DoD's $24.6M Steel Sheet Pile Contract Awarded to Vistas Group Global Inc. Under Limited Competition

Contract Overview

Contract Amount: $24,611,726 ($24.6M)

Contractor: THE Vistas Group Global Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2014-03-30

Contract Duration: 2,007 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STEEL SHEET PILE AZ-13

Place of Performance

Location: MOUNT PROSPECT, COOK County, ILLINOIS, 60056

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to THE VISTAS GROUP GLOBAL INC for work described as: STEEL SHEET PILE AZ-13 Key points: 1. The contract for Steel Sheet Pile AZ-13 represents a significant investment in construction materials. 2. Competition was limited, raising questions about potential price discovery and value for taxpayer dollars. 3. The long duration (2008-2014) suggests a substantial project, but the specific need for this material requires further context. 4. The sector is Construction, specifically Other Heavy and Civil Engineering Construction.

Value Assessment

Rating: fair

The contract value of $24.6 million for steel sheet piles is substantial. Without specific unit pricing or comparison data for similar large-scale civil engineering projects, it's difficult to definitively assess if this price was competitive or represented excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This approach can restrict the pool of potential bidders, potentially impacting price competitiveness and the government's ability to secure the best possible pricing.

Taxpayer Impact: The limited competition may have resulted in a higher cost to taxpayers than a fully open and unrestricted bidding process could have achieved.

Public Impact

Infrastructure projects relying on steel sheet piles are crucial for civil engineering and construction. The Department of the Army's procurement of these materials impacts the availability and cost for other potential government or private sector projects. Long-term contracts can stabilize supply chains but also tie up significant funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises value concerns.
Lack of detailed unit cost data hinders precise benchmarking.
Long contract duration could indicate potential for cost overruns or scope creep if not managed tightly.

Positive Signals

Awarded to a specific company, potentially indicating specialized capability.
Contract duration suggests a significant, long-term need met.

Sector Analysis

The procurement falls within the Heavy and Civil Engineering Construction sector, which is vital for national infrastructure. Spending benchmarks in this area are highly project-specific, but large material procurements like this are common for major construction initiatives.

Small Business Impact

The data indicates that small businesses were not the primary awardee, as the contract was awarded to THE VISTAS GROUP GLOBAL INC. Further analysis would be needed to determine if small businesses participated as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract's long duration and specific award method warrant oversight to ensure continued adherence to terms and fair pricing throughout its lifecycle. Accountability would involve tracking project milestones and expenditures against the awarded amount.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may have inflated costs.
Lack of detailed cost breakdown hinders value assessment.
Long contract duration increases risk of price changes or scope creep.
No clear indication of small business participation or subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to THE VISTAS GROUP GLOBAL INC. STEEL SHEET PILE AZ-13

Who is the contractor on this award?

The obligated recipient is THE VISTAS GROUP GLOBAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2008-09-30. End: 2014-03-30.

What was the specific justification for excluding other sources in this full and open competition?

The justification for excluding other sources in this 'full and open competition after exclusion of sources' award is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, urgent needs, or prior performance that limits the viable pool of contractors. Understanding this rationale is crucial for assessing whether the limited competition was justified or potentially detrimental to achieving the best value.

How does the unit cost of steel sheet piles in this contract compare to industry benchmarks for similar projects during the 2008-2014 period?

Without specific unit cost data for the steel sheet piles (e.g., price per linear foot or per ton), a direct comparison to industry benchmarks is not possible. The total contract value of $24.6 million provides a broad picture, but the actual unit pricing is essential for a meaningful assessment of cost-effectiveness against similar procurements during that timeframe.

What was the ultimate effectiveness and impact of the steel sheet piles procured under this contract on the intended Department of the Army project?

The provided data does not include information on the project's outcome or the effectiveness of the steel sheet piles. To assess the contract's true value and impact, details regarding the project's success, the durability and performance of the materials, and whether they met the Army's requirements are necessary.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912P608B0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 526 EAST 114TH PL, CHICAGO, IL, 60628

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Hispanic American Owned Business, HUBZone Firm, Labor Surplus Area Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,611,726

Exercised Options: $24,611,726

Current Obligation: $24,611,726

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline