DoD's $45M Electrical System Support Contract Awarded to Archer Western Federal JV

Contract Overview

Contract Amount: $44,960,925 ($45.0M)

Contractor: Archer Western Federal JV

Awarding Agency: Department of Defense

Start Date: 2020-02-24

End Date: 2024-05-15

Contract Duration: 1,542 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ELECTRICAL AND ELECTRONIC SYSTEM SUPPORT

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to ARCHER WESTERN FEDERAL JV for work described as: ELECTRICAL AND ELECTRONIC SYSTEM SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating price certainty. 3. The duration of the contract is over 4 years, suggesting a long-term need for these services. 4. The contract is for electrical and electronic system support, a critical infrastructure component. 5. The awardee, Archer Western Federal JV, is a joint venture, potentially indicating specialized capabilities. 6. The contract is located in Texas, suggesting a specific geographic focus for the services.

Value Assessment

Rating: fair

The contract value of $44.96 million over approximately 4 years for electrical and electronic system support appears to be within a reasonable range for large-scale federal infrastructure projects. Without specific details on the scope of work, the exact nature of the systems supported, and the prevailing market rates for similar specialized services in Texas, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost predictability for the government. Benchmarking against similar large-scale electrical system support contracts within the Department of Defense or other federal agencies would be necessary for a more definitive evaluation.

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 presence of 4 bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the specific number of bidders can influence the intensity of that competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: The full and open competition process, with 4 bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process helps ensure that the government is not overpaying for the required electrical and electronic system support.

Public Impact

The Department of Defense benefits from the reliable operation and maintenance of its electrical and electronic systems, crucial for mission readiness. Services delivered include support for electrical and electronic systems, ensuring operational continuity. The geographic impact is concentrated in Texas, where the services are being performed. The contract supports a workforce involved in specialized electrical and electronic system maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates, despite the firm fixed-price structure.
Dependence on a single joint venture for critical system support could pose a risk if performance issues arise.
The long contract duration might lead to less frequent opportunities for competitive re-evaluation of pricing and service delivery.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
The contractor is a joint venture, potentially bringing together diverse expertise for complex system support.
The contract duration suggests a stable, long-term need that the contractor is positioned to meet.

Sector Analysis

The electrical and electronic system support sector within federal contracting is a critical component of maintaining infrastructure and operational capabilities across various agencies, particularly in defense and civilian operations. This contract falls under heavy and civil engineering construction (NAICS 237990), specifically focusing on the electrical systems integral to such projects. The market for these services is substantial, driven by the government's continuous need to build, maintain, and upgrade its vast physical assets. Benchmarks for similar contracts would typically consider factors like system complexity, geographic location, and the specific types of electrical and electronic systems involved.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) and the awardee is a joint venture, not explicitly identified as a small business. Therefore, the direct impact on small business set-asides is minimal. However, the joint venture structure may involve subcontracting opportunities for small businesses, depending on the internal structure and procurement practices of Archer Western Federal JV. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, which is the servicing agency. The contract type (definitive contract) and firm fixed-price nature imply that performance standards and deliverables are clearly defined. Accountability measures would be tied to meeting these contractual obligations. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Facilities Maintenance
Army Corps of Engineers Construction Contracts
Federal Electrical Infrastructure Projects
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for performance issues due to contractor's joint venture structure.
Risk of cost increases if scope of work is not precisely defined.
Long contract duration may reduce opportunities for competitive price adjustments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to ARCHER WESTERN FEDERAL JV. ELECTRICAL AND ELECTRONIC SYSTEM SUPPORT

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN FEDERAL JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.0 million.

What is the period of performance?

Start: 2020-02-24. End: 2024-05-15.

What is the track record of Archer Western Federal JV in performing similar federal contracts?

Archer Western Federal JV is a joint venture, which means its track record is a composite of its constituent companies' past performance and the JV's specific project history. Information on the JV's specific performance on federal contracts, particularly those involving electrical and electronic system support of a similar scale and complexity, would be crucial. A review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for this JV or its parent entities on relevant contracts would provide insight into their reliability, quality of work, and adherence to schedule and budget. Without specific data on their past performance on comparable federal projects, it is difficult to definitively assess their suitability and risk profile for this contract.

How does the awarded price compare to market rates for similar electrical system support services in Texas?

Benchmarking the awarded price of $44.96 million against market rates for similar electrical and electronic system support services in Texas requires detailed analysis of the contract's scope of work, the specific systems supported, and prevailing labor and material costs in the region. Factors such as the complexity of the systems, the required certifications and expertise, and the duration of the support are critical. Without this granular detail, a direct comparison is challenging. However, given the firm fixed-price nature and the competitive bidding process, it is reasonable to assume the price reflects a negotiated value based on the defined requirements and market conditions at the time of award. Further investigation into industry cost data and consultant analyses for similar projects would be needed for a precise benchmark.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential scope creep, performance deficiencies by the contractor, and unforeseen technical challenges with the electrical and electronic systems. Given the firm fixed-price structure, scope creep could lead to contractor requests for change orders, potentially increasing costs if not managed tightly. Performance deficiencies could impact the operational readiness of the supported systems. Mitigation strategies likely include robust contract oversight by the Department of the Army, clear performance metrics and deliverables outlined in the contract, and regular progress reviews. The use of a joint venture might also introduce risks related to internal coordination and accountability, which would need to be managed through clear contractual terms and performance expectations.

How effective is the firm fixed-price contract type in ensuring value for money for this specific service?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For electrical and electronic system support, where requirements can sometimes evolve due to technological advancements or unforeseen issues, an FFP contract provides the government with cost certainty and incentivizes the contractor to control costs efficiently. The risk of cost overruns is primarily borne by the contractor. However, if the initial scope definition is inadequate, it could lead to disputes or a contractor cutting corners to maintain profitability, potentially impacting quality. The effectiveness hinges on the thoroughness of the initial SOW and the government's ability to manage any necessary modifications.

What is the historical spending pattern for electrical and electronic system support within the Department of the Army, and how does this contract compare?

Analyzing historical spending patterns for electrical and electronic system support within the Department of the Army requires access to comprehensive federal procurement data over several fiscal years. This contract, valued at approximately $45 million over four years, represents a significant investment in maintaining critical infrastructure. To compare it effectively, one would need to identify similar contracts awarded by the Army for comparable services, noting their values, durations, and the specific systems supported. Understanding the average annual spend on such services, the typical contract sizes, and the distribution of awards among different contractors would provide context. This single award, while substantial, needs to be viewed within the broader landscape of the Army's total spending on infrastructure maintenance and system support to gauge its relative significance and efficiency.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BU18R0026

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

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

Financial Breakdown

Contract Ceiling: $44,960,925

Exercised Options: $44,960,925

Current Obligation: $44,960,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline