DoD's $24.6M Siemens Hot Gas Path Inspection Contract Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $24,632,419 ($24.6M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2006-03-10
End Date: 2008-05-20
Contract Duration: 802 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: {PIIN: W91GXY06C0049} HOT GAS PATH INSPECTION FOR SIEMENS, INSPECTION FO
Plain-Language Summary
Department of Defense obligated $24.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY06C0049} HOT GAS PATH INSPECTION FOR SIEMENS, INSPECTION FO Key points: 1. The contract, valued at $24.6 million, was awarded by the Department of the Army. 2. It falls under Administrative Management and General Management Consulting Services (NAICS 541611). 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract duration was 802 days, ending in May 2008.
Value Assessment
Rating: fair
The contract value of $24.6 million for inspection services over 802 days appears substantial. Without specific per-unit cost data or benchmarks for similar Siemens hot gas path inspections, a precise pricing assessment is difficult. However, the duration suggests a significant scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.
Taxpayer Impact: The use of full and open competition suggests that taxpayers likely benefited from a competitive pricing environment, although the overall value remains significant.
Public Impact
Ensures operational readiness of critical Siemens equipment through specialized inspections. Supports Department of Defense maintenance and sustainment operations. The contract's value highlights the significant investment in maintaining complex industrial assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes in the provided data.
- Potential for cost overruns if unforeseen issues arise during inspection.
- Dependence on a specific vendor (Siemens) for inspection, even if competition existed for the contract award.
Positive Signals
- Awarded under full and open competition, promoting a competitive environment.
- Clear contract duration and award date provide transparency.
- Firm Fixed Price contract type can help control costs.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending in this area by the DoD can be substantial, covering a wide range of support functions from strategic planning to operational efficiency improvements. Benchmarks for such services vary widely based on scope and duration.
Small Business Impact
The data indicates the awardee was 'MISCELLANEOUS FOREIGN AWARDEES' and the small business flag is false. This suggests that small businesses were likely not directly involved in this specific contract award, or at least not as the prime contractor.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for contract management. However, the provided data does not detail specific oversight activities or accountability measures for this particular contract.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Significant contract value.
- Long contract duration.
- Potential for specialized, single-vendor reliance.
- Limited insight into specific performance outcomes.
- Foreign awardee raises questions about domestic industrial base impact.
Tags
administrative-management-and-general-ma, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY06C0049} HOT GAS PATH INSPECTION FOR SIEMENS, INSPECTION FO
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 $24.6 million.
What is the period of performance?
Start: 2006-03-10. End: 2008-05-20.
What was the specific scope of the 'Hot Gas Path Inspection' and how did it contribute to the operational readiness of the equipment?
The 'Hot Gas Path Inspection' typically involves a detailed examination of the turbine's hot section components, including blades, vanes, and combustors, to identify wear, damage, or potential failures. This proactive maintenance is crucial for ensuring the reliable and efficient operation of power generation or propulsion systems, thereby directly contributing to the operational readiness of military assets that rely on such equipment.
Given the firm-fixed-price nature, what mechanisms were in place to manage potential cost increases due to unforeseen issues during the inspection?
While a firm-fixed-price contract aims to cap costs, unforeseen issues often necessitate contract modifications or change orders. Robust contract management would involve clear procedures for identifying, documenting, and approving any deviations from the original scope. The government contracting officer would need to assess the necessity and cost-effectiveness of any proposed changes before authorizing additional expenditure, ensuring taxpayer funds are protected.
How did the 'full and open competition' process ensure the best value was achieved for this specialized inspection service?
Full and open competition allows any interested and qualified contractor to submit a bid, fostering a competitive environment. For specialized services like Siemens hot gas path inspections, the evaluation criteria would likely include technical expertise, past performance, and price. The agency would evaluate proposals to determine the offer that represents the best value, considering both technical merit and cost, rather than solely the lowest price.
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: $24,632,419
Exercised Options: $24,632,419
Current Obligation: $24,632,419
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2006-03-10
Current End Date: 2008-05-20
Potential End Date: 2008-05-20 00:00:00
Last Modified: 2011-04-14
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