DoD Awards $50M for Water/Sewer Construction to DOBCO Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $49,980,767 ($50.0M)
Contractor: Dobco Inc
Awarding Agency: Department of Defense
Start Date: 2019-02-27
End Date: 2025-06-19
Contract Duration: 2,304 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF PHASE 1
Place of Performance
Location: DOVER AFB, KENT County, DELAWARE, 19902
State: Delaware Government Spending
Plain-Language Summary
Department of Defense obligated $50.0 million to DOBCO INC for work described as: IGF::OT::IGF PHASE 1 Key points: 1. Contract awarded to DOBCO INC for $49.98M. 2. Competition type: Full and Open Competition. 3. Sector: Construction (NAICS 237110). 4. Contract duration is 2304 days. 5. No small business participation noted.
Value Assessment
Rating: good
The contract value of $49.98M appears reasonable for a large-scale water and sewer construction project of this duration. Benchmarking against similar large infrastructure projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure development, with competition aiming to ensure value for money.
Public Impact
Ensures critical water and sewer infrastructure upgrades. Supports local employment and economic activity in Delaware. Long-term project with potential for follow-on work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation.
- Long contract duration (2304 days).
Positive Signals
- Full and open competition.
- Firm fixed price contract.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on water and sewer systems. Spending in this sector is often driven by infrastructure needs and government investment.
Small Business Impact
The contract does not indicate any specific provisions or participation from small businesses. Future contracts of this nature could benefit from including small business set-asides or subcontracting goals.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction contracts are expected to be in place.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Potential for cost escalation due to long duration.
- Dependency on contractor's capacity for a large project.
- Environmental considerations for water/sewer infrastructure.
Tags
water-and-sewer-line-and-related-structu, department-of-defense, de, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.0 million to DOBCO INC. IGF::OT::IGF PHASE 1
Who is the contractor on this award?
The obligated recipient is DOBCO 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 $50.0 million.
What is the period of performance?
Start: 2019-02-27. End: 2025-06-19.
What is the projected impact of this infrastructure spending on the local economy in Delaware?
This $50 million contract is expected to stimulate the local economy in Delaware through job creation in construction and related trades. It will also likely boost demand for local materials and services, contributing to economic activity. The long-term benefit includes improved public health and environmental quality through upgraded water and sewer systems.
Are there any identified risks associated with the long duration of this contract?
The 2304-day duration presents risks such as potential cost overruns due to inflation, material price volatility, and unforeseen site conditions. Changes in technology or regulatory requirements over the project's lifespan could also necessitate costly modifications. Effective project management and contingency planning are crucial to mitigate these risks.
How does the firm fixed price structure benefit taxpayers on this project?
A firm fixed price contract shifts the risk of cost overruns to the contractor, DOBCO INC. This provides taxpayers with cost certainty, as the final price is established upfront, barring any approved change orders. It incentivizes the contractor to manage costs efficiently to maximize profit.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line 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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912BU17R0032
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 30 GALESI DRIVE SUITE 202A, WAYNE, NJ, 07470
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,980,767
Exercised Options: $49,980,767
Current Obligation: $49,980,767
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-02-27
Current End Date: 2025-06-19
Potential End Date: 2025-06-19 00:00:00
Last Modified: 2025-12-15
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