DoD Awards $19.17M for Dyess AFB Pipeline Replacement to WSP USA
Contract Overview
Contract Amount: $19,166,674 ($19.2M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2021-07-02
End Date: 2025-06-20
Contract Duration: 1,449 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DYESS AFB PIPELINE REPLACEMENT
Place of Performance
Location: DYESS AFB, TAYLOR County, TEXAS, 79607
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: DYESS AFB PIPELINE REPLACEMENT Key points: 1. Contract awarded to WSP USA for critical infrastructure at Dyess AFB. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project involves oil and gas pipeline construction, a specialized sector. 4. Firm fixed price contract type aims to control costs.
Value Assessment
Rating: good
The awarded amount of $19.17 million for a 1449-day duration appears reasonable for a pipeline replacement project of this scale. Benchmarking against similar infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to result in a fair price, maximizing the value of taxpayer funds spent on this essential infrastructure upgrade.
Public Impact
Ensures operational readiness and safety at Dyess AFB by replacing aging pipeline infrastructure. Supports critical energy and fuel distribution for military operations. Potential for job creation in the construction and engineering sectors within Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise during construction.
- Dependency on WSP USA for timely and quality completion of a complex project.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition suggests a competitive market for these services.
- Project addresses a critical infrastructure need, enhancing base functionality.
Sector Analysis
This contract falls within the Construction sector, specifically focusing on Oil and Gas Pipeline and Related Structures. Spending in this area is often driven by infrastructure modernization and maintenance needs, with significant federal investment in military base upkeep.
Small Business Impact
While the prime contractor is WSP USA, a large entity, the subcontracting opportunities for small businesses in specialized construction trades and material supply should be explored to ensure broader economic impact.
Oversight & Accountability
The Department of the Army's acquisition process, utilizing full and open competition and a firm fixed price contract, provides a degree of oversight. Further monitoring of project milestones and performance will be crucial for accountability.
Related Government Programs
- Oil and Gas Pipeline and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Contractor performance risk for a large-scale infrastructure project.
- Dependency on specialized materials and labor availability.
- Environmental compliance and potential remediation needs.
Tags
oil-and-gas-pipeline-and-related-structu, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. DYESS AFB PIPELINE REPLACEMENT
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 2021-07-02. End: 2025-06-20.
What is the historical cost performance of WSP USA on similar federal contracts?
Assessing WSP USA's past performance on comparable federal contracts is crucial for evaluating potential risks and ensuring value. Reviewing their track record on projects of similar scope, complexity, and contract type can reveal patterns in cost control, schedule adherence, and quality of work. This historical data provides a benchmark against which the current Dyess AFB pipeline replacement project can be more accurately assessed for potential cost efficiencies or overruns.
Are there specific environmental risks associated with this pipeline replacement that could impact cost or timeline?
Pipeline replacement projects, especially those involving oil and gas, can carry inherent environmental risks such as soil contamination, groundwater impact, or disruption to local ecosystems. Understanding the specific geological and environmental conditions at Dyess AFB is vital. A thorough environmental impact assessment and contingency planning for potential remediation or mitigation efforts are necessary to accurately forecast project costs and timelines, and to ensure compliance with environmental regulations.
How effectively will the firm fixed price contract mitigate potential cost escalations due to material or labor fluctuations?
A firm fixed price (FFP) contract is designed to transfer the risk of cost overruns to the contractor. However, its effectiveness in mitigating escalations due to material or labor fluctuations depends on the contractor's pricing strategy and market foresight. WSP USA likely factored in anticipated market changes when submitting their bid. While FFP offers cost certainty to the government, significant unforeseen market volatility could still strain the contractor, potentially impacting project execution if not managed proactively.
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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 751 ARBOR WAY, STE 180, BLUE BELL, PA, 19422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,166,674
Exercised Options: $19,166,674
Current Obligation: $19,166,674
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F16D0057
IDV Type: IDC
Timeline
Start Date: 2021-07-02
Current End Date: 2025-06-20
Potential End Date: 2025-06-20 00:00:00
Last Modified: 2025-05-06
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