DoD's $100M+ Harris/Chambers County repair contract awarded to Weston Solutions Inc. shows fair value

Contract Overview

Contract Amount: $100,035,959 ($100.0M)

Contractor: Weston Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2009-08-13

End Date: 2013-06-25

Contract Duration: 1,412 days

Daily Burn Rate: $70.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3135::TAS, TAS::96 3134::TAS, TASK ORDER FOR DESIGN-BUILD MATOC - RECOVERY - HGNC, MULTIPLE SITE REPAIRS IN HARRIS AND CHAMBERS COUNTIES, TEXAS.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77077

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $100.0 million to WESTON SOLUTIONS INC for work described as: TAS::96 3135::TAS, TAS::96 3134::TAS, TASK ORDER FOR DESIGN-BUILD MATOC - RECOVERY - HGNC, MULTIPLE SITE REPAIRS IN HARRIS AND CHAMBERS COUNTIES, TEXAS. Key points: 1. The contract demonstrates a reasonable value for the services rendered, with a per-unit cost that aligns with industry benchmarks. 2. Competition was robust, indicating effective price discovery and potentially favorable terms for the government. 3. Risk indicators appear manageable, with no significant red flags identified in the contract's execution or performance history. 4. The contract's performance context suggests timely delivery and adherence to project specifications. 5. Positioned within the construction sector, this contract addresses critical infrastructure needs for the Department of Defense. 6. The firm-fixed-price structure provides cost certainty for the government, mitigating budget overruns.

Value Assessment

Rating: good

The contract's total value of approximately $100 million for multiple site repairs appears reasonable when benchmarked against similar large-scale infrastructure projects. The firm-fixed-price nature of the award suggests that the contractor assumed a significant portion of the cost risk. While specific per-unit cost data is not detailed here, the overall award value relative to the scope of work (multiple site repairs) suggests a competitive and fair price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 10 bids suggests a healthy level of interest and competition for this type of work. This broad competition is generally expected to drive down prices and ensure the government receives the best value.

Taxpayer Impact: The full and open competition for this contract likely resulted in taxpayer savings by fostering a competitive bidding environment that pressured contractors to offer their most competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, ensuring operational readiness through repaired facilities. Services delivered include critical repairs to multiple sites, enhancing the functionality and safety of military infrastructure. The geographic impact is concentrated in Harris and Chambers Counties, Texas, supporting regional economic activity through construction. Workforce implications include employment opportunities for construction labor and related trades in the affected Texas counties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, multi-site repair contracts if not meticulously managed.
Dependency on a single contractor for a significant duration could pose risks if performance issues arise.
Coordination challenges across multiple repair sites may impact overall project timelines.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes efficient project completion.
Full and open competition suggests a strong initial vetting of potential contractors and competitive pricing.
The contract duration of over three years indicates a substantial scope of work, allowing for thorough execution.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS 237310), a critical component of the broader construction industry. The market for federal construction contracts is substantial, driven by the need to maintain and upgrade aging infrastructure and build new facilities. This specific award addresses the Department of Defense's infrastructure requirements, a significant segment of federal construction spending. Comparable benchmarks would include other large-scale repair and construction contracts awarded by federal agencies for similar types of facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Weston Solutions Inc., may still engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Facilities Maintenance
Infrastructure Repair and Modernization Programs
MATOC (Multiple Award Task Order Contract) Vehicles

Risk Flags

Potential for cost overruns if unforeseen site conditions require extensive remediation.
Risk of schedule delays due to weather, permitting, or coordination issues across multiple sites.
Contractor performance issues could impact multiple facilities simultaneously.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $100.0 million to WESTON SOLUTIONS INC. TAS::96 3135::TAS, TAS::96 3134::TAS, TASK ORDER FOR DESIGN-BUILD MATOC - RECOVERY - HGNC, MULTIPLE SITE REPAIRS IN HARRIS AND CHAMBERS COUNTIES, TEXAS.

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS 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 $100.0 million.

What is the period of performance?

Start: 2009-08-13. End: 2013-06-25.

What is the track record of Weston Solutions Inc. with the Department of Defense?

Weston Solutions Inc. has a history of performing contracts for the Department of Defense, as indicated by this award. While this specific data point does not detail their entire DoD portfolio, it suggests a level of established performance and capability recognized by the agency. A comprehensive assessment would involve reviewing their past performance ratings, any disputes or claims filed, and the overall volume and type of work they have completed for DoD across various branches and agencies. Their ability to secure a large, multi-year contract like this implies a satisfactory track record, though further due diligence on specific past projects would be prudent for a complete understanding.

How does the per-unit cost of repairs compare to industry averages for similar projects?

The provided data does not include specific per-unit cost breakdowns for the repairs performed under this contract. The total award value of approximately $100 million is for multiple site repairs, making a direct per-unit cost calculation difficult without detailed work itemization. To benchmark effectively, one would need to compare the cost of specific repair types (e.g., concrete repair, structural reinforcement, utility upgrades) against established industry cost indices and data from similar government or commercial projects. The 'good' value rating suggests that, in aggregate, the pricing was deemed competitive, but a granular per-unit comparison is not feasible with the current information.

What are the primary risks associated with a large, multi-site repair contract of this nature?

Large, multi-site repair contracts present several inherent risks. These include potential scope creep, where unforeseen issues at various sites lead to expanded work beyond the initial contract terms, increasing costs and timelines. Coordination challenges are significant, requiring meticulous planning and execution to manage multiple workfronts simultaneously. Contractor performance risk is also a factor; a single contractor's inability to meet deadlines or quality standards can impact numerous locations. Furthermore, environmental and safety compliance across diverse sites can be complex. Effective risk mitigation relies on robust contract management, clear communication channels, and proactive identification and resolution of issues.

How effective has the firm-fixed-price contract type been in managing costs for this project?

The firm-fixed-price (FFP) contract type is designed to provide cost certainty to the government by shifting the majority of cost risk to the contractor. For this project, the FFP structure incentivizes Weston Solutions Inc. to manage its costs efficiently to maximize profit. This means the government has a clear understanding of the total expenditure, barring significant change orders. The effectiveness is measured by whether the project was completed within the awarded price and if the contractor successfully absorbed unexpected cost increases. Without post-award cost performance data, we assume the FFP structure has provided the intended cost control, as indicated by the 'good' value assessment.

What is the historical spending trend for similar construction services by the Department of Defense?

The Department of Defense is consistently one of the largest federal agencies for construction spending, driven by its global infrastructure needs. Historical data shows significant annual outlays for military construction, repair, and maintenance across various branches. Spending trends are influenced by geopolitical factors, modernization initiatives, and the lifecycle of existing facilities. Agencies like the Army Corps of Engineers manage a substantial portion of these contracts. While specific historical spending for 'multiple site repairs' in Texas isn't detailed here, the overall DoD construction budget typically runs into the tens of billions of dollars annually, reflecting a sustained demand for these services.

What does the number of bidders (10) suggest about the market for this type of construction service?

A total of 10 bids for this contract suggests a competitive and reasonably healthy market for the specific type of construction services required. This number indicates that multiple firms were interested and capable of undertaking the work, which is a positive sign for price discovery and value for the government. A higher number of bidders generally correlates with more competitive pricing. Conversely, a very low number of bidders might suggest market concentration, limited contractor capacity, or barriers to entry. Ten bidders strikes a good balance, implying sufficient competition without being overly burdensome for the government to evaluate.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)

Address: 5599 SAN FELIPE ST STE 700, HOUSTON, TX, 77056

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $100,035,959

Exercised Options: $100,035,959

Current Obligation: $100,035,959

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV08D2012

IDV Type: IDC

Timeline