DoD's $10.3M Sewer Line Project Awarded to ESI Contracting Under Full and Open Competition

Contract Overview

Contract Amount: $10,331,103 ($10.3M)

Contractor: ESI Contracting, Corp.

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2010-01-11

Contract Duration: 1,200 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SEWER LINE MODIFICATION

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64101

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to ESI CONTRACTING, CORP. for work described as: SEWER LINE MODIFICATION Key points: 1. The Department of Defense awarded a $10.3 million contract for sewer line modification. 2. ESI Contracting, Corp. secured the award through full and open competition. 3. The contract type is a Firm Fixed Price Definitive Contract. 4. The project falls under 'Other Heavy and Civil Engineering Construction' with a NAICS code of 237990.

Value Assessment

Rating: good

The contract value of $10.3 million appears reasonable for heavy civil engineering construction. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process that aimed to maximize price discovery and value for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair market price for the sewer line modifications.

Public Impact

Ensures critical infrastructure functionality for military operations. Supports local community by maintaining essential services. Provides employment opportunities through the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 1200 days (approx. 3.3 years) may indicate potential for scope creep or delays.
  • The 'Exclusion of Sources' clause in the competition method warrants further review to ensure it did not unduly limit competition.

Positive Signals

  • Awarded under full and open competition, suggesting a robust process.
  • Firm Fixed Price contract type helps control costs and manage budget.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is vital for maintaining and upgrading public and military infrastructure. Spending in this sector can fluctuate based on government infrastructure initiatives and defense needs.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award was made by the Department of the Army, part of the Department of Defense, suggesting established oversight mechanisms. The definitive contract structure implies a clear scope and deliverables.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for cost escalation due to long contract duration.
  • Ambiguity in 'Exclusion of Sources' clause requires clarification.
  • Lack of small business participation data.
  • Potential for unforeseen site conditions in heavy civil engineering.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, mo, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to ESI CONTRACTING, CORP.. SEWER LINE MODIFICATION

Who is the contractor on this award?

The obligated recipient is ESI CONTRACTING, CORP..

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: 2006-09-29. End: 2010-01-11.

What was the specific reason for excluding sources in the 'Full and Open Competition After Exclusion of Sources' method, and did it impact the final price?

The specific reason for excluding sources is not detailed in the provided data. Typically, such exclusions are based on unique capabilities, proprietary technology, or specific security requirements. Understanding the rationale is crucial to assess if the exclusion limited competition unfairly or was justified, and consequently, how it might have influenced the final price achieved through the bidding process.

Given the 4-year contract duration, what are the potential risks associated with cost escalation or unforeseen site conditions for this sewer line modification project?

A 4-year duration for a sewer line modification project presents risks of cost escalation due to inflation, material price fluctuations, and potential labor cost increases over time. Unforeseen site conditions, such as encountering unexpected soil types, underground utilities, or environmental hazards, could lead to significant delays and require costly change orders, impacting the overall project budget and timeline.

How effectively did the Firm Fixed Price contract type manage the $10.3 million expenditure for this extensive infrastructure project?

The Firm Fixed Price (FFP) contract type is designed to provide cost certainty for the government by shifting most of the risk to the contractor. For a $10.3 million project, an FFP contract implies that ESI Contracting, Corp. agreed to perform the work for a set price. This structure is generally effective in controlling expenditures, assuming the initial scope was well-defined and the contractor adequately accounted for all potential costs and risks.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912DQ06B0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3001 E 83RD ST, KANSAS CITY, MO, 64132

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,331,103

Exercised Options: $10,331,103

Current Obligation: $10,331,103

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2006-09-29

Current End Date: 2010-01-11

Potential End Date: 2010-01-11 00:00:00

Last Modified: 2020-09-27

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