Department of the Army awarded $28.8M for specialty trade contracting services

Contract Overview

Contract Amount: $28,776,701 ($28.8M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2006-09-28

End Date: 2008-12-30

Contract Duration: 824 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: ADMINISTRATIVE FACILITY/JOC/TFC

Plain-Language Summary

Department of Defense obligated $28.8 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: ADMINISTRATIVE FACILITY/JOC/TFC Key points: 1. Contract awarded for specialty trade contracting services, indicating a need for diverse construction and maintenance capabilities. 2. The contract was competed fully and openly, suggesting a competitive environment for the awarded services. 3. The duration of the contract (824 days) suggests a significant scope of work or ongoing support requirements. 4. The fixed-price contract type implies that the contractor bears the risk of cost overruns. 5. The absence of small business set-aside indicates the primary award was not specifically targeted to small businesses. 6. The contract was awarded to foreign awardees, with specific entities undisclosed, raising potential transparency concerns.

Value Assessment

Rating: fair

The contract value of $28.8 million for specialty trade contracting services over approximately two years appears within a reasonable range for large-scale government projects. However, without specific details on the scope of work and the nature of the specialty trades involved, a precise value-for-money assessment is challenging. Benchmarking against similar indefinite-delivery indefinite-quantity (IDIQ) or job order contracts (JOC) for facilities maintenance and repair would provide a clearer picture of cost-effectiveness. The fixed-price nature of the award shifts cost risk to the contractor, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 11 bidders, the competition level appears robust, suggesting a healthy market for these services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The government likely received multiple proposals, allowing for comparison and selection of the best value.

Taxpayer Impact: Full and open competition with 11 bidders is generally favorable for taxpayers, as it drives down prices through market forces and increases the likelihood of selecting a contractor offering the best value for the government's investment.

Public Impact

The primary beneficiaries are likely Department of the Army facilities requiring a broad range of specialty trade services, such as repairs, maintenance, and minor construction. Services delivered encompass various specialty trades, potentially including electrical, plumbing, HVAC, carpentry, and other construction-related activities. The geographic impact is likely concentrated around the facilities managed by the Department of the Army where these services are performed. The contract supports a workforce of skilled tradespeople employed by the winning contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific disclosure regarding foreign awardees hinders transparency and accountability.
The broad nature of 'All Other Specialty Trade Contractors' makes it difficult to assess the specific expertise and value provided.
Limited information on performance metrics or quality assurance makes it hard to gauge contractor performance beyond contract completion.

Positive Signals

Full and open competition suggests a competitive process that should yield fair pricing.
The fixed-price contract type transfers cost overrun risk to the contractor.
The contract duration indicates a sustained need for these services, suggesting a stable demand.

Sector Analysis

This contract falls within the broad construction and facilities maintenance sector, specifically under specialty trade contracting. This sector is characterized by a wide array of specialized services essential for the upkeep and minor modification of government infrastructure. The market includes numerous small, medium, and large businesses offering niche expertise. Government spending in this area is typically driven by the need to maintain operational readiness and infrastructure integrity across various agencies and installations.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award was made to a larger entity, potentially a large business or a foreign entity. While not a direct set-aside, large prime contractors often utilize small businesses for subcontracting opportunities, but the extent of this is not detailed here. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is somewhat limited due to the undisclosed nature of the foreign awardees. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance and Repair Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Construction Services
Specialty Trade Services

Risk Flags

Undisclosed Foreign Awardees
Broad NAICS Code Classification
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to FOREIGN AWARDEES (UNDISCLOSED). ADMINISTRATIVE FACILITY/JOC/TFC

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2006-09-28. End: 2008-12-30.

What specific types of specialty trades were covered under this contract?

The contract falls under the North American Industry Classification System (NAICS) code 238990, 'All Other Specialty Trade Contractors.' This broad category encompasses a wide range of construction activities not classified elsewhere, including but not limited to concrete contractors, structural steel erectors, masonry contractors, roofing contractors, and finishing contractors. Without further details from the contract's statement of work (SOW), it is difficult to pinpoint the exact specialty trades performed. However, given the Department of the Army as the awarding agency, these services likely supported facility maintenance, repair, minor construction, and renovation projects at military installations.

How does the $28.8 million contract value compare to similar specialty trade contracts awarded by the Department of the Army?

The $28.8 million contract value is a substantial award for specialty trade services. To benchmark effectively, one would need to compare it against other indefinite-delivery contracts or firm-fixed-price contracts for similar scopes of work, such as facilities maintenance, repair, and minor construction, awarded by the Department of the Army or other Department of Defense components over a comparable timeframe. Contracts of this magnitude often cover multiple years and a wide range of services, suggesting a significant operational need. Without access to a detailed database of comparable contracts, including their specific services and durations, a precise comparison is challenging. However, it indicates a significant investment in maintaining and upgrading Army facilities.

What are the potential risks associated with awarding a contract to undisclosed foreign awardees?

Awarding contracts to undisclosed foreign entities can introduce several risks. Firstly, there are potential national security concerns, especially if the services involve access to sensitive information or facilities. Secondly, legal and regulatory compliance can be more complex, involving international laws and differing standards. Enforcement of contract terms and dispute resolution might also be more challenging. Furthermore, a lack of transparency regarding the identity of foreign awardees can obscure potential conflicts of interest or ethical concerns, making it harder for oversight bodies and the public to ensure accountability and fair play. The government must have robust vetting processes in place to mitigate these risks.

What does the fixed-price contract type imply for the government and the contractor?

A fixed-price contract type means that the total price of the contract is set at the time of award, and the contractor is obligated to complete the work for that price, regardless of their actual costs. For the government, this offers budget certainty and transfers the risk of cost overruns to the contractor. This is generally advantageous when the scope of work is well-defined and the risks are understood. For the contractor, it means they must accurately estimate their costs and manage their resources efficiently to ensure profitability. If costs exceed the fixed price, the contractor absorbs the loss; conversely, if costs are lower than anticipated, the contractor's profit margin increases. This contract type incentivizes efficiency and cost control by the contractor.

How does the duration of 824 days (approximately 2.25 years) impact the assessment of this contract?

The contract duration of 824 days suggests a long-term requirement for the specialty trade services. This extended period implies that the services are not for a one-off project but rather for ongoing support, maintenance, or a series of related tasks over a significant timeframe. For the government, a longer duration can offer continuity of services and potentially better pricing through economies of scale or established working relationships. For the contractor, it provides a stable revenue stream. However, longer durations also increase the risk of scope creep, changes in requirements, or market price fluctuations that may not be adequately captured in the initial fixed price, necessitating careful management and potential contract modifications.

What is the significance of the NAICS code 238990 ('All Other Specialty Trade Contractors') in understanding the contract's scope?

The NAICS code 238990 signifies that the contract covers a broad spectrum of specialty trade services that do not fit into more specific categories like plumbing, electrical, or HVAC. This implies the contract is designed to be flexible and cover a wide range of construction-related needs. For the Department of the Army, this flexibility is valuable for managing diverse facility maintenance and repair requirements across different installations. However, it also means that the specific nature of the work performed can vary significantly, making direct comparisons with contracts under more specialized NAICS codes difficult. It suggests a need for a contractor capable of managing or coordinating a variety of skilled trades.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM06R0039

Offers Received: 11

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,776,701

Exercised Options: $28,776,701

Current Obligation: $28,776,701

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline