DoD's $47.5M Storm Water, Waste Water, and Water Collection Systems Contract Awarded to Undisclosed Foreign Entity

Contract Overview

Contract Amount: $47,502,959 ($47.5M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2008-06-23

End Date: 2023-08-18

Contract Duration: 5,534 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SITE ADAPT/DESIGN-BUILD BASE WIDE STORM WATER, WASTE WATER AND WATER COLLECTION AND TRANSMISSION SYSTEMS

Plain-Language Summary

Department of Defense obligated $47.5 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: SITE ADAPT/DESIGN-BUILD BASE WIDE STORM WATER, WASTE WATER AND WATER COLLECTION AND TRANSMISSION SYSTEMS Key points: 1. The contract's significant value suggests a substantial infrastructure investment by the Department of Defense. 2. The use of a definitive contract type indicates a long-term commitment to service delivery. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The extended duration of the contract (over 15 years) points to a critical, ongoing need for these utility services. 5. The award to an undisclosed foreign entity raises questions about transparency and potential national security implications. 6. The lack of small business involvement suggests a focus on large-scale prime contractors.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of specific details on the scope of work and the undisclosed nature of the foreign awardee. However, a contract of this magnitude for utility infrastructure over a 15-year period suggests a significant investment. Without comparable domestic projects or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm-fixed-price nature provides some cost control, but the ultimate value depends on the efficiency and effectiveness of the services provided by the foreign contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the fact that the awardee is an undisclosed foreign entity raises concerns about the transparency of the selection process and whether domestic firms had a fair opportunity to compete. The presence of two bidders, as indicated by the data, suggests some level of competition, but the ultimate identity and capabilities of the losing bidder(s) are unknown.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by fostering competitive pricing, the award to an undisclosed foreign entity obscures the competitive landscape and makes it difficult to ascertain if the best value was truly achieved for taxpayer funds.

Public Impact

Military installations and personnel relying on essential water and waste management services. Ensures operational readiness and public health at Department of Defense facilities. Potential impact on local economies near military bases through indirect support services. The contract supports the maintenance and upgrade of critical utility infrastructure, ensuring long-term operational capability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the identity and track record of the foreign awardee.
Potential national security risks associated with critical infrastructure being managed by an undisclosed foreign entity.
Difficulty in assessing true value for money and competitive fairness due to undisclosed awardee.
Limited visibility into subcontracting opportunities for domestic small businesses.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration indicates a sustained commitment to essential services.
The contract addresses critical infrastructure needs for water and waste management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on utility infrastructure. The market for large-scale civil engineering and construction projects, particularly those supporting government facilities, is substantial. Such contracts often involve complex engineering, environmental compliance, and long-term maintenance. Benchmarking against similar large-scale utility projects for government entities would be necessary for a comprehensive value assessment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scale and complexity of the project were likely beyond the capacity of most small businesses, or that the procurement strategy did not prioritize small business participation. There is no information available on subcontracting plans, which limits the assessment of potential benefits to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. The specific agency responsible for day-to-day oversight would be within the Department of the Army. Transparency is limited by the undisclosed nature of the awardee. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Management
Military Construction Projects
Water and Wastewater Infrastructure Contracts
Global Base Support Services

Risk Flags

Lack of Transparency in Awardee Identity
Potential National Security Concerns
Difficulty in Performance Assessment
Unknown Contractor Track Record

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 million to FOREIGN AWARDEES (UNDISCLOSED). SITE ADAPT/DESIGN-BUILD BASE WIDE STORM WATER, WASTE WATER AND WATER COLLECTION AND TRANSMISSION SYSTEMS

Who is the contractor on this award?

The obligated recipient is FOREIGN 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 $47.5 million.

What is the period of performance?

Start: 2008-06-23. End: 2023-08-18.

What is the specific scope of work and the exact location of the storm water, waste water, and water collection and transmission systems being managed under this contract?

The provided data indicates the contract is for 'SITE ADAPT/DESIGN-BUILD BASE WIDE STORM WATER, WASTE WATER AND WATER COLLECTION AND TRANSMISSION SYSTEMS'. However, the specific geographic location and the detailed scope of work, including the extent of design-build activities versus ongoing operations and maintenance, are not specified. This lack of detail makes it difficult to fully assess the contract's value and risks. Understanding the precise services required is crucial for comparing this contract to similar infrastructure projects and for evaluating the contractor's performance.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is the contractor's performance being measured?

The available data does not include information on the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For a contract of this duration and importance, such metrics are essential for ensuring the effective and efficient delivery of water and waste management services. Without visibility into these performance measures, it is challenging to objectively assess the contractor's adherence to standards, identify potential areas of underperformance, or confirm that the government is receiving the expected value. Standard metrics in such contracts often include water quality, system uptime, response times for repairs, and compliance with environmental regulations.

What is the rationale behind awarding this significant infrastructure contract to an undisclosed foreign entity, and what due diligence was performed?

The rationale for awarding this contract to an undisclosed foreign entity is not provided in the data. Typically, full and open competition aims to secure the best value from a wide range of qualified bidders. The decision to award to a foreign entity, especially one whose identity is not disclosed, raises significant questions about the due diligence process. Standard procedures would involve rigorous vetting of foreign contractors, particularly for critical infrastructure, to assess their financial stability, technical capabilities, security clearances, and compliance with U.S. regulations and standards. The lack of transparency surrounding the awardee necessitates further inquiry into the justification and vetting procedures employed by the Department of the Army.

How does the $47.5 million contract value compare to similar base-wide utility infrastructure projects undertaken by the Department of Defense or other federal agencies?

Comparing the $47.5 million contract value requires context regarding the scope, duration, and specific services included. This contract spans over 15 years (from 2008 to 2023), indicating a substantial, long-term commitment. Similar projects might include the design, construction, and maintenance of water treatment plants, sewer systems, and stormwater management facilities at military bases. Without specific details on the scale of the systems (e.g., population served, capacity, complexity of terrain), it's difficult to make a direct comparison. However, for a comprehensive utility system at a large military installation, $47.5 million over such a long period could represent a reasonable investment, provided the services are delivered efficiently and effectively. Benchmarking against other large-scale, multi-year utility contracts for federal facilities would provide a more robust assessment.

What are the potential risks associated with a long-term contract for critical infrastructure being managed by an undisclosed foreign entity?

Awarding a long-term contract for critical infrastructure like water and waste management systems to an undisclosed foreign entity presents several potential risks. Firstly, national security concerns arise if the foreign entity has ties to adversarial nations or if sensitive operational data could be compromised. Secondly, there are risks related to accountability and recourse; enforcing contract terms or seeking remedies from an undisclosed foreign entity can be legally and logistically complex. Thirdly, transparency is diminished, making it harder for oversight bodies and the public to scrutinize the contractor's operations and ensure value for money. Finally, geopolitical instability or changes in the foreign entity's home country could disrupt service delivery, impacting military readiness and personnel welfare.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: W912ER08R0024

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $60,441,354

Exercised Options: $47,502,959

Current Obligation: $47,502,959

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline