DoD's $43.5M contract for pipes and fittings awarded to miscellaneous foreign awardees under full and open competition

Contract Overview

Contract Amount: $43,456,940 ($43.5M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2008-07-19

End Date: 2008-09-10

Contract Duration: 53 days

Daily Burn Rate: $819.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GDW08P0002} PIPES AND FITTINGS

Plain-Language Summary

Department of Defense obligated $43.5 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GDW08P0002} PIPES AND FITTINGS Key points: 1. Contract awarded to a group of foreign entities, raising questions about domestic sourcing and potential supply chain risks. 2. The contract's short duration (53 days) suggests a need for immediate or emergency supply, potentially impacting price negotiation. 3. Fixed-price contract type offers cost certainty for the government but may limit flexibility if unforeseen issues arise. 4. Awarded under full and open competition, indicating a broad search for qualified vendors. 5. The specific nature of 'pipes and fittings' is broad and could encompass a wide range of materials and applications. 6. Lack of detail on specific performance metrics or quality control measures warrants further investigation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the broad description of 'pipes and fittings' and the award to 'miscellaneous foreign awardees.' Without specific item details or comparable domestic pricing, it's difficult to assess if the $43.5 million represents fair market value. The short performance period might indicate a premium for expedited delivery, but this is not explicitly stated. Further analysis would require a breakdown of the specific types and quantities of pipes and fittings procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that the Department of the Army sought proposals from all responsible sources. The number of bidders is not specified, but this method generally aims to maximize competition and achieve the best value. However, the award to 'miscellaneous foreign awardees' might indicate a limited pool of domestic suppliers for the specific items required or a strategic decision to source internationally.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and encourage innovation. However, the international sourcing aspect could introduce complexities in logistics and oversight, potentially offsetting some cost savings.

Public Impact

The primary beneficiaries are likely military operations requiring specific types of pipes and fittings for infrastructure or equipment maintenance. Services delivered include the provision of essential plumbing and fluid transport components. The geographic impact is primarily on Department of Defense facilities, potentially worldwide, depending on where the supplies are needed. Workforce implications are minimal for the government, but the contract supports the supply chain and manufacturing sectors of the awarded foreign entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific foreign entities awarded the contract.
Potential for supply chain disruptions or quality control issues with foreign-sourced materials.
Limited visibility into the domestic economic impact of this significant procurement.
Short contract duration may indicate an urgent need, potentially leading to less rigorous vetting.
Broad categorization of 'pipes and fittings' hinders detailed cost-benefit analysis.

Positive Signals

Awarded through full and open competition, suggesting a robust search for vendors.
Firm fixed-price contract provides cost certainty for the government.
Procurement by the Department of the Army indicates support for critical military infrastructure or operations.

Sector Analysis

This contract falls within the broader industrial sector related to manufacturing and supply of construction materials and industrial components. The market for pipes and fittings is vast, serving numerous industries including construction, manufacturing, energy, and defense. While specific benchmarks for this niche are hard to pinpoint without more detail, the Department of Defense is a significant consumer of such materials, often requiring specialized products that may not be readily available domestically or may be more cost-effectively sourced internationally.

Small Business Impact

The contract does not appear to have a small business set-aside component, as indicated by 'false' for 'ss' and 'sb' fields. The award to 'miscellaneous foreign awardees' further suggests that small businesses, particularly domestic ones, were likely not the primary focus or recipients of this particular contract. Subcontracting opportunities for U.S. small businesses are therefore unlikely to be significant under this award.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and procurement divisions. As a firm fixed-price award, the primary oversight would focus on delivery, quality, and adherence to contract terms. Transparency is limited by the broad nature of the award description and the lack of specific contractor identification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Procurement
Military Construction and Infrastructure
Industrial Supplies and Equipment
Foreign Military Sales Support

Risk Flags

Supply Chain Risk
Foreign Sourcing Dependency
Lack of Specificity
Potential Quality Control Issues
Limited Domestic Economic Impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.5 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GDW08P0002} PIPES AND FITTINGS

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 $43.5 million.

What is the period of performance?

Start: 2008-07-19. End: 2008-09-10.

What specific types and quantities of pipes and fittings were procured under this contract?

The provided data offers limited detail, categorizing the procurement simply as 'PIPES AND FITTINGS' under PIIN W91GDW08P0002. Without a more granular breakdown, it is impossible to determine the specific materials (e.g., steel, PVC, copper), dimensions, pressure ratings, or intended applications of these items. This lack of specificity makes it difficult to assess the technical requirements, potential risks associated with material quality, or to conduct meaningful price comparisons against market rates for specific products. Further investigation would require accessing the detailed contract line item numbers (CLINs) or the original solicitation documents.

What is the rationale for awarding this contract to 'miscellaneous foreign awardees' instead of domestic suppliers?

The award to 'miscellaneous foreign awardees' suggests that either domestic suppliers were unable to meet the specific requirements of the contract, or that foreign sources offered a more advantageous combination of price, quality, or availability. This could be due to specialized manufacturing capabilities abroad, lower production costs, or specific geopolitical considerations. The 'full and open competition' aspect implies that domestic firms had the opportunity to bid. The decision to award to foreign entities may stem from a strategic sourcing decision by the Department of the Army to optimize cost, access unique technologies, or ensure supply chain diversification. However, it raises questions about the impact on domestic industrial capacity and potential supply chain vulnerabilities.

How does the $43.5 million contract value compare to similar procurements for pipes and fittings by the Department of Defense?

Directly comparing the $43.5 million value is difficult without knowing the exact specifications and quantities of pipes and fittings. However, the Department of Defense procures a vast array of such materials, ranging from standard plumbing components to highly specialized conduits for various military systems. Large-scale infrastructure projects or fleet support can easily run into tens or hundreds of millions of dollars for these items. The short 53-day duration of this contract suggests it might be for a specific, perhaps urgent, need rather than a long-term supply agreement. Benchmarking would require identifying contracts with similar item descriptions, quantities, and performance periods, which is challenging with the current level of detail.

What are the potential risks associated with awarding a significant contract for essential components to 'miscellaneous foreign awardees'?

Awarding to 'miscellaneous foreign awardees' introduces several potential risks. Firstly, supply chain security and reliability can be compromised due to longer transit times, geopolitical instability, and varying international trade regulations. Quality control may also be more challenging to enforce across different jurisdictions and manufacturing standards. Furthermore, reliance on foreign suppliers can create dependencies that may be problematic during international disputes or crises. There's also the risk of intellectual property theft or the use of substandard materials if rigorous oversight is not maintained. Finally, from an economic perspective, awarding large contracts internationally may not support domestic manufacturing jobs or industrial base development.

Given the short performance period (53 days), what does this imply about the nature of this procurement?

A contract duration of only 53 days strongly suggests that this procurement was for an immediate or urgent requirement. This could be related to emergency repairs, unexpected equipment failures, or a time-sensitive operational need. Such short-term contracts often command higher prices due to the expedited nature of the delivery and potentially limited time for competitive bidding or negotiation. It implies that the Department of the Army needed these specific pipes and fittings very quickly, and the 'full and open competition' likely focused on vendors who could meet that rapid turnaround time. This urgency might also mean less emphasis on long-term value or strategic sourcing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $43,456,940

Exercised Options: $43,456,940

Current Obligation: $43,456,940

Timeline