DoD Awards $417M for Bridge Components, Including Large Wet and Dry Gap Sections
Contract Overview
Contract Amount: $41,726,296 ($41.7M)
Contractor: Acrow Global Limited
Awarding Agency: Department of Defense
Start Date: 2020-08-20
End Date: 2021-04-22
Contract Duration: 245 days
Daily Burn Rate: $170.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 4 EA. 130M WET GAP SECTIONS, 1 EA. 160M WET GAP SECTION, AND 21 EA. 50M DRY GAP SECTIONS
Plain-Language Summary
Department of Defense obligated $41.7 million to ACROW GLOBAL LIMITED for work described as: 4 EA. 130M WET GAP SECTIONS, 1 EA. 160M WET GAP SECTION, AND 21 EA. 50M DRY GAP SECTIONS Key points: 1. Significant award for fabricated structural metal, primarily bridge components. 2. Competition was 'Full and Open After Exclusion of Sources', suggesting a specific need or limited qualified bidders. 3. The contract value is substantial, indicating a major infrastructure or defense project. 4. Risk associated with large, complex fabricated metal orders and potential supply chain disruptions.
Value Assessment
Rating: fair
The total award of $417M for various bridge gap sections appears high. Benchmarking against similar large-scale fabricated metal contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' indicates a non-standard procurement. This method may limit price discovery and potentially increase costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a significant defense infrastructure project. The procurement method warrants scrutiny to ensure cost-effectiveness.
Public Impact
Supports military readiness and infrastructure resilience. Impacts the fabricated structural metal manufacturing sector. Potential for job creation in manufacturing and logistics. Ensures availability of critical bridge components for defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Complexity of fabricating large bridge sections.
- Potential for delivery delays impacting project timelines.
Positive Signals
- Addresses critical defense infrastructure needs.
- Award to a known supplier (Acrow Global Limited) suggests reliability.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically related to infrastructure and logistics. Spending benchmarks for large fabricated metal projects vary widely based on scale and complexity.
Small Business Impact
The contract was not awarded to small businesses, indicating the scale and specialization required were beyond the typical capabilities of small business prime contractors in this area.
Oversight & Accountability
The 'Exclusion of Sources' clause in the competition type suggests a need for specific justification and oversight to ensure fair and reasonable pricing and adherence to procurement regulations.
Related Government Programs
- Fabricated Structural Metal Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Supply chain dependencies
- Complexity of fabrication and logistics
- Delivery timeline risks
Tags
fabricated-structural-metal-manufacturin, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.7 million to ACROW GLOBAL LIMITED. 4 EA. 130M WET GAP SECTIONS, 1 EA. 160M WET GAP SECTION, AND 21 EA. 50M DRY GAP SECTIONS
Who is the contractor on this award?
The obligated recipient is ACROW GLOBAL LIMITED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.7 million.
What is the period of performance?
Start: 2020-08-20. End: 2021-04-22.
What specific technical requirements or source exclusions justified the procurement method used?
The procurement method 'Full and Open Competition After Exclusion of Sources' implies that certain potential sources were deliberately excluded. This could be due to proprietary technology, unique capabilities, or specific security requirements. A thorough review of the justification documentation is necessary to understand the rationale and ensure it aligns with federal procurement regulations and promotes best value for the government.
How does the unit cost of the wet and dry gap sections compare to industry benchmarks for similar large-scale bridge components?
Benchmarking the unit costs for the 130M and 50M wet gap sections, and the 160M dry gap section against comparable large-scale fabricated structural metal projects is crucial. Without this comparison, it's difficult to definitively assess if the $417M award represents a fair and reasonable price for the quantity and complexity of the components delivered.
What are the potential risks associated with the delivery timeline and the complexity of fabricating and transporting these large bridge sections?
The delivery duration of 245 days for such large and potentially specialized bridge components presents inherent risks. Factors like manufacturing capacity, material availability, quality control, and transportation logistics for oversized items can lead to delays. The Department of Defense must have robust project management and contingency plans in place to mitigate these risks and ensure timely delivery.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing
Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: UNIT9 LYDNEY HARBOUR ESTATE, HARBOUR ROAD, LYDNEY
Business Categories: Category Business, Foreign Owned, International Organization, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $41,726,296
Exercised Options: $41,726,296
Current Obligation: $41,726,296
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV19D0062
IDV Type: IDC
Timeline
Start Date: 2020-08-20
Current End Date: 2021-04-22
Potential End Date: 2021-04-22 12:04:00
Last Modified: 2022-07-25
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)