DoD's $62.5M Miscellaneous Foreign Awardees contract for specialty trade services spans over a decade

Contract Overview

Contract Amount: $62,476,258 ($62.5M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2012-05-03

End Date: 2023-12-30

Contract Duration: 4,258 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 7.1.2-7.1.6 SERVICES TITLE I&IA

Plain-Language Summary

Department of Defense obligated $62.5 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: 7.1.2-7.1.6 SERVICES TITLE I&IA Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract's long duration (over 10 years) may indicate ongoing or evolving needs. 3. Fixed-price contract type can offer cost certainty but may limit flexibility. 4. Awardees are categorized as 'Miscellaneous Foreign Awardees,' requiring further clarity on their specific roles and locations. 5. The broad 'All Other Specialty Trade Contractors' NAICS code suggests a wide range of potential services. 6. Significant contract value indicates a substantial commitment of resources.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the broad service category and 'Miscellaneous Foreign Awardees' designation. Without specific service details or comparable contract data, assessing value for money is difficult. The firm fixed-price structure provides some cost predictability, but the extended duration means actual costs could fluctuate significantly based on market conditions over time. Further analysis would require understanding the specific tasks performed and their alignment with market rates for similar services in relevant foreign locations.

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 suggests a competitive environment, though the exact number of proposals received and the evaluation criteria are not detailed. A competitive process generally aims to secure the best value for the government by encouraging multiple offers and driving down prices.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a wider pool of potential contractors, leading to potentially lower prices and better quality services through market forces.

Public Impact

The primary beneficiaries are likely entities within the Department of Defense requiring specialized trade services in foreign locations. Services delivered could encompass a wide array of specialty trades, potentially including construction, maintenance, repair, or installation, depending on the specific task orders issued. Geographic impact is concentrated in foreign areas where the Department of Defense operates. Workforce implications are tied to the employment of individuals by the awarded foreign entities, potentially impacting local economies in host countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specificity regarding the 'Miscellaneous Foreign Awardees' makes it difficult to assess their qualifications and past performance.
The broad NAICS code 'All Other Specialty Trade Contractors' could lead to a lack of specialized expertise for critical tasks.
The extended contract duration without clear performance metrics raises concerns about sustained value and adaptability to changing needs.
Potential for cost overruns if market rates for specialty trades in foreign locations increase significantly over the contract's lifespan.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
The firm fixed-price contract type provides a degree of cost certainty for the government.
The contract's longevity suggests a consistent need for the services provided, potentially indicating successful past performance.

Sector Analysis

This contract falls within the broad 'Construction' and 'Professional, Scientific, and Technical Services' sectors, specifically related to specialty trade contracting. The market for such services, particularly in foreign locations, can be complex, influenced by local labor laws, material availability, and geopolitical factors. Benchmarking against similar foreign-based specialty trade contracts is difficult without more specific service details. The Department of Defense frequently procures a wide range of support services globally, making this contract a component of its extensive operational infrastructure.

Small Business Impact

The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business subcontracting may be limited unless voluntarily pursued by the prime awardees. The 'Miscellaneous Foreign Awardees' designation further complicates the assessment of small business impact, as these entities may operate under different regulatory frameworks.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of the Army and the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and potentially site inspections, especially given the foreign locations. Transparency is dependent on the reporting requirements stipulated in the contract and the agency's policies regarding the disclosure of information related to foreign contracts. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Construction Contracts
Foreign Military Construction
Specialty Trade Services Contracts
Miscellaneous Services Contracts

Risk Flags

Lack of specificity regarding awardee identity and capabilities.
Broad scope of services under a single NAICS code.
Potential for cost escalation over a long contract duration.
Challenges in performance monitoring and quality assurance in foreign locations.
Limited transparency on specific services rendered and value achieved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.5 million to MISCELLANEOUS FOREIGN AWARDEES. 7.1.2-7.1.6 SERVICES TITLE I&IA

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 $62.5 million.

What is the period of performance?

Start: 2012-05-03. End: 2023-12-30.

What specific types of specialty trade services were performed under this contract, and how were they categorized?

The provided data classifies the contract under NAICS code 238990, 'All Other Specialty Trade Contractors.' This broad category encompasses a wide range of services that do not fit into more specific specialty trade classifications. Examples could include, but are not limited to, installation of specialized equipment, complex repair work, custom fabrication, or niche construction activities. Without access to the contract's statement of work or task orders, the precise nature of the services remains undefined. Understanding the specific services is crucial for assessing performance, value, and risk, as well as for comparing this contract to others within the specialty trades sector.

Can the 'Miscellaneous Foreign Awardees' be identified, and what is their track record with the Department of Defense?

The designation 'Miscellaneous Foreign Awardees' suggests that the contractors are entities based outside the United States. Their specific identities and track records are not detailed in the provided summary data. To assess their reliability and performance, a review of their past performance information, any existing contract history with the DoD or other government agencies, and their operational capabilities in the relevant foreign environments would be necessary. The lack of specific identification raises concerns about due diligence and the ability to hold these awardees accountable for contract performance and compliance.

How does the $62.5 million contract value compare to similar specialty trade contracts awarded by the DoD in foreign locations?

Comparing this $62.5 million contract value requires identifying comparable contracts based on service type, geographic location, and duration. Given the broad 'All Other Specialty Trade Contractors' classification and the 'Miscellaneous Foreign Awardees' designation, finding direct comparables is challenging. However, the DoD does award significant contracts for construction, maintenance, and support services in overseas operations. A value of $62.5 million over more than ten years suggests a substantial, long-term requirement. Without specific task order details or market research on foreign specialty trade services, it's difficult to definitively state whether this represents high, low, or average spending. Further analysis would involve segmenting DoD spending by service type and geographic region.

What are the primary risks associated with a firm fixed-price contract of this duration and scope?

A primary risk with a firm fixed-price contract of this duration (over 10 years) is the potential for the contractor to incur losses if market prices for labor and materials increase significantly beyond initial projections. Conversely, the government risks paying a premium if market prices decrease. Scope creep, where the services required expand beyond the original intent without a corresponding price adjustment, is another risk, although the fixed-price nature aims to mitigate this. For foreign contracts, geopolitical instability, currency fluctuations, and differing legal/regulatory environments can introduce unique risks that may not be fully captured in the fixed price. Ensuring robust contract management and clear performance metrics are essential to mitigate these risks.

What oversight mechanisms are in place to ensure performance and accountability for services rendered in foreign locations?

Oversight for contracts performed in foreign locations typically involves a combination of government representatives on the ground (e.g., contracting officers' representatives - CORs), periodic site visits, performance reviews, and financial audits. The specific mechanisms would be detailed in the contract's terms and conditions. Given the 'Miscellaneous Foreign Awardees' designation, the DoD likely relies on established procedures for managing contracts with international entities, which may include specific reporting requirements, quality assurance surveillance plans (QASPs), and communication protocols. Accountability is enforced through contractual remedies, including potential penalties or termination for non-performance.

How has DoD spending on specialty trade contractors in foreign locations trended over the past decade?

Analyzing the trend of DoD spending on specialty trade contractors in foreign locations requires access to historical contract data beyond this single award. This contract, awarded in 2012 and ending in 2023, represents a portion of that spending over a specific period. To understand broader trends, one would need to aggregate spending across similar NAICS codes and geographic regions for multiple years. Factors influencing these trends could include the level of military engagement in various regions, infrastructure development needs, and shifts in contracting strategies. Without a broader dataset, it's impossible to determine if this $62.5 million represents an increase, decrease, or stable level of spending compared to historical patterns.

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: 1275 FIRST ST NE, WASHINGTON, DC, 20417

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $77,702,600

Exercised Options: $77,702,600

Current Obligation: $62,476,258

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline