DoD's $16M Missile Handling Contract Awarded to Bechtel National Inc. Amidst Full and Open Competition
Contract Overview
Contract Amount: $16,081,252 ($16.1M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-09-30
End Date: 2007-03-30
Contract Duration: 1,277 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200312!001057!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0009 !20030930!20050615!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* !RUSSIA !+000006852691!N!N!000000000000!1450!GUIDED MISSILE HANDLING & SERVICING EQUIP !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !5!B!M! !A!D!20070828!B! ! !N!Z!A!U!R!2!005!F! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.1 million to BECHTEL NATIONAL, INC. for work described as: 200312!001057!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0009 !20030930!20050615!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* … Key points: 1. The contract, valued at $16.1 million, is for guided missile handling and servicing equipment. 2. Awarded to Bechtel National, Inc., the contract falls under the 'All Other Professional, Scientific, and Technical Services' category. 3. Competition was conducted under a full and open process, suggesting a competitive bidding environment. 4. The contract duration is 1277 days, ending in March 2007, with a start date in September 2003. 5. The contracting agency is the Defense Threat Reduction Agency (DTRA).
Value Assessment
Rating: fair
The contract's total value is $16,081,251.82. Without specific unit cost data or benchmarks for guided missile handling equipment, a precise pricing assessment is difficult. However, the award amount provides a general scale for this type of specialized service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing, although the specific impact on this contract's final price is not detailed.
Taxpayer Impact: The $16.1 million expenditure represents taxpayer funds allocated for defense-related services, specifically for missile handling and servicing equipment.
Public Impact
This contract supports national defense by ensuring the proper handling and servicing of guided missile equipment. The involvement of Bechtel National, Inc., a significant contractor, suggests a reliance on established industry players for critical defense infrastructure. The specific nature of 'guided missile handling & servicing equip' implies a highly specialized and potentially sensitive area of defense operations. The contract's duration and value indicate a substantial, long-term commitment to this capability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdowns makes it hard to assess value for money.
- Specific performance metrics or outcomes are not readily available.
- The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially obscuring the true nature of the work.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a reputable large business.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to defense. Spending in this sector can vary widely based on national security needs and technological advancements. Benchmarks for specialized missile handling equipment are not publicly available.
Small Business Impact
The contract was awarded to Bechtel National, Inc., a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was awarded by the Defense Threat Reduction Agency (DTRA), an agency within the Department of Defense. Oversight would typically involve contract management by DTRA officials to ensure compliance with terms and conditions.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Potential for cost overruns due to technical complexity.
- Security risks associated with handling sensitive defense equipment.
- Dependence on a single contractor for critical services.
- Broad NAICS code may obscure the true scope and cost drivers.
- Limited public information on performance metrics and value for money.
Tags
all-other-professional-scientific-and-te, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.1 million to BECHTEL NATIONAL, INC.. 200312!001057!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0011 !A!N! !N!0009 !20030930!20050615!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!* !* !RS!* !* !RUSSIA !+000006852691!N!N!000000000000!1450!GUIDED MISSILE HANDLING & SERVICING EQUIP !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !5!B!M! !A!D!20070828!B
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $16.1 million.
What is the period of performance?
Start: 2003-09-30. End: 2007-03-30.
What specific services are included under 'Guided Missile Handling & Servicing Equipment' and how do they contribute to the DTRA's mission?
The contract likely encompasses a range of services related to the maintenance, repair, transportation, and potentially the testing of guided missile systems. This directly supports the DTRA's mission of reducing or eliminating weapons of mass destruction threats by ensuring the operational readiness and safety of missile assets, which could be part of strategic deterrence or threat reduction operations.
Given the 'full and open competition' designation, what was the competitive landscape like for this specialized service, and were there any significant cost savings achieved?
While 'full and open competition' suggests multiple bids were solicited, the specific competitive landscape (number of bidders, their qualifications) is not detailed. Without access to the awarded price versus proposed prices or independent cost estimates, it's difficult to quantify cost savings. However, the competitive process itself is intended to drive prices toward a reasonable level.
How does the $16.1 million contract value compare to similar missile handling and servicing contracts, and what are the key risk factors associated with this type of specialized defense procurement?
Direct comparisons are challenging due to the specialized nature of missile systems and the lack of public benchmark data for such services. Key risks include technical complexity, potential for cost overruns due to unforeseen technical issues, security risks associated with handling sensitive equipment, and reliance on a single contractor for critical capabilities, potentially impacting long-term availability and pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 5275 WESTVIEW DR, FREDERICK, MD, 21703
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTRA0101D0011
IDV Type: IDC
Timeline
Start Date: 2003-09-30
Current End Date: 2007-03-30
Potential End Date: 2010-07-31 00:00:00
Last Modified: 2015-06-12
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