Army awards $55.7M for FMTV maintenance, a sole-source contract for non-combat vehicles

Contract Overview

Contract Amount: $23,984,927 ($24.0M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2008-09-30

Contract Duration: 734 days

Daily Burn Rate: $32.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!009626!2100!W56HZV!TACOM - WARREN !W56HZV06D0345 !A!N! !N!0001 ! !20060927!20090930!557414000!557414000!007932783!N!STEWART & STEVENSON SERVICES, !5000 INTERSTATE 10 HWY !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN !TEXAS !+000024791268!N!N!000000000000!J035!MAINT & REPAIR OF EQ/SERVICE & TRADE EQUIPMENT !A4B!NON-COMBAT VEHICLES !746 !FMTV !333924!E! !5!B!S! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SEALY, COLORADO County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: 200612!009626!2100!W56HZV!TACOM - WARREN !W56HZV06D0345 !A!N! !N!0001 ! !20060927!20090930!557414000!557414000!007932783!N!STEWART & STEVENSON SERVICES, !5000 INTERSTATE 10 HWY !SEALY !TX!77474!66464!015!48!SEALY !AUST… Key points: 1. Contract awarded for maintenance and repair of equipment, services, and trade equipment. 2. Focus on non-combat vehicles, specifically the FMTV platform. 3. Contract duration of approximately two years. 4. Awarded as a sole-source contract, raising questions about competition. 5. The contractor has a significant track record with this type of equipment. 6. Geographic location of contractor is Sealy, Texas.

Value Assessment

Rating: fair

The total award amount is $55.7 million. Benchmarking this against similar contracts is challenging due to the sole-source nature and specific equipment focus. However, the contract value appears substantial for a two-year maintenance and repair effort. Further analysis would require detailed cost breakdowns and comparison to potential alternative solutions or previous contract pricing for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and competition. Without a competitive bidding process, it is difficult to ascertain if the government received the best possible pricing or if alternative solutions were considered. The justification for a sole-source award would need to be thoroughly reviewed to understand why other vendors were not considered.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the lack of competition may reduce pressure on the contractor to offer the most competitive pricing.

Public Impact

The U.S. Army benefits from this contract through the maintenance and repair of its non-combat vehicle fleet. Services include maintenance and repair of equipment, services, and trade equipment. The contract has a geographic impact primarily on Army operations utilizing FMTV vehicles. Workforce implications are tied to the contractor's facilities in Sealy, Texas, and potentially supporting Army maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in due to specialized nature of maintenance.
Limited visibility into performance metrics and contractor efficiency without competitive pressure.

Positive Signals

Ensures continued operational readiness of critical non-combat vehicle assets.
Contractor is likely experienced with the specific FMTV platform.
Fixed-price contract type provides some cost certainty.
Award supports a specific geographic region (Texas) for contractor operations.

Sector Analysis

The defense industrial base relies heavily on specialized maintenance and repair services for its vast fleet of vehicles and equipment. This contract falls within the broader category of defense logistics and support services. The market for such services is often characterized by long-term relationships and specialized expertise, which can sometimes lead to sole-source or limited competition awards. Benchmarking would involve comparing this contract's value and scope to other maintenance contracts for similar military vehicle platforms.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The award to a larger entity may limit opportunities for small businesses to participate in the maintenance and repair of these specific military vehicles.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Military Vehicle Maintenance
Army Logistics Support
Non-Combat Vehicle Procurement
Defense Equipment Repair

Risk Flags

Sole-source award may result in higher costs.
Limited competition reduces price discovery.
Potential for vendor lock-in.
Lack of transparency in procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. 200612!009626!2100!W56HZV!TACOM - WARREN !W56HZV06D0345 !A!N! !N!0001 ! !20060927!20090930!557414000!557414000!007932783!N!STEWART & STEVENSON SERVICES, !5000 INTERSTATE 10 HWY !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN !TEXAS !+000024791268!N!N!000000000000!J035!MAINT & REPAIR OF EQ/SERVICE & TRADE EQUIPMENT !A4B!NON-COMBAT VEHICLES !746 !FMTV !333924!E! !5!B!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2006-09-27. End: 2008-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is sole-source. A formal justification for a sole-source award is typically required by federal acquisition regulations when full and open competition is not feasible or not in the government's best interest. Common justifications include the existence of only one responsible source, urgent and compelling needs, or specific capabilities possessed by only one contractor. Without access to the official justification document (e.g., a Justification and Approval - J&A), the precise reasons remain unknown. This lack of competition raises concerns about potential overpricing and missed opportunities for cost savings through a competitive bidding process.

How does the $55.7 million award compare to historical spending on FMTV maintenance?

The provided data shows a single award of $55.7 million for maintenance and repair of FMTV non-combat vehicles, spanning from September 27, 2006, to September 30, 2008. To compare this to historical spending, one would need to examine prior contracts for FMTV maintenance, potentially from the same contractor or other entities, over similar or longer periods. Analyzing the annual spending within this contract ($55.7M / ~2 years = ~$27.85M per year) and comparing it to previous annual expenditures would provide context. Without historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for this service.

What are the key performance indicators (KPIs) for this maintenance contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract. However, for a maintenance and repair contract of military equipment, typical KPIs would likely include metrics such as response time for repair requests, equipment uptime/availability rates, turnaround time for repairs, quality of repairs (e.g., defect rate), and adherence to maintenance schedules. The contract's terms and conditions, along with any associated Performance Work Statement (PWS), would detail these specific requirements and how the contractor's performance is measured and evaluated.

What is the track record of Stewart & Stevenson Services, Inc. with the FMTV platform?

Stewart & Stevenson Services, Inc. (now part of Oshkosh Corporation) has a significant history with the Family of Medium Tactical Vehicles (FMTV). They were a primary manufacturer and provider of maintenance services for the FMTV for many years. The award of this contract to them suggests they possess the necessary expertise, facilities, and historical knowledge to perform the required maintenance and repair services. Their long-standing involvement indicates a deep understanding of the platform's technical requirements and operational needs within the Army.

Are there any risks associated with the sole-source nature of this award?

Yes, there are several risks associated with the sole-source nature of this award. The primary risk is reduced value for money, as the lack of competition can lead to higher prices than might be achieved in a competitive environment. There's also a risk of complacency from the contractor, potentially leading to lower service quality or innovation over time, as there is less pressure from competitors. Furthermore, it limits the government's ability to explore alternative technologies or service providers that might offer better performance or cost-effectiveness. Finally, it can create a perception of unfairness or lack of transparency in the procurement process.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 5000 INTERSTATE 10 HWY, SEALY, TX, 10

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV06D0345

IDV Type: IDC

Timeline