DoD awards $8.58M contract for vehicle drive-through replacement, raising value-for-money questions

Contract Overview

Contract Amount: $8,582,900 ($8.6M)

Contractor: Cedarville Engineering Group LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-13

End Date: 2027-06-04

Contract Duration: 1,360 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLAST BOOTH WHOLE VEHICLE DRIVE THROUGH REPLACEMENT AT LETTERKENNY ARMY DEPOT

Place of Performance

Location: POTTSTOWN, MONTGOMERY County, PENNSYLVANIA, 19464

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to CEDARVILLE ENGINEERING GROUP LLC for work described as: BLAST BOOTH WHOLE VEHICLE DRIVE THROUGH REPLACEMENT AT LETTERKENNY ARMY DEPOT Key points: 1. The contract's value-for-money is questionable due to a lack of competitive bidding and limited transparency on pricing. 2. Competition dynamics are absent, as the contract was awarded on a sole-source basis. 3. Risk indicators include potential overpayment due to lack of competition and the absence of a clear performance benchmark. 4. Performance context is limited, with no readily available data on contractor past performance or project milestones. 5. Sector positioning is within industrial machinery manufacturing, a broad category that doesn't offer specific insights into this specialized service. 6. The contract's duration of 1360 days suggests a significant undertaking, yet details on the scope of work are sparse.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the pricing for this vehicle drive-through replacement against market rates. The raw dollar amount of $8.58 million for a single definitive contract provides little context for value assessment. Comparisons to similar contracts for depot maintenance or specialized facility upgrades are needed to determine if the price is reasonable. The lack of detailed scope and performance metrics further hinders a robust value-for-money evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. The data indicates it was 'NOT AVAILABLE FOR COMPETITION,' which suggests potential justifications like a single source being capable of fulfilling the requirement or other specific circumstances. The lack of multiple bidders means price discovery through market forces was bypassed, potentially leading to a higher price than if multiple firms had competed.

Taxpayer Impact: Taxpayers may have paid a premium for this service due to the absence of competitive pressure. Without a bidding process, there's less assurance that the government secured the best possible price.

Public Impact

The primary beneficiary is the Department of the Army at Letterkenny Army Depot, which will receive the upgraded drive-through facility. The service delivered is the replacement of a whole vehicle drive-through booth, crucial for depot operations and maintenance. The geographic impact is localized to Letterkenny Army Depot in Pennsylvania. Workforce implications are not detailed but may involve specialized construction and engineering labor for the installation and integration of the new booth.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of detailed performance metrics makes it difficult to assess project progress and contractor accountability.
Limited public information on the contractor's specific experience with similar large-scale drive-through systems.
The broad NAICS code (333310) offers little insight into the specialized nature of the required service.
The contract type is Firm Fixed Price, which can be advantageous but also carries risks if the scope is not perfectly defined upfront.

Positive Signals

The contract is for a definitive need at a specific military installation, addressing a functional requirement.
The award is to a single entity, potentially streamlining project management and execution.
The contract duration is clearly defined, providing a timeline for project completion.
The fixed-price nature of the contract offers cost certainty for the government, assuming the scope is well-managed.

Sector Analysis

The contract falls under the 'Commercial and Service Industry Machinery Manufacturing' sector (NAICS 333310). This is a broad category encompassing the production of various types of commercial and service industry machinery. However, the specific service—a vehicle drive-through booth replacement—suggests a niche within construction, specialized equipment installation, or facility maintenance rather than pure manufacturing. Comparable spending benchmarks would likely be found in construction services for industrial facilities or specialized vehicle maintenance infrastructure contracts, which are not readily available for this specific sole-source award.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the 'sb' field is false. Furthermore, the 'ss' field is also false, meaning it was not a small business set-aside. The sole-source nature of the award further suggests that opportunities for small business subcontracting may have been limited or not explicitly mandated. Without a competitive bidding process that typically includes subcontracting plans, the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a Department of Defense contract, it would fall under the purview of the Department of the Army's contracting command and potentially the Defense Contract Management Agency (DCMA) for oversight. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise. Transparency is limited due to the sole-source award and the lack of publicly available performance reports or detailed scope of work.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
Letterkenny Army Depot Infrastructure Projects
Industrial Machinery Manufacturing Services
Sole-Source Defense Procurements
Firm Fixed Price Construction Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on scope and performance metrics.
Potential for inflated pricing due to lack of competition.
Insufficient data to benchmark value-for-money.
Contractor's specific experience with similar projects unclear.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to CEDARVILLE ENGINEERING GROUP LLC. BLAST BOOTH WHOLE VEHICLE DRIVE THROUGH REPLACEMENT AT LETTERKENNY ARMY DEPOT

Who is the contractor on this award?

The obligated recipient is CEDARVILLE ENGINEERING GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2023-09-13. End: 2027-06-04.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is the basis for a sole-source award. However, the specific justification (e.g., unique capabilities of the contractor, urgent need, lack of other sources) is not detailed. Typically, sole-source awards require a formal justification document to be approved, outlining why full and open competition is not feasible. Without this document, it's impossible to fully assess the necessity of bypassing the competitive process. This lack of transparency raises concerns about whether the government truly explored all viable options to secure the best value.

How does the $8.58 million cost compare to similar vehicle drive-through replacement projects in the federal government or private sector?

Direct comparison is challenging without more specific details on the scope of work, size, and technological features of the drive-through booth. The NAICS code 333310 is very broad. However, large-scale industrial facility upgrades or specialized equipment installations can range significantly in cost. For instance, similar projects involving specialized maintenance bays or vehicle wash systems at other federal depots or large commercial trucking facilities could potentially offer benchmarks. The absence of competitive bids for this contract makes it difficult to ascertain if $8.58 million represents a fair market price or if it is inflated due to the lack of competition.

What are the key performance indicators (KPIs) and deliverables associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. It only states the overall description: 'BLAST BOOTH WHOLE VEHICLE DRIVE THROUGH REPLACEMENT.' A comprehensive contract would typically include metrics related to installation timelines, quality of materials, operational readiness of the booth, safety compliance, and integration with existing depot systems. The lack of defined KPIs makes it difficult to objectively measure the contractor's performance and ensure the project meets the Army's operational requirements effectively and efficiently.

What is Cedarville Engineering Group LLC's track record with similar sole-source contracts or large-scale industrial equipment installations for the Department of Defense?

Information regarding Cedarville Engineering Group LLC's specific track record with similar sole-source contracts or large-scale industrial equipment installations for the Department of Defense is not provided in the data. A thorough assessment would require reviewing their past performance history, including any previous sole-source awards, the complexity of projects undertaken, client satisfaction, and adherence to budget and schedule. Without this context, it is difficult to evaluate their capability and reliability for this specific $8.58 million project, especially given the lack of competitive vetting.

What is the historical spending pattern for vehicle drive-through replacements or similar services at Letterkenny Army Depot?

The provided data does not include historical spending patterns for vehicle drive-through replacements or similar services at Letterkenny Army Depot. To assess this contract's context, one would need to analyze past procurements for facility upgrades, maintenance equipment, or specialized operational infrastructure at this specific depot. Understanding previous costs, contract types, and competition levels for similar needs would help determine if the current $8.58 million award is an anomaly, an escalation, or consistent with past spending. This historical data is crucial for evaluating long-term budget trends and identifying potential cost efficiencies.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Commercial and Service Industry Machinery Manufacturing

Product/Service Code: METALWORKING MACHINERY

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911N223R0030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 159 E HIGH ST, POTTSTOWN, PA, 19464

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,582,900

Exercised Options: $8,582,900

Current Obligation: $8,582,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline