DoD's $21.78M contract for chemical/biological detection equipment maintenance awarded to IAP Worldwide Services, Inc

Contract Overview

Contract Amount: $21,776,310 ($21.8M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-15

End Date: 2019-04-14

Contract Duration: 941 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::OT::IGF; THE OBJECTIVE OF THIS EFFORT IS TO PROVIDE PBL/CLS SERVICES (I.E., ENGINEERING MANAGEMENT, MAINTENANCE AND SUPPLY SUPPORT) FOR THE FIELDED CHEMICAL AND BIOLOGICAL DETECTION EQUIPMENT [BIDS/JBPDS, JPS, AND CBMS II] IN BOTH CONTINENTAL UNITED STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) TO ENSURE OPERATIONAL AVAILABILITY AND LOGISTICS RESPONSE TIME REQUIREMENTS ARE MET.

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF; THE OBJECTIVE OF THIS EFFORT IS TO PROVIDE PBL/CLS SERVICES (I.E., ENGINEERING MANAGEMENT, MAINTENANCE AND SUPPLY SUPPORT) FOR THE FIELDED CHEMICAL AND BIOLOGICAL DETECTION EQUIPMENT [BIDS/JBPDS, JPS, AND CBMS II] IN BOTH CONTINENTAL UNITED STATES (CONUS) AND OUTSID… Key points: 1. Contract ensures operational availability and logistics response for critical detection equipment. 2. Focus on Product Lifecycle Support (PBL) and Contractor Logistics Support (CLS) for fielded systems. 3. Services cover engineering management, maintenance, and supply support. 4. Scope includes both CONUS and OCONUS operations, highlighting global reach. 5. Contract type is Cost Plus Incentive Fee (CPIF), aligning contractor incentives with government goals. 6. Awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's value of $21.78 million over its period of performance appears reasonable for providing comprehensive logistics and maintenance support for specialized detection equipment. Benchmarking against similar contracts for military equipment sustainment would provide a more precise value assessment. The CPIF structure allows for performance-based adjustments, potentially enhancing value if cost efficiencies and availability targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The government likely sought the best value proposition in terms of technical capability, past performance, and cost.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the return on investment for defense spending.

Public Impact

Military personnel benefit from reliable and operational chemical and biological detection equipment. Ensures readiness for national defense and response to hazardous material threats. Services provided globally, supporting deployed forces in CONUS and OCONUS. Supports a specialized segment of the defense logistics and maintenance workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not managed tightly.
Dependence on a single contractor for critical equipment sustainment could pose a risk if performance degrades.
Ensuring consistent service quality across CONUS and OCONUS locations presents logistical challenges.

Positive Signals

Contract aims to ensure high operational availability of critical detection systems.
PBL/CLS approach can lead to improved readiness and reduced lifecycle costs.
CPIF structure incentivizes contractor performance and cost control.
Full and open competition suggests a robust market engagement.

Sector Analysis

This contract falls within the defense logistics and maintenance sector, specifically focusing on specialized electronic and precision equipment repair. The market for military equipment sustainment is significant, with numerous contractors offering a range of services. This contract represents a portion of the broader defense spending allocated to ensuring the operational readiness of critical assets, fitting within the established industry practice of outsourcing complex maintenance and logistics functions.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses. Further analysis would be needed to determine if opportunities for small businesses were available through subcontracting with the prime contractor, IAP Worldwide Services, Inc.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Incentive Fee (CPIF) structure includes performance metrics that would be monitored. Transparency is generally maintained through contract reporting requirements, though specific public access to detailed performance data may be limited.

Related Government Programs

Chemical and Biological Defense Program
Defense Logistics Agency (DLA) Support Contracts
Military Equipment Maintenance Services
Product Lifecycle Support (PBL) Contracts

Risk Flags

Potential for cost growth in CPIF contracts.
Dependence on contractor performance for critical equipment availability.
Logistical complexities of global support (CONUS/OCONUS).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF; THE OBJECTIVE OF THIS EFFORT IS TO PROVIDE PBL/CLS SERVICES (I.E., ENGINEERING MANAGEMENT, MAINTENANCE AND SUPPLY SUPPORT) FOR THE FIELDED CHEMICAL AND BIOLOGICAL DETECTION EQUIPMENT [BIDS/JBPDS, JPS, AND CBMS II] IN BOTH CONTINENTAL UNITED STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) TO ENSURE OPERATIONAL AVAILABILITY AND LOGISTICS RESPONSE TIME REQUIREMENTS ARE MET.

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2016-09-15. End: 2019-04-14.

What is the track record of IAP Worldwide Services, Inc. in performing similar defense logistics and maintenance contracts?

IAP Worldwide Services, Inc. has a significant history of providing logistics, facilities management, and aviation support services to government and commercial clients globally. Their experience often includes supporting military operations in challenging environments. For defense contracts, they have previously managed complex sustainment programs. A detailed review of their past performance on contracts of similar scope, complexity, and value, particularly those involving specialized equipment maintenance and PBL/CLS, would be necessary to fully assess their capability and reliability for this specific effort. This would involve examining past performance evaluations, any contract disputes or terminations, and their ability to meet cost, schedule, and performance requirements on prior engagements.

How does the awarded value compare to industry benchmarks for similar sustainment services?

The awarded value of approximately $21.78 million for Product Lifecycle Support (PBL) and Contractor Logistics Support (CLS) for chemical and biological detection equipment is difficult to benchmark precisely without more specific details on the scope of services, the number and type of equipment supported, and the geographic coverage. However, sustainment contracts for complex military systems can range widely. Factors influencing cost include the level of engineering support, spare parts management, depot-level maintenance, and the required operational availability rates. Generally, PBL/CLS contracts aim for long-term cost efficiencies. Comparing this contract's per-unit cost (if a clear unit can be defined, e.g., per system supported) or its total value against similar DoD contracts for equipment sustainment, adjusted for inflation and scope differences, would provide a better understanding of its value proposition.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks include potential performance failures leading to reduced operational availability of critical detection equipment, cost overruns due to the Cost Plus Incentive Fee (CPIF) structure, and logistical challenges in supporting CONUS and OCONUS operations. Mitigation strategies likely involve robust performance metrics and Service Level Agreements (SLAs) within the contract, regular performance reviews by the Defense Contract Management Agency (DCMA), and clear incentive structures tied to availability and cost targets. The CPIF contract type itself is a mitigation tool, incentivizing the contractor to control costs while meeting performance objectives. Furthermore, the full and open competition process aims to select a contractor with a proven track record, reducing performance risk.

How effective is the Cost Plus Incentive Fee (CPIF) structure in ensuring value for money for this specific contract?

The CPIF structure is designed to incentivize the contractor to perform efficiently and effectively by sharing in cost savings or overruns based on pre-defined targets. For this contract, it means IAP Worldwide Services, Inc. is motivated to meet or exceed performance goals (e.g., equipment availability) while managing costs. If they achieve cost savings below the target, both the government and the contractor benefit. Conversely, if costs exceed the target, the contractor bears a larger share of the overrun. The effectiveness hinges on the realism of the initial cost targets and performance metrics, and the rigor of government oversight in monitoring performance and costs. When well-structured and managed, CPIF can lead to better value by aligning contractor incentives with government objectives.

What is the historical spending trend for chemical and biological detection equipment sustainment within the Department of Defense?

Historical spending on chemical and biological detection equipment sustainment within the DoD is generally consistent, driven by the ongoing need to maintain readiness against evolving threats. Budgets for such programs fluctuate based on modernization efforts, operational tempo, and threat assessments. While specific figures for this particular equipment set (BIDS/JBPDS, JPS, CBMS II) are not detailed here, the DoD consistently allocates significant resources to the maintenance, repair, and logistics support of its critical defense systems. This includes funding for sustainment contracts, spare parts, depot maintenance, and technical support, often through long-term PBL/CLS arrangements to ensure availability and manage lifecycle costs effectively.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR15R0002

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,622,440

Exercised Options: $22,518,789

Current Obligation: $21,776,310

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,725,715

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0013

IDV Type: IDC

Timeline