Another day at work

Benham Constructors, LLC in Oklahoma, OK received a $55.1 million firm-fixed price contract to construct an advanced metal finishing facility building with various plating equipment at Robins Air Force Base, GA, while relocating a ground support equipment maintenance facility. Robins AFB is a major maintenance hub for the USAF, and the largest industrial complex in Georgia.

Work is expected to be complete by July 29/10. 16 bids were solicited on Jan 19/07, and 4 bids were received by the U.S. Army Engineer District in Savannah, GA (W912HN-08-C-0031).

Or, call PG&E…

Small business qualifier Sylvan Forest Products in Portland, OR received a $6.2 million modification to a previously awarded fixed-price with economic price adjustment contract for lumber and related products for the northwest region. Using services are the US Army, Navy, Air Force, Marine Corps and federal civilian agencies. The date of performance completion is Aug 19/08, and the Defense Supply Center Philadelphia in Philadelphia, PA issued the contract (SPM500-01-D-BP08).

Economic price adjustment contracts can receive modifications for 2 reasons: additional orders, or an adjustment to reflect a commodity’s rising price during a contract’s lifetime. Without that, small business qualifiers couldn’t afford to bid on many federal contracts due to the huge price fluctuation risk involved.

Pascagoula, 2005

In the wake of 2005’s Hurricane Katrina, the US passed Section 2203 of Public Law 109-234, “Emergency Supplemental Appropriations for Defense, The Global War on Terror and Hurricane Recovery 2006.” The stated purpose was to help shipbuilding capability recover by repairing and/or replacing shipbuilding facilities, “to make lasting improvement in shipyard facilities that would result in measurable cost reductions in current and future Navy shipbuilding contracts, and to improve the ability of shipbuilding facilities on the Gulf Coast to withstand damage from potential hurricanes or other natural disasters.”

Northrop Grumman Ship Systems (NGSS) has ‘won’ $98.6 million, the first of a series of contracts with Gulf Coast shipbuilders to be awarded under 109-234, s.2203. An $86.3 million firm-fixed-price contract for infrastructure improvements to NGSS shipyards in Pascagoula, MS (Panel Assembly Line at NGSS Ingalls, 61%) and Gulfport, MS (composite manufacturing facility, 26%) and a $12.4 million option for infrastructure improvements to the NGSS shipyard in New Orleans, LA (panel assembly line at NGSS Avondale, 13%). Avondale has received state modernization aid as well, after shoddy workmanship issues surfaced in relation to the LPD-17 ships being built there. Work is expected to be complete by September 2010. The contract was competitively procured and advertised via the Internet, with 18 proposals received from 7 offerors by the Naval Sea Systems Command, Washington, D.C. (N00024-07-C-2309).

Dehler Manufacturing Co. Inc. in Chicago, IL received a $6.1 million fixed-price-delivery order against GSA schedule contract GS-27-F-2030B in support of the Marine Corps Whole Room Concept (WRC) Program. The program is for the procurement of full room furnishings (furniture, drapes, carpet, television, wall art, artificial plants and decor) and includes delivery and installation for Marine Corps Base (MCB) Camp Lejeune and Marine Corps Air Station (MCAS) Cherry Point. The requirement also includes the removal and proper disposal of existing furniture and accessories.

Work will be performed at MCB Camp Lejeune, N.C. (63.9%), and MCAS Cherry Point, N.C. (36.1%), and is expected to be complete by December 2007. Contract funds will expire at the end of the current fiscal year. This contract was competitively procured, with 3 offers received by the United States Marine Corps Contracting Department at Camp Lejeune, NC (M67001-07-F-0055).

DE&S HQ

As anyone who has ever dealt with them knows, national defense organizations aren’t exactly paperless. Over in Britain,
Ministry of Defense officials in Defence Equipment & Support (DE&S) realized that several MoD office supplies contracts were due to end in September 2007. They decided to combine all the planned purchases to maximize leverage with suppliers, whereupon the Office of Government Commerce saw an opportunity for wider collaboration. While other departments were added, the DE&S team commissioned Group Supplies Ltd. to help structure a commercial tender process; the company advised MoD to split the contract and undertake 4 auctions on sequential days, with the GBP 110 million stationery supplies requirement held the 1st day.

The result was a reverse auction contract involving 9 government departments, with winning bids totalling GBP 132 million in an outcome expected to save the MoD GBP 50 million over 4 years, and save all participants GBP 100 million overall. As of October 1/07, stationery will be supplied by Lyreco Uk Ltd, paper will be supplied by Office Depot UK Ltd., and Westcoast Ltd DBA Orion Media Marketing will supply magnetic media and electronic office supplies. Deliveries will take place to the UK MoD, and to Her Majesty’s Revenue and Customs, Home Office, Dept. of Constitutional Affairs, Metropolitan Police, Foreign and Commonwealth Office, Treasury, Office of Government Commerce, and Prison Service. MoD release.

Aqua-Chem Inc. in Knoxville, TN won a $26.1 million firm-fixed-price requirements-type contract for 36,000 gallon-per-day Reverse Osmosis (RO) desalination systems. The RO desalination unit is designed to produce 36,000 gallons per day of fresh water, with a total dissolved solids level below 500 parts per million from seawater. Aqua-Chem’s systems have been installed in a wide variety of civilian and military ships; these units will be used in modernization programs for the US Navy’s FFG-7 Oliver Hazard Perry Class frigates and LSD amphibious unit transports.

Work will be performed in Knoxville, TN and is expected to be complete by December 2012. The contract was competitively procured and advertised via the Internet, with 4 proposals received by the Naval Surface Warfare Center, Carderock Division, Ship System Engineering Station in Philadelphia, PA (N65540-07-D-0004).

As part of the USA’s BRAC 2005 process, recommendations were handed down to the US Defense Logistics Agency to privatize a series of product commodities, and eliminate the government’s wholesale stock in key areas. The DLA manages logistics on behalf of all US military branches, and federal civilian agencies as well. These Commodity Management Privatization (CMP) activities would have to take place within a framework of public-private partnership, with goals that included improved delivery, improved management, and lower cost of ownership. It is just one component of the DLA’s Transformation Roadmap.

In January 2007, DID covered privatization efforts by the Defense Supply Center Columbus (DSCC) in Columbus, OH, in the areas of aircraft tires (up to $700 million) and vehicle tires (up to $1.7 billion). Now the Defense Supply Center Richmond has issued a CMP contract worth up to $6.2 billion for chemicals and packaged petroleum, oils and lubricants. There were 3 contestants – but just 1 winning team. The forklift please… and the winner is…

As part of the USA’s BRAC 2005 process, recommendations were handed down to the US Defense Logistics Agency to privatize a series of product commodities, and eliminate the government’s wholesale stock in key areas. The DLA manages logistics on behalf of all US military branches, and federal civilian agencies as well. These Commodity Management Privatization (CMP) activities would have to take place within a framework of public-private partnership, with goals that included improved delivery, improved management, and lower cost of ownership. It is just one component of the DLA’s Transformation Roadmap.

Small business qualifier Haas TCM of West Chester, PA now has two major wins under this process. One is a $2 billion privatization contract. The other is a major subcontracting role in a $6.2 billion privatization contract….

Spacesaver Storage Systems, Inc. in Fort Atkinson, WI received an estimated maximum value $129.4 million indefinite-delivery/ indefinite-quantity contract for weapons cabinets and associated accessories. This contract contains options which, if exercised, will bring the cumulative value of the contract to $244.3 million. Work will be performed in Fort Atkinson, WI and is expected to be complete by April 2012.

This contract was competitively procured via GSA’s E-Buy website, with 1 offer received by the Marine Corps Systems Command in Quantico, VA (M67854-07-D-1092). Note that “Fort Atkinson” is a city, not a military post. Spacesavers also won a much smaller $5.1 million contract in October 2005 for Universal Weapons Racks, used in armories throughout the Marine Corps to store and transport a variety of Marine Corps infantry weapons and associated equipment.

3M Corporation in St. Paul, MN received a maximum $31.3 million firm-fixed-price, requirements type contract for “sole source 3M Corporation items” to the Air Force. The contract will run until December 14, 2009, and the Defense Supply Center Richmond (DSCR) in Richmond, VA issued the contract (SPM4A2-07-D-0005).