DoD's $29.6M specialty trade contract awarded to foreign entities shows potential for cost savings and competition

Contract Overview

Contract Amount: $29,635,569 ($29.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2008-05-05

End Date: 2018-12-31

Contract Duration: 3,892 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 7.1.2-7.1.4 TITLE I

Plain-Language Summary

Department of Defense obligated $29.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: 7.1.2-7.1.4 TITLE I Key points: 1. Contract awarded to a group of miscellaneous foreign awardees suggests potential for competitive pricing. 2. The firm fixed-price contract type indicates a defined cost structure, limiting contractor risk. 3. A long performance period of 10 years implies a need for sustained, specialized services. 4. The broad specialty trade category suggests a wide range of potential services covered. 5. Lack of small business set-aside indicates a focus on larger, potentially international, prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the 'Miscellaneous Foreign Awardees' designation, which obscures specific contractor performance and pricing. The firm fixed-price structure is generally favorable for the government, locking in costs. However, without comparable contract data for similar foreign specialty trade services, it's difficult to definitively assess if the $29.6 million over 10 years represents excellent value for money. The absence of detailed performance metrics or cost breakdowns prevents a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders, as suggested by the 'no': 2 field, implies a degree of competition. However, the specific nature of 'Miscellaneous Foreign Awardees' raises questions about the breadth and depth of the competitive pool. It's possible that the pool of qualified international specialty trade contractors is inherently limited, even under full and open competition.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to drive down prices through bidding. However, the limited number of bidders and the foreign nature of the awardees might suggest that the full potential for price discovery was not realized.

Public Impact

Foreign entities providing specialized trade services, potentially supporting U.S. military operations abroad. Services likely encompass a broad range of construction, maintenance, and repair activities. Geographic impact is likely concentrated in areas where U.S. military forces are deployed internationally. Workforce implications are primarily for the foreign contractors' employees, with potential indirect benefits to U.S. suppliers of materials or equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding specific foreign awardees and their track records.
Potential for geopolitical risks or supply chain disruptions affecting foreign contractors.
Difficulty in enforcing contract terms or quality standards with international entities.
Limited visibility into the specific breakdown of services and associated costs.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration indicates a stable, ongoing need for the services.
Inclusion of foreign awardees may leverage specialized international expertise or cost efficiencies.

Sector Analysis

This contract falls within the broad 'Specialty Trade Contractors' sector, which includes establishments primarily engaged in specialized construction activities. The Department of Defense's spending in this area often supports infrastructure, maintenance, and operational readiness, particularly in overseas locations. Benchmarking against similar contracts is difficult due to the unique 'Miscellaneous Foreign Awardees' designation, but the overall federal spending on construction and related services is substantial, often running into billions annually.

Small Business Impact

The contract does not appear to have a small business set-aside (ss: false, sb: false). This suggests that the primary focus was on securing services from larger prime contractors, potentially including international firms. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. The nature of the awardees being 'Miscellaneous Foreign Awardees' further indicates that small businesses, particularly U.S.-based ones, were unlikely to be direct prime contractors for this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and potentially Inspector General's office. However, the 'Miscellaneous Foreign Awardees' designation complicates direct oversight and accountability compared to domestic contracts. Transparency is limited by the aggregated nature of the awardees. Specific performance monitoring and quality assurance procedures would be crucial but are not detailed in the provided data.

Related Government Programs

Department of Defense Construction Contracts
Foreign Military Sales Support Services
International Infrastructure Services
Specialty Trade Services Contracts

Risk Flags

Lack of specific contractor identification
Potential for geopolitical risks
Limited transparency on service details
Challenges in international oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to MISCELLANEOUS FOREIGN AWARDEES. 7.1.2-7.1.4 TITLE I

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2008-05-05. End: 2018-12-31.

What specific types of specialty trade services were procured under this contract?

The provided data classifies the contract under NAICS code 238990, 'All Other Specialty Trade Contractors.' This broad category encompasses a wide array of specialized construction activities that do not fit into other specific specialty trade categories. Examples could include services like concrete work, plumbing, electrical, HVAC, masonry, carpentry, painting, flooring, roofing, and other specialized installation or repair services. Without further details or access to the contract's statement of work, the precise nature of the services remains unspecified, but it is likely related to supporting military installations or operations abroad.

How does the $29.6 million total obligation compare to similar contracts for specialty trade services awarded by the Department of Defense?

Direct comparison of the $29.6 million total obligation is difficult without knowing the specific services rendered and the geographic locations. However, the Department of Defense awards billions of dollars annually for construction and specialty trade services, both domestically and internationally. Contracts of this magnitude are not uncommon for large-scale projects or long-term service agreements. The key differentiator here is the award to 'Miscellaneous Foreign Awardees,' which suggests a focus on international operations or leveraging specific foreign expertise, making direct U.S.-based benchmarks less relevant.

What are the potential risks associated with awarding a large contract to 'Miscellaneous Foreign Awardees'?

Awarding contracts to 'Miscellaneous Foreign Awardees' presents several potential risks. These include challenges in ensuring compliance with U.S. standards and regulations, difficulties in oversight and quality control due to distance and differing legal frameworks, potential for currency fluctuations impacting costs, geopolitical instability affecting contractor performance or supply chains, and complexities in dispute resolution. Furthermore, the aggregated nature of 'Miscellaneous Foreign Awardees' can obscure the specific capabilities and financial stability of the actual entities performing the work, increasing counterparty risk.

What does the firm fixed-price contract type imply about cost control and contractor risk?

A firm fixed-price (FFP) contract type is generally advantageous for the government as it shifts most 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 incentivizes the contractor to manage their expenses efficiently and control project costs. For the government, it provides budget certainty and protects against cost overruns, assuming the initial price was set competitively and realistically. This contract structure suggests that the DoD aimed for predictable spending on these specialty trade services.

Given the 10-year duration, what are the implications for long-term planning and contractor performance?

The 10-year duration (from May 5, 2008, to December 31, 2018) indicates a long-term requirement for the specialty trade services. This suggests that the services are critical for sustained operations or infrastructure maintenance. For the government, it allows for long-term planning and resource allocation. For the contractor(s), it provides a stable revenue stream and the opportunity to build expertise and potentially invest in specialized equipment or personnel. However, such long durations also necessitate robust performance monitoring and contract management to ensure continued value and address any potential degradation in service quality over time.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,046,130

Exercised Options: $36,046,130

Current Obligation: $29,635,569

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline