Navy awards $5.39M crude petroleum extraction contract to PCI Support Services LLC

Contract Overview

Contract Amount: $5,387,296 ($5.4M)

Contractor: PCI Support Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-12

End Date: 2026-07-14

Contract Duration: 670 days

Daily Burn Rate: $8.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: X005 LEASE OF TPFS ON PIER 5A TO SUPPORT THE BUSH

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to PCI SUPPORT SERVICES LLC for work described as: X005 LEASE OF TPFS ON PIER 5A TO SUPPORT THE BUSH Key points: 1. Contract value appears reasonable for specialized support services. 2. Limited competition raises questions about optimal pricing. 3. Contract duration of 670 days suggests a medium-term operational need. 4. Fixed-price contract type shifts performance risk to the contractor. 5. This contract supports critical infrastructure at Pier 5A. 6. Geographic focus on Virginia aligns with naval operations.

Value Assessment

Rating: fair

The contract value of $5.39 million for a 670-day period for crude petroleum extraction support is difficult to benchmark without more specific service details. However, given the specialized nature of supporting naval infrastructure, the price may be within a reasonable range. Further analysis would require comparison to similar support contracts at other naval facilities or for comparable industrial operations. The firm fixed-price structure suggests the government has negotiated a ceiling price, but the ultimate value depends on the contractor's efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one vendor, PCI Support Services LLC, was solicited or deemed capable of performing the required services. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less competitive pricing compared to full and open competition. The lack of multiple bidders limits the government's ability to leverage market forces for cost savings.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. This could lead to higher overall costs for the services rendered.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring operational readiness at Pier 5A. Services delivered include support for crude petroleum extraction, vital for naval fuel supply chains. The geographic impact is concentrated in Virginia, supporting naval base operations. Workforce implications include employment opportunities for specialized personnel required by PCI Support Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of detailed service description makes it difficult to assess true value for money.
Contract performance risks are borne by the contractor, but oversight is crucial to ensure quality.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable, ongoing need for these services.
Award to a specific contractor may indicate specialized expertise required for the task.

Sector Analysis

The crude petroleum extraction sector, while not a primary focus for many government contracts, is critical for energy supply chains. This contract likely supports the logistical or operational aspects of fuel handling and storage at a naval facility. Comparable spending benchmarks are difficult to establish without more context on the specific services provided, but it falls within the broader category of industrial support services for defense infrastructure. The market for such specialized support can be limited, potentially explaining the sole-source nature of this award.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, PCI Support Services LLC, will likely manage the execution of the contract, and any subcontracting would be at their discretion, not driven by set-aside requirements.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to perform efficiently. Transparency is facilitated through contract databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Support Services
Petroleum Logistics and Storage
Defense Fuel Supply Contracts
Industrial Support Services
Virginia Defense Contracts

Risk Flags

Sole-source award requires justification and increases risk of non-competitive pricing.
Ambiguity in service description ('crude petroleum extraction support') necessitates further clarification.
Limited public data makes independent value-for-money assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to PCI SUPPORT SERVICES LLC. X005 LEASE OF TPFS ON PIER 5A TO SUPPORT THE BUSH

Who is the contractor on this award?

The obligated recipient is PCI SUPPORT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-09-12. End: 2026-07-14.

What is the specific nature of the 'crude petroleum extraction support' being provided under this contract?

The provided data indicates the contract is for 'X005 LEASE OF TPFS ON PIER 5A TO SUPPORT THE BUSH' and the North American Industry Classification System (NAICS) code is '211120', which corresponds to Crude Petroleum and Natural Gas Extraction. However, in the context of a naval facility, 'extraction support' likely refers to services related to the handling, storage, or transfer of petroleum products rather than actual drilling or extraction operations. This could involve specialized equipment leasing (like TPFS - Temporary Petroleum Fueling Systems), maintenance of fuel storage facilities, or logistical support for fuel movement at Pier 5A. The exact nature requires further clarification from the awarding agency's contract description.

How does the $5.39 million contract value compare to similar support services for naval fuel infrastructure?

Benchmarking this $5.39 million contract value is challenging without more granular data on the specific services rendered and their duration. Contracts for naval base support can vary significantly based on location, scope, and duration. For instance, contracts for fuel depot maintenance, pipeline operations, or specialized equipment leasing can range from hundreds of thousands to tens of millions of dollars. Given the 670-day term (approximately 22 months), the annual value is around $3.17 million. This figure needs to be compared against similar sole-source or limited-competition contracts for specialized petroleum support at other naval installations to determine if it represents fair market value.

What are the primary risks associated with a sole-source award for this type of service?

The primary risk of a sole-source award, as seen in this 'NOT AVAILABLE FOR COMPETITION' contract, is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective solution. Additionally, there's a risk that the sole-source provider might not possess the absolute best or most innovative solution available in the market, as competition often drives innovation. Ensuring adequate oversight and performance monitoring becomes even more critical to mitigate these risks and confirm the necessity and reasonableness of the sole-source justification.

What is the historical spending pattern for crude petroleum extraction support at this naval facility or agency?

Historical spending data for 'Crude Petroleum Extraction' support at this specific naval facility or for the Department of the Navy is not directly available from the provided data snippet. The NAICS code 211120 typically relates to the oil and gas extraction industry, which is unusual for a naval base unless it pertains to specialized fuel handling or storage infrastructure. To analyze historical patterns, one would need to query federal procurement databases (like FPDS or USASpending) for similar contracts awarded to PCI Support Services LLC or other contractors under relevant NAICS codes or service descriptions related to fuel logistics and infrastructure support at naval installations over the past several years.

What is the track record of PCI Support Services LLC in performing similar government contracts?

The provided data identifies PCI Support Services LLC as the contractor but does not offer details on their track record with government contracts. A thorough assessment would require examining their past performance history, including contract awards, past performance evaluations, and any history of contract disputes or terminations. Information on their experience with similar services, particularly those involving naval infrastructure or petroleum logistics, would be crucial. This information is typically available through government contract databases and past performance repositories, which are not included in the initial data.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Oil and Gas Extraction › Crude Petroleum Extraction

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N4008523R2607

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3480 HIGHWAY 21 N, ATMORE, AL, 36502

Business Categories: 8(a) Program Participant, Category Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,442,848

Exercised Options: $5,423,296

Current Obligation: $5,387,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008523D0055

IDV Type: IDC

Timeline