Army Garrison Bavaria Spends $28.2M on Utilities in October 2024 Amidst Limited Competition

Contract Overview

Contract Amount: $28,196,303 ($28.2M)

Contractor: Foreign Utility Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2024-10-31

End Date: 2025-09-22

Contract Duration: 326 days

Daily Burn Rate: $86.5K/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 UTILITIES (OTHER) IN SUPPORT OF US ARMY GARRISON BAVARIA FOR OCTOBER 2024

Plain-Language Summary

Department of Defense obligated $28.2 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR UTILITIES (OTHER) IN SUPPORT OF US ARMY GARRISON BAVARIA FOR OCTOBER 2024 Key points: 1. Significant spending on essential utilities for Army Garrison Bavaria. 2. Contract is a definitive, fixed-price with economic price adjustment type. 3. Limited competition raises questions about price discovery and potential value. 4. Sector is essential infrastructure support, critical for military operations.

Value Assessment

Rating: questionable

The contract value of $28.2 million for October 2024 is substantial. Without comparable contract data or a clear benchmark, assessing its value against similar utility services for military installations is difficult. The limited competition further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is noted as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source approach. This lack of robust competition may hinder effective price discovery and potentially lead to less favorable pricing for the government.

Taxpayer Impact: The substantial spending on utilities, especially under limited competition, represents a significant taxpayer investment. Ensuring the pricing is fair and reasonable is crucial for fiscal responsibility.

Public Impact

Ensures continuous utility services for US Army Garrison Bavaria, vital for operations. Potential for higher costs due to limited competition impacts taxpayer funds. Economic price adjustment clause could lead to cost fluctuations based on market conditions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Economic price adjustment
Lack of benchmark data

Positive Signals

Essential service provision
Definitive contract structure

Sector Analysis

This contract falls under the 'Other' sector, specifically focusing on essential utilities for a military installation. Spending benchmarks for such services can vary widely based on location, size of the garrison, and specific utility types (electric, gas, water, etc.).

Small Business Impact

The provided data does not indicate any specific provisions or participation by small businesses in this contract. Further analysis would be needed to determine if small businesses were considered or excluded.

Oversight & Accountability

Oversight of this contract should focus on the justification for limited competition and the monitoring of economic price adjustments to ensure costs remain reasonable and taxpayers are protected.

Related Government Programs

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

Risk Flags

Limited competition may lead to inflated prices.
Economic price adjustment clause introduces cost uncertainty.
Lack of transparency in pricing benchmarks.
Potential for vendor lock-in due to foreign location.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR UTILITIES (OTHER) IN SUPPORT OF US ARMY GARRISON BAVARIA FOR OCTOBER 2024

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 $28.2 million.

What is the period of performance?

Start: 2024-10-31. End: 2025-09-22.

What is the justification for the limited competition for these essential utility services?

The justification for limited competition is critical. It could stem from unique infrastructure requirements, existing sole-provider agreements in the foreign location, or specific security mandates. Understanding this rationale is key to assessing if alternative, more competitive options were truly unavailable or if the procurement process could be improved for future contracts.

How are the economic price adjustments being monitored to prevent excessive cost increases?

Effective monitoring of economic price adjustments is crucial. This involves tracking the specific indices or market indicators used in the contract's adjustment formula and comparing them against broader economic trends. The Army should have clear procedures to validate these adjustments and potentially negotiate caps or review periods to mitigate unforeseen cost escalations.

What is the long-term strategy for ensuring competitive pricing for utilities at Army Garrison Bavaria?

A long-term strategy should explore options like consolidating utility needs across multiple installations if feasible, investigating opportunities for public-private partnerships, or advocating for regulatory changes in the host nation that could foster greater competition. Proactive market research and engagement with potential providers are essential to identify future competitive opportunities.

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: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $28,196,303

Exercised Options: $28,196,303

Current Obligation: $28,196,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline