Dod's $13M Contract for Air-Conditioning Services Awarded to British Link Kuwait Logistics Company for Air-Conditioning Services K.s.c.c
Contract Overview
Contract Amount: $13,071,136 ($13.1M)
Contractor: British Link Kuwait Logistics Company for Air-Conditioning Services K.s.c.c.
Awarding Agency: Department of Defense
Start Date: 2005-04-11
End Date: 2006-03-31
Contract Duration: 354 days
Daily Burn Rate: $36.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: Other
Plain-Language Summary
Department of Defense obligated $13.1 million to BRITISH LINK KUWAIT LOGISTICS COMPANY FOR AIR-CONDITIONING SERVICES K.S.C.C. for work described as: Key points: 1. The contract value of $13.07 million for air-conditioning services represents a significant investment in operational support. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated to ensure the contractor's ability to deliver services effectively and on time. 4. Performance context is crucial to understand the scope and criticality of air-conditioning services for the Department of Defense. 5. Sector positioning highlights the role of logistics and support services within the broader defense industrial base.
Value Assessment
Rating: fair
Benchmarking the value of this $13.07 million contract is challenging without specific details on the scope of air-conditioning services provided and the geographic location. However, the duration of 354 days suggests a substantial operational requirement. Comparing this to similar contracts for HVAC services in military installations would provide a clearer picture of whether the pricing is competitive. The firm fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for the government if the price is well-established.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive down prices and ensure the government receives the best value. The number of bidders (15) suggests a healthy level of interest and competition for this requirement.
Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among potential service providers.
Public Impact
The primary beneficiaries are Department of Defense personnel and operations requiring climate-controlled environments. Services delivered include the maintenance and potentially installation of air-conditioning systems. Geographic impact is likely concentrated in the region where the services are rendered, potentially a military base or facility. Workforce implications may involve skilled technicians for HVAC services, potentially sourced locally or by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of work expands beyond initial estimates under a firm fixed-price contract.
- Dependence on contractor performance for critical climate control, impacting operational readiness.
- Challenges in verifying the quality and efficiency of services rendered without detailed performance metrics.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Firm fixed-price contract structure provides cost certainty for the government.
- Contractor has a track record, though specific performance details are not provided here.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on facility support and maintenance. The defense sector often requires extensive logistical and operational support services, including climate control for sensitive equipment and personnel. The market for HVAC services is competitive, with numerous providers capable of meeting government requirements. Benchmarking against similar contracts for facility maintenance within the Department of Defense would offer further insight into value.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The presence of 15 bidders in a full and open competition suggests that both large and small businesses may have participated, but the primary awardee is a specific entity. Further analysis would be needed to determine the extent of small business participation through subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring and quality assurance would be key accountability measures. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.
Related Government Programs
- Department of Defense Facilities Maintenance
- Military Base Operations Support
- HVAC Services Contracts
- Logistics and Support Services
Risk Flags
- Potential for scope creep in fixed-price contracts.
- Contractor performance risk.
- Adequacy of competition for long-term service needs.
Tags
defense, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, logistics, air-conditioning-services, operational-support, kuwait, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to BRITISH LINK KUWAIT LOGISTICS COMPANY FOR AIR-CONDITIONING SERVICES K.S.C.C.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BRITISH LINK KUWAIT LOGISTICS COMPANY FOR AIR-CONDITIONING SERVICES K.S.C.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.1 million.
What is the period of performance?
Start: 2005-04-11. End: 2006-03-31.
What is the specific nature of the air-conditioning services provided under this contract?
The provided data indicates the contract is for 'Canvas and Related Product Mills' and awarded to 'BRITISH LINK KUWAIT LOGISTICS COMPANY FOR AIR-CONDITIONING SERVICES K.S.C.C.', with a value of $13,071,136.43. While the contract title is 'Canvas and Related Product Mills', the contractor's name strongly suggests the service is air-conditioning. This could imply services related to maintaining climate control within facilities that produce or store canvas products, or it might be a miscategorization in the data. Typically, such contracts would involve installation, maintenance, repair, and potentially the provision of temporary cooling solutions for military installations or operational sites. The firm fixed-price nature suggests a defined scope of work with a set cost.
How does the $13.07 million contract value compare to similar air-conditioning service contracts awarded by the DoD?
Direct comparison of the $13.07 million contract value requires detailed knowledge of the specific services, duration, and location. However, for a 354-day contract, this amount suggests a significant scope, potentially covering multiple facilities or a large-scale operation. Contracts for HVAC maintenance and repair can range widely, from tens of thousands for small base support to millions for major installations or new construction projects. Without specific benchmarks for similar-sized military installations or operational requirements in comparable regions, it's difficult to definitively assess if this represents excellent, fair, or questionable value. The firm fixed-price structure, however, aims to provide cost certainty.
What are the potential risks associated with a firm fixed-price contract for air-conditioning services?
A firm fixed-price (FFP) contract, while offering cost certainty to the government, places the risk of cost overruns on the contractor. Potential risks include the contractor cutting corners on quality or maintenance to maintain profitability if unforeseen issues arise, potentially leading to service disruptions or reduced equipment lifespan. If the scope of work was not precisely defined, the contractor might resist additional tasks or charge a premium for them. Conversely, if the government requires significant changes or additions, a change order process would be initiated, which could increase the overall cost. Effective oversight is crucial to ensure the contractor meets quality standards despite the FFP structure.
What is the track record of BRITISH LINK KUWAIT LOGISTICS COMPANY FOR AIR-CONDITIONING SERVICES K.S.C.C. with the Department of Defense?
The provided data indicates that BRITISH LINK KUWAIT LOGISTICS COMPANY FOR AIR-CONDITIONING SERVICES K.S.C.C. was awarded this specific contract (NA 314912) by the Department of the Army. This suggests they have successfully navigated the federal procurement process to secure a contract. However, this single data point does not provide a comprehensive track record. To assess their broader performance, one would need to examine other contracts awarded to this entity, including their value, duration, type, and any performance reviews or past performance information available through government databases like the Contractor Performance Assessment Reporting System (CPARS).
How does the competition level (15 bidders) impact the value received by the government?
Having 15 bidders for this contract signifies a robust level of competition. A higher number of bidders generally leads to more competitive pricing as companies vie for the award. This increased competition can drive down the offered prices, encourage innovation in service delivery, and ensure the government selects a contractor offering the best overall value, not just the lowest price. It also reduces the risk of vendor lock-in and provides the government with more options should performance issues arise. The substantial number of bidders suggests that the market for these services is accessible and that the government's requirements were clearly defined and broadly advertised.
Industry Classification
NAICS: Manufacturing › Other Textile Product Mills › Canvas and Related Product Mills
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: SHUWAIKH INDUSTRIAL AREA, SHUWAIKH
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-04-11
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2009-06-09
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