DoD's $29.3M contract for electrical services awarded to foreign entities shows potential value concerns

Contract Overview

Contract Amount: $29,329,000 ($29.3M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-03-20

End Date: 2008-03-28

Contract Duration: 739 days

Daily Burn Rate: $39.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GXY06C0050} SERVICES AND DELIVER ELECTRICAL THINGS.

Plain-Language Summary

Department of Defense obligated $29.3 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY06C0050} SERVICES AND DELIVER ELECTRICAL THINGS. Key points: 1. Contract awarded to miscellaneous foreign awardees suggests limited domestic competition. 2. Fixed-price contract type offers cost certainty but may not capture all efficiencies. 3. Contract duration of 739 days indicates a significant, medium-term service requirement. 4. Awarded by the Department of the Army, this contract falls under administrative and management consulting services. 5. The contract's value of $29.3M requires careful benchmarking against similar services.

Value Assessment

Rating: fair

The contract value of $29.3 million for electrical services needs further benchmarking. Without specific details on the services rendered, it's challenging to compare directly to similar domestic contracts. The fixed-price nature suggests a defined scope, but the absence of detailed performance metrics or unit costs makes a precise value-for-money assessment difficult. Further analysis of the specific deliverables and their market rates would be necessary to determine if this represents a competitive price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the award to 'Miscellaneous Foreign Awardees' raises questions about the actual breadth of competition. It's unclear if domestic firms participated or if the foreign awardees represent a specific niche or region. The number of bidders is not specified, which limits the ability to assess the intensity of competition and its impact on price discovery.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the award to foreign entities may limit opportunities for domestic small businesses and could indicate a lack of competitive domestic offerings for these specific electrical services.

Public Impact

The primary beneficiaries are likely the foreign entities awarded the contract, providing them with significant revenue. The services delivered are related to electrical systems, crucial for operational readiness within the Department of the Army. Geographic impact is not specified but likely relates to the operational areas of the Department of the Army. Workforce implications are unclear, but the contract could support or displace local electrical workforces depending on execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Award to 'Miscellaneous Foreign Awardees' raises concerns about domestic economic impact and potential lack of competitive domestic bids.
Limited information on specific electrical services provided makes it difficult to assess the true value and necessity.
The fixed-price contract type might not incentivize maximum efficiency if the scope is not tightly managed.
Lack of detailed performance metrics hinders assessment of contractor performance and service quality.

Positive Signals

Awarded under 'Full and Open Competition' theoretically allows for the best possible offers.
Fixed-price contract provides cost certainty for the Department of the Army.
The contract duration suggests a sustained need for these electrical services.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically administrative management and general management consulting services, though the description 'ELECTRICAL THINGS' suggests a more specialized technical service. The market for specialized electrical services within the defense sector can be substantial, often involving complex infrastructure and security requirements. Benchmarking would require comparing this to other defense contracts for electrical infrastructure maintenance, installation, or upgrades, considering factors like location, scale, and specific technical demands.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). Given the award to 'Miscellaneous Foreign Awardees,' it is unlikely that small businesses, particularly domestic ones, were directly involved as prime contractors. Subcontracting opportunities for U.S. small businesses are not specified and may be limited if the prime contractors are foreign entities with established supply chains.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures would be tied to the terms of the firm fixed-price contract, focusing on delivery of specified electrical services. Transparency is limited by the available data; PIIN details and performance reports are not publicly accessible. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Army Corps of Engineers Construction and Engineering Services
Foreign Military Sales Support Services
General Services Administration (GSA) Schedules for Professional Services

Risk Flags

Potential misclassification of services under NAICS code.
Lack of clarity on specific deliverables and performance standards.
Limited transparency regarding the selection process for foreign awardees.
Uncertainty about domestic industrial base participation and impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY06C0050} SERVICES AND DELIVER ELECTRICAL THINGS.

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 $29.3 million.

What is the period of performance?

Start: 2006-03-20. End: 2008-03-28.

What specific electrical services were delivered under this contract, and what was the justification for awarding to foreign entities?

The provided data indicates the contract was for 'SERVICES AND DELIVER ELECTRICAL THINGS.' This vague description necessitates further investigation to understand the precise nature of the electrical work performed, such as installation, maintenance, repair, or specialized systems integration. The justification for awarding to 'Miscellaneous Foreign Awardees' under 'Full and Open Competition' is not detailed in the summary data. It could stem from specialized expertise, geographic proximity to the operational theater, or a lack of competitive domestic bids meeting specific requirements. Understanding these specifics is crucial for assessing value and strategic implications.

How does the $29.3 million contract value compare to similar electrical service contracts awarded by the Department of the Army or other federal agencies?

Benchmarking this $29.3 million contract requires access to detailed service descriptions and market rates for electrical work. Without knowing the specifics (e.g., installation of power grids, maintenance of complex electrical systems, specialized electronics), direct comparison is difficult. However, for context, large-scale federal electrical infrastructure projects can range from millions to hundreds of millions of dollars. The value suggests a significant undertaking. A comparative analysis would involve identifying contracts with similar scope, duration, and geographic location, adjusting for inflation and specific technical requirements to determine if the price paid was competitive.

What are the potential risks associated with awarding a significant electrical services contract to 'Miscellaneous Foreign Awardees'?

Awarding contracts to 'Miscellaneous Foreign Awardees' can introduce several risks. These may include challenges in oversight and quality control due to distance and differing regulatory environments. There could be security risks if sensitive infrastructure is involved. Furthermore, it might indicate a gap in domestic capabilities or a lack of competitive bidding from U.S. firms, potentially impacting the U.S. industrial base and workforce. Payment and currency exchange risks, as well as potential geopolitical factors influencing contract performance, also warrant consideration. Ensuring compliance with U.S. standards and regulations can also be more complex.

What was the historical spending pattern for similar electrical services by the Department of the Army prior to and following this contract?

Analyzing historical spending patterns for similar electrical services by the Department of the Army would provide context on the scale and frequency of such procurements. This specific contract, awarded in 2006 and ending in 2008, represents a snapshot. Understanding if the Army consistently relies on foreign awardees for such services, or if this was an anomaly, is important. Examining spending trends before and after this period could reveal shifts in procurement strategies, changes in market dynamics, or evolving operational needs that drive the demand for electrical services.

Does the 'Administrative Management and General Management Consulting Services' NAICS code accurately reflect the 'ELECTRICAL THINGS' service description, and what does this discrepancy imply?

The NAICS code 541611 (Administrative Management and General Management Consulting Services) appears incongruent with a description involving 'ELECTRICAL THINGS.' This discrepancy suggests a potential misclassification or a very broad interpretation of the service. It could imply that the contract involved management consulting *related* to electrical projects, rather than direct electrical work. Alternatively, it might be an administrative error in the contracting system. Such mismatches can obscure the true nature of government spending, making it harder to track specific service categories and benchmark performance accurately.

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: $29,329,000

Exercised Options: $29,329,000

Current Obligation: $29,329,000

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline