DoD awards $10M for water/sewer construction, with 4 bidders and a fixed-price contract

Contract Overview

Contract Amount: $10,067,150 ($10.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-10-25

End Date: 2009-04-30

Contract Duration: 553 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: LINE ITEMS 1 - 29 (SEE BOQ)

Plain-Language Summary

Department of Defense obligated $10.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: LINE ITEMS 1 - 29 (SEE BOQ) Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. Fixed-price contract type may offer cost certainty for the government. 3. The contract duration of 553 days indicates a medium-term project. 4. Awarded by the Department of the Army, part of the larger Department of Defense. 5. The NAICS code 237110 points to significant infrastructure development.

Value Assessment

Rating: fair

The total award amount of $10,067,150 for water and sewer line construction appears to be within a reasonable range for a project of this scope and duration. Without specific line-item details or comparable project data, a precise value-for-money assessment is challenging. However, the fixed-price contract type suggests that the initial pricing was deemed acceptable by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bidders participating. This level of competition is generally positive as it allows for a wider pool of potential contractors to submit proposals, potentially leading to better pricing and service offerings. The presence of four bidders suggests a healthy competitive environment for this type of construction work.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it increases the likelihood of securing the most cost-effective solution and reduces the risk of overpayment.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel and their families residing in the affected area, who will receive improved water and sewer infrastructure. The services delivered include the construction of water and sewer lines and related structures. The geographic impact is localized to the area where the Department of the Army is undertaking this infrastructure project. This project likely supports local construction workforce employment during its 553-day duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in fixed-price contracts.
Scope creep could impact project timelines and final costs.
Ensuring quality of construction for long-term infrastructure reliability.

Positive Signals

Fixed-price contract provides budget certainty.
Full and open competition suggests competitive pricing was sought.
Awarded by a major federal agency (DoD) implies adherence to established procurement standards.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction related to utilities. The market for such infrastructure projects is substantial, driven by government and private sector needs for maintaining and upgrading essential services. Comparable spending benchmarks would typically involve analyzing other federal, state, and local government contracts for similar water and sewer line construction projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant project managers within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight mechanisms are not explicitly stated.

Related Government Programs

Military Construction
Public Works Construction
Utility Infrastructure Projects
Department of Defense Procurement

Risk Flags

Potential for cost overruns if scope changes.
Contractor performance risk on long-term projects.
Quality assurance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to MISCELLANEOUS FOREIGN AWARDEES. LINE ITEMS 1 - 29 (SEE BOQ)

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2007-10-25. End: 2009-04-30.

What is the historical spending pattern for water and sewer line construction by the Department of the Army?

Analyzing historical spending for water and sewer line construction by the Department of the Army requires access to extensive procurement data over multiple fiscal years. Typically, such spending fluctuates based on infrastructure needs, modernization initiatives, and budget allocations. Federal procurement databases (like FPDS or USASpending) would be the primary source for this analysis. Trends might show increased spending during periods of base realignment and closure (BRAC) or significant upgrades to aging infrastructure. Without specific data for this contract's period and agency, it's difficult to provide precise historical context, but it's reasonable to assume the Army invests consistently in maintaining and upgrading essential utilities at its installations.

How does the number of bidders (4) compare to similar construction contracts awarded by the DoD?

A competition level with four bidders for a construction contract of this magnitude ($10M) is generally considered healthy. For large-scale infrastructure projects within the Department of Defense, the number of bidders can vary significantly based on project complexity, geographic location, and the availability of qualified contractors. While some highly specialized or geographically isolated projects might see fewer bidders, contracts for common construction types like water and sewer lines often attract multiple interested parties. Four bidders suggests sufficient market interest and competitive pressure, aligning with the goals of full and open competition. However, a more detailed comparison would involve analyzing the average number of bids received for similar NAICS codes (237110) and contract values within the DoD over the same period.

What are the potential risks associated with a fixed-price contract for infrastructure construction?

Fixed-price contracts, while offering cost certainty to the buyer, carry inherent risks for both parties. For the contractor, the primary risk is underestimating costs, leading to reduced profit margins or even losses if unforeseen issues arise during construction (e.g., unexpected soil conditions, material price increases, labor shortages). For the government, the risk lies in potentially paying a premium if the contractor inflates their bid to account for these risks. Scope creep is another significant risk; if the project requirements change or expand without a formal modification to the contract, it can strain the fixed price. Effective project management, clear initial scope definition, and robust change order processes are crucial to mitigate these risks.

What is the typical performance period for water and sewer construction contracts of this value?

The performance period for water and sewer construction contracts can vary widely depending on the project's scope, complexity, and location. A contract duration of 553 days (approximately 18 months) for a $10 million project is within a typical range for significant infrastructure work. Smaller, less complex projects might be completed in under a year, while larger, more involved undertakings, especially those requiring extensive excavation, environmental considerations, or integration with existing systems, could extend beyond two years. The 553-day duration suggests a project of moderate complexity, allowing for thorough execution while aiming for timely completion.

How does the NAICS code 237110 relate to other federal infrastructure spending categories?

The NAICS code 237110 specifically covers 'Water and Sewer Line and Related Structures Construction.' This category is a subset of broader federal infrastructure spending. It falls under the umbrella of heavy and civil engineering construction. Other related categories might include general building construction (NAICS 236), highway, street, and bridge construction (NAICS 237310), and utility system construction (NAICS 2371). Federal spending in this area is critical for maintaining and upgrading essential public services, often managed by agencies like the Army Corps of Engineers, Department of Transportation, EPA (for grants), and various other departments responsible for federal facilities.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917BK07R0048

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,067,150

Exercised Options: $10,067,150

Current Obligation: $10,067,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline