DOD awards $32.8M fuel cell building contract to Cutter Enterprises, LLC, with a 98.5% performance rating

Contract Overview

Contract Amount: $32,880,472 ($32.9M)

Contractor: Cutter Enterprises, LLC

Awarding Agency: Department of Defense

Start Date: 2015-07-27

End Date: 2024-09-13

Contract Duration: 3,336 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF BASE BID FUEL CELL BLD 253

Place of Performance

Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to CUTTER ENTERPRISES, LLC for work described as: IGF::OT::IGF BASE BID FUEL CELL BLD 253 Key points: 1. Contract performance rated at 98.5% indicates high quality delivery. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A definitive contract type suggests a long-term relationship for ongoing services. 4. The fixed-price nature of the contract helps manage cost certainty for the government. 5. The contract duration of 3336 days points to a significant, long-term project. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.

Value Assessment

Rating: good

The contract value of $32.8 million over approximately 9 years represents a substantial investment in facility construction. Benchmarking this against similar large-scale construction projects for government facilities is challenging without more specific project details. However, the high performance rating of 98.5% suggests that the contractor, Cutter Enterprises, LLC, has delivered value effectively. The firm fixed-price structure also implies that the initial pricing was deemed reasonable and competitive at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that after an initial exclusion of certain sources (perhaps due to specific requirements or prior relationships), the remaining opportunities were opened to all qualified bidders. The presence of 10 bidders indicates a healthy level of competition for this significant contract, which generally leads to better price discovery and value for the government.

Taxpayer Impact: The robust competition among 10 bidders suggests that taxpayer funds were likely used efficiently, as multiple companies vied to offer their best pricing and technical solutions.

Public Impact

The Department of the Army benefits from the construction of a new fuel cell building, likely enhancing operational capabilities. The services delivered include commercial and institutional building construction, a critical infrastructure component. The contract is geographically located in New Hampshire, potentially impacting the local construction workforce and economy. The project may create or sustain jobs within the construction sector in the New Hampshire region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the long construction period, despite the fixed-price structure.
Dependence on a single contractor for a long duration could pose risks if performance degrades over time.
The 'exclusion of sources' clause warrants further investigation to ensure it did not unduly limit competition.

Positive Signals

High performance rating (98.5%) suggests strong contractor capability and commitment to quality.
Firm fixed-price contract provides cost certainty for the government.
Significant competition (10 bidders) indicates a competitive market and likely fair pricing.
Long contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale government construction projects is significant, often involving specialized firms capable of meeting stringent requirements for security, durability, and functionality. Comparable spending benchmarks would depend on the specific type and scale of the fuel cell building, but projects of this magnitude typically involve substantial capital investment and are awarded through competitive processes to ensure value.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This indicates that the procurement was open to all qualified offerors, including large businesses. While this specific contract does not directly benefit small businesses through a set-aside, large prime contractors are often required to subcontract portions of their work to small businesses. The extent of small business participation will depend on the subcontracting plan negotiated with Cutter Enterprises, LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Given the long duration and significant value, regular reviews and potential site inspections would be expected. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not always be publicly available.

Related Government Programs

Department of Defense Construction Contracts
Army Facilities Modernization Programs
Fuel Cell Technology Infrastructure
Large-Scale Commercial Building Projects
Definitive Contracts

Risk Flags

Potential for scope creep given the long contract duration.
Reliance on a single contractor for an extended period.
The 'exclusion of sources' aspect requires scrutiny to ensure fairness.
Performance monitoring over 9+ years needs robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to CUTTER ENTERPRISES, LLC. IGF::OT::IGF BASE BID FUEL CELL BLD 253

Who is the contractor on this award?

The obligated recipient is CUTTER ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2015-07-27. End: 2024-09-13.

What specific type of fuel cell technology is this building intended to support, and what are the key performance requirements?

The provided data indicates the contract is for the 'BASE BID FUEL CELL BLD 253' and falls under NAICS code 236220 (Commercial and Institutional Building Construction). However, it does not specify the exact type of fuel cell technology or detailed performance requirements. Typically, fuel cell buildings house the fuel cell systems, power conversion equipment, and associated infrastructure. Performance requirements would likely focus on structural integrity, environmental controls (temperature, humidity), safety features (ventilation, fire suppression), power output capacity, and integration with existing utility systems. Further details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the $32.8 million cost compare to similar fuel cell facility constructions for the government?

Directly comparing the $32.8 million cost without detailed specifications of the facility (size, complexity, specific fuel cell type, location-specific construction costs) is difficult. However, this figure represents a significant investment. For context, large-scale government construction projects, especially those involving specialized infrastructure like fuel cell facilities, can range from tens to hundreds of millions of dollars. The high performance rating (98.5%) suggests that the value received for this expenditure was likely commensurate with expectations. Benchmarking would ideally involve comparing cost per square foot, cost per megawatt of supported capacity, or other relevant metrics against similar, recently awarded federal projects.

What are the primary risks associated with a definitive contract of this duration (over 9 years)?

The primary risks associated with a definitive contract of over 9 years include potential changes in technology, evolving operational requirements, contractor performance degradation over time, and economic fluctuations impacting material and labor costs (though mitigated by fixed-price). For the government, there's a risk of becoming locked into a solution that may become outdated or less efficient. For the contractor, there's the risk of underestimating long-term costs or facing unforeseen site conditions. Robust contract management, clear performance metrics, and mechanisms for contract modification or termination are crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the bidding process and potential cost savings?

This designation implies that the initial solicitation may have excluded certain potential offerors based on specific criteria (e.g., pre-qualification, specific technology requirements, or prior contract performance). However, after this initial filtering, the remaining opportunity was opened to all qualified sources. This approach aims to balance the need for specialized capabilities with ensuring broad competition. The presence of 10 bidders suggests that despite the initial exclusion, a competitive field emerged, which generally leads to better price discovery and potential cost savings for the government compared to a sole-source or limited competition scenario.

Given the contract's location in New Hampshire, what is the potential economic impact on the local workforce and small businesses?

A contract of this magnitude ($32.8 million) awarded in New Hampshire is likely to have a positive economic impact on the local construction workforce through job creation and demand for skilled labor. Cutter Enterprises, LLC, as the prime contractor, may also engage local subcontractors and suppliers. While this contract was not a small business set-aside, the prime contractor may be incentivized or required to subcontract portions of the work to local small businesses, thereby contributing to the small business ecosystem in the region. The duration of the contract suggests sustained economic activity.

What is the significance of the 'NH' and 'NEW HAMPSHIRE' fields in the contract data?

The 'NH' and 'NEW HAMPSHIRE' fields indicate the geographical location where the contract's work is primarily performed or associated. This is crucial for understanding the regional economic impact, potential logistical considerations for the contractor, and the specific state or local regulations that might apply. For federal spending analysis, it helps in tracking investments within specific states and assessing the geographic distribution of government contracts.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912TF15R0500

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 INDUSTRIAL PARK RD, VERNON ROCKVILLE, CT, 06066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,656,672

Exercised Options: $32,880,472

Current Obligation: $32,880,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline