DoD Awards $18.4M Task Order for O&M Services in Qatar to Al Rawabet

Contract Overview

Contract Amount: $18,414,970 ($18.4M)

Contractor: AL Rawabet Commercial Services & Contracting CO. W.L.L.

Awarding Agency: Department of Defense

Start Date: 2022-06-21

End Date: 2026-06-20

Contract Duration: 1,460 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TASK ORDER #01 O&M SERVICES FOR SHIELD 5 SITES, QATAR

Plain-Language Summary

Department of Defense obligated $18.4 million to AL RAWABET COMMERCIAL SERVICES & CONTRACTING CO. W.L.L. for work described as: TASK ORDER #01 O&M SERVICES FOR SHIELD 5 SITES, QATAR Key points: 1. The task order is for Operations & Maintenance (O&M) services for SHIELD 5 sites in Qatar. 2. The contract was awarded to AL RAWABET COMMERCIAL SERVICES & CONTRACTING CO. W.L.L. 3. The contract duration is 1460 days, ending June 20, 2026. 4. The primary NAICS code is 811310 for Commercial and Industrial Machinery and Equipment Repair and Maintenance. 5. This award represents a significant investment in maintaining critical infrastructure in a key operational theater.

Value Assessment

Rating: questionable

The contract value is $18.4 million. Without comparable contract data for similar O&M services in Qatar, it is difficult to definitively assess pricing. The firm fixed price structure suggests an attempt to control costs, but the lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, which is a limited competition method. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The limited competition raises concerns about the potential for inflated pricing, which could negatively impact taxpayer value for these essential O&M services.

Public Impact

Ensures continued operational readiness of SHIELD 5 sites in Qatar. Supports U.S. military operations and personnel in the region. Provides essential maintenance for critical equipment and facilities. Potential for increased costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of transparency in pricing
Potential for cost overruns

Positive Signals

Ensures operational continuity
Supports critical infrastructure

Sector Analysis

This contract falls within the broader Defense sector, specifically related to facility maintenance and operational support. Spending benchmarks for O&M services in overseas locations can vary widely based on geopolitical factors, security requirements, and local market conditions.

Small Business Impact

The contract was awarded to AL RAWABET COMMERCIAL SERVICES & CONTRACTING CO. W.L.L., which is not indicated as a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The limited competition and lack of detailed justification for not pursuing a broader competition warrant close oversight. Accountability for ensuring fair pricing and effective service delivery is crucial given the sole-source nature of the award.

Related Government Programs

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition raises cost concerns.
Lack of justification for sole-source award.
Potential for overpayment without competitive benchmarking.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to AL RAWABET COMMERCIAL SERVICES & CONTRACTING CO. W.L.L.. TASK ORDER #01 O&M SERVICES FOR SHIELD 5 SITES, QATAR

Who is the contractor on this award?

The obligated recipient is AL RAWABET COMMERCIAL SERVICES & CONTRACTING CO. W.L.L..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2022-06-21. End: 2026-06-20.

What is the justification for awarding this task order on a limited competition basis, and what steps were taken to ensure the best possible price was obtained?

The justification for limited competition is not provided in the data. Typically, such awards are made when only one source is capable of meeting the requirement, or in urgent situations. Without this information, it's impossible to assess if best price was achieved. Further investigation into the contracting officer's justification is needed to understand the rationale and verify if market research was conducted to ensure fair and reasonable pricing.

What are the risks associated with awarding a multi-year O&M contract without full and open competition?

The primary risk is paying a premium due to the lack of competitive pressure. Without competing offers, the government may not be aware of lower-cost alternatives or more efficient service providers. This can lead to inflated costs over the contract's duration, reduced value for taxpayer money, and potentially less incentive for the awarded contractor to innovate or optimize service delivery.

How effective is the firm fixed price contract type in managing costs for O&M services in this specific context?

A firm fixed price (FFP) contract is generally effective in controlling costs by shifting risk to the contractor. However, its effectiveness in this limited competition scenario is questionable. While the government's financial exposure is capped, the initial price might be higher than it would be under competition. The contractor has an incentive to perform efficiently to maximize profit, but the lack of competitive benchmarking limits the ability to assess if the FFP is truly reasonable.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912ER22R0018

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4/159 B-RING ROAD, STREET 220, ZONE 24, DOHA

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

Financial Breakdown

Contract Ceiling: $23,796,563

Exercised Options: $18,414,970

Current Obligation: $18,414,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER22D0009

IDV Type: IDC

Timeline