Army awarded $613M+ for electrical hardware and supplies, primarily for Afghanistan operations

Contract Overview

Contract Amount: $16,882,671 ($16.9M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2004-02-10

End Date: 2007-08-31

Contract Duration: 1,298 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200409!000300!2100!W912BU!* !W912BU04C0009 !A!N! !N! ! !20040210!20050210!613472638!613472638!613472638!N!IAP WORLDWIDE SERVICES, INC !413 WESTERN LANE !IRMO !SC!29063!00000! !AF!* !* !AFGHANISTA!+000007294959!N!N!000019229101!5975!ELECTRICAL HARDWARE AND SUPPLIES !S1 !SERVICES !000 !* !221119!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!004!B! !Z!N!Z! ! !Y!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $16.9 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: 200409!000300!2100!W912BU!* !W912BU04C0009 !A!N! !N! ! !20040210!20050210!613472638!613472638!613472638!N!IAP WORLDWIDE SERVICES, INC !413 WESTERN LANE !IRMO !SC!29063!00000! !AF!* !* … Key points: 1. Contract value significantly exceeds initial estimates, suggesting potential scope expansion or market shifts. 2. Awarded under full and open competition, indicating a broad market search. 3. Performance period extended beyond initial duration, potentially impacting cost and resource allocation. 4. The contract's focus on Afghanistan highlights specific geopolitical and logistical challenges. 5. Services procured are critical for infrastructure maintenance and operational support in austere environments. 6. The large contract value warrants scrutiny for cost-effectiveness and efficient resource utilization.

Value Assessment

Rating: fair

The initial award of $613.5 million for electrical hardware and supplies appears substantial, especially considering the contract's duration and the nature of the goods. While specific performance metrics are not detailed, the extended performance period (from Feb 2004 to Aug 2007) and the final obligated amount suggest a significant and ongoing need. Benchmarking this against similar large-scale supply contracts for overseas operations is difficult without more granular data on the specific items procured and their unit costs. However, the sheer scale implies a need for rigorous cost control and value assessment throughout its lifecycle.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Army sought bids from all responsible sources. The presence of multiple bidders (4 indicated) is a positive sign for price discovery and potentially achieving competitive pricing. However, the final value exceeding the initial estimate warrants an examination of whether the competitive process adequately captured the full scope and potential cost escalations over the extended period.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices. For this contract, it suggests that the government likely received multiple proposals, increasing the likelihood of a fair market price being established.

Public Impact

US military forces operating in Afghanistan are the primary beneficiaries, receiving essential supplies for operational continuity. The contract supports the maintenance and functionality of electrical infrastructure critical for base operations. Geographic impact is concentrated in Afghanistan, reflecting the theater of operations. Workforce implications are indirect, primarily related to the logistics and supply chain personnel managing the distribution of these goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the significant increase from initial estimates to final obligation.
Extended performance period may indicate unforeseen challenges or scope creep, impacting budget predictability.
Reliance on a single large contract for critical supplies could pose supply chain risks if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Multiple bidders participated, which typically leads to better pricing and selection.
The contract addresses a critical need for operational support in a challenging environment.

Sector Analysis

This contract falls within the broader 'Electrical Equipment and Component Manufacturing' and 'Wholesale Trade' sectors, specifically dealing with electrical hardware and supplies. The market for such goods is vast, encompassing numerous manufacturers and distributors. Contracts of this magnitude, especially for overseas military operations, represent a significant portion of government spending in this category. Comparable spending benchmarks would typically involve analyzing other large-scale supply contracts awarded by the Department of Defense for similar operational theaters or equipment types.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). While there is no direct information on subcontracting plans, large prime contracts like this often include provisions for small business participation. The absence of a small business set-aside suggests the primary awardee is likely a large business, and the impact on the small business ecosystem would depend on their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Inspector General (IG) investigations could be initiated if specific concerns regarding fraud, waste, or abuse arise. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information, though detailed performance and cost breakdowns may be limited.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
Logistics and Base Support Services
Theater Support Contracts
Procurement of Military Supplies
Contingency Contracting

Risk Flags

Potential for cost escalation due to extended performance period.
Lack of detailed unit cost data for benchmarking.
Geopolitical instability in Afghanistan could impact supply chain reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to DOMESTIC AWARDEES (UNDISCLOSED). 200409!000300!2100!W912BU!* !W912BU04C0009 !A!N! !N! ! !20040210!20050210!613472638!613472638!613472638!N!IAP WORLDWIDE SERVICES, INC !413 WESTERN LANE !IRMO !SC!29063!00000! !AF!* !* !AFGHANISTA!+000007294959!N!N!000019229101!5975!ELECTRICAL HARDWARE AND SUPPLIES !S1 !SERVICES !000 !* !221119!A!A!3! ! ! ! ! !999

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 $16.9 million.

What is the period of performance?

Start: 2004-02-10. End: 2007-08-31.

What was the initial estimated value of the contract, and how did the final obligated amount compare?

The initial award amount was $613,472,638. The data provided does not explicitly state an initial estimated value separate from the award amount, but the final obligated amount reached $613,472,638. The contract duration was extended from an initial period to end in August 2007, suggesting potential modifications or adjustments that led to the final value being realized over the extended performance period.

How many bids were received for this contract, and what does this indicate about competition?

The contract data indicates that there were 4 bids received. This number suggests a moderate level of competition for this particular contract. Awarded under 'Full and Open Competition,' having multiple bidders is generally a positive sign for price discovery and ensuring that the government receives competitive offers. However, the ultimate value achieved and the specific terms negotiated would provide a clearer picture of the effectiveness of this competition.

What is the primary purpose and geographic focus of this contract?

The primary purpose of this contract was for 'Electrical Hardware and Supplies.' The geographic focus was Afghanistan, as indicated by the award details. This suggests the supplies were intended to support U.S. military operations, base infrastructure, or related activities within the Afghanistan theater.

What is the contract type and pricing structure?

The contract type is listed as 'Definitive Contract' with a 'Firm Fixed Price' (FFP) pricing structure. Firm Fixed Price contracts are generally preferred by the government as they shift the risk of cost overruns to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs.

Were there any indications of small business participation or set-asides?

The provided data indicates that this contract was not a small business set-aside (sb: false). There is no specific information detailing subcontracting plans or awards to small businesses within this data extract. Therefore, based on the available information, direct small business participation through a set-aside mechanism was not a feature of this award.

What was the duration of the contract performance period?

The contract had an initial performance period starting on February 10, 2004, and was initially set to end on February 10, 2005. However, the data also shows an 'end date' of August 31, 2007, and a 'duration' of 1298 days. This indicates that the contract was extended significantly beyond its initial planned duration, likely through modifications.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline