DoD awards $5.56M for miscellaneous repairs, raising questions about competition and value

Contract Overview

Contract Amount: $5,553,657 ($5.6M)

Contractor: T1-Rjs Joint Venture LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-10

End Date: 2026-03-26

Contract Duration: 990 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MMD FPF MISCELLANEOUS REPAIRS

Place of Performance

Location: ENUMCLAW, KING County, WASHINGTON, 98022

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to T1-RJS JOINT VENTURE LLC for work described as: MMD FPF MISCELLANEOUS REPAIRS Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Fixed-price contract type suggests cost certainty for the government. 3. Long duration of 990 days may indicate complex or phased work. 4. Small business participation is not explicitly detailed, warranting further review. 5. The contract falls under heavy and civil engineering construction, a broad category. 6. Geographic location in Washington state may influence local labor costs and material availability.

Value Assessment

Rating: questionable

The contract's value of $5.56 million for miscellaneous repairs is difficult to benchmark without specific details on the scope of work. Given the sole-source nature, it's challenging to assess if the pricing reflects competitive market rates. The fixed-price structure offers some cost predictability, but the absence of competition means potential savings may have been forgone. Further analysis of the specific repair items and their associated costs would be necessary to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach bypasses the standard procurement process where multiple vendors would bid, potentially leading to lower prices and a wider selection of qualified contractors. The lack of competition limits the government's ability to leverage market forces for optimal pricing and service.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the selected contractor offered the best possible price for the required services.

Public Impact

The Department of the Army is the primary beneficiary, receiving the repair services. The contract is intended to address miscellaneous heavy and civil engineering construction needs. Services will be delivered within Washington state, potentially impacting local infrastructure. The contract may support local construction workforce employment in the Washington area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment.
The broad 'miscellaneous repairs' category makes it difficult to assess the specific value and necessity of the work.
Long contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Awarded to T1-RJS JOINT VENTURE LLC, suggesting a potentially specialized or pre-qualified vendor.
The contract is for essential infrastructure repairs, contributing to facility maintenance.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector (NAICS 237990), which includes establishments primarily engaged in constructing heavy infrastructure projects such as highways, streets, bridges, tunnels, and water/sewer systems. The total federal spending in this sector can be substantial, often driven by infrastructure initiatives. This specific contract for miscellaneous repairs represents a small portion of overall federal construction outlays but is critical for maintaining existing assets.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and it was not set aside for small businesses (ss is false). This suggests that the contract was awarded to a large business or a joint venture that does not qualify as a small business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in fulfilling parts of this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the specific scope of work and the justification for the sole-source award would be crucial for public accountability. The Inspector General's office for the Department of Defense may also have jurisdiction for audits or investigations if concerns arise.

Related Government Programs

Federal Buildings and Facilities Construction
Military Construction
Infrastructure Repair and Maintenance
Heavy and Civil Engineering Construction Services

Risk Flags

Sole-source award lacks competitive justification.
Undefined scope of 'miscellaneous repairs' hinders value assessment.
Long contract duration increases risk of cost escalation and scope creep.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to T1-RJS JOINT VENTURE LLC. MMD FPF MISCELLANEOUS REPAIRS

Who is the contractor on this award?

The obligated recipient is T1-RJS JOINT VENTURE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2023-07-10. End: 2026-03-26.

What specific types of 'miscellaneous repairs' are covered under this contract, and what is the justification for the sole-source award?

The provided data does not detail the specific 'miscellaneous repairs' included in the $5.56 million contract awarded to T1-RJS JOINT VENTURE LLC. The justification for the sole-source award, indicated as 'NOT AVAILABLE FOR COMPETITION', is also not elaborated upon. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without further documentation, it is impossible to ascertain the precise nature of the repairs or the validity of the non-competitive procurement. This lack of transparency hinders a thorough assessment of value for money and adherence to procurement best practices.

How does the $5.56 million contract value compare to similar miscellaneous repair contracts awarded by the Department of the Army or other federal agencies?

Benchmarking this $5.56 million contract against similar 'miscellaneous repairs' is challenging due to the broad and undefined nature of the work scope. Federal contracts for construction and repair vary significantly based on geographic location, specific asset types (e.g., buildings, roads, utilities), and the complexity of the required work. Without detailed specifications for the repairs covered, a direct comparison is speculative. However, for large-scale infrastructure or facility repair projects, $5.56 million is a significant sum, underscoring the importance of ensuring competitive pricing and clear deliverables, which are absent in this sole-source award.

What are the potential risks associated with a sole-source award for a contract of this duration (990 days)?

A sole-source award for a long-duration contract like this (990 days) presents several risks. Firstly, the lack of competition means the government may not be receiving the most cost-effective solution, potentially leading to overspending. Secondly, without competitive pressure, the contractor may have less incentive to innovate or maintain high service quality throughout the contract period. Thirdly, the extended duration increases the risk of scope creep, where the project expands beyond its original intent, leading to cost overruns. Finally, if unforeseen issues arise or the contractor underperforms, the government has limited options for recourse or replacement due to the non-competitive nature of the award.

What is the track record of T1-RJS JOINT VENTURE LLC in performing federal construction contracts, particularly those of similar size and scope?

Information regarding the specific track record of T1-RJS JOINT VENTURE LLC in performing federal construction contracts is not detailed in the provided data. As a joint venture, its performance history may be a composite of its constituent members or specific to projects undertaken under the joint venture entity. To assess their reliability and past performance, a review of their contract history, including past performance evaluations, any disputes or claims, and successful completion of similar projects, would be necessary. This information is typically available through federal procurement databases like SAM.gov or through agency-specific past performance repositories.

What are the implications of the 'firm fixed price' contract type for cost management and potential budget overruns?

A 'firm fixed price' (FFP) contract type is generally favorable for the government as it shifts the majority of the risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty and protects against cost overruns stemming from the contractor's performance or efficiency. However, if the initial price was not adequately determined due to the lack of competition, the government might still be overpaying. Conversely, if the scope is poorly defined, the contractor might face challenges delivering the full scope within the fixed price, potentially leading to disputes or quality compromises.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DW23R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 TREMONT ST, NORTH BEND, OR, 97459

Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,553,657

Exercised Options: $5,553,657

Current Obligation: $5,553,657

Actual Outlays: $955,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline