DOE's $76.9M Industrial Building Construction Contract with RMI Titanium Company Lacked Competition
Contract Overview
Contract Amount: $76,905,005 ($76.9M)
Contractor: RMI Titanium Company
Awarding Agency: Department of Energy
Start Date: 1999-11-15
End Date: 2008-09-17
Contract Duration: 3,229 days
Daily Burn Rate: $23.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Place of Performance
Location: ASHTABULA, ASHTABULA County, OHIO, 44004
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $76.9 million to RMI TITANIUM COMPANY for work described as: Key points: 1. The contract awarded to RMI Titanium Company for industrial building construction totaled $76.9 million. 2. Awarded by the Department of Energy, the contract spanned nearly nine years. 3. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns. 4. The absence of competition raises concerns about potential overpayment and value for taxpayer money.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if the $76.9 million represented fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This significantly restricts price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competitive bidding likely resulted in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract raises questions about ongoing necessity and cost-effectiveness. The specific industrial building construction project's impact on the public is unclear without further details.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Fixed Fee contract type
- Long contract duration (9 years)
Positive Signals
- Contract completed
- Awarded by a federal agency
Sector Analysis
Industrial building construction contracts can vary widely in cost depending on project scope and location. A $76.9 million contract over nine years suggests a significant, long-term facility or infrastructure project.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The data does not provide information on specific oversight mechanisms or accountability measures for this contract. The long duration and lack of competition warrant closer examination of oversight.
Related Government Programs
- Industrial Building Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition may have led to inflated costs.
- Cost Plus Fixed Fee contracts carry inherent risks of cost overruns.
- The long contract duration increases the risk of the project becoming outdated or unnecessary.
- Limited transparency regarding the justification for non-competition.
- No clear indication of small business participation.
Tags
industrial-building-construction, department-of-energy, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $76.9 million to RMI TITANIUM COMPANY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is RMI TITANIUM COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $76.9 million.
What is the period of performance?
Start: 1999-11-15. End: 2008-09-17.
What was the specific justification for limiting competition on this $76.9 million contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' but does not detail the specific justification. Typically, justifications for limited competition include factors like urgent and compelling needs, unique capabilities of a single source, or national security requirements. Without this information, it's impossible to assess the validity of the limitation.
What was the final cost compared to the initial estimated cost, and were there significant cost overruns?
The data provides the awarded amount ($76.9 million) and the duration, but not the initial estimated cost or a breakdown of final costs versus estimates. For Cost Plus Fixed Fee contracts, tracking cost overruns is crucial. Further analysis would require access to the contract's financial performance reports to determine if the final cost was reasonable.
What was the actual outcome or benefit derived from the industrial building construction funded by this contract?
The data indicates the contract was for 'Industrial Building Construction' but does not specify the project's outcome or benefits. Understanding the purpose and success of the constructed facility is essential to evaluating the overall value and effectiveness of the $76.9 million expenditure for the Department of Energy and the public.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 1800 E 21ST ST, ASHTABULA, OH, 14
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,291,490
Exercised Options: $49,810,705
Current Obligation: $76,905,005
Timeline
Start Date: 1999-11-15
Current End Date: 2008-09-17
Potential End Date: 2008-09-17 00:00:00
Last Modified: 2010-09-10
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