Department of Defense awards $47.1M construction contract to TEPA EC, LLC for facility operations

Contract Overview

Contract Amount: $47,131,429 ($47.1M)

Contractor: Tepa EC, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-19

End Date: 2023-02-14

Contract Duration: 970 days

Daily Burn Rate: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT COMPANY OPERATIONS FACILITIES

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80902

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $47.1 million to TEPA EC, LLC for work described as: CONSTRUCT COMPANY OPERATIONS FACILITIES Key points: 1. The contract value of $47.1 million represents a significant investment in facility operations. 2. TEPA EC, LLC, a relatively new entity, secured this large contract. 3. The contract duration of 970 days suggests a substantial, ongoing need for these services. 4. The firm fixed-price structure aims to control costs, but requires careful monitoring of scope. 5. The award was made under full and open competition, indicating a broad market search. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this $47.1 million contract is challenging without specific deliverables. However, the firm fixed-price structure suggests an attempt to cap costs. Comparing this to similar large-scale construction and facility operations contracts within the Department of Defense would provide a clearer picture of value for money. The absence of detailed performance metrics in the provided data makes a definitive assessment of value difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that TEPA EC, LLC was selected indicates they met the technical and cost requirements among the competing firms.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will utilize the improved or maintained facilities. The services delivered likely encompass construction, renovation, or maintenance of institutional buildings. The geographic impact is centered around the facilities managed by the Department of the Army, likely within Colorado given the 'SN' field. Workforce implications could include direct employment by TEPA EC, LLC and its subcontractors, as well as indirect economic benefits to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm fixed-price contract.
TEPA EC, LLC's track record with large federal contracts needs further scrutiny.
Dependence on a single contractor for critical facility operations could pose a risk.
Ensuring compliance with all construction and safety regulations throughout the contract duration.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps to control overall project costs.
The contract duration indicates a sustained need and potential for long-term operational efficiency.
The Department of Defense's selection of TEPA EC, LLC implies they met stringent requirements.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for federal construction contracts is substantial, with agencies like the Department of Defense being major clients. Benchmarking this $47.1 million award against other large-scale construction projects for federal agencies would provide context on its relative size and investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, TEPA EC, LLC is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which would be a key area for oversight to ensure opportunities are provided to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns by the contractor. Transparency is facilitated by the public nature of contract awards, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Army Corps of Engineers Construction Projects
General Services Administration (GSA) Building Operations
Federal Building Construction Contracts

Risk Flags

Contractor Performance Risk
Cost Overrun Potential
Scope Creep Risk
Long-Term Project Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.1 million to TEPA EC, LLC. CONSTRUCT COMPANY OPERATIONS FACILITIES

Who is the contractor on this award?

The obligated recipient is TEPA EC, 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 $47.1 million.

What is the period of performance?

Start: 2020-06-19. End: 2023-02-14.

What is the specific nature of the facility operations being contracted, and what are the key performance indicators (KPIs) for TEPA EC, LLC?

The provided data identifies the NAICS code as 236220 (Commercial and Institutional Building Construction), suggesting the contract involves the construction, alteration, or repair of commercial and institutional buildings. However, the specific nature of 'operations' beyond initial construction or major renovations is not detailed. Key performance indicators (KPIs) are crucial for assessing contractor performance and value for money. Without access to the contract's statement of work (SOW) and performance work statement (PWS), it is impossible to identify the specific KPIs. These would typically include metrics related to project timelines, budget adherence, quality of work, safety compliance, and responsiveness to issues. For instance, KPIs might track response times for maintenance requests, adherence to construction schedules, or the number of safety incidents.

How does the $47.1 million contract value compare to similar construction and facility operations contracts awarded by the Department of Defense or Department of the Army?

The $47.1 million contract value is a substantial sum, indicative of a significant construction or long-term facility operations project. To benchmark this value, one would need to analyze historical contract awards by the Department of Defense and the Department of the Army for similar services (e.g., large-scale building construction, major renovations, or comprehensive facility management contracts) within the last 3-5 years. Factors such as geographic location, type of facility (e.g., barracks, administrative buildings, training facilities), and contract duration would need to be considered for a fair comparison. Without this comparative data, it's difficult to definitively state whether this contract represents excellent, fair, or questionable value for money. However, given the scale, it likely represents a significant portion of the agency's annual construction or facilities budget for a specific installation or program.

What is TEPA EC, LLC's track record with federal contracts, particularly with the Department of Defense, and what is their financial stability?

The provided data indicates TEPA EC, LLC was awarded this contract. However, it does not offer insight into their prior federal contracting history, past performance ratings, or financial stability. A thorough assessment would require reviewing the Federal Awardee Performance and Integrity Information System (FAPIIS) and other government databases for past performance reviews, any disputes, or terminations. Financial stability is also critical for large contracts; agencies typically assess a contractor's financial health through pre-award surveys or by reviewing financial statements. Without this information, it's difficult to assess the risk associated with TEPA EC, LLC's ability to successfully execute this $47.1 million contract over its duration.

What are the potential risks associated with a firm fixed-price contract of this magnitude and duration (970 days)?

Firm fixed-price (FFP) contracts are designed to provide cost certainty for the government. However, for a contract of $47.1 million and a duration of 970 days, several risks emerge. The primary risk is that the contractor, TEPA EC, LLC, may underestimate costs, leading to potential quality compromises or a demand for change orders if the scope expands. Conversely, if the contractor significantly overestimates costs, taxpayers may end up paying a premium. Scope creep is a major concern; any expansion of work not clearly defined in the original SOW could lead to disputes or costly modifications. Furthermore, unforeseen site conditions or material price escalations, while theoretically borne by the contractor in an FFP, can strain the contractor's resources and potentially impact project timelines or quality if not managed effectively. The long duration also increases the risk of economic fluctuations affecting material and labor costs.

How does the competition level ('FULL AND OPEN COMPETITION') for this contract influence pricing and potential for innovation?

Awarding this contract under 'FULL AND OPEN COMPETITION' signifies that the Department of Defense solicited proposals from all responsible sources, allowing for the widest possible range of potential bidders. This level of competition is generally considered the most advantageous for the government, as it fosters a robust bidding environment. Increased competition typically drives down prices as contractors vie for the award, potentially leading to better value for taxpayers. It also encourages contractors to propose innovative solutions and efficient methods to gain a competitive edge. The fact that TEPA EC, LLC was selected suggests they offered the best value proposition among the competitors, balancing price, technical capability, and other factors. This competitive process helps ensure that the government is not locked into a single provider and benefits from market dynamics.

What is the historical spending pattern for facility operations and construction within the Department of the Army at the relevant installation or program?

To understand the historical spending pattern, one would need to analyze the Department of the Army's budget allocations and contract awards related to facility operations and construction for the specific installation or program this contract supports. This would involve examining data from previous fiscal years to identify trends in spending, the types of contracts awarded (e.g., construction, maintenance, operations), and the average contract values. Understanding these patterns helps determine if the $47.1 million award is an anomaly, a consistent investment, or an increase in spending. It also provides context for evaluating the current contract's value and necessity, and whether past investments have yielded satisfactory results.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F20R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tepa, LLC

Address: 5045 LIST DR, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,131,429

Exercised Options: $47,131,429

Current Obligation: $47,131,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline