Department of the Army awards $37.16M sole-source construction contract to Al Yamama Company for RSLF Field Artillery Corps
Contract Overview
Contract Amount: $37,158,683 ($37.2M)
Contractor: AL Yamama Company for Trading and Contracting
Awarding Agency: Department of Defense
Start Date: 2018-10-12
End Date: 2022-02-24
Contract Duration: 1,231 days
Daily Burn Rate: $30.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOLE SOURCE CONSTRUCTION FOR THE RSLF FIELD ARTILLERY CORPS
Plain-Language Summary
Department of Defense obligated $37.2 million to AL YAMAMA COMPANY FOR TRADING AND CONTRACTING for work described as: SOLE SOURCE CONSTRUCTION FOR THE RSLF FIELD ARTILLERY CORPS Key points: 1. Significant contract value of $37.16 million. 2. Sole-source award limits competition and potentially impacts price discovery. 3. Construction sector, specifically commercial and institutional building. 4. Long contract duration of 1231 days. 5. Firm Fixed Price contract type.
Value Assessment
Rating: questionable
The contract value is substantial at $37.16 million. Without competitive bidding, it's difficult to assess if this price is optimal or reflects market rates for similar construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to ensure the best possible price and value through market forces.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best value for this significant expenditure.
Public Impact
Taxpayers may not have received the most competitive pricing due to the sole-source nature of the award. The extended contract duration suggests a large-scale or complex construction project. The specific purpose of the RSLF Field Artillery Corps facility is not detailed, limiting public understanding of the spending's direct impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm Fixed Price contract type can provide cost certainty if well-defined.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope, location, and economic conditions. Benchmarks are difficult without specific project details.
Small Business Impact
The data indicates this was a sole-source award to Al Yamama Company for Trading and Contracting. There is no information provided to suggest that small businesses were involved as subcontractors or partners in this contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure proper justification and that all avenues for competition were explored. Oversight should focus on the necessity of the sole-source justification and the execution of the contract.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may indicate scope creep or inefficiencies.
- Limited transparency on project specifics and justification for sole-sourcing.
- No indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.2 million to AL YAMAMA COMPANY FOR TRADING AND CONTRACTING. SOLE SOURCE CONSTRUCTION FOR THE RSLF FIELD ARTILLERY CORPS
Who is the contractor on this award?
The obligated recipient is AL YAMAMA COMPANY FOR TRADING AND CONTRACTING.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $37.2 million.
What is the period of performance?
Start: 2018-10-12. End: 2022-02-24.
What was the justification for awarding this significant construction contract on a sole-source basis, and were alternative competitive methods considered?
The justification for a sole-source award is critical for ensuring taxpayer value. Agencies must demonstrate that only one responsible source can satisfy agency requirements. Without this justification, the government risks overpaying and not leveraging market competition to secure the best terms and pricing for essential services or goods.
How does the $37.16 million cost compare to similar construction projects of comparable size and complexity, and what cost controls were in place?
Benchmarking this cost against similar projects is challenging without detailed specifications. However, a $37.16 million firm-fixed-price contract over 1231 days suggests a substantial undertaking. Robust cost controls would typically involve detailed cost breakdowns, independent government cost estimates, and rigorous progress payment reviews to mitigate risks associated with large, long-term construction contracts.
What is the specific nature and impact of the RSLF Field Artillery Corps facility being constructed, and how does it align with broader defense objectives?
Understanding the specific function of the RSLF Field Artillery Corps facility is key to assessing its strategic importance and the necessity of the expenditure. Facilities supporting critical military assets like field artillery are vital for readiness and operational effectiveness. The alignment with broader defense objectives would be evaluated based on the facility's role in enhancing training, deployment, or maintenance capabilities for these units.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912ER18R0027
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: FIRST STREET BEHIND DAMMAM TO, DAMMAM
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $37,158,683
Exercised Options: $37,158,683
Current Obligation: $37,158,683
Actual Outlays: $403,517
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-10-12
Current End Date: 2022-02-24
Potential End Date: 2022-02-24 00:00:00
Last Modified: 2023-09-25
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