DoD awards $10.3M contract for Tinker AFB industrial waste treatment system repair

Contract Overview

Contract Amount: $10,326,228 ($10.3M)

Contractor: Gideon Contracting, Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2024-04-17

End Date: 2025-08-25

Contract Duration: 495 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF CONTRACT TO REPAIR THE INDUSTRIAL WASTE TREATMENT SYSTEM FOR THE TAC COMPLEX AT TINKER AIR FORCE BASE.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to GIDEON CONTRACTING, LIMITED LIABILITY COMPANY for work described as: AWARD OF CONTRACT TO REPAIR THE INDUSTRIAL WASTE TREATMENT SYSTEM FOR THE TAC COMPLEX AT TINKER AIR FORCE BASE. Key points: 1. Contract awarded for essential infrastructure repair at Tinker Air Force Base. 2. The contract value represents a significant investment in maintaining critical base operations. 3. Competition dynamics suggest a potentially competitive bidding process for this specialized service. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. Contract duration extends over a year, indicating a substantial scope of work. 6. The awardee has a track record that warrants further examination for performance consistency. 7. The project addresses a specific need for industrial waste treatment system maintenance.

Value Assessment

Rating: good

The contract value of $10.3 million for repairing an industrial waste treatment system appears reasonable given the critical nature of the service and the specialized expertise required. Benchmarking against similar infrastructure repair contracts for large military installations suggests that this price falls within an expected range. The firm-fixed-price contract type helps mitigate cost overruns, providing a degree of value certainty for the government. Further analysis would involve comparing the specific scope of work and the contractor's historical performance on similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and had the opportunity to bid. The presence of 3 bidders suggests a healthy level of competition for this specialized construction service. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. This approach maximizes the opportunity for the government to secure the best value for the repair of essential base infrastructure.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel stationed at Tinker Air Force Base, ensuring continued operational capability. The services delivered include the repair and maintenance of a critical industrial waste treatment system, vital for environmental compliance and base operations. The geographic impact is localized to Tinker Air Force Base in Oklahoma, supporting its infrastructure. Workforce implications may include the employment of skilled construction and engineering personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during the repair of the industrial waste treatment system.
Ensuring the long-term effectiveness and durability of the repairs will be crucial for sustained operational readiness.
Dependence on the contractor's specialized expertise and timely execution of the work.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a critical infrastructure need, ensuring operational continuity.
The duration of the contract allows for thorough execution of the repair work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized industrial infrastructure repair. The market for such services is characterized by a need for highly skilled labor, adherence to stringent environmental and safety regulations, and the ability to perform work on government installations. Comparable spending benchmarks would typically involve other large-scale facility maintenance and repair contracts awarded to military bases or other federal agencies requiring similar specialized construction capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities. Further investigation into the contractor's subcontracting plan would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command responsible for Tinker Air Force Base. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specified standards. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Maintenance
Environmental Remediation Services
Industrial Facility Repair
Department of Defense Construction Contracts
Tinker Air Force Base Operations Support

Risk Flags

Potential for unforeseen conditions impacting repair scope and cost.
Contractor's past performance on similar critical infrastructure projects.
Ensuring long-term reliability and effectiveness of the repaired system.
Adherence to stringent environmental and safety regulations during repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to GIDEON CONTRACTING, LIMITED LIABILITY COMPANY. AWARD OF CONTRACT TO REPAIR THE INDUSTRIAL WASTE TREATMENT SYSTEM FOR THE TAC COMPLEX AT TINKER AIR FORCE BASE.

Who is the contractor on this award?

The obligated recipient is GIDEON CONTRACTING, LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2024-04-17. End: 2025-08-25.

What is the track record of Gideon Contracting, LLC on similar government contracts, particularly those involving industrial waste treatment systems?

Gideon Contracting, LLC has a history of performing various construction and repair services for government entities. While specific details on their experience with industrial waste treatment systems require deeper database analysis, their general profile suggests capability in facility maintenance and repair. A review of past performance evaluations and any contract modifications or disputes would provide a clearer picture of their reliability and quality of work on projects of similar complexity and scale. Examining their award history for projects with the Department of Defense or other federal agencies would help benchmark their performance against expectations for this current contract.

How does the awarded amount of $10.3 million compare to the estimated cost or budget for this industrial waste treatment system repair project?

The awarded amount of $10.3 million represents the final negotiated price for the repair of the industrial waste treatment system. Without access to the government's initial cost estimates or the specific details of the solicitation's budget, a direct comparison is challenging. However, since the contract was awarded under full and open competition with three bidders, it suggests that the awarded price was competitive and likely within a reasonable range of what the market would bear for such specialized work. If the award was significantly below or above initial estimates, it could indicate different market conditions or scope interpretations.

What are the primary risks associated with the repair of an industrial waste treatment system, and how are they mitigated in this contract?

Key risks in repairing an industrial waste treatment system include unforeseen structural issues, environmental hazards, potential contamination, and disruptions to ongoing base operations. This contract, being firm-fixed-price, mitigates financial risks for the government by establishing a ceiling cost. The contractor assumes the risk of cost overruns due to unforeseen conditions, provided they are not due to scope changes initiated by the government. Mitigation also relies on the contractor's technical expertise, adherence to safety protocols, and the government's quality assurance oversight to ensure the repairs are effective and compliant with environmental regulations.

What is the expected impact of these repairs on the operational effectiveness and environmental compliance of Tinker Air Force Base?

The successful repair of the industrial waste treatment system is expected to significantly enhance the operational effectiveness of Tinker Air Force Base by ensuring the reliable and safe disposal of industrial waste. This directly supports the base's mission readiness by preventing potential shutdowns or operational disruptions caused by system failures. Furthermore, it is crucial for maintaining environmental compliance with federal, state, and local regulations, thereby avoiding potential fines, legal liabilities, and reputational damage. The project ensures the continued environmental stewardship of the base.

What has been the historical spending trend for industrial waste treatment system maintenance and repair at Tinker Air Force Base or similar facilities?

Analyzing historical spending for industrial waste treatment system maintenance and repair at Tinker Air Force Base or similar facilities would provide valuable context for the current $10.3 million award. Without specific historical data, it's difficult to establish a trend. However, such systems typically require ongoing maintenance and periodic major repairs due to the corrosive nature of waste streams and the continuous operation. Spending can fluctuate based on the age of the system, previous repair effectiveness, and evolving environmental standards. A consistent pattern of significant investment would indicate the critical and recurring nature of these infrastructure needs.

How does the competition level (3 bidders) for this contract influence the potential for cost savings or value for taxpayers?

A competition level of three bidders is generally considered moderate and suggests a reasonably competitive environment. This level of competition typically allows for price discovery, where contractors submit bids based on their assessment of costs, risks, and profit margins. The presence of multiple bidders encourages them to offer competitive pricing to secure the contract. While more bidders could potentially drive prices lower, three bidders often provide sufficient market pressure to ensure that the government is not overpaying. The firm-fixed-price nature of the contract further locks in the price, enhancing value for taxpayers.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912BV23B0004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2243 E COMMERCE ST, SAN ANTONIO, TX, 78203

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,326,228

Exercised Options: $10,326,228

Current Obligation: $10,326,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline