DoD's $27.6M Grafenwoehr Utility Services Contract Lacks Competition, Faces Price Adjustment Risks
Contract Overview
Contract Amount: $27,651,021 ($27.7M)
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: $76.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: CONSOLIDATED REPORT FOR GRAFENWOEHR FOR OTHER UTILITIES SERVICES IN OCTOBER 2010
Plain-Language Summary
Department of Defense obligated $27.7 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR GRAFENWOEHR FOR OTHER UTILITIES SERVICES IN OCTOBER 2010 Key points: 1. Significant spending on essential utilities for a military installation. 2. Lack of competition raises concerns about price discovery and potential overpayment. 3. Economic price adjustment clause introduces risk of cost escalation. 4. Contract falls under 'Other Utilities Services' within the broader Defense sector.
Value Assessment
Rating: questionable
The contract's fixed price with economic price adjustment makes direct comparison difficult. However, the lack of competition suggests potential for inflated pricing compared to competitively bid contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, likely due to the nature of providing utilities to a specific military installation. This limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The absence of competition and the inclusion of economic price adjustments could result in higher costs for taxpayers than a competitively procured contract.
Public Impact
Ensures essential utility services for U.S. Army operations at Grafenwoehr. Potential for increased costs to taxpayers due to limited competition. Economic price adjustments could lead to unpredictable budget outlays.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Economic price adjustment clause
- Limited transparency on pricing benchmarks
Positive Signals
- Ensures critical utility services for military operations
Sector Analysis
This contract falls under 'Other Utilities Services,' a category often associated with government installations where unique circumstances may limit competition. Benchmarks for such services can vary widely based on location and specific service needs.
Small Business Impact
The provided data does not indicate any specific provisions or participation by small businesses in this contract.
Oversight & Accountability
The contract's limited competition and price adjustment mechanisms warrant close oversight to ensure fair pricing and prevent cost overruns. Further review of the justification for limited competition is recommended.
Related Government Programs
- Regulation and Administration of Communications, Electric, Gas, and Other Utilities
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Economic price adjustment clause introduces cost uncertainty
- Potential for overpayment due to limited price discovery
- Limited transparency on pricing justification
Tags
regulation-and-administration-of-communi, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR GRAFENWOEHR FOR OTHER UTILITIES 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 $27.7 million.
What is the period of performance?
Start: 2010-10-01. End: 2011-09-30.
What is the justification for limiting competition on this essential utility contract?
The justification for limiting competition is not explicitly provided in the data. Typically, such limitations for utility services at military installations are based on factors like existing infrastructure, sole provider availability, or national security considerations. A thorough review would be needed to confirm the validity of these reasons and ensure no viable competitive options were overlooked.
How significant is the risk posed by the economic price adjustment clause?
The risk from the economic price adjustment clause is moderate to significant, depending on market volatility for the underlying commodities (e.g., electricity, gas). It allows for price increases based on external economic factors, potentially leading to budget overruns if not carefully monitored and capped. The government should actively track relevant indices to manage this risk.
What is the potential impact on taxpayer value given the contract's structure?
The taxpayer value is potentially diminished due to the lack of competition and the presence of an economic price adjustment clause. Without competitive bidding, the government may not be securing the lowest possible price. The price adjustment clause adds uncertainty and the possibility of higher-than-anticipated costs, reducing the overall value proposition for taxpayers.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $27,651,021
Exercised Options: $27,651,021
Current Obligation: $27,651,021
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2010-10-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2011-09-30
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