Department of Defense awards $71.5M contract for oil and gas pipeline construction to Weston Solutions Inc
Contract Overview
Contract Amount: $71,474,993 ($71.5M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2023-12-11
End Date: 2028-06-30
Contract Duration: 1,663 days
Daily Burn Rate: $43.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CLEAN INSPECT REP DGO 5,7,8,9 ISI DGO 1
Plain-Language Summary
Department of Defense obligated $71.5 million to WESTON SOLUTIONS INC for work described as: CLEAN INSPECT REP DGO 5,7,8,9 ISI DGO 1 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for construction services, indicating a need for infrastructure development. 3. The duration of the contract is over 1600 days, pointing to a long-term project. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The award value of $71.5 million places this contract within a significant spending category. 6. The specific North American Industry Classification System (NAICS) code 237120 relates to pipeline construction.
Value Assessment
Rating: good
The contract value of $71.5 million for oil and gas pipeline construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale infrastructure projects would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the contractor has assumed significant cost risk, which can be a positive indicator of value if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar pipeline construction projects, a definitive assessment of pricing efficiency is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests that the Department of the Navy sought the best value proposition from the market, rather than restricting opportunities to a select few contractors.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to market forces and a wider selection of qualified contractors, ensuring that public funds are used efficiently.
Public Impact
The primary beneficiaries are likely entities requiring oil and gas transportation infrastructure, potentially including energy companies and government facilities. The services delivered involve the construction of oil and gas pipelines and related structures. The geographic impact is likely concentrated in areas where new or upgraded pipeline infrastructure is needed, potentially across various military installations or strategic locations. Workforce implications include job creation in construction, engineering, and project management roles, supporting the skilled labor market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological or environmental challenges arise during construction.
- Risk of project delays due to permitting issues or supply chain disruptions for specialized materials.
- Ensuring compliance with stringent environmental regulations during pipeline construction can be complex and costly.
Positive Signals
- The firm fixed-price contract structure incentivizes the contractor to control costs and manage the project efficiently.
- Awarding through full and open competition suggests a robust vetting process for qualified contractors.
- The long contract duration allows for phased development and potential learning curve efficiencies.
Sector Analysis
The oil and gas pipeline construction sector is a critical component of the energy infrastructure, involving significant capital investment and complex engineering. This contract falls within the broader construction industry, specifically focusing on heavy civil engineering projects. The market is characterized by a few large, specialized firms capable of undertaking such large-scale projects. Spending in this sector is often driven by energy demand, infrastructure modernization needs, and regulatory requirements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Weston Solutions Inc., may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem. The absence of a set-aside suggests the requirement was likely beyond the scope or capacity typically addressed by small business set-aside programs.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and project managers, ensuring adherence to contract terms and performance standards. Accountability measures are embedded within the firm fixed-price structure, which holds the contractor financially responsible for project completion. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Construction
- Energy Infrastructure Projects
- Department of Defense Facilities Management
- Pipeline and Hazardous Materials Safety Administration (PHMSA) regulated projects
Risk Flags
- Potential for environmental impact during construction.
- Reliance on specialized materials and equipment could lead to supply chain vulnerabilities.
- Long project duration increases exposure to changing economic conditions and regulatory landscapes.
Tags
construction, department-of-defense, department-of-the-navy, oil-and-gas-pipeline, infrastructure, firm-fixed-price, full-and-open-competition, large-contract, energy-sector, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.5 million to WESTON SOLUTIONS INC. CLEAN INSPECT REP DGO 5,7,8,9 ISI DGO 1
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 Navy).
What is the total obligated amount?
The obligated amount is $71.5 million.
What is the period of performance?
Start: 2023-12-11. End: 2028-06-30.
What is the track record of Weston Solutions Inc. in completing large-scale pipeline construction projects for the Department of Defense?
Weston Solutions Inc. has a history of performing complex environmental, infrastructure, and construction projects. While specific details on their track record for large-scale oil and gas pipeline construction for the Department of Defense are not explicitly provided in this data snippet, their general experience in heavy civil construction and infrastructure development suggests a capability to handle such projects. A deeper dive into their past performance on similar government contracts, including project scope, timeliness, budget adherence, and client satisfaction, would be necessary for a comprehensive assessment. Reviewing contract award histories and performance evaluations would offer further insight into their reliability and expertise in this specific domain.
How does the awarded amount of $71.5 million compare to similar pipeline construction contracts awarded by the Department of Defense or other federal agencies?
The awarded amount of $71.5 million for oil and gas pipeline construction is a substantial figure, indicative of a significant infrastructure project. To benchmark this value effectively, it would be necessary to compare it against contracts for similar pipeline construction projects (e.g., length, diameter, terrain complexity, materials used) awarded by the Department of Defense or other federal agencies like the Department of the Interior or the Army Corps of Engineers. Factors such as the specific type of pipeline, the geographic location, and the prevailing market rates for labor and materials at the time of award would influence comparability. Without access to a database of comparable contracts, it is difficult to definitively state whether this represents a particularly high, low, or average cost.
What are the primary risks associated with this specific contract, and how are they being mitigated?
The primary risks associated with this contract likely include potential cost overruns due to unforeseen site conditions (e.g., geological challenges, environmental contamination), delays in obtaining permits or right-of-way access, and supply chain disruptions for specialized materials or equipment. The firm fixed-price contract structure inherently shifts much of the cost risk to Weston Solutions Inc., incentivizing them to manage these risks proactively. Mitigation strategies would typically involve thorough site investigations prior to award, robust project management planning, contingency planning for potential delays, and strong relationships with suppliers. The Department of the Navy's oversight would also play a crucial role in monitoring progress and ensuring compliance with mitigation plans.
What is the expected program effectiveness or outcome of this pipeline construction contract for the Department of Defense?
The expected outcome of this contract is the successful construction of oil and gas pipelines and related structures, which are critical for ensuring reliable energy supply and transportation for Department of Defense operations. This could involve supporting military bases, strategic energy reserves, or facilitating the movement of fuel resources. Program effectiveness will be measured by the contractor's ability to complete the project on time, within budget, and to the specified quality standards, ultimately delivering functional and durable infrastructure that meets the DoD's operational requirements. Reliable energy infrastructure is essential for maintaining mission readiness and operational continuity.
What have been the historical spending patterns for oil and gas pipeline construction by the Department of the Navy over the past five years?
Analyzing historical spending patterns for oil and gas pipeline construction by the Department of the Navy over the past five years would provide context for the $71.5 million award. This would involve examining the frequency, value, and types of contracts awarded in this category. Significant fluctuations or consistent high spending could indicate a strategic focus on energy infrastructure. Conversely, infrequent or low spending might suggest this is a less common requirement. Understanding these patterns helps assess whether this current contract represents a typical investment or a notable increase in this specific area of expenditure for the Navy.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N3943019R2101
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings, Inc.
Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,474,993
Exercised Options: $71,474,993
Current Obligation: $71,474,993
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $42,959,972
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3943020D2227
IDV Type: IDC
Timeline
Start Date: 2023-12-11
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2024-05-15
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