Department of Defense awards $39.7M contract for UAE facilities, building on prior work

Contract Overview

Contract Amount: $39,661,916 ($39.7M)

Contractor: Macro Vantage Levant Dmcc

Awarding Agency: Department of Defense

Start Date: 2022-10-29

End Date: 2025-06-22

Contract Duration: 967 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPROCUREMENT OF P960 TRITON OPERATION FACILITIES, UNITED ARAB EMIRATES (UAE). THE ORIGINAL P960 WAS T4D'D UNDER CONTRACT W912ER18C0032.

Plain-Language Summary

Department of Defense obligated $39.7 million to MACRO VANTAGE LEVANT DMCC for work described as: REPROCUREMENT OF P960 TRITON OPERATION FACILITIES, UNITED ARAB EMIRATES (UAE). THE ORIGINAL P960 WAS T4D'D UNDER CONTRACT W912ER18C0032. Key points: 1. Contract value represents a significant investment in operational infrastructure. 2. The award follows a previous contract for similar services, indicating a need for continuity. 3. Full and open competition suggests a robust bidding process. 4. The firm-fixed-price structure aims to control costs for the government. 5. Contract duration extends over multiple years, implying long-term operational requirements. 6. The contractor has prior experience with this specific project or similar ones.

Value Assessment

Rating: good

The contract value of $39.7 million for facilities operation in the UAE appears reasonable given the scope and duration. Benchmarking against similar overseas operational support contracts is challenging due to unique geographic and logistical factors. However, the firm-fixed-price nature of the award suggests that cost certainty was a priority. The historical context of a prior contract (P960) for the same facilities indicates a degree of established operational understanding, which can contribute to value.

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 bidders were likely solicited. The presence of two bidders, as suggested by the 'no' field, provides a competitive dynamic that should drive price discovery and potentially lead to more favorable terms for the government. The open competition process is a positive indicator for achieving fair market value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are the U.S. military personnel and operations in the United Arab Emirates, who will have access to maintained and functional facilities. Services delivered include the operation and maintenance of facilities crucial for supporting military presence and operations. The geographic impact is specific to the United Arab Emirates, supporting U.S. strategic interests in the region. Workforce implications may include local employment opportunities in the UAE for facility support roles, as well as deployment of specialized personnel from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, despite the firm-fixed-price structure.
Dependence on a single contractor for critical facility operations could pose a risk if performance issues emerge.
Geopolitical instability in the region could impact operational continuity and costs.

Positive Signals

Prior experience with the P960 project suggests familiarity with the specific requirements and environment.
Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a competitive bidding process that should yield value.

Sector Analysis

This contract falls within the construction and facilities management sector, specifically supporting government infrastructure abroad. The market for overseas base operations and support services is specialized, often involving companies with experience in complex logistical and security environments. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each overseas location and mission requirements, but this award reflects a significant commitment to maintaining operational readiness in a key strategic region.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem, though larger contracts often involve some level of subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, with penalties or remedies for non-performance. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not be publicly disclosed.

Related Government Programs

Overseas Military Construction
Base Operations Support
Foreign Military Facilities Management
Department of Defense Construction Contracts
UAE Defense Contracts

Risk Flags

Follow-on contract for critical overseas facilities.
Firm-fixed-price contract reduces government cost risk.
Full and open competition suggests competitive pricing.
Contract duration extends over multiple years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to MACRO VANTAGE LEVANT DMCC. REPROCUREMENT OF P960 TRITON OPERATION FACILITIES, UNITED ARAB EMIRATES (UAE). THE ORIGINAL P960 WAS T4D'D UNDER CONTRACT W912ER18C0032.

Who is the contractor on this award?

The obligated recipient is MACRO VANTAGE LEVANT DMCC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.7 million.

What is the period of performance?

Start: 2022-10-29. End: 2025-06-22.

What is the historical spending pattern for facility operations in the UAE by the Department of Defense?

Historical spending on facility operations in the UAE by the Department of Defense is not detailed in the provided data. However, the mention of 'REPROCUREMENT OF P960 TRITON OPERATION FACILITIES' under contract W912ER18C0032 indicates a prior award for similar services. This suggests a recurring need and potentially a pattern of awarding contracts for these facilities. To fully understand the historical pattern, one would need to examine the duration, value, and scope of previous contracts for this specific location and function, as well as any related operational support contracts in the broader region.

How does the contractor's track record with P960 influence the assessment of this new award?

The contractor, MACRO VANTAGE LEVANT DMCC, being awarded a follow-on or reprocurement contract for the P960 Triton Operation Facilities suggests a positive track record with the previous iteration of this work. This implies they likely met performance expectations, adhered to contract terms, and demonstrated capability in operating and maintaining these specific facilities in the UAE. For the government, this continuity reduces the risk associated with onboarding a new, unfamiliar contractor and potentially speeds up the transition or continuation of services. It indicates a level of trust and proven performance, which are key factors in contract awards, especially for critical overseas operations.

What are the primary risks associated with operating facilities in the UAE for the U.S. Department of Defense?

Operating facilities in the UAE presents several risks. Geopolitical instability in the broader Middle East region, while the UAE is generally stable, can still pose indirect threats or require heightened security measures. Logistical challenges related to importing materials, equipment, or personnel, and managing supply chains in a foreign country are significant. Environmental factors, such as extreme heat and sandstorms, can increase maintenance demands and operational costs. Furthermore, navigating local regulations, labor laws, and cultural nuances requires careful management. The firm-fixed-price nature of the contract aims to mitigate cost risks for the government, but the contractor must effectively manage these operational and environmental challenges to maintain profitability and performance.

How does the firm-fixed-price (FFP) contract type benefit the government in this scenario?

The firm-fixed-price (FFP) contract type is highly beneficial for the government in this scenario as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the Department of Defense with significant cost certainty and predictability, making budgeting more straightforward. It incentivizes the contractor to manage their resources efficiently and control costs, as any overruns come out of their profit margin. This structure is particularly suitable for well-defined requirements like facility operations where the scope of work is clear and unlikely to change substantially.

What is the significance of the contract being a 'definitive contract'?

The contract being classified as a 'definitive contract' signifies that it is a standard, fully negotiated agreement with fixed terms and conditions, including price, quantity, and delivery schedules. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts or basic ordering agreements, a definitive contract represents a complete commitment from both the government and the contractor for the specified goods or services. In this case, it means the $39.7 million award is for the full scope of facility operations as defined, with a set end date and price, providing a clear contractual framework for the duration of the agreement.

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: W912ER21R0020

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: JUMEIRAH LAKE TOWERS, DUBAI

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $40,386,849

Exercised Options: $39,661,916

Current Obligation: $39,661,916

Actual Outlays: $5,388,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline