Department of Defense awarded $170M for gas turbine expansion services, with a 1,127-day duration

Contract Overview

Contract Amount: $169,511,398 ($169.5M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-08-31

End Date: 2009-10-01

Contract Duration: 1,127 days

Daily Burn Rate: $150.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: {PIIN: W91GXY06C0094} AL QUDAS GAS TURBINE EXPANSION

Plain-Language Summary

Department of Defense obligated $169.5 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY06C0094} AL QUDAS GAS TURBINE EXPANSION Key points: 1. The contract's value of approximately $170 million over its period of performance suggests a significant investment in energy infrastructure. 2. Competition dynamics for this contract are crucial to understanding if the pricing reflects market value. 3. The firm fixed-price contract type indicates a defined cost structure, potentially mitigating cost overrun risks for the government. 4. Performance context is limited without specific details on the expansion project's scope and objectives. 5. This contract falls within the administrative and management consulting services sector, supporting broader defense operations. 6. The award to 'Miscellaneous Foreign Awardees' raises questions about the specific entities involved and their qualifications.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of the gas turbine expansion. The total award of approximately $170 million over roughly three years implies a substantial project. However, without comparable projects or detailed cost breakdowns, it's difficult to definitively assess value for money. The firm fixed-price nature suggests an attempt to control costs, but the ultimate value depends on the successful delivery of the intended expansion.

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 offers. This generally promotes a competitive environment, which can lead to better pricing and quality. The number of bidders is not specified, but the 'full and open' designation suggests a robust bidding process was intended.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider pool of potential contractors, leading to more competitive pricing.

Public Impact

The primary beneficiaries are likely the Department of Defense and its operational units that rely on the expanded gas turbine capacity for power generation. The services delivered involve the expansion of gas turbine capabilities, crucial for energy security and operational readiness. The geographic impact is likely concentrated at the specific military installation where the gas turbine expansion is implemented. Workforce implications could include the employment of specialized engineers, technicians, and project managers for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'Miscellaneous Foreign Awardees' makes it difficult to assess their track record and capabilities.
The broad NAICS code 'Administrative Management and General Management Consulting Services' may not fully capture the technical nature of gas turbine expansion.
The contract duration of over three years (1,127 days) requires sustained oversight to ensure performance and value.

Positive Signals

Awarded under 'full and open competition,' suggesting a competitive bidding process.
The 'firm fixed price' contract type provides cost certainty for the government.
The substantial award amount indicates a significant project deemed important by the Department of the Army.

Sector Analysis

This contract falls within the broader energy and infrastructure sector, specifically related to power generation and management. The administrative and management consulting services NAICS code (541611) is applied, which might encompass project management, planning, and oversight for such an expansion. Comparable spending benchmarks would typically involve analyzing other large-scale energy infrastructure projects awarded by government entities, considering factors like project scale, technology, and location.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the substantial value and specialized nature of gas turbine expansion, it is less likely to be a primary focus for small business set-asides, though small businesses could potentially participate as subcontractors.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, project managers, and potentially contracting officer's representatives (CORs) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified expansion within the agreed-upon cost. Transparency is facilitated by the public nature of contract awards, though specific project details and performance metrics may be less accessible.

Related Government Programs

Department of Defense Energy Infrastructure Projects
Military Base Power Generation Contracts
Gas Turbine Maintenance and Expansion Services
Foreign Military Sales Support

Risk Flags

Lack of specific contractor identification
Ambiguous project scope
Potential for communication barriers with foreign awardees
Difficulty in assessing contractor performance history

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $169.5 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY06C0094} AL QUDAS GAS TURBINE EXPANSION

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 $169.5 million.

What is the period of performance?

Start: 2006-08-31. End: 2009-10-01.

What specific gas turbine expansion project was undertaken, and what were its objectives?

The provided data identifies the contract as 'AL QUDAS GAS TURBINE EXPANSION' with PIIN W91GXY06C0094. However, the specific objectives, location, and technical scope of this expansion are not detailed in the summary data. Further investigation into the contract's statement of work (SOW) or related documentation would be necessary to understand the precise nature of the expansion, such as increasing capacity, improving efficiency, or replacing aging equipment. The 'Al Qudas' designation might suggest a specific base or region, potentially in a Middle Eastern theater, given historical military operations.

Who are the 'Miscellaneous Foreign Awardees,' and what is their experience with gas turbine projects?

The designation 'Miscellaneous Foreign Awardees' is highly generic and does not identify the specific companies or entities that received the contract funds. This lack of specificity makes it impossible to assess their track record, technical expertise, or past performance on similar gas turbine expansion projects. It could refer to a consortium of foreign companies, a single entity operating under a broad designation, or even intermediaries. Understanding the actual awardees is critical for evaluating contractor reliability and the overall value proposition of the contract.

How does the $170 million award compare to typical costs for similar gas turbine expansion projects?

Benchmarking the $170 million award against similar gas turbine expansion projects is difficult without more specific project details. Factors influencing cost include the size and type of turbines, the scope of the expansion (e.g., adding new units, upgrading existing ones, balance of plant), the geographic location, and prevailing market conditions for materials and labor. Generally, large-scale industrial projects like this can range from tens to hundreds of millions of dollars. A firm fixed-price contract for such a project suggests a significant commitment, and its value would be assessed against the delivered capacity and operational improvements.

What are the potential risks associated with awarding a large contract to 'Miscellaneous Foreign Awardees'?

Awarding a contract to 'Miscellaneous Foreign Awardees' presents several potential risks. These include challenges in verifying the contractors' qualifications, financial stability, and adherence to ethical standards. Communication barriers, differing legal and regulatory environments, and difficulties in enforcing contract terms or resolving disputes can arise. Furthermore, there may be concerns regarding supply chain security, intellectual property protection, and the potential for undisclosed subcontractors. The lack of transparency inherent in such a designation necessitates heightened oversight and due diligence from the contracting agency.

What is the significance of the 'full and open competition' designation for this contract?

The 'full and open competition' designation signifies that the Department of the Army sought offers from all responsible sources capable of meeting the contract requirements. This approach is generally preferred as it maximizes the potential for competitive pricing, encourages innovation, and ensures that the government obtains the best value. It implies that the agency did not restrict the bidding pool based on specific criteria, other than those necessary to ensure capability and responsibility. The success of this competition in achieving optimal outcomes depends on the number and quality of bids received.

How does the firm fixed-price contract type impact risk allocation for this project?

A firm fixed-price (FFP) contract type shifts the majority of the cost 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 the government with cost certainty and protects against budget overruns, assuming the scope of work is well-defined. However, it can also incentivize contractors to cut corners on quality if not properly monitored, or lead to higher initial bids to account for the contractor's risk. For a complex project like gas turbine expansion, careful scope definition and robust oversight are crucial to mitigate these potential downsides.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

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: $169,511,398

Exercised Options: $169,511,398

Current Obligation: $169,511,398

Contract Characteristics

Cost or Pricing Data: NO

Timeline