DoD awards $10.3M for Clear Span Structures, raising questions on value and competition
Contract Overview
Contract Amount: $10,332,388 ($10.3M)
Contractor: Event Source LLC
Awarding Agency: Department of Defense
Start Date: 2006-06-16
End Date: 2011-06-24
Contract Duration: 1,834 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CLEAR SPAN STRUCTURES
Place of Performance
Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310
Plain-Language Summary
Department of Defense obligated $10.3 million to EVENT SOURCE LLC for work described as: CLEAR SPAN STRUCTURES Key points: 1. The contract for Clear Span Structures awarded to EVENT SOURCE LLC for $10.3M appears high relative to the duration. 2. Full and open competition after exclusion of sources suggests potential limitations in market reach. 3. The fixed-price contract type offers some cost certainty but may not fully capture potential efficiencies. 4. Construction machinery rental is a broad category, making direct sector benchmarks challenging without more detail.
Value Assessment
Rating: questionable
The contract value of $10.3M over 1834 days (approx. 5 years) averages to about $5,634 per day. This seems high for equipment rental, especially considering the contract was awarded in 2006. Benchmarking against similar large-scale structure rentals is difficult without specific details on the structures themselves.
Cost Per Unit: $5,634/day (average)
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, it was not entirely unrestricted. This method can lead to higher prices if the pool of potential bidders is artificially limited, impacting price discovery.
Taxpayer Impact: Taxpayer funds may have been used inefficiently due to potentially limited competition and a high daily rental rate for structures.
Public Impact
Military readiness and operational support could be impacted by the availability and cost of temporary structures. The long duration of the contract suggests a sustained need, potentially for base expansion or long-term deployments. Transparency in government contracting is crucial; this award warrants further scrutiny regarding its justification and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 56 / 10
Warning Flags
- High average daily cost
- Limited competition justification
- Lack of specific structure details for benchmarking
Positive Signals
- Fixed price contract provides cost certainty
- Awarded to a single vendor, potentially simplifying management
Sector Analysis
The construction equipment rental sector is diverse. This contract falls under machinery rental, which can range from small tools to large, specialized equipment. The benchmark for 'Clear Span Structures' is not readily available, but the daily rate suggests a significant or specialized need.
Small Business Impact
The contract was awarded to EVENT SOURCE LLC, and there is no indication that small businesses were involved as prime contractors or significant subcontractors. Further analysis would be needed to determine if small business participation was considered or mandated.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract officers and program managers ensuring adherence to terms and conditions, but the justification for the limited competition and the high cost requires deeper review.
Related Government Programs
- Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential overpayment due to high daily rental rate.
- Limited competition may have restricted cost savings.
- Lack of detailed specifications hinders value assessment.
- Contract duration is lengthy, increasing long-term cost exposure.
Tags
construction-mining-and-forestry-machine, department-of-defense, ca, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to EVENT SOURCE LLC. CLEAR SPAN STRUCTURES
Who is the contractor on this award?
The obligated recipient is EVENT SOURCE 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 $10.3 million.
What is the period of performance?
Start: 2006-06-16. End: 2011-06-24.
What specific type and size of clear span structures were rented, and what was the justification for the high daily rate?
The provided data lacks specifics on the type and size of the clear span structures. The high average daily rate of $5,634 warrants a detailed justification from the Department of the Army, explaining the necessity, unique requirements, and market analysis that led to this pricing. Without this, it's difficult to ascertain if the cost is reasonable for the services rendered.
How was the 'exclusion of sources' justified in the full and open competition process?
The justification for excluding sources in a 'full and open competition' scenario is critical. Typically, this requires demonstrating that only a limited number of sources possess the necessary capabilities or that other specific conditions necessitate such an approach. A thorough review of the contract file would be needed to understand the rationale and ensure it was legally sound and fiscally responsible.
What was the overall effectiveness of these structures in supporting the Department of the Army's mission during the contract period?
The effectiveness of the clear span structures is not detailed in the provided data. Assessing effectiveness would require examining performance reports, user feedback, and mission accomplishment metrics related to the structures' deployment. Understanding their role in operations, logistics, or personnel support is key to evaluating the contract's true value beyond its cost.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9200 WYNDHAM HILLS COURT, FRANKLIN, WI, 01
Business Categories: Category Business, Emerging Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $10,332,388
Exercised Options: $10,332,388
Current Obligation: $10,332,388
Timeline
Start Date: 2006-06-16
Current End Date: 2011-06-24
Potential End Date: 2011-06-24 00:00:00
Last Modified: 2014-02-01
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