metrics, but the specifics for this contract are not publicly available.

How does the $33.5 million award for 364 days of utility services compare to historical spending patterns for similar services within the Department of the Army or other federal agencies?

To compare this $33.5 million award, one would need to analyze historical spending data for utility services, specifically steam and air-conditioning, within the Department of the Army and potentially other agencies with similar infrastructure needs. Factors such as the number of facilities served, geographic location (which influences utility costs), and the scope of services (e.g., generation vs. distribution) are critical for a meaningful comparison. A preliminary assessment suggests this is a substantial annual award, but without comparative data on contract size, duration, and service scope over previous years, it's difficult to determine if this represents an increase, decrease, or stable spending trend.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Steam and Air-Conditioning Supply

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, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $33,457,802

Exercised Options: $33,457,802

Current Obligation: $33,457,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline