USDA Awards $17.4M for BARC Steam System Repair to CPF LLC Under Full and Open Competition

Contract Overview

Contract Amount: $17,365,513 ($17.4M)

Contractor: CPF LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-05-31

End Date: 2027-11-03

Contract Duration: 4,173 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BELTSVILLE AREA RESEARCH CENTER (BARC) STEAM SYSTEM REPAIR

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.4 million to CPF LLC for work described as: IGF::OT::IGF BELTSVILLE AREA RESEARCH CENTER (BARC) STEAM SYSTEM REPAIR Key points: 1. The contract value of $17.4M is significant for a specialized repair project. 2. CPF LLC is the sole awardee, indicating a specific capability or market concentration. 3. The long duration (2016-2027) suggests a complex, multi-year repair and maintenance effort. 4. The sector is primarily facilities maintenance within the agricultural research domain.

Value Assessment

Rating: fair

The contract value of $17.4M for a steam system repair over 11 years appears substantial. Benchmarking against similar large-scale facility repair contracts is difficult without more specific scope details, but the duration suggests a comprehensive, long-term project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies an initial limited approach that was later opened. This method can sometimes lead to less competitive pricing if the initial exclusion was too broad or if the market for such specialized services is limited.

Taxpayer Impact: While competition was ultimately pursued, the specific method warrants scrutiny to ensure maximum taxpayer value was achieved.

Public Impact

Ensures continued operation of critical research infrastructure at BARC. Supports the Agricultural Research Service's mission by maintaining essential utilities. Potential for disruption if repairs are not managed effectively due to the system's importance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the long contract duration and complexity.
Dependence on a single contractor (CPF LLC) for a critical system.

Positive Signals

Awarded under full and open competition, suggesting an effort to find the best value.
Long-term contract provides stability for essential facility maintenance.

Sector Analysis

This contract falls within the facilities maintenance and repair sector, specifically for critical infrastructure like steam systems. Spending benchmarks for such specialized, long-term repair projects are highly variable and depend on the scale and complexity of the facility.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to CPF LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract's long duration and critical nature necessitate robust oversight from the Agricultural Research Service to ensure performance, cost control, and adherence to the contract terms. Regular performance reviews and milestone tracking are essential.

Related Government Programs

Steam and Air-Conditioning Supply
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Long contract duration increases risk of scope creep and price escalation.
Complexity of steam systems can lead to unforeseen repair challenges.
Potential for contractor performance issues over an extended period.
Dependence on a single awardee for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.4 million to CPF LLC. IGF::OT::IGF BELTSVILLE AREA RESEARCH CENTER (BARC) STEAM SYSTEM REPAIR

Who is the contractor on this award?

The obligated recipient is CPF LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2016-05-31. End: 2027-11-03.

What was the rationale for 'EXCLUSION OF SOURCES' initially, and how did opening it to full and open competition impact the final price?

The initial exclusion of sources suggests a belief that only a limited number of contractors possessed the necessary specialized skills or clearances for the BARC steam system. Opening it to full and open competition later implies that the agency sought broader market participation to ensure competitive pricing and identify the best value provider, potentially leading to cost savings compared to a sole-source or limited competition award.

What are the specific risks associated with a steam system repair contract spanning over a decade?

Risks include unforeseen system degradation requiring scope changes, material price volatility over the long term, contractor performance degradation or turnover, and the potential for outdated technology or repair methods by the contract's end. Ensuring the contract includes mechanisms for managing scope, price adjustments, and performance standards is crucial for mitigating these long-term risks.

How effectively does this contract support the Agricultural Research Service's mission given its focus on facility repair?

This contract is crucial for maintaining the operational integrity of the Beltsville Area Research Center (BARC), a key facility for the Agricultural Research Service. By ensuring the reliable functioning of the steam system, it supports the research activities conducted at BARC, indirectly contributing to the agency's mission of advancing agricultural science and innovation.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Steam and Air-Conditioning Supply

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-32SC-S-16-0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 JIBSAIL DR, PRINCE FREDERICK, MD, 20678

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,365,597

Exercised Options: $17,365,513

Current Obligation: $17,365,513

Actual Outlays: $12,669,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline