Army Awards $3.6M for Martin State API 653 Repairs to SES Energy Services LLC
Contract Overview
Contract Amount: $3,596,245 ($3.6M)
Contractor: SES Energy Services LLC
Awarding Agency: Department of Defense
Start Date: 2025-12-31
End Date: 2026-12-20
Contract Duration: 354 days
Daily Burn Rate: $10.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MARTIN STATE API 653 REPAIRS W9128F25D004 RFTOP 3
Place of Performance
Location: MIDDLE RIVER, BALTIMORE County, MARYLAND, 21220
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $3.6 million to SES ENERGY SERVICES LLC for work described as: MARTIN STATE API 653 REPAIRS W9128F25D004 RFTOP 3 Key points: 1. The contract is for essential repairs to the Martin State API 653, a critical infrastructure component. 2. SES Energy Services LLC is the sole awardee, raising questions about competition and potential price discovery. 3. The contract value of $3.6 million is significant for this specialized repair service. 4. The sector is Construction, specifically Oil and Gas Pipeline and Related Structures Construction.
Value Assessment
Rating: questionable
The contract was awarded without competition, making it difficult to assess pricing against market benchmarks. The lack of competitive bidding suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these critical repairs.
Public Impact
Ensures the operational integrity of vital energy infrastructure at Martin State. Potential for increased costs due to lack of competitive bidding. Supports specialized construction services within the energy sector. Limited transparency on pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of available cost data hinders value assessment.
- Potential for cost overruns due to non-competitive nature.
Positive Signals
- Addresses critical infrastructure repair needs.
- Specific expertise likely required for API 653 compliance.
Sector Analysis
This contract falls within the Oil and Gas Pipeline and Related Structures Construction sector. Spending in this area is often project-specific and can be subject to significant fluctuations based on infrastructure needs and regulatory requirements.
Small Business Impact
The awardee, SES Energy Services LLC, is not identified as a small business. There is no indication that small businesses were considered or subcontracted for this project.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price paid is fair and reasonable. Further review of the justification for sole-source procurement is recommended.
Related Government Programs
- Oil and Gas Pipeline and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Limited price transparency
- Potential for overpayment
- No small business participation noted
Tags
oil-and-gas-pipeline-and-related-structu, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.6 million to SES ENERGY SERVICES LLC. MARTIN STATE API 653 REPAIRS W9128F25D004 RFTOP 3
Who is the contractor on this award?
The obligated recipient is SES ENERGY SERVICES 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 $3.6 million.
What is the period of performance?
Start: 2025-12-31. End: 2026-12-20.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other qualified sources. Without access to the specific justification document, it's impossible to detail the steps taken. However, a fair pricing assessment would ideally involve comparing the proposed price to historical data for similar services, independent cost estimates, or market research, none of which are readily apparent in a sole-source scenario.
What are the potential risks associated with a sole-source contract for critical infrastructure repairs?
The primary risk of a sole-source contract for critical infrastructure repairs is the lack of competitive pressure, which can lead to inflated prices and reduced value for taxpayer money. Additionally, it limits the government's ability to leverage market competition for innovation or better service delivery. There's also a risk that the chosen vendor may not have the most cost-effective or efficient solution available.
How does this contract contribute to the overall effectiveness of the Department of the Army's infrastructure maintenance?
This contract is essential for maintaining the operational integrity and safety of specific infrastructure at Martin State, likely related to energy or fuel storage. By addressing necessary repairs, it ensures the continued functionality of these assets, thereby supporting the Army's broader mission readiness and operational capabilities. The effectiveness hinges on the quality of the repairs and the long-term reliability achieved.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10101 GLOBAL WAY, KNOXVILLE, TN, 37932
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,596,245
Exercised Options: $3,596,245
Current Obligation: $3,596,245
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W9128F25D0004
IDV Type: IDC
Timeline
Start Date: 2025-12-31
Current End Date: 2026-12-20
Potential End Date: 2026-12-20 00:00:00
Last Modified: 2026-01-08
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)