DoD's Army Spends $11.3M on Sewage Treatment Services with Limited Competition

Contract Overview

Contract Amount: $11,318,607 ($11.3M)

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: $31.1K/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 (SEWAGE) FY245 OCT - AUG

Plain-Language Summary

Department of Defense obligated $11.3 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR UTILITY SERVICES (SEWAGE) FY245 OCT - AUG Key points: 1. Significant spending on essential utility services highlights ongoing operational needs. 2. Limited competition raises concerns about potential overspending and lack of innovation. 3. The fixed-price contract with economic price adjustment introduces inflation risk. 4. This contract falls under essential infrastructure services, crucial for base operations.

Value Assessment

Rating: questionable

The contract value of $11.3M for sewage treatment is substantial. Without comparable contract data or a clear benchmark, assessing its value for money is difficult. The lack of competition suggests potential for inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is noted as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competitive environment. This significantly impacts price discovery, as potential bidders are restricted, likely leading to higher costs than a fully competitive scenario.

Taxpayer Impact: The limited competition and potential for higher pricing directly impact taxpayer funds, as more money may be spent on these essential services than necessary.

Public Impact

Essential utility services like sewage treatment are critical for the functioning of military bases. The reliance on a single provider or limited pool of providers can create vulnerabilities in service delivery. Taxpayers may be bearing a higher cost due to the lack of competitive bidding for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpricing
Economic price adjustment risk

Positive Signals

Essential service provision
Definitive contract awarded

Sector Analysis

Sewage treatment facilities are a critical component of infrastructure maintenance for government facilities. Spending benchmarks for such services can vary widely based on location, scale, and specific treatment requirements. This $11.3M contract represents a significant investment in maintaining operational readiness.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract. The limited competition suggests that opportunities for small businesses may have been restricted.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification for limiting the bidding process. Robust oversight is needed to ensure fair pricing and prevent potential waste of taxpayer funds.

Related Government Programs

Sewage Treatment Facilities
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns due to economic price adjustment
Limited transparency in pricing
Dependency on a single or limited source for essential services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR UTILITY SERVICES (SEWAGE) FY245 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 $11.3 million.

What is the period of performance?

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

What is the specific justification for this contract being 'NOT AVAILABLE FOR COMPETITION'?

The justification for a contract being 'NOT AVAILABLE FOR COMPETITION' typically stems from unique circumstances such as the existence of only one responsible source, urgent and compelling needs that preclude full and open competition, or specific government-unique requirements. A thorough review of the contracting officer's justification documentation is necessary to understand the precise reasons and assess their validity.

How does the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause impact the overall cost certainty for taxpayers?

This clause introduces uncertainty for taxpayers. While the base price is fixed, the economic price adjustment allows for increases based on specified economic factors (like inflation). This means the final cost could exceed the initial estimate, making budget forecasting more challenging and potentially increasing the total expenditure beyond what was initially planned.

Are there alternative, more competitive methods for procuring sewage treatment services that the DoD could explore?

Depending on the specific requirements and geographic locations, the DoD could explore options like performance-based contracts, consolidating needs across multiple bases to achieve economies of scale, or re-evaluating the 'not available for competition' justification to see if a broader solicitation is feasible. Utilizing service contracts with clear performance metrics and competitive bidding processes can drive better value.

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: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,318,607

Exercised Options: $11,318,607

Current Obligation: $11,318,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline