DoD Awards $26M for Al-Qudas Station Gas Turbine Amidst Foreign Awardee Concerns

Contract Overview

Contract Amount: $26,025,000 ($26.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-03-20

End Date: 2008-05-08

Contract Duration: 415 days

Daily Burn Rate: $62.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GXY07C0014} AL-QUDAS STATION GE FRAME 9E GAS TURBINE (UNIT #1).

Plain-Language Summary

Department of Defense obligated $26.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY07C0014} AL-QUDAS STATION GE FRAME 9E GAS TURBINE (UNIT #1). Key points: 1. Contract awarded to 'Miscellaneous Foreign Awardees' raises questions about competition and value. 2. Significant spending on a single gas turbine unit for a specific station. 3. Potential risks associated with foreign awardees and the administrative management consulting services category. 4. The contract falls under Administrative Management and General Management Consulting Services, a broad category.

Value Assessment

Rating: questionable

The contract value of $26.03 million for a single gas turbine unit appears high, especially given the 'Miscellaneous Foreign Awardees' designation. Benchmarking against similar turbine procurements or related services is difficult without more specific data on the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as 'Full and Open Competition,' the award to 'Miscellaneous Foreign Awardees' suggests a lack of specific, known domestic contractors or a broad solicitation approach. This could impact price discovery if the pool of bidders was not robust or specialized.

Taxpayer Impact: Taxpayer funds are being utilized for a significant infrastructure component, with the value and efficiency of the expenditure needing further scrutiny due to the awardee type.

Public Impact

Potential impact on military readiness if the turbine is critical for operations. Questions about the strategic sourcing and justification for awarding to foreign entities. Transparency concerns regarding the 'Miscellaneous Foreign Awardees' category. Economic implications for domestic industries if foreign awardees are consistently preferred.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Awardee ambiguity ('Miscellaneous Foreign Awardees')
High contract value for a single unit
Potential lack of specialized domestic competition
Limited insight into specific services provided

Positive Signals

Contract awarded under Full and Open Competition
Clear contract type (Firm Fixed Price)
Defined performance period

Sector Analysis

The contract falls under Administrative Management and General Management Consulting Services (NAICS 541611). Spending in this sector can vary widely, but large capital equipment procurements like this gas turbine are less typical for this category, suggesting a specialized service or project management component.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses. Given the nature of the award and the 'Miscellaneous Foreign Awardees' designation, it is unlikely that small businesses were primary participants or beneficiaries.

Oversight & Accountability

Oversight is crucial given the ambiguity of the awardees and the significant sum. The Department of the Army should ensure robust monitoring of performance, cost, and adherence to contract terms, especially concerning any foreign entity involvement.

Related Government Programs

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

Risk Flags

Ambiguous Awardee Identification
High Contract Value
Potential Lack of Domestic Expertise Utilization
Limited Service Specificity
Geopolitical Risk Associated with Foreign Awardees

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY07C0014} AL-QUDAS STATION GE FRAME 9E GAS TURBINE (UNIT #1).

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 $26.0 million.

What is the period of performance?

Start: 2007-03-20. End: 2008-05-08.

What specific administrative management or general management consulting services were provided under this contract that justified the procurement of a GE Frame 9E Gas Turbine?

The provided data lacks specific details on the services rendered. Typically, NAICS code 541611 covers advice and assistance on matters such as management organization, planning, and control; business policy; marketing objectives and policies; and production and operations management. The procurement of a gas turbine suggests this contract may have involved project management, installation oversight, or specialized technical consulting related to energy infrastructure for a specific facility like Al-Qudas Station.

What risks are associated with awarding a $26 million contract for critical infrastructure to 'Miscellaneous Foreign Awardees' without clear identification?

Awarding significant funds to unidentified foreign entities presents several risks. These include potential difficulties in enforcing contract terms, ensuring quality control, managing intellectual property, and addressing security concerns. There's also a risk of funds being diverted or used in ways that do not align with U.S. interests. Transparency is severely lacking, making accountability challenging.

How does the $26 million expenditure for a single gas turbine unit compare to industry benchmarks for similar procurements, and what does this suggest about the contract's effectiveness?

Without detailed specifications of the turbine model, its condition (new/refurbished), and the full scope of associated services (installation, maintenance, consulting), direct comparison is difficult. However, $26 million is a substantial sum for a single unit. If this price includes extensive project management or specialized consulting for a complex deployment, it might be justifiable. If it's primarily for the turbine itself, it warrants further investigation into price effectiveness and potential overspending.

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: $26,025,000

Exercised Options: $26,025,000

Current Obligation: $26,025,000

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline