DoD Awards $48.5M for Mobile Turbidity Reduction System in Asheville, NC, with No Competition
Contract Overview
Contract Amount: $48,522,991 ($48.5M)
Contractor: Ahtna Usa-Cdm JV
Awarding Agency: Department of Defense
Start Date: 2024-11-07
End Date: 2025-11-13
Contract Duration: 371 days
Daily Burn Rate: $130.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HURRICANE HELENE MOBILE TURBIDITY REDUCTION SYSTEM BURNETT RESERVOIR, ASHEVILLE, NC
Place of Performance
Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801
Plain-Language Summary
Department of Defense obligated $48.5 million to AHTNA USA-CDM JV for work described as: HURRICANE HELENE MOBILE TURBIDITY REDUCTION SYSTEM BURNETT RESERVOIR, ASHEVILLE, NC Key points: 1. Significant investment in critical water infrastructure for disaster resilience. 2. Sole-source award raises questions about price discovery and potential cost savings. 3. Lack of competition may limit innovation and access for other qualified firms. 4. Focus on emergency preparedness highlights a growing need for adaptable infrastructure solutions.
Value Assessment
Rating: questionable
The $48.5 million award for a mobile turbidity reduction system is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives. Benchmarking is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers and limiting opportunities for other capable businesses.
Taxpayer Impact: The absence of competition could result in the government paying more than necessary for this critical system, impacting the efficient use of taxpayer funds.
Public Impact
Ensures access to clean drinking water during emergencies like Hurricane Helene. Supports critical infrastructure in Asheville, NC, enhancing community resilience. Potential for technology transfer and broader application in water management. Highlights the government's commitment to disaster preparedness and response.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- Limited transparency in the procurement process.
Positive Signals
- Addresses critical need for water security.
- Supports disaster preparedness.
- Utilizes specialized mobile technology.
Sector Analysis
The Department of Defense's investment in water supply systems, particularly for emergency response, aligns with broader trends in infrastructure spending focused on resilience and security. Benchmarks for similar specialized systems are scarce due to the unique nature of mobile solutions.
Small Business Impact
The sole-source nature of this award means small businesses were not directly involved in this specific contract. Opportunities for small businesses might exist further down the supply chain or in future, competed procurements for similar systems.
Oversight & Accountability
The sole-source justification for this significant contract warrants close scrutiny by oversight bodies to ensure the public interest was served and that the price is reasonable. Transparency in the justification for not competing is essential.
Related Government Programs
- Water Supply and Irrigation Systems
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency
- No small business participation
Tags
water-supply-and-irrigation-systems, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.5 million to AHTNA USA-CDM JV. HURRICANE HELENE MOBILE TURBIDITY REDUCTION SYSTEM BURNETT RESERVOIR, ASHEVILLE, NC
Who is the contractor on this award?
The obligated recipient is AHTNA USA-CDM JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $48.5 million.
What is the period of performance?
Start: 2024-11-07. End: 2025-11-13.
What is the specific justification for the sole-source award, and how does it ensure value for money?
The justification for a sole-source award typically centers on unique capabilities, urgent needs, or lack of viable alternatives. For this contract, understanding the specific technical requirements that only AHTNA USA-CDM JV can meet is crucial. Oversight should verify that these requirements are legitimate and that the pricing reflects fair market value despite the absence of competition, potentially through independent cost analysis.
What are the potential risks associated with awarding a $48.5 million contract without competition?
The primary risk is paying an inflated price due to the lack of competitive pressure, leading to inefficient use of taxpayer funds. Other risks include missed opportunities for innovation from a broader market, potential for vendor lock-in, and reduced transparency in the procurement process. This could set a precedent for future sole-source awards if not properly justified and monitored.
How effective will this mobile turbidity reduction system be in addressing the specific water quality challenges posed by hurricanes?
The effectiveness will depend on the system's design, capacity, and deployment readiness, tailored to the specific water sources in Asheville, NC. Its mobility is a key advantage for rapid response. Evaluating its performance during actual or simulated emergency events, alongside its maintenance and operational costs, will determine its long-term effectiveness and value.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912PM25R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3100 BEACON BLVD, WEST SACRAMENTO, CA, 95691
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,323,481
Exercised Options: $48,522,991
Current Obligation: $48,522,991
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-11-07
Current End Date: 2025-11-13
Potential End Date: 2025-11-13 00:00:00
Last Modified: 2025-11-14
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