DoD Awards $117M for Substation Services, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $116,928,187 ($116.9M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2005-11-09
End Date: 2008-06-11
Contract Duration: 945 days
Daily Burn Rate: $123.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: {PIIN: W91GXY06C0028} AL RASEEHD 400KV UBSTATION
Plain-Language Summary
Department of Defense obligated $116.9 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY06C0028} AL RASEEHD 400KV UBSTATION Key points: 1. Significant contract value of $117M for substation services. 2. Competition method is 'FULL AND OPEN', but awardee is 'MISCELLANEOUS FOREIGN AWARDEES', suggesting potential complexity. 3. Contract duration of 945 days (approx. 2.6 years) indicates a substantial, long-term project. 4. The PSC code is missing, hindering detailed sector analysis. 5. No small business participation noted.
Value Assessment
Rating: questionable
The contract value of $117M is substantial. Without a clear benchmark for similar substation projects or detailed scope, assessing value for money is difficult. The lack of a specific PSC code further complicates benchmarking against industry standards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the award to 'MISCELLANEOUS FOREIGN AWARDEES' warrants further investigation into the bidding pool and the specific reasons for this awardee's selection.
Taxpayer Impact: The significant expenditure of $117M directly impacts taxpayer funds. While competition was open, the ultimate value and efficiency of this spending require scrutiny, especially given the foreign awardee.
Public Impact
Taxpayers are funding a large infrastructure project with potential foreign involvement. The lack of specific service codes makes it hard for the public to track similar spending. Transparency regarding the selection of 'MISCELLANEOUS FOREIGN AWARDEES' is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific PSC code
- Awardee is 'MISCELLANEOUS FOREIGN AWARDEES'
- No small business participation
Positive Signals
- Awarded under Full and Open Competition
Sector Analysis
This contract falls under administrative and management consulting services, likely related to the construction or maintenance of critical infrastructure like substations. Benchmarking is difficult without a specific PSC code, but $117M is a considerable investment for such services.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This indicates that the scope of work was likely too large or specialized for small businesses, or that they were not actively solicited or successful in the bidding process.
Oversight & Accountability
Oversight is crucial for a contract of this magnitude. The Department of the Army awarded this contract, and further details on performance monitoring, quality assurance, and financial oversight would be necessary to ensure accountability and effective use of funds.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of specific PSC code hinders detailed analysis.
- Awardee is 'MISCELLANEOUS FOREIGN AWARDEES', raising questions about origin and potential risks.
- No small business participation noted.
- High contract value without clear benchmarking makes value assessment difficult.
- Contract duration is substantial, increasing risk exposure over time.
Tags
administrative-management-and-general-ma, department-of-defense, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.9 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY06C0028} AL RASEEHD 400KV UBSTATION
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 $116.9 million.
What is the period of performance?
Start: 2005-11-09. End: 2008-06-11.
What specific services were provided under this $117M contract for the substation, and how do they align with the 'Administrative Management and General Management Consulting Services' NAICS code?
The NAICS code 541611 typically covers services like operational efficiency improvement, business planning, and management consulting. For a substation project, this could involve project management, logistical support, regulatory compliance consulting, or strategic planning for upgrades and maintenance. The exact services would need to be detailed in the contract's statement of work to understand how consulting services directly supported the physical infrastructure.
What were the key factors that led to the award to 'MISCELLANEOUS FOREIGN AWARDEES' under full and open competition, and did this impact the final price?
The selection of 'MISCELLANEOUS FOREIGN AWARDEES' under full and open competition suggests that foreign entities were eligible and competitive. Factors could include specialized expertise, cost advantages, or unique capabilities. It's important to determine if this competition led to a lower price for the government compared to domestic bidders, and if there were any national security or logistical considerations associated with a foreign awardee.
Given the contract's duration and value, what mechanisms were in place to ensure effective oversight and accountability for the services rendered?
Effective oversight for a $117M, 945-day contract requires robust contract management. This typically involves dedicated contracting officer representatives (CORs), regular performance reviews, milestone tracking, and quality assurance processes. The Department of the Army would need to demonstrate clear procedures for monitoring progress, ensuring compliance with the statement of work, and managing any changes or issues that arose during the contract period to ensure taxpayer funds were used efficiently.
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: $116,928,187
Exercised Options: $116,928,187
Current Obligation: $116,928,187
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2005-11-09
Current End Date: 2008-06-11
Potential End Date: 2008-06-11 00:00:00
Last Modified: 2011-04-14
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