DoD's $27.8M Grafenwoehr Utility Contract: Full and Open Competition Yields Fixed Price with Economic Adjustment

Contract Overview

Contract Amount: $27,838,635 ($27.8M)

Contractor: Foreign Utility Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2013-10-01

End Date: 2014-09-30

Contract Duration: 364 days

Daily Burn Rate: $76.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: IGF::OT::IGF CONSOLIDATED REPORT FOR UTILITES GAS (ELECTRICITY/WATER/MISCELLANEOUS) IN SUPPORT OF US ARMY GARRISON GRAFENWOEHR, GERMANY FOR THE PERIOD 01 OCT 2013 - 31 JAN 2014

Plain-Language Summary

Department of Defense obligated $27.8 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: IGF::OT::IGF CONSOLIDATED REPORT FOR UTILITES GAS (ELECTRICITY/WATER/MISCELLANEOUS) IN SUPPORT OF US ARMY GARRISON GRAFENWOEHR, GERMANY FOR THE PERIOD 01 OCT 2013 - 31 JAN 2014 Key points: 1. The contract covers essential utilities (gas, electricity, water) for US Army Garrison Grafenwoehr, Germany. 2. Utilizing full and open competition suggests a robust market and potential for competitive pricing. 3. The fixed-price with economic price adjustment (FP-EPA) structure aims to balance cost certainty with market volatility. 4. The contract duration of 364 days is standard for utility services, allowing for regular review and adjustment.

Value Assessment

Rating: good

The contract's fixed-price with economic price adjustment (FP-EPA) structure is common for utility services where input costs can fluctuate. This approach allows for some cost certainty while mitigating risks associated with unpredictable market changes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were able to bid on this contract, fostering a competitive environment. This process is designed to achieve the best possible prices and terms for the government.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by leveraging market forces to drive down costs.

Public Impact

Ensures reliable utility services for US Army personnel and operations in Germany. Supports the operational readiness of a key military installation. Provides economic activity for utility providers in the Grafenwoehr region. The economic price adjustment clause may lead to cost fluctuations for taxpayers depending on market conditions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustments.
Geopolitical or local market disruptions could impact utility supply or pricing.
Contract performance monitoring is crucial to ensure service quality and adherence to terms.

Positive Signals

Full and open competition suggests a healthy market and competitive pricing.
Fixed-price element provides a baseline cost control.
Contract addresses essential operational needs for a military garrison.

Sector Analysis

This contract falls within the broader 'Utilities and Miscellaneous Energy Services' sector, often characterized by long-term agreements and regulated pricing structures. Benchmarks for utility contracts can vary significantly based on location, service type, and market conditions.

Small Business Impact

The data does not indicate whether small businesses participated in this contract. Utility services often require significant infrastructure and resources, which may favor larger, established companies.

Oversight & Accountability

The contract is managed by the Department of the Army, likely subject to internal financial oversight and auditing processes. Regular reporting and performance reviews would be standard oversight mechanisms.

Related Government Programs

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

Risk Flags

Economic price adjustment volatility.
Dependence on foreign utility infrastructure.
Potential for supply chain disruptions.
Ensuring consistent service quality across multiple utility types.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to FOREIGN UTILITY CONSOLIDATED REPORTING. IGF::OT::IGF CONSOLIDATED REPORT FOR UTILITES GAS (ELECTRICITY/WATER/MISCELLANEOUS) IN SUPPORT OF US ARMY GARRISON GRAFENWOEHR, GERMANY FOR THE PERIOD 01 OCT 2013 - 31 JAN 2014

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 $27.8 million.

What is the period of performance?

Start: 2013-10-01. End: 2014-09-30.

What is the historical trend of economic price adjustments for this contract, and how have they impacted the total cost compared to a fixed-price contract?

Analyzing historical economic price adjustment data would reveal the actual cost fluctuations experienced under this contract. Comparing these actual costs to what a purely fixed-price contract might have yielded would provide insight into whether the FP-EPA structure was beneficial or detrimental to the government in terms of overall expenditure. This analysis is crucial for understanding the true value and risk associated with the contract's pricing mechanism.

How does the pricing of these utilities compare to similar contracts for military installations in other European countries or within the US?

Benchmarking the per-unit cost of electricity, gas, and water against comparable contracts at other US military installations, both domestically and internationally, is essential. This comparison would highlight potential cost savings or overspending. Factors such as local market rates, regulatory environments, and infrastructure costs in Germany would need to be considered to ensure a fair assessment of the contract's value for money.

What mechanisms are in place to ensure the reliability and quality of utility services provided under this consolidated contract?

Ensuring service reliability and quality typically involves performance standards, service level agreements (SLAs), and regular inspections outlined in the contract. The Department of the Army would likely have designated personnel responsible for monitoring contractor performance, addressing any service disruptions promptly, and ensuring compliance with all contractual obligations. Penalties for non-performance or incentives for exceeding standards may also be included.

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: 2

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

Evaluated Preference: NONE

Contractor Details

Address: 1275 FIRST ST NE, WASHINGTON, DC, 98

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

Financial Breakdown

Contract Ceiling: $27,838,635

Exercised Options: $27,838,635

Current Obligation: $27,838,635

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline