DoD Awards $480M for Bottled Water Services to Miscellaneous Foreign Awardees Under Full and Open Competition
Contract Overview
Contract Amount: $480,143,000 ($480.1M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2005-05-24
End Date: 2008-09-27
Contract Duration: 1,222 days
Daily Burn Rate: $392.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: {PIIN: W27P4A05C0002} BOTTLED WATER
Plain-Language Summary
Department of Defense obligated $480.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W27P4A05C0002} BOTTLED WATER Key points: 1. Significant spending on bottled water services highlights potential for cost savings through alternative solutions. 2. The award to foreign entities raises questions about domestic sourcing and potential supply chain vulnerabilities. 3. A large contract value suggests a substantial need, but the specific services require further scrutiny for efficiency. 4. The administrative management and general management consulting services NAICS code may not fully capture the scope of bottled water provision.
Value Assessment
Rating: questionable
The contract value of $480 million for bottled water is exceptionally high. Without specific per-unit data or service details, it's difficult to benchmark against typical procurement costs for such a commodity, raising concerns about potential overspending.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation process. However, the substantial value and the nature of the product suggest that the price discovery mechanism may not have yielded the most cost-effective outcome.
Taxpayer Impact: The significant expenditure on bottled water services represents a considerable allocation of taxpayer funds that could potentially be redirected to other critical needs if more efficient procurement strategies were employed.
Public Impact
Taxpayers are funding a substantial amount for bottled water, a basic necessity that could potentially be sourced more affordably. The reliance on foreign awardees for a commodity like bottled water raises questions about national security and domestic economic support. The long contract duration (over 3 years) means taxpayers are committed to this spending level for an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a commodity item
- Award to foreign entities
- Potential for more cost-effective alternatives
- Lack of detailed service scope
Positive Signals
- Awarded under full and open competition
Sector Analysis
The procurement falls under administrative management and general management consulting services, which is an unusual NAICS code for bottled water. This suggests the contract may encompass broader logistical or support services beyond just the water itself, but the specific context is unclear. Benchmarking spending is difficult without clearer service definitions.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity to support small business participation in government contracting.
Oversight & Accountability
Further oversight is needed to understand the specific services rendered under this contract and to ensure the value received aligns with the significant expenditure. Accountability for cost-effectiveness should be a priority.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value for a commodity
- Unusual NAICS code for the service provided
- Award to foreign entities
- Lack of small business participation
- Potential for cost savings through alternative solutions
Tags
administrative-management-and-general-ma, department-of-defense, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $480.1 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W27P4A05C0002} BOTTLED WATER
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $480.1 million.
What is the period of performance?
Start: 2005-05-24. End: 2008-09-27.
What specific services are included under 'Administrative Management and General Management Consulting Services' for bottled water, and how do these justify the $480 million cost?
The NAICS code 541611 typically covers management consulting services. For this contract, it likely includes logistics, distribution, supply chain management, and potentially water quality assurance services related to bottled water provision. The high cost suggests a complex, large-scale operation, possibly supporting deployed forces in remote or challenging environments, rather than just simple water delivery.
What are the risks associated with awarding a large bottled water contract to miscellaneous foreign awardees, particularly concerning supply chain reliability and national security?
Awarding significant contracts for essential goods like bottled water to foreign entities introduces supply chain risks, including potential disruptions due to geopolitical events, trade disputes, or logistical challenges. It may also impact domestic industries and jobs. National security concerns could arise if the supply chain becomes compromised or if reliance on foreign sources creates strategic vulnerabilities.
How effective is the current procurement strategy in ensuring the best value for taxpayer money, given the high cost of bottled water services?
The effectiveness of the current strategy is questionable due to the exceptionally high contract value for bottled water. While full and open competition was utilized, the sheer amount spent suggests that alternative procurement methods or negotiation strategies might yield better value. A detailed cost-benefit analysis and comparison with domestic sourcing or alternative water solutions are needed to assess true effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $480,143,000
Exercised Options: $480,143,000
Current Obligation: $480,143,000
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2005-05-24
Current End Date: 2008-09-27
Potential End Date: 2008-09-27 00:00:00
Last Modified: 2009-02-06
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