Army awards $24.2M for oil and gas support, with 3 bidders and a 5-year duration

Contract Overview

Contract Amount: $24,220,918 ($24.2M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2013-07-25

End Date: 2018-07-31

Contract Duration: 1,832 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF MINOR/EMERGENCY REPAIR

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to APTIM FEDERAL SERVICES, LLC for work described as: IGF::CT::IGF MINOR/EMERGENCY REPAIR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates a defined cost for services. 3. Performance occurred over 1,832 days, spanning a significant period. 4. The contract was awarded to APTIM FEDERAL SERVICES, LLC. 5. The North American Industry Classification System (NAICS) code 213112 points to support activities for oil and gas operations. 6. The contract was a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $24.2 million contract is challenging without specific performance metrics or comparable contract data. However, the duration of over five years suggests a substantial need for the services provided. The firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if managed effectively. Further analysis would require understanding the scope of 'Support Activities for Oil and Gas Operations' and comparing pricing against industry standards for similar services.

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 bids. With three bidders participating, the competition level appears moderate. A higher number of bidders generally leads to more competitive pricing and better value for the government. The presence of three bidders suggests that while there was some competition, it may not have been as robust as in scenarios with a larger pool of interested parties, potentially impacting price discovery.

Taxpayer Impact: The full and open competition with three bidders likely resulted in a reasonably competitive price for taxpayers. However, more bidders could have potentially driven the price lower.

Public Impact

The primary beneficiaries are likely the Department of the Army, receiving essential support for its oil and gas operations. Services provided fall under 'Support Activities for Oil and Gas Operations,' which could include a range of tasks such as drilling, well servicing, and related infrastructure support. The contract was performed in Texas (ST: TX, SN: TEXAS), indicating a geographic focus on this region. Workforce implications would involve employment opportunities for individuals skilled in oil and gas support services within Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific nature of 'Support Activities for Oil and Gas Operations' is broad and could encompass environmentally sensitive work, requiring careful oversight.
The contract duration of over five years necessitates ongoing monitoring to ensure continued performance and value.
The firm-fixed-price contract type, while beneficial for cost control, requires diligent oversight to ensure the contractor is meeting all performance standards.

Positive Signals

Awarded through full and open competition, indicating a structured and transparent procurement process.
The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to better budget predictability for the government.
The contract was a delivery order, suggesting it was part of a pre-established framework, potentially indicating prior vetting of the contractor or a streamlined process for essential services.

Sector Analysis

The oil and gas support services sector is a critical component of the energy industry, providing essential services for exploration, extraction, and production. This contract, under NAICS code 213112, fits within this sector. The market size for such services is substantial, driven by both domestic and international energy demands. Comparable spending benchmarks would depend on the specific services rendered, but federal agencies frequently contract for these types of support activities, particularly in regions with significant energy infrastructure or military installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, small businesses were likely not the primary focus of this specific award. However, the prime contractor, APTIM FEDERAL SERVICES, LLC, may engage small businesses as subcontractors to fulfill portions of the work, depending on their subcontracting plans and the nature of the services required. The absence of a small business set-aside means larger, more established firms were likely the primary competitors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and potentially the agency's Inspector General (IG) if performance issues or fraud were suspected. Accountability measures are inherent in the firm-fixed-price contract, where the contractor is responsible for delivering services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Energy - Oil and Gas Programs
Bureau of Land Management - Oil and Gas Leasing
Environmental Protection Agency - Oil Spill Response
Defense Logistics Agency - Energy Support

Risk Flags

Contract Duration
Scope Ambiguity Risk
Performance Monitoring Needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to APTIM FEDERAL SERVICES, LLC. IGF::CT::IGF MINOR/EMERGENCY REPAIR

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2013-07-25. End: 2018-07-31.

What specific types of 'Support Activities for Oil and Gas Operations' were included in this contract?

The provided data identifies the contract under NAICS code 213112, which covers 'Support Activities for Oil and Gas Operations.' This broad category can encompass a wide range of services essential for the exploration, drilling, and production phases of oil and gas extraction. Examples of such activities include drilling oil and gas wells, well servicing (like workovers and routine maintenance), completion services, and potentially site preparation, pipeline support, or related infrastructure maintenance. Without access to the detailed contract statement of work (SOW), the precise nature of the services rendered remains unspecified. However, given the duration and value, it suggests a significant and ongoing requirement for these operational supports, likely tied to specific Army installations or operational needs within Texas.

How does the $24.2 million award compare to similar contracts for oil and gas support services?

Comparing this $24.2 million contract to similar ones requires access to a broader dataset of federal procurements for oil and gas support services, ideally within the same geographic region (Texas) and for similar durations (over five years). The value itself is substantial, indicating a significant scope of work. However, without specific details on the services provided (e.g., drilling depth, number of wells serviced, type of infrastructure supported), a direct comparison is difficult. Factors like market conditions, specific technical requirements, and the competitive landscape at the time of award would influence pricing. Generally, firm-fixed-price contracts for complex services over extended periods represent a considerable investment for the government.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A primary risk with a firm-fixed-price (FFP) contract of this magnitude ($24.2 million) and duration (over five years) is the potential for the contractor to cut corners on quality or safety to maximize profit, especially if unforeseen cost increases occur. While the FFP structure shifts cost risk to the contractor, it places a greater burden on the government to meticulously define the scope of work and monitor performance to ensure all requirements are met. If the SOW is ambiguous or incomplete, the contractor might exploit this, leading to disputes or subpar service delivery. Additionally, over a long period, market conditions or technological advancements could make the contracted services less efficient or cost-effective than initially anticipated, though the FFP structure limits the government's exposure to direct price increases.

What is the track record of APTIM FEDERAL SERVICES, LLC in performing similar government contracts?

APTIM FEDERAL SERVICES, LLC has a history of performing government contracts, including those related to environmental, infrastructure, and energy services. To assess their specific track record for 'Support Activities for Oil and Gas Operations,' a detailed review of their past performance on similar contracts would be necessary. This would involve examining contract histories for performance ratings, any past performance issues, contract modifications, and timely delivery. Federal procurement databases often contain past performance information, though it may not always be publicly detailed. Given their presence in the federal contracting space, it is likely they possess the necessary experience and certifications for such work, but a thorough due diligence would confirm their suitability and reliability for this specific type of service.

How has federal spending on oil and gas support services evolved over the past decade?

Federal spending on oil and gas support services has likely fluctuated over the past decade, influenced by global energy prices, domestic production policies, and national security requirements. Periods of high oil prices typically correlate with increased investment in exploration and production, potentially driving up demand and spending on support services. Conversely, periods of low prices or shifts towards renewable energy initiatives might lead to reduced spending. Government agencies, particularly the Department of Defense and the Department of the Interior (managing federal lands), are consistent users of these services. Analyzing historical spending trends would reveal patterns related to economic cycles, regulatory changes, and strategic energy priorities, showing whether this $24.2 million contract represents a typical investment or an outlier.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Support Activities for Mining › Support Activities for Oil and Gas Operations

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC (UEI: 080821711)

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,220,918

Exercised Options: $24,220,918

Current Obligation: $24,220,918

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0005

IDV Type: BOA

Timeline