DoD's $25.5M Grafenwoehr Utility Services Contract Lacks Competition, Faces Price Adjustment Risks

Contract Overview

Contract Amount: $25,548,029 ($25.5M)

Contractor: Foreign Utility Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $70.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CONSOLIDATED REPORT FOR GRAFENWOEHR, OTHER UTILITIES SERVICES IN OCTOBER AND NOVEMBER 2011.

Plain-Language Summary

Department of Defense obligated $25.5 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR GRAFENWOEHR, OTHER UTILITIES SERVICES IN OCTOBER AND NOVEMBER 2011. Key points: 1. The contract covers essential utility services for a DoD facility, indicating a critical need. 2. Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars. 3. Economic price adjustments introduce risk of cost escalation beyond initial projections. 4. The sector involves essential infrastructure services, often with limited competitive options.

Value Assessment

Rating: questionable

The contract value of $25.5M over one year is significant. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar utility service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is not available for competition, suggesting a limited or sole-source scenario. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition and potential for price adjustments could result in higher taxpayer costs than a competitively bid contract.

Public Impact

Taxpayers may be paying a premium for utility services due to the absence of competitive bidding. The fixed-price with economic price adjustment structure exposes the government to potential cost increases. Essential services at a military installation are secured, but at what cost?

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Economic price adjustment
Limited transparency on pricing benchmarks

Positive Signals

Secures essential utility services
Long-term contract duration provides stability

Sector Analysis

This contract falls under utility services, a sector often characterized by natural monopolies or limited providers, especially in remote or specialized locations like military bases. Benchmarks are difficult without comparable contracts.

Small Business Impact

No information is available regarding small business participation in this contract.

Oversight & Accountability

The contract's limited competition and price adjustment clauses warrant close oversight to ensure fair pricing and prevent excessive cost growth.

Related Government Programs

Regulation and Administration of Communications, Electric, Gas, and Other Utilities
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for overpayment due to lack of competition.
Risk of cost escalation through economic price adjustments.
Limited transparency on pricing justification.
No clear indication of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR GRAFENWOEHR, OTHER UTILITIES SERVICES IN OCTOBER AND NOVEMBER 2011.

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 $25.5 million.

What is the period of performance?

Start: 2011-10-01. End: 2012-09-30.

What is the justification for limiting competition on this essential utility services contract?

The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION,' but does not offer a specific justification. Typically, such limitations require a formal determination of necessity, such as a sole-source justification or a situation where only one vendor can provide the required services due to unique circumstances or location.

How are the economic price adjustments calculated, and what is the potential ceiling for cost increases?

The specific mechanism for economic price adjustments (EPAs) is not detailed in the provided data. These adjustments are usually tied to an index (e.g., CPI, fuel costs) or specific commodity prices. Without knowing the formula and any caps, it's impossible to quantify the maximum potential cost increase for taxpayers.

What steps are being taken to ensure the 'fairness' of the fixed price, given the lack of competition?

In the absence of competition, the government typically relies on cost analysis, historical pricing data, or independent government cost estimates to establish a fair and reasonable price. However, the data provided does not detail the specific methods used to determine the initial fixed price for this contract.

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,548,029

Exercised Options: $25,548,029

Current Obligation: $25,548,029

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline