DoD's Army Awards $69.8M for Specialty Trade Contractors Under Full and Open Competition
Contract Overview
Contract Amount: $69,834,549 ($69.8M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2011-05-12
End Date: 2023-12-30
Contract Duration: 4,615 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 7.1.2 SERVICES
Plain-Language Summary
Department of Defense obligated $69.8 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: 7.1.2 SERVICES Key points: 1. Significant contract value of $69.8 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans a long duration (4615 days), indicating a need for sustained services. 4. No small business participation was noted, which could be a missed opportunity for economic inclusion.
Value Assessment
Rating: fair
The contract is a firm fixed price type, which helps control costs. However, the long duration and broad scope ('All Other Specialty Trade Contractors') make direct per-unit cost comparison difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery, as multiple bidders likely submitted proposals. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered, though the total cost is substantial.
Public Impact
Taxpayers funded a significant contract for essential trade services. The long contract duration implies ongoing needs for infrastructure or maintenance. Lack of small business involvement may limit economic opportunities for smaller firms in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or price increases if not managed effectively.
- Lack of small business participation.
- Broad service category ('All Other Specialty Trade Contractors') could mask inefficiencies or lack of specificity.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps manage cost certainty.
Sector Analysis
This contract falls under specialty trade contracting, a broad category encompassing various skilled trades. The $69.8 million award is substantial and suggests a significant need for these services by the Department of the Army.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss=false, sb=false). This suggests that the prime contractor is likely a larger entity, and opportunities for subcontracting to small businesses were either not pursued or not mandated.
Oversight & Accountability
The long duration of the contract (over 12 years) necessitates robust oversight from the Department of the Army to ensure services are delivered as specified and costs remain controlled. Regular performance reviews and audits would be crucial.
Related Government Programs
- All Other Specialty Trade Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of cost escalation and performance issues.
- Broad service category lacks specificity, potentially hindering effective oversight and performance measurement.
- No indication of small business participation, missing opportunities for economic inclusion.
- Potential for contractor lock-in due to the extended period and specialized nature of services.
Tags
all-other-specialty-trade-contractors, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.8 million to MISCELLANEOUS FOREIGN AWARDEES. 7.1.2 SERVICES
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 $69.8 million.
What is the period of performance?
Start: 2011-05-12. End: 2023-12-30.
What specific specialty trade services were procured under this contract, and how do they align with the Army's operational needs?
The contract broadly covers 'All Other Specialty Trade Contractors.' Without further detail, it's difficult to ascertain the specific services. These could range from HVAC and electrical work to plumbing or specialized construction support. Understanding the precise nature of these services is crucial to evaluating their necessity and ensuring they directly support the Army's mission requirements and infrastructure maintenance.
Given the long contract duration, what mechanisms are in place to mitigate risks associated with potential cost overruns or performance degradation over time?
The firm fixed price (FFP) contract type provides a baseline cost control. However, for a contract spanning over 12 years, the Army must implement rigorous performance monitoring, regular contract reviews, and potentially incorporate mechanisms for equitable adjustments or change orders that are carefully scrutinized. Proactive risk management and clear communication channels with the contractor are essential to address potential issues before they escalate.
How does the $69.8 million expenditure compare to industry benchmarks for similar long-term specialty trade service contracts?
Benchmarking this $69.8 million contract is challenging due to its broad category and extended duration. Typical benchmarks often focus on specific services (e.g., HVAC maintenance) or shorter contract terms. However, the scale suggests a significant, long-term commitment. A detailed analysis would require comparing the contract's scope, deliverables, and pricing structure against similar large-scale, multi-year service agreements within the federal or commercial construction sectors.
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: $90,251,160
Exercised Options: $90,251,160
Current Obligation: $69,834,549
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-05-12
Current End Date: 2023-12-30
Potential End Date: 2023-12-30 00:00:00
Last Modified: 2023-08-04
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