DoD's $34.7M Eglin AFB fuel line repair contract awarded to Reliable Contracting Group, LLC

Contract Overview

Contract Amount: $34,685,043 ($34.7M)

Contractor: Reliable Contracting Group, LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-26

End Date: 2022-09-30

Contract Duration: 1,253 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TRANSFER FUEL LINE REPAIRS, EGLIN AFB FL

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to RELIABLE CONTRACTING GROUP, LLC for work described as: TRANSFER FUEL LINE REPAIRS, EGLIN AFB FL Key points: 1. Contract value appears reasonable given the scope of infrastructure repair and maintenance. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Contract duration of over three years indicates a significant, ongoing need for these services. 4. The fixed-price contract type shifts risk to the contractor, encouraging cost control. 5. Awarded to a single contractor, highlighting the specialized nature of the required services. 6. Geographic focus on Eglin AFB, Florida, indicates a localized but critical infrastructure need.

Value Assessment

Rating: good

The contract value of approximately $34.7 million over a period of roughly 3.5 years for fuel line repair and maintenance at a major Air Force base suggests a substantial investment in critical infrastructure. Benchmarking against similar large-scale pipeline repair contracts is challenging without more specific details on the scope of work (e.g., length of lines, complexity of repairs, materials used). However, the firm-fixed-price structure implies that the contractor is responsible for managing costs to meet the agreed-upon price, which is generally a favorable structure for the government when the scope is well-defined. The number of bids received (5) indicates a degree of market interest, suggesting the pricing was likely competitive within the industry for such specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Five bids were received, indicating a healthy level of interest from the market for this type of specialized construction and repair work. The presence of multiple bidders generally fosters price competition, which is beneficial for achieving a fair market price. The fact that the contract was awarded to a single entity suggests that Reliable Contracting Group, LLC was deemed the most advantageous offer based on a combination of factors, likely including price, technical capability, and past performance.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering all qualified offerors.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, ensuring the operational readiness and safety of fuel infrastructure at Eglin AFB. Services delivered include the repair and maintenance of critical fuel lines, essential for aircraft operations and base support. The geographic impact is localized to Eglin Air Force Base in Florida, a significant military installation. Workforce implications include the potential for skilled labor employment in construction, pipeline maintenance, and related trades within the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise in fuel line repairs, despite the firm-fixed-price structure.
Dependence on a single contractor for critical infrastructure maintenance could pose risks if performance issues emerge.
Long contract duration may require vigilant oversight to ensure continued adherence to quality and safety standards.

Positive Signals

Firm-fixed-price contract shifts cost-control responsibility to the contractor.
Full and open competition suggests a robust bidding process and potential for competitive pricing.
Award to a single, presumably qualified, contractor indicates specialized expertise is being leveraged.
Contract duration aligns with the long-term maintenance needs of significant infrastructure.

Sector Analysis

The contract falls within the Construction and Oil & Gas Pipeline sectors. The construction industry, particularly for specialized infrastructure like military fuel systems, involves significant capital investment and requires specific expertise. The market for such services is often characterized by a mix of large, established firms and smaller, specialized contractors. Government contracts for base infrastructure maintenance and repair represent a substantial portion of the overall construction market, with agencies like the Department of Defense being major clients. Benchmarking spending requires comparing the contract value against the scale and complexity of the repairs, as well as the typical profit margins and overhead costs in this specialized construction niche.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The data shows the prime contractor is Reliable Contracting Group, LLC. There is no explicit information regarding subcontracting plans or performance related to small businesses within this data. Without further details on subcontracting goals or actual performance, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve some level of subcontracting to smaller firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices at Eglin AFB. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and quality assurance clauses. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may be involved if allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Base Infrastructure Maintenance
Fuel Systems Construction and Repair
Department of Defense Construction Contracts
Air Force Base Operations Support
Pipeline Construction Services

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Contractor performance risk over a multi-year duration.
Dependence on specialized repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to RELIABLE CONTRACTING GROUP, LLC. TRANSFER FUEL LINE REPAIRS, EGLIN AFB FL

Who is the contractor on this award?

The obligated recipient is RELIABLE CONTRACTING 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 $34.7 million.

What is the period of performance?

Start: 2019-04-26. End: 2022-09-30.

What is the track record of Reliable Contracting Group, LLC with federal contracts, particularly with the Department of Defense?

Reliable Contracting Group, LLC has a history of securing federal contracts, primarily with the Department of Defense. Analysis of available data indicates they have been awarded multiple contracts, often in the realm of construction, repair, and maintenance services. Their performance history on these contracts would typically be assessed through past performance evaluations during the bidding process for new awards. While this specific contract represents a significant value, their broader federal contracting portfolio would provide a more comprehensive view of their experience, reliability, and capacity to handle large-scale projects like the Eglin AFB fuel line repairs. Further investigation into their specific performance ratings and any past issues or commendations on prior DoD contracts would be necessary for a complete assessment.

How does the awarded amount of $34.7 million compare to similar fuel line repair contracts at other military installations?

Directly comparing the $34.7 million award for Eglin AFB fuel line repairs to similar contracts at other military installations requires careful consideration of numerous variables. Factors such as the length and diameter of the fuel lines, the complexity of the terrain, the specific materials required for repair or replacement, the environmental conditions, and the duration of the contract all significantly influence cost. A contract for minor repairs on a short line would naturally differ vastly from one involving extensive replacement of aging infrastructure across a large base. Without detailed scope-of-work documentation for this Eglin AFB contract and comparable contracts, a precise benchmark is difficult. However, the amount suggests a substantial project, likely involving significant infrastructure work rather than routine maintenance, and aligns with the scale of operations at a major installation like Eglin AFB.

What are the primary risks associated with a firm-fixed-price contract for extensive fuel line repairs?

The primary risk with a firm-fixed-price (FFP) contract for extensive fuel line repairs lies in the potential for unforeseen issues to significantly increase the contractor's costs, potentially leading to disputes or quality compromises if the contractor attempts to cut corners. While FFP shifts cost risk to the contractor, complex infrastructure projects, especially those involving underground or aging systems, can harbor hidden problems like unexpected soil conditions, material degradation beyond initial assessment, or the need for more extensive remediation than initially scoped. If these issues are substantial and not adequately addressed in the contract's contingency planning or change order process, the contractor might face financial strain. This could, in turn, impact their ability or willingness to maintain the highest quality standards throughout the project's duration, necessitating robust government oversight.

How effective is the full and open competition process in ensuring value for money for this type of specialized construction contract?

The full and open competition process is generally considered the most effective method for ensuring value for money in specialized construction contracts like this one. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing. This process encourages bidders to submit their most cost-effective proposals while meeting stringent technical requirements. The presence of five bidders in this case suggests that the market had sufficient capacity and interest, further supporting the potential for competitive pricing. While the lowest price isn't always the best value, the competitive pressure inherent in full and open competition typically drives prices down and encourages innovation and efficiency from the bidders, ultimately benefiting the taxpayer.

What is the historical spending pattern for fuel line maintenance and repair at Eglin AFB or similar facilities?

Analyzing historical spending patterns for fuel line maintenance and repair at Eglin AFB or similar facilities is crucial for contextualizing the $34.7 million award. Without access to specific historical data for Eglin AFB's fuel infrastructure maintenance, a precise comparison is not possible. However, large military installations typically have extensive and aging fuel distribution systems that require ongoing, significant investment for upkeep, repair, and upgrades. Spending can fluctuate year-to-year based on the condition of the infrastructure, the urgency of identified issues, and the availability of funding. Contracts for major repairs or replacements, like the one awarded, represent significant capital expenditures that may occur periodically rather than annually. Understanding the baseline maintenance costs and the frequency of major repair projects at comparable bases would provide valuable context for assessing whether this contract's value is consistent with long-term needs.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F14R0048

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13035 MIDDLETOWN INDUSTRI, LOUISVILLE, KY, 40223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,685,043

Exercised Options: $34,685,043

Current Obligation: $34,685,043

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F16D0028

IDV Type: IDC

Timeline