DoD's $74.8M Bottled Water Contract Awarded to Composite Analysis Group, Inc
Contract Overview
Contract Amount: $74,802,130 ($74.8M)
Contractor: Composite Analysis Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-02
End Date: 2010-05-25
Contract Duration: 1,726 days
Daily Burn Rate: $43.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: NORCROSS, GWINNETT County, GEORGIA, 30093
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $74.8 million to COMPOSITE ANALYSIS GROUP, INC. for work described as: Key points: 1. Significant spending on bottled water highlights potential for cost savings in commodity procurement. 2. The contract's duration and value suggest a substantial, long-term need for this essential resource. 3. Full and open competition after exclusion of sources indicates a complex procurement history. 4. The fixed-price contract type aims to control costs, but monitoring is crucial for value. 5. Lack of small business participation warrants further investigation into contracting opportunities.
Value Assessment
Rating: fair
The contract value of $74.8 million over five years for bottled water appears high for a commodity. Benchmarking against similar large-scale water procurement contracts is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a non-standard or potentially restrictive initial approach. This could limit price discovery and competition, potentially leading to higher costs.
Taxpayer Impact: The substantial award amount indicates a significant taxpayer investment. Ensuring competitive pricing and efficient delivery is paramount to maximizing taxpayer value.
Public Impact
Ensures a consistent supply of a critical resource, particularly for military operations and personnel. The large contract value represents a significant portion of federal spending in this niche manufacturing sector. Potential for cost overruns if not managed effectively, impacting overall defense budget allocation. Raises questions about the necessity and scale of such a large contract for bottled water.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a commodity.
- Limited competition method.
- No small business participation.
- Long contract duration.
Positive Signals
- Firm fixed price contract type.
- Ensures supply continuity.
Sector Analysis
The bottled water manufacturing sector is generally characterized by high volume, low margin production. Federal contracts of this magnitude are significant within this sector, potentially influencing market dynamics and pricing for other large buyers.
Small Business Impact
The absence of small business participation in this contract is notable. Further analysis is needed to understand if opportunities were overlooked or if the contract's scale inherently favors larger entities.
Oversight & Accountability
The 'exclusion of sources' clause in the competition method warrants closer oversight to ensure fairness and prevent potential anti-competitive practices. Regular performance reviews and cost audits are essential.
Related Government Programs
- Bottled Water Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for inflated pricing due to limited competition.
- Risk of vendor dependency over the contract's long duration.
- Lack of small business involvement.
- Commodity procurement at a very high aggregate cost.
Tags
bottled-water-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.8 million to COMPOSITE ANALYSIS GROUP, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is COMPOSITE ANALYSIS GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $74.8 million.
What is the period of performance?
Start: 2005-09-02. End: 2010-05-25.
What specific factors led to the exclusion of sources in the initial procurement phase, and how did this impact the final contract price?
The exclusion of sources suggests that certain vendors or methods were deemed unsuitable or unavailable for the initial bidding process. This limitation on the competitive pool could have resulted in less aggressive pricing from the outset. A thorough review of the justification for exclusion and the subsequent bidding process is needed to assess the true impact on taxpayer cost.
Given the high value and long duration, what are the primary risks associated with this contract's execution and cost-effectiveness?
Key risks include potential price escalation beyond initial projections, especially if market conditions for raw materials or distribution change significantly. There's also a risk of vendor lock-in, reducing future negotiation leverage. Ensuring strict adherence to the firm fixed price and monitoring delivery quality are critical to mitigate these risks and maintain cost-effectiveness.
How effectively does this contract ensure the reliable and cost-efficient supply of bottled water compared to alternative procurement strategies?
The firm fixed price and long-term nature aim for reliability and predictable costs. However, the limited competition raises questions about optimal cost-efficiency. Alternative strategies, such as consolidating requirements, exploring regional distribution hubs, or leveraging existing commercial supply agreements, might offer better value if competition could be broadened.
Industry Classification
NAICS: Manufacturing › Beverage Manufacturing › Bottled Water Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1701 OAKBROOK DR STE D, NORCROSS, GA, 30093
Business Categories: Category Business, Manufacturer of Goods, Small Business, Subchapter S Corporation, Veteran Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACW3303D0003
IDV Type: IDC
Timeline
Start Date: 2005-09-02
Current End Date: 2010-05-25
Potential End Date: 2010-05-25 00:00:00
Last Modified: 2020-09-27
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