DoD's $30.3M IGF contract for minor repairs awarded to Weston Solutions Inc. shows fair value
Contract Overview
Contract Amount: $30,312,872 ($30.3M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2017-09-25
End Date: 2021-09-25
Contract Duration: 1,461 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF MINOR REPAIR BASE YEAR FUNDING
Place of Performance
Location: WEST CHESTER, CHESTER County, PENNSYLVANIA, 19380
Plain-Language Summary
Department of Defense obligated $30.3 million to WESTON SOLUTIONS INC for work described as: IGF::CT::IGF MINOR REPAIR BASE YEAR FUNDING Key points: 1. The contract's value appears reasonable when benchmarked against similar repair and maintenance services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of 1461 days (4 years) provides long-term service stability. 5. The North American Industry Classification System (NAICS) code 213112 indicates services related to oil and gas operations support. 6. The contract was awarded as a delivery order under a larger contract vehicle.
Value Assessment
Rating: good
The contract's total value of $30.3 million over four years suggests a per-year cost of approximately $7.58 million. Benchmarking against similar base repair and maintenance contracts indicates this pricing is within a competitive range. The firm-fixed-price structure further supports value by locking in costs and shifting risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The award as a delivery order suggests it was part of a pre-established contract vehicle.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.
Public Impact
The Department of Defense benefits from essential minor repair services to maintain operational readiness. Services are delivered to support activities related to oil and gas operations, crucial for energy infrastructure. The contract's geographic impact is likely concentrated around the specific military installation(s) where repairs are performed. The contract supports a workforce skilled in specialized repair and maintenance, contributing to the local economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific bidder count limits full assessment of competitive intensity.
- Details on specific performance metrics and quality assurance are not readily available.
- Potential for scope creep if 'minor repairs' definition is not strictly managed.
Positive Signals
- Firm-fixed-price contract type minimizes financial risk for the government.
- Long contract duration provides stability and predictability for essential services.
- Awarded under full and open competition, suggesting a robust bidding process.
Sector Analysis
The contract falls within the broader construction and maintenance services sector, specifically supporting activities related to oil and gas infrastructure. This niche often requires specialized expertise. Comparable spending in this sector for government facilities can vary widely based on location and the specific type of infrastructure requiring maintenance.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Weston Solutions Inc., may engage small businesses as subcontractors, which would be detailed in subcontracting plans not provided here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of Defense contracting command. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is facilitated through contract award databases, though detailed performance reports may be internal.
Related Government Programs
- Base Operations Support (BOS)
- Facility Maintenance and Repair Contracts
- Defense Infrastructure Projects
- Energy Infrastructure Support Services
Risk Flags
- Potential for scope creep
- Contractor performance variability
- Market concentration in specialized services
Tags
defense, department-of-defense, army, weston-solutions-inc, firm-fixed-price, full-and-open-competition, delivery-order, oil-and-gas-support, facility-maintenance, pennsylvania, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to WESTON SOLUTIONS INC. IGF::CT::IGF MINOR REPAIR BASE YEAR FUNDING
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 $30.3 million.
What is the period of performance?
Start: 2017-09-25. End: 2021-09-25.
What is the track record of Weston Solutions Inc. with the Department of Defense?
Weston Solutions Inc. has a history of contracting with the Department of Defense, as evidenced by this award. A comprehensive review would involve examining past performance evaluations, any documented disputes or claims, and the overall volume and type of work previously performed for the DoD. Analyzing their performance on similar repair and maintenance contracts, particularly those with firm-fixed-price structures and long durations, would provide further insight into their reliability and capability to meet government requirements effectively and efficiently.
How does the pricing of this contract compare to similar government repair contracts?
The total contract value of $30.3 million over four years equates to an average annual expenditure of approximately $7.58 million. Benchmarking this against similar contracts for base repair and maintenance, especially those supporting specialized infrastructure like oil and gas operations, suggests the pricing is competitive. Firm-fixed-price contracts, by nature, aim to provide predictable costs, and this contract's value appears aligned with market rates for such specialized services, indicating good value for the government.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks include potential scope creep if the definition of 'minor repairs' is not strictly managed, and performance issues if the contractor fails to meet quality standards. The firm-fixed-price contract type mitigates financial risk by capping the government's liability. Mitigation for performance risk relies on robust government oversight, including regular inspections, performance reviews, and adherence to quality assurance surveillance plans. The long duration also presents a risk of contractor complacency, which requires proactive contract management.
How effective is the 'full and open competition' approach for this type of specialized service?
The 'full and open competition' approach is generally effective for specialized services like those required for oil and gas operations support. It allows a wide range of qualified contractors to bid, fostering a competitive environment that can lead to better pricing and innovation. However, the effectiveness is contingent on the clarity of the solicitation requirements and the government's ability to accurately assess the technical capabilities of diverse bidders. For highly specialized niches, ensuring enough bidders possess the requisite expertise is crucial for true price discovery.
What is the historical spending pattern for similar repair and maintenance services at this agency or within this sector?
Historical spending on similar repair and maintenance services within the Department of Defense, particularly for specialized infrastructure, can be substantial and fluctuate based on infrastructure age, modernization efforts, and operational tempo. Contracts for base operations support and facility maintenance often represent significant portions of agency budgets. Analyzing past spending on contracts with NAICS code 213112 or similar codes, and comparing award values and durations, would reveal trends in investment and identify potential cost efficiencies or areas of increased expenditure over time.
Industry Classification
NAICS: Mining, Quarrying, and Oil and Gas Extraction › Support Activities for Mining › Support Activities for Oil and Gas Operations
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DY17R0002
Offers Received: 6
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
Financial Breakdown
Contract Ceiling: $30,425,566
Exercised Options: $30,312,872
Current Obligation: $30,312,872
Subaward Activity
Number of Subawards: 310
Total Subaward Amount: $18,484,071
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13G0006
IDV Type: BOA
Timeline
Start Date: 2017-09-25
Current End Date: 2021-09-25
Potential End Date: 2022-03-25 00:00:00
Last Modified: 2022-12-01
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