Department of the Army spent $19.98M on electrical supply services for Grafenwoehr in 2010-2011

Contract Overview

Contract Amount: $19,980,161 ($20.0M)

Contractor: Foreign Utility Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2011-09-30

Contract Duration: 364 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CONSOLIDATED REPORT FOR GRAFENWOEHR FOR ELECTRICAL SUPPLY SERVICES IN OCTOBER 2010

Plain-Language Summary

Department of Defense obligated $20.0 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR GRAFENWOEHR FOR ELECTRICAL SUPPLY SERVICES IN OCTOBER 2010 Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations. 3. The contract duration of 364 days indicates a need for ongoing, consistent utility services. 4. The award was made by DCA, a contracting activity within the Department of the Army. 5. The North American Industry Classification System (NAICS) code 926130 points to regulation and administration of utilities. 6. The base contract value was $5.49M, with significant potential for economic price adjustments.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific data on the quantity and type of electrical supplies procured. The base award of $5.49M for a year of service seems reasonable for a large military installation, but the potential for economic price adjustments could significantly increase the final cost. Further analysis would require comparing unit prices for specific electrical components against market rates at the time of award.

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 four bidders (no.) suggests a healthy level of competition for this requirement. This competitive process is generally expected to drive down prices and ensure the government receives fair market value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more cost-effective procurement and reduces the risk of inflated prices associated with limited competition.

Public Impact

Military personnel and operations at the Grafenwoehr training area benefit from reliable electrical supply. The contract ensures the continuous operation of essential infrastructure at the military installation. The geographic impact is localized to the Grafenwoehr military facility in Germany. The contract supports the operational readiness of U.S. forces stationed in Europe.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustments if market prices for electrical supplies increase significantly.
Dependence on a single contractor for a critical utility service could pose a risk if performance issues arise.
The fixed-price nature, even with adjustments, may not fully shield the government from unexpected price spikes in raw materials for electrical components.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract duration suggests a stable, long-term need, allowing for potential volume discounts or streamlined service delivery.
The fixed-price structure provides a degree of cost predictability, albeit with economic adjustments.

Sector Analysis

This contract falls within the Utilities sector, specifically focusing on the regulation and administration of electric utilities. The market for electrical supplies and services to government installations is substantial, often involving large, long-term contracts. This specific award supports the operational needs of a major military training facility, highlighting the government's role as a significant consumer in this sector.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and scale of electrical supply services for a large military installation, it is likely that larger, specialized firms were the primary bidders. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting activity (DCA) within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases, though specific performance metrics and audit reports may not always be publicly accessible.

Related Government Programs

Base Operations Support Services
Military Construction
Utility Privatization Programs
Defense Logistics Agency (DLA) Contracts

Risk Flags

Potential for cost escalation due to Economic Price Adjustment clause.
Lack of specific contractor performance data.
Limited insight into specific goods/services procured beyond 'electrical supply'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR GRAFENWOEHR FOR ELECTRICAL SUPPLY SERVICES IN OCTOBER 2010

Who is the contractor on this award?

The obligated recipient is FOREIGN UTILITY CONSOLIDATED REPORTING.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2010-10-01. End: 2011-09-30.

What was the contractor's track record with similar utility service contracts prior to this award?

The provided data does not include information on the specific contractor awarded this contract, nor their prior track record. To assess the contractor's reliability and past performance, a review of their contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims would be necessary. Without this information, it is difficult to gauge their suitability and potential risks associated with their performance on this electrical supply contract.

How does the awarded price compare to similar electrical supply contracts for military bases of comparable size?

Direct price comparison is difficult without knowing the specific items and quantities procured under this contract. The base award of $5.49M for a 364-day period suggests an average monthly expenditure of approximately $457,500. However, the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FP-EPA) clause means the final cost could be significantly higher depending on market fluctuations. To benchmark effectively, one would need to compare unit prices for specific electrical components (e.g., wire, conduit, circuit breakers) against market rates or other government contracts for similar items procured around the same time period for installations of similar size and operational tempo.

What are the primary risks associated with the 'Economic Price Adjustment' clause in this contract?

The primary risk associated with the Economic Price Adjustment (EPA) clause is the potential for the government to pay significantly more than initially anticipated if the market prices for electrical supplies or related commodities increase substantially during the contract period. While EPA clauses are designed to protect contractors from unforeseen cost increases and ensure fair pricing, they can lead to budget overruns for the government if not carefully managed and monitored. The specific indices or formulas used for adjustment are critical; if they are tied to volatile commodity prices, the risk of cost escalation is higher.

How effective was the 'Full and Open Competition' in ensuring competitive pricing for this contract?

The fact that the contract was awarded under 'Full and Open Competition' with four bidders suggests a competitive environment was established. This process generally leads to better price discovery and more favorable pricing for the government compared to sole-source or limited competition scenarios. However, the ultimate effectiveness in ensuring competitive pricing can only be fully assessed by analyzing the bid prices submitted by all competitors and comparing them against an independent government cost estimate or market research. Without access to the bid data, we assume the competition was effective in driving a reasonable price.

What is the historical spending pattern for electrical supply services at the Grafenwoehr facility?

The provided data only covers a single contract award for electrical supply services at Grafenwoehr from October 2010 to September 2011, totaling $19.98M. To understand historical spending patterns, data from previous years and subsequent contract awards for the same or similar services at this facility would be required. Analyzing this broader dataset would reveal trends in spending, identify potential increases or decreases in demand, and highlight any shifts in procurement strategies or contractor performance over time.

Industry Classification

NAICS: Public Administration › Administration of Economic Programs › Regulation and Administration of Communications, Electric, Gas, and Other Utilities

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,980,161

Exercised Options: $19,980,161

Current Obligation: $19,980,161

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline