Army awards $13.18M for hatchery services, raising questions about competition and value

Contract Overview

Contract Amount: $13,178,117 ($13.2M)

Contractor: State of Oregon Department of Fish and Wildlife

Awarding Agency: Department of Defense

Start Date: 2020-01-01

End Date: 2026-01-30

Contract Duration: 2,221 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BONNEVILLE HATCHERY OPERATION AND MAINTENANCE SERVICES

Place of Performance

Location: CASCADE LOCKS, HOOD RIVER County, OREGON, 97014

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to STATE OF OREGON DEPARTMENT OF FISH AND WILDLIFE for work described as: BONNEVILLE HATCHERY OPERATION AND MAINTENANCE SERVICES Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Duration of over 6 years suggests a long-term need for these services. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Services are essential for fish and wildlife management, indicating a critical function. 5. The contract's value is moderate within the broader federal services landscape.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bids. The fixed-price structure provides cost certainty for the government, but without comparison, it's difficult to ascertain if the $13.18 million represents a fair market price. The services provided are specialized, making direct comparisons to other contracts complex. Further analysis would require understanding the specific scope of work and prevailing market rates for similar hatchery operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The State of Oregon Department of Fish and Wildlife was the sole provider identified. This approach bypasses the typical competitive process, which could lead to higher costs for the government as there was no opportunity for multiple vendors to bid and drive down prices. The rationale for the sole-source award is not detailed here.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without bids from other qualified entities, the government could be paying a premium for these essential hatchery services.

Public Impact

The primary beneficiaries are federal agencies relying on the State of Oregon's fish and wildlife management capabilities. Services include the operation and maintenance of hatchery facilities, crucial for conservation efforts. The geographic impact is concentrated in Oregon, supporting regional ecological goals. Workforce implications include the potential for continued employment for personnel involved in hatchery operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing for taxpayers.
The long contract duration (over 6 years) could lock the government into a potentially inefficient arrangement if market conditions change.
Sole-source awards can stifle innovation by not engaging a broader market of service providers.

Positive Signals

The contract supports critical environmental and conservation missions.
Fixed-price contract type offers budget predictability.
The awardee is a state agency, potentially indicating a strong existing relationship and understanding of regional needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to environmental and biological services. The market for specialized hatchery operations is niche, often involving state or local entities with established expertise. Comparable spending benchmarks are difficult to establish without more granular data on the specific services rendered and the scale of the hatchery operations.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a state agency suggests a focus on established partnerships rather than broad market engagement, potentially limiting direct benefits to the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and agency program managers. Accountability is primarily managed through contract performance clauses and reporting requirements. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to competitively procured contracts. Inspector General jurisdiction would apply if fraud or mismanagement is suspected.

Related Government Programs

Federal Fish and Wildlife Services
National Oceanic and Atmospheric Administration (NOAA) Fisheries
Environmental Protection Agency (EPA) Water Quality Programs
Army Corps of Engineers Environmental Mitigation Projects

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Long contract duration may not reflect current market value.
Potential for cost inefficiencies due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to STATE OF OREGON DEPARTMENT OF FISH AND WILDLIFE. BONNEVILLE HATCHERY OPERATION AND MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is STATE OF OREGON DEPARTMENT OF FISH AND WILDLIFE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2020-01-01. End: 2026-01-30.

What is the specific scope of work covered by the "BONNEVILLE HATCHERY OPERATION AND MAINTENANCE SERVICES" contract?

The provided data does not detail the specific scope of work. However, based on the contract title and the awardee (State of Oregon Department of Fish and Wildlife), it likely encompasses the day-to-day operational management and upkeep of the Bonneville Hatchery. This could include tasks such as fish husbandry (breeding, rearing, and stocking), water quality monitoring and management, facility maintenance (buildings, grounds, equipment), environmental compliance, data collection and reporting, and potentially public outreach or educational activities related to the hatchery's mission. The exact services would be defined in the contract's Statement of Work (SOW).

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED' and awarded to the 'STATE OF OREGON DEPARTMENT OF FISH AND WILDLIFE'. Specific justifications for a sole-source award are not included. Common reasons for sole-sourcing include situations where only one responsible source can provide the required supply or service, urgency, or when the agency determines it is in the government's best interest to award to a specific entity, often due to unique capabilities, existing infrastructure, or established partnerships. Without further documentation (like a Justification and Approval document), the precise reason remains unknown.

How does the $13.18 million contract value compare to similar federal spending on hatchery operations?

Direct comparison of the $13.18 million contract value to similar federal spending is difficult without more specific data on the scope and scale of other hatchery operations contracts. Federal spending on environmental services and biological support is broad. However, for a single facility's operation and maintenance over approximately six years, this value appears moderate. The lack of competitive bidding makes it harder to assess if this represents optimal value for money compared to what might have been achieved through a competitive process.

What are the potential risks associated with a sole-source, fixed-price contract of this duration?

A primary risk is the potential for paying a higher price than necessary due to the absence of competition, which limits price discovery. The fixed-price nature shifts performance risk to the contractor, but if the scope of work is not perfectly defined or unforeseen issues arise, the contractor might seek modifications or the government might receive subpar performance if the price is too low for the actual effort required. The long duration (over 6 years) increases the risk of the contract becoming misaligned with current market rates or technological advancements, potentially leading to inefficiencies or a need for costly renegotiations.

What is the track record of the State of Oregon Department of Fish and Wildlife in managing federal contracts?

The provided data does not include information on the State of Oregon Department of Fish and Wildlife's track record specifically with federal contracts. As a state agency, it likely has extensive experience managing its own state-funded fish and wildlife programs and facilities, including hatcheries. Its ability to perform under this specific Department of the Army contract would depend on its past performance, adherence to federal acquisition regulations, and the successful execution of its operational duties as outlined in the contract's Statement of Work.

Does this contract contribute to any specific conservation goals or endangered species recovery efforts?

While the data doesn't explicitly state the contribution to specific conservation goals, the operation and maintenance of a hatchery, particularly one named 'Bonneville', strongly suggests a role in supporting fish populations. Hatcheries are often involved in rearing species for stock enhancement, mitigation for habitat loss (e.g., due to dams like the Bonneville Dam), or supporting recovery efforts for at-risk or endangered species. The exact contribution would depend on the specific species being raised and the hatchery's management objectives, which are typically aligned with broader state and federal conservation mandates.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9127N21R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4034 FAIRVIEW INDUS RD SE, SALEM, OR, 97302

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $13,178,117

Exercised Options: $13,178,117

Current Obligation: $13,178,117

Actual Outlays: $388,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline