DoD's Army Spends $1.45B on Specialty Trade Contractors for Additional Services
Contract Overview
Contract Amount: $1,447,708,825 ($1.4B)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2010-06-16
End Date: 2028-12-30
Contract Duration: 6,772 days
Daily Burn Rate: $213.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ADDITIONAL SERVICES MCA-FUNDED
Plain-Language Summary
Department of Defense obligated $1.45 billion to MISCELLANEOUS FOREIGN AWARDEES for work described as: ADDITIONAL SERVICES MCA-FUNDED Key points: 1. Significant spending on miscellaneous foreign awardees raises questions about domestic economic impact. 2. The contract spans over 18 years, indicating a long-term commitment and potential for cost escalation. 3. Lack of small business participation suggests a missed opportunity for economic inclusion. 4. The broad 'All Other Specialty Trade Contractors' category lacks specificity, potentially obscuring detailed cost drivers.
Value Assessment
Rating: questionable
The contract's large value and extended duration, coupled with a lack of specific performance metrics or benchmarks in the provided data, make a direct pricing assessment difficult. Without comparable contracts for similar 'additional services' from the Army or other agencies, it's hard to determine if the $1.45 billion is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the 'miscellaneous foreign awardees' aspect and the broad nature of the services could limit the pool of truly competitive bidders, potentially impacting the final price achieved.
Taxpayer Impact: The substantial $1.45 billion expenditure represents a significant allocation of taxpayer funds. The long duration and foreign awardees warrant scrutiny to ensure maximum value and benefit to the US economy.
Public Impact
Taxpayers are funding extensive specialty trade services over nearly two decades. The contract's duration and foreign awardees may limit direct economic benefits to U.S. small businesses. Oversight is crucial to ensure the services procured are essential and cost-effective throughout the contract's life.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (18+ years)
- Foreign awardees
- No small business participation
- Broad service category
Positive Signals
- Full and open competition
- Firm fixed price contract type
Sector Analysis
The 'All Other Specialty Trade Contractors' sector is diverse, encompassing a wide range of services. A $1.45 billion contract for such services, especially over an 18-year period, is substantial. Benchmarks for this broad category are difficult to establish without more specific service details.
Small Business Impact
The data indicates no small business participation in this contract. This represents a significant missed opportunity to leverage the capabilities of small businesses and foster economic growth within the sector.
Oversight & Accountability
With a contract duration exceeding 18 years and involving foreign awardees, robust oversight is essential. The Department of the Army must ensure diligent monitoring of performance, costs, and adherence to contract terms to maintain accountability and taxpayer value.
Related Government Programs
- All Other Specialty Trade Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term commitment (18+ years)
- Foreign awardees
- Lack of small business participation
- Vague service description
- Potential for cost overruns despite FFP due to broad scope
Tags
all-other-specialty-trade-contractors, department-of-defense, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.45 billion to MISCELLANEOUS FOREIGN AWARDEES. ADDITIONAL SERVICES MCA-FUNDED
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 $1.45 billion.
What is the period of performance?
Start: 2010-06-16. End: 2028-12-30.
What specific 'additional services' are being procured under this contract, and how do they align with the Department of the Army's evolving mission needs over an 18-year period?
The provided data lacks specificity regarding the 'additional services' procured. Understanding the exact nature of these services is critical to assessing their necessity and value over the contract's extensive 18-year duration. Without this detail, it's challenging to determine if the $1.45 billion expenditure aligns with the Army's strategic objectives or if it represents potentially outdated or inefficient service provisions.
What is the rationale for awarding such a long-term contract to 'miscellaneous foreign awardees' instead of domestic contractors, and what are the implications for U.S. economic benefit and national s
The rationale for prioritizing foreign awardees for a substantial $1.45 billion contract over an 18-year term is unclear and warrants investigation. While full and open competition was utilized, the focus on foreign entities raises concerns about missed opportunities for U.S. job creation and economic stimulus. Furthermore, reliance on foreign contractors for essential services could pose national security risks that need thorough assessment.
How does the firm fixed price structure mitigate risks associated with the broad 'All Other Specialty Trade Contractors' category and the extended contract duration?
A firm fixed price (FFP) contract is intended to shift cost risk to the contractor, providing budget certainty for the government. However, the broad nature of 'All Other Specialty Trade Contractors' and the 18-year duration present inherent risks. Without detailed service definitions and performance metrics, the FFP may not adequately protect against scope creep, unforeseen cost increases, or contractor underperformance, potentially leading to suboptimal value despite the pricing structure.
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, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $1,494,029,663
Exercised Options: $1,494,029,663
Current Obligation: $1,447,708,825
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-16
Current End Date: 2028-12-30
Potential End Date: 2028-12-30 00:00:00
Last Modified: 2025-12-10
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