Army Awards $50.4M for ET-015 CPS 132KV Substations to Miscellaneous Foreign Awardees

Contract Overview

Contract Amount: $50,415,901 ($50.4M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2005-10-11

End Date: 2008-08-06

Contract Duration: 1,030 days

Daily Burn Rate: $48.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: {PIIN: W91GXY06C0002} DELIVER THE ET-015 CPS 132KV SUBSTATIONS - PIF'S G

Plain-Language Summary

Department of Defense obligated $50.4 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY06C0002} DELIVER THE ET-015 CPS 132KV SUBSTATIONS - PIF'S G Key points: 1. Contract awarded for critical substation infrastructure, indicating a need for specialized engineering and construction services. 2. The awardee is a 'Miscellaneous Foreign Awardee,' suggesting a potentially limited pool of domestic competitors or specific international expertise required. 3. Risk may be elevated due to foreign awardee status, potentially impacting supply chain, oversight, and compliance. 4. The sector involves critical infrastructure, essential for military operations and potentially civilian power grids.

Value Assessment

Rating: fair

The contract value of $50.4M for substation construction and related services appears within a reasonable range for such complex projects. However, without specific benchmarks for 132KV substations in the awardee's region, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the 'Miscellaneous Foreign Awardees' designation raises questions about the actual breadth of competition and whether domestic firms were adequately considered or capable.

Taxpayer Impact: The use of taxpayer funds for foreign awardees requires careful scrutiny to ensure value for money and adherence to procurement regulations, especially for critical infrastructure.

Public Impact

Ensures operational readiness of critical military infrastructure. Potential for foreign economic benefit, depending on the awardee's location and supply chain. Highlights the global nature of defense contracting and the need for international procurement expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Foreign awardee status
Potential supply chain vulnerabilities
Oversight challenges for international contracts

Positive Signals

Awarded under full and open competition
Addresses critical infrastructure needs

Sector Analysis

This contract falls within the construction and engineering services sector, specifically related to critical infrastructure like power substations. Spending benchmarks for similar large-scale international infrastructure projects vary significantly based on location, complexity, and specific technological requirements.

Small Business Impact

The data indicates the awardee is a 'Miscellaneous Foreign Awardee' and does not specify small business participation. This suggests the contract was likely too large or specialized for typical small business involvement, and potentially bypassed domestic small business opportunities.

Oversight & Accountability

Oversight of contracts with foreign awardees can be more complex, requiring robust communication channels and potentially different compliance mechanisms. The Department of the Army's contracting office (DCA) managed this award, implying established oversight procedures are in place.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for supply chain disruptions
Challenges in oversight and quality control
Limited transparency regarding awardee's specific qualifications
Potential national security implications for critical infrastructure
Uncertainty regarding domestic economic benefit

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.4 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY06C0002} DELIVER THE ET-015 CPS 132KV SUBSTATIONS - PIF'S G

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 $50.4 million.

What is the period of performance?

Start: 2005-10-11. End: 2008-08-06.

What specific technical capabilities or cost advantages did the foreign awardee possess that led to this contract award over domestic alternatives?

The specific technical capabilities or cost advantages are not detailed in the provided data. However, 'Miscellaneous Foreign Awardees' often implies specialized expertise, unique access to materials or labor in their region, or potentially lower overhead costs not available domestically. Further investigation into the awardee's background and the solicitation's evaluation criteria would be necessary to fully understand the rationale.

What are the potential risks associated with using a foreign awardee for critical infrastructure, particularly concerning security and long-term maintenance?

Risks include potential supply chain disruptions, challenges in enforcing quality standards and intellectual property rights, and difficulties in providing timely maintenance or upgrades. Security concerns may arise regarding access to sensitive infrastructure and data. Long-term reliance on foreign entities for critical systems could also pose strategic vulnerabilities.

How effectively did the 'full and open competition' process ensure the best value for taxpayers when the awardee was a foreign entity?

While 'full and open competition' theoretically ensures the best value, the designation 'Miscellaneous Foreign Awardees' raises questions about the practical scope of competition. It's unclear if domestic firms were truly unable to compete or if the evaluation criteria favored foreign entities. Ensuring best value requires rigorous comparison of technical merit, past performance, and total lifecycle costs, which may be more complex with international bidders.

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: $50,415,901

Exercised Options: $50,415,901

Current Obligation: $50,415,901

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline