DoD awards $8.87M for facility repair, with 4 bidders and a 761-day duration

Contract Overview

Contract Amount: $8,878,405 ($8.9M)

Contractor: Reliable Contracting Group, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-10

End Date: 2027-02-10

Contract Duration: 761 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FACILITY 90125 (TANK 1) REPAIR (R)

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to RELIABLE CONTRACTING GROUP, LLC for work described as: FACILITY 90125 (TANK 1) REPAIR (R) Key points: 1. Contract value appears reasonable given the scope and duration. 2. Competition was robust with four bids received. 3. No immediate risk indicators are apparent from the contract details. 4. The contract supports critical infrastructure maintenance for the Department of Defense. 5. This falls within the construction sector for pipeline and related structures. 6. The firm-fixed-price structure shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of $8.87 million for a 761-day repair project seems aligned with industry standards for similar infrastructure work. While a direct comparison is difficult without more specific project details, the firm-fixed-price nature suggests a defined scope and budget. The award to a single contractor implies a thorough evaluation of proposals against technical and cost criteria. The benchmark of $11,667 per day for this type of specialized construction appears within a reasonable range, considering the complexity and potential for unforeseen issues in facility repair.

Cost Per Unit: $11,667 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. Four bids were received, suggesting a healthy level of interest and competition for this opportunity. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from multiple qualified entities, potentially leading to a more competitive price.

Taxpayer Impact: The robust competition indicates that taxpayer funds were likely used efficiently, as multiple companies vied to offer their best pricing and technical solutions.

Public Impact

The Department of Defense benefits from the repair and maintenance of critical facility infrastructure. Services delivered include construction and repair of oil and gas pipeline and related structures. The geographic impact is focused on Florida, where the facility is located. The contract supports jobs within the construction sector, particularly in specialized infrastructure repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended repair period.
Dependence on a single contractor for a critical infrastructure repair project.
Scope creep could occur if the initial assessment of repair needs is incomplete.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Multiple bidders suggest a competitive environment that should drive quality and value.
The extended duration allows for thorough and potentially less rushed repairs.
The contract is for essential facility maintenance, ensuring operational readiness.

Sector Analysis

This contract falls within the construction sector, specifically focusing on oil and gas pipeline and related structures. The market for specialized infrastructure repair is often characterized by a limited number of highly qualified contractors. The total federal spending on construction services is substantial, and this contract represents a portion of the Department of Defense's investment in maintaining its physical assets. Comparable spending benchmarks for similar repair projects would typically consider factors like project complexity, duration, and specialized labor requirements.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, the prime contractor, RELIABLE CONTRACTING GROUP, LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting office. The firm-fixed-price nature of the contract provides a degree of accountability by capping the government's financial liability. Transparency is facilitated through contract award databases, and any significant issues or disputes would likely be subject to review by the agency's Inspector General.

Related Government Programs

Department of Defense Infrastructure Maintenance
Oil and Gas Pipeline Construction
Federal Facility Repair Contracts
Construction Services for Government Agencies

Risk Flags

Extended contract duration increases risk of delays and cost escalation if not managed properly.
Potential for unforeseen site conditions in infrastructure repair projects.
Dependence on a single contractor for critical facility maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to RELIABLE CONTRACTING GROUP, LLC. FACILITY 90125 (TANK 1) REPAIR (R)

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 $8.9 million.

What is the period of performance?

Start: 2025-01-10. End: 2027-02-10.

What is the track record of RELIABLE CONTRACTING GROUP, LLC with federal contracts, particularly in infrastructure repair?

A review of federal contract databases would be necessary to fully assess the track record of RELIABLE CONTRACTING GROUP, LLC. Information such as past performance ratings, previous contract values, types of services rendered, and any history of disputes or contract terminations would provide insight into their reliability and expertise. For this specific contract, the Department of the Army would have evaluated their past performance as part of the source selection process. Without access to that internal evaluation or a comprehensive public database, it's difficult to provide a definitive assessment of their track record beyond the fact that they were awarded this significant contract.

How does the daily cost of this contract compare to similar federal infrastructure repair projects?

The daily cost for this contract is approximately $11,667 ($8.87M / 761 days). Benchmarking this against similar federal infrastructure repair projects requires access to detailed cost data for comparable contracts, which is often not publicly available in a granular format. However, for specialized construction and repair of critical infrastructure like oil and gas pipelines, this daily rate appears to be within a reasonable range. Factors influencing this rate include the complexity of the work, specialized labor and equipment required, geographic location, and the specific materials needed. A higher daily rate might be justified for projects involving hazardous materials, remote locations, or highly specialized technical requirements.

What are the primary risks associated with a 761-day firm-fixed-price contract for facility repair?

The primary risks associated with a long-duration firm-fixed-price contract for facility repair include potential scope creep, unforeseen site conditions, and contractor performance issues. While the firm-fixed-price structure protects the government from cost overruns due to contractor inefficiencies or material price increases, it does not fully mitigate risks related to unforeseen technical challenges or changes in the required scope of work. If the initial assessment of the facility's condition is incomplete, the contractor may encounter issues requiring additional work not covered by the original price, potentially leading to change orders or disputes. Contractor performance is also a risk; if the contractor fails to meet quality standards or schedule milestones, the government may face delays and require corrective actions.

How effective is full and open competition after exclusion of sources in ensuring value for taxpayer money in specialized construction?

Full and open competition after exclusion of sources can be effective in ensuring value for taxpayer money, especially in specialized construction where the pool of qualified bidders might be limited. By broadly soliciting offers, the government increases the likelihood of receiving competitive bids from multiple capable firms. This process encourages contractors to offer their best pricing and technical solutions to win the contract. The exclusion of sources, when justified (e.g., due to specific technical requirements or past performance issues with certain entities), can help streamline the process while still maintaining a competitive environment. The presence of four bidders in this case suggests the approach was successful in attracting sufficient competition.

What are the implications of this contract's duration on project oversight and potential for delays?

The 761-day duration (over two years) for this facility repair contract necessitates robust and continuous project oversight. Longer durations increase the potential for project delays due to various factors, including weather, unforeseen site conditions, supply chain disruptions, or changes in government requirements. Effective oversight requires regular progress monitoring, quality assurance checks, and proactive management of any issues that arise. The government must ensure that the contractor maintains momentum and adheres to the schedule and quality standards throughout the project lifecycle. Delays on such a critical infrastructure project could impact operational readiness and potentially lead to increased costs if not managed effectively.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess success?

The provided data does not specify the detailed performance metrics or deliverables for this contract. However, typical for a construction contract of this nature, performance would likely be assessed against adherence to the approved project schedule, quality of workmanship, compliance with technical specifications and drawings, safety standards, and final acceptance of the repaired facility. Deliverables would include completed repair work, progress reports, as-built drawings, and potentially warranties. The contracting officer's representative (COR) would be responsible for monitoring these aspects throughout the contract duration to ensure successful completion.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F21R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13035 B MIDDLETOWN INDUSTRIAL BLVD, 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: $9,081,369

Exercised Options: $8,878,405

Current Obligation: $8,878,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F21D0057

IDV Type: IDC

Timeline