Army contract for electrical supplies awarded to IAP Worldwide Services, Inc. for over $61 million

Contract Overview

Contract Amount: $33,273,658 ($33.3M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2003-11-07

End Date: 2009-02-11

Contract Duration: 1,923 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: 200408!000430!2100!W912BU!* !W912BU04C0002 !A!N! !N! ! !20031107!20041130!613472638!613472638!613472638!N!IAP WORLDWIDE SERVICES, INC !413 WESTERN LANE !IRMO !SC!29063!00000! !AF!* !* !AFGHANISTA!+000015485542!N!N!000015485542!5975!ELECTRICAL HARDWARE AND SUPPLIES !S1 !SERVICES !000 !* !221119!A!A!3!C!S! ! !D!20041029!B! ! !A! !A!U!J!1!001!B! !Z!N!Z! ! !Y!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $33.3 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: 200408!000430!2100!W912BU!* !W912BU04C0002 !A!N! !N! ! !20031107!20041130!613472638!613472638!613472638!N!IAP WORLDWIDE SERVICES, INC !413 WESTERN LANE !IRMO !SC!29063!00000! !AF!* !* … Key points: 1. Contract value exceeds $61 million, indicating a significant investment in electrical hardware and supplies. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. Performance period spans over 1900 days, implying a long-term need for these supplies. 4. The awardee, IAP Worldwide Services, Inc., is a domestic company, with the services potentially supporting overseas operations. 5. The specific product/service code (221119) points to a specialized need within the electrical supply chain. 6. The contract type is Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The total contract value of $61,347,263.80 for electrical hardware and supplies over a period of approximately 5.2 years appears substantial. Benchmarking this against similar large-scale procurements for military-grade electrical components is challenging without more specific details on the exact nature of the supplies and their intended use. However, the fixed-price nature of the contract suggests an attempt to control costs, but the overall value warrants scrutiny to ensure it aligns with market rates for comparable goods and services, especially considering potential bulk purchasing discounts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and value for the government. The open competition suggests that the Army sought the most advantageous offer based on price and other factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring that government funds are used efficiently and effectively.

Public Impact

The primary beneficiaries are likely military personnel and operations requiring electrical infrastructure and equipment, potentially in deployed or overseas locations. The contract delivers essential electrical hardware and supplies, crucial for maintaining and establishing power systems. The geographic impact is likely focused on areas where the U.S. Army has a presence, potentially including operational theaters abroad. Workforce implications could involve logistics, supply chain management, and potentially on-site installation or maintenance personnel, though the contract primarily focuses on supply.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The substantial dollar amount raises questions about potential overpricing or the necessity of such a large quantity of supplies.
Lack of specific details on the types of electrical hardware and supplies makes it difficult to assess value for money.
The long performance period could lead to obsolescence of certain components if not managed carefully.
The contract is for supplies, not necessarily installation or maintenance, which might require separate contracts and oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type helps to control costs and budget certainty for the government.
The contract addresses a fundamental need for electrical supplies, critical for military operations.
The awardee, IAP Worldwide Services, Inc., has a history of government contracting, implying some level of established capability.

Sector Analysis

The procurement of electrical hardware and supplies falls under the broader defense industrial base, specifically supporting military logistics and infrastructure. The market for such goods is vast, encompassing numerous manufacturers and distributors. This contract represents a significant portion of spending within this niche for the Department of the Army, likely aimed at ensuring operational readiness and support for deployed forces. Comparable spending benchmarks would depend heavily on the specific types and quantities of electrical components procured.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (SB is 'N'). There is no information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and logistics commands. Accountability measures would be tied to the delivery of specified electrical hardware and supplies according to the contract terms and conditions. Transparency is facilitated by the contract's award under full and open competition, which is publicly reported. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Logistics Modernization
Defense Logistics Agency (DLA) Procurement
Military Construction and Infrastructure Support
Overseas Contingency Operations Support
Electrical Equipment and Component Procurement

Risk Flags

Potential for cost overruns despite fixed-price structure if scope changes.
Risk of supply chain disruptions impacting delivery timelines.
Quality control of electrical components is critical for operational safety and reliability.
Long performance period may lead to obsolescence of certain materials if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to DOMESTIC AWARDEES (UNDISCLOSED). 200408!000430!2100!W912BU!* !W912BU04C0002 !A!N! !N! ! !20031107!20041130!613472638!613472638!613472638!N!IAP WORLDWIDE SERVICES, INC !413 WESTERN LANE !IRMO !SC!29063!00000! !AF!* !* !AFGHANISTA!+000015485542!N!N!000015485542!5975!ELECTRICAL HARDWARE AND SUPPLIES !S1 !SERVICES !000 !* !221119!A!A!3!C!S! ! !D!200

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2003-11-07. End: 2009-02-11.

What specific types of electrical hardware and supplies were procured under this contract, and how do they align with the Army's operational needs?

The contract identifies the procurement category as 'ELECTRICAL HARDWARE AND SUPPLIES' under Product Service Code (PSC) 221119. While the specific line items are not detailed in the provided data, this code typically encompasses a wide range of items such as wiring, conduits, connectors, circuit breakers, transformers, lighting fixtures, and related components necessary for electrical systems. Given the awardee and the contract's duration, these supplies were likely intended for use in establishing, maintaining, or upgrading electrical infrastructure in various Army facilities, potentially including deployed environments. The alignment with operational needs would depend on the Army's specific infrastructure projects and power requirements in the regions where these supplies were deployed.

How does the unit cost of the procured electrical hardware and supplies compare to market rates or similar government contracts?

The provided data aggregates the total contract value ($61,347,263.80) over its duration (1923 days) but does not break down costs by specific items or units. Therefore, a direct unit cost comparison to market rates or similar contracts is not feasible with the available information. Benchmarking would require detailed itemization of the procured goods (e.g., cost per foot of wire, cost per circuit breaker) and comparison against General Services Administration (GSA) schedules, other agency solicitations, or commercial price lists for equivalent items. The fixed-price nature suggests an attempt to lock in prices, but without item-level data, assessing the value-for-money on a per-unit basis remains challenging.

What is the track record of IAP Worldwide Services, Inc. in fulfilling large-scale electrical supply contracts for the Department of Defense?

IAP Worldwide Services, Inc. has a significant history of performing contracts for the U.S. government, often involving logistics, base operations support, and facilities services, particularly in overseas locations. While this specific contract focuses on electrical hardware and supplies, the company's broader experience in complex logistical support suggests a capability to manage large procurements. Assessing their specific track record for electrical supplies would require examining past performance evaluations, any contract disputes or terminations, and the successful delivery of similar goods in previous engagements. Their extensive experience in government contracting generally indicates a familiarity with compliance and reporting requirements.

What risk indicators were identified during the solicitation process for this contract, and how were they mitigated?

The provided data does not explicitly detail risk indicators identified during the solicitation process. However, general risks associated with large, long-term supply contracts include potential cost overruns (mitigated here by a fixed-price structure), delivery delays, quality issues with the supplies, and contractor performance failures. The use of 'full and open competition' suggests that the Army sought to mitigate risks by allowing a wide range of potential contractors to bid, presumably evaluating them on technical capability, past performance, and price. Further mitigation might have involved specific contract clauses related to quality assurance, delivery schedules, and performance bonds.

How has historical spending on electrical hardware and supplies by the Department of the Army trended over the past decade?

Analyzing historical spending trends for electrical hardware and supplies by the Department of the Army requires access to comprehensive procurement databases beyond the single contract provided. Generally, military spending on such items fluctuates based on operational tempo, modernization efforts, infrastructure maintenance needs, and global deployments. Periods of increased conflict or major base construction/renovation projects typically correlate with higher spending. The Army, like other branches of the DoD, relies heavily on a consistent supply chain for these essential components to maintain readiness and operational capability across its diverse global footprint.

What is the estimated value of the services provided per day or per year, and how does this compare to industry standards for similar supply contracts?

The total contract value is $61,347,263.80 over a period of 1923 days (approximately 5.27 years). This equates to an average daily value of roughly $31,899.81 and an average annual value of approximately $11,641,717.80. Comparing this to industry standards for similar supply contracts is difficult without knowing the exact nature and volume of the electrical hardware and supplies. Large-scale, specialized military procurements often differ significantly from commercial contracts due to unique specifications, stringent quality requirements, and logistical complexities associated with deployment. However, this daily/annual figure provides a basis for understanding the scale of the commitment.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline