Department of Defense awards $29M contract for hatchery services in Oregon, with limited competition

Contract Overview

Contract Amount: $29,094,205 ($29.1M)

Contractor: State of Oregon Department of Fish and Wildlife

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-02-28

Contract Duration: 1,611 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WILLAMETTE HATCHERY/DEXTER HATCHERY

Place of Performance

Location: LOWELL, LANE County, OREGON, 97452

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to STATE OF OREGON DEPARTMENT OF FISH AND WILDLIFE for work described as: WILLAMETTE HATCHERY/DEXTER HATCHERY Key points: 1. Contract awarded to a single state agency, raising questions about competition. 2. Services are categorized under 'All Other Professional, Scientific, and Technical Services'. 3. The contract duration is over four years, indicating a long-term need. 4. Fixed-price contract type suggests cost certainty for the government. 5. No small business set-aside was utilized for this procurement. 6. The contract is a definitive contract, implying a clear scope of work.

Value Assessment

Rating: fair

The contract value of $29 million over approximately 4.5 years averages to about $6.4 million annually. Benchmarking this against similar professional, scientific, and technical services contracts is challenging without more specific service details. However, the lack of competition suggests potential for suboptimal pricing. The fixed-price nature provides some cost control, but the absence of competitive pressure could lead to higher-than-market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the State of Oregon Department of Fish and Wildlife. There is no indication of a competitive solicitation process. This approach bypasses the opportunity to explore pricing and service offerings from multiple potential vendors, which is typically achieved through full and open competition or even limited competition among qualified sources.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through market forces. Taxpayers may be paying a premium due to the lack of competitive bidding.

Public Impact

The State of Oregon Department of Fish and Wildlife is the primary beneficiary, receiving significant funding. Services likely support environmental, scientific, or technical needs related to natural resources or infrastructure. The geographic impact is concentrated in Oregon, where the services will be performed. The contract may support jobs within the State of Oregon's fish and wildlife agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about the government's ability to secure best value.
Limited transparency into the justification for a sole-source award.

Positive Signals

Fixed-price contract provides cost certainty.
Long-term contract indicates a stable, ongoing requirement.
Award to a state agency could imply established working relationships and expertise.

Sector Analysis

The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services.' This is a broad category encompassing a wide range of specialized services. The contract's value of $29 million places it as a significant award within this sector. Without more specific details on the services rendered, it's difficult to benchmark against precise industry spending, but it represents a substantial investment in technical expertise or specialized support.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to a state agency, not a small business. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless the state agency intends to subcontract to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The fixed-price nature of the contract provides a degree of accountability for cost. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Services Contracts
Scientific Research and Development Services
State Government Service Agreements
Natural Resource Management Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency on specific services procured.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to STATE OF OREGON DEPARTMENT OF FISH AND WILDLIFE. WILLAMETTE HATCHERY/DEXTER HATCHERY

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 $29.1 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-02-28.

What specific services are being procured under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' However, the specific nature of the services is not detailed. Given the awardee is the State of Oregon Department of Fish and Wildlife and the contract is with the Department of Defense, the services could range from environmental consulting, scientific research, technical support for natural resource management, or specialized operational assistance related to facilities like hatcheries (as suggested by the abbreviated data 'WILLAMETTE HATCHERY/DEXTER HATCHERY'). Further details would be required to understand the exact scope of work.

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

The data explicitly states the contract was 'NOT COMPETED' and is a 'SOLE-SOURCE' award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without the specific justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), the exact reasons remain unknown. This lack of competition is a significant point of concern regarding value for money.

How does the annual value of this contract compare to similar services procured by the Department of Defense?

The contract value is approximately $29 million over a period of 1611 days (roughly 4.4 years), averaging about $6.5 million per year. Comparing this to similar services is difficult without knowing the precise nature of the 'All Other Professional, Scientific, and Technical Services.' However, for context, the Department of Defense procures a vast array of services. Annual spending on professional and technical services can range from hundreds of thousands to billions of dollars depending on the scope. The $6.5 million annual average is a substantial amount, and without competitive benchmarking, it's hard to ascertain if it represents a fair market price.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. The government may not be achieving the best possible value for its expenditure. Other risks include a lack of innovation that might be spurred by competition, and potential complacency from the contractor regarding performance, as there are no immediate alternatives. Furthermore, the justification for sole-sourcing needs to be robust to ensure public funds are used appropriately and ethically.

What is the historical spending pattern for similar services by the awarding agency?

The provided data does not include historical spending patterns for this specific contract or for similar services procured by the Department of the Army or the State of Oregon Department of Fish and Wildlife. To assess historical spending, one would need to analyze past contract awards for NAICS 541990 or related service categories by the relevant agencies over several fiscal years. This would help identify trends, average costs, and whether this $29 million award represents an increase or decrease in spending for such services.

Are there any performance metrics or oversight mechanisms detailed in the contract?

The provided data does not detail specific performance metrics or explicit oversight mechanisms beyond the general contract type (Firm Fixed Price) and award details. Firm Fixed Price contracts inherently tie payment to delivery of the agreed-upon goods or services. However, effective oversight typically involves clearly defined deliverables, key performance indicators (KPIs), regular progress reviews, and potentially penalties for non-performance. The absence of this information in the summary data suggests that a deeper review of the contract's Statement of Work (SOW) and any associated Performance Work Statements (PWS) would be necessary to understand the full oversight framework.

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: W9127N21R0015

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: $29,342,606

Exercised Options: $29,094,205

Current Obligation: $29,094,205

Actual Outlays: $2,891,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline