DoD contract for automobile manufacturing support services awarded to Defense Support Services International, LLC for over $15.1 million

Contract Overview

Contract Amount: $15,108,195 ($15.1M)

Contractor: Defense Support Services International, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-28

End Date: 2007-09-27

Contract Duration: 364 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE

Plain-Language Summary

Department of Defense obligated $15.1 million to DEFENSE SUPPORT SERVICES INTERNATIONAL, LLC for work described as: THE CONTRACTOR SHALL PROVIDE Key points: 1. Contract value appears reasonable for specialized support services over a one-year period. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risk indicators include the short duration and labor hours contract type, which can sometimes lead to cost overruns if not managed closely. 4. This contract falls within the broader category of defense support services, contributing to operational readiness. 5. The North American Industry Classification System (NAICS) code 336111 points to automobile manufacturing, indicating a specific industrial focus. 6. The award was a delivery order under a larger contract, suggesting a pre-existing framework agreement.

Value Assessment

Rating: good

The contract value of approximately $15.1 million for a 364-day period, based on labor hours, suggests a potentially fair price for specialized support. Benchmarking against similar contracts for automotive manufacturing support within the Department of Defense would provide a more precise value-for-money assessment. The absence of specific deliverables makes a direct comparison challenging, but the overall spend is within a typical range for such services.

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 bids. This suggests a robust bidding process designed to achieve competitive pricing. The number of bidders is not specified, but the method of competition implies that multiple companies likely vied for this contract, fostering price discovery.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel requiring support related to automobile manufacturing operations. Services delivered would pertain to the maintenance, repair, or operational support of automotive assets or manufacturing processes. The geographic impact is likely concentrated around the specific military installation or facility where the services are rendered. Workforce implications include the potential employment of skilled labor in roles related to automotive mechanics, technicians, or manufacturing support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contract type can lead to cost uncertainty if not closely monitored.
Short contract duration may indicate a need for ongoing services, potentially leading to follow-on contracts.
Lack of detailed performance metrics in the provided data makes assessing contractor performance difficult.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Contractor has a defined role in supporting defense operations.
Clear start and end dates provide a defined period of performance.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting operations related to automobile manufacturing. The defense industry often requires specialized support services for a wide range of equipment and infrastructure. Comparable spending benchmarks would involve analyzing other contracts for logistical support, maintenance, and operational services within the Department of Defense, particularly those related to vehicle fleets or manufacturing facilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, Defense Support Services International, LLC, is likely a larger entity, and its subcontracting practices would be governed by general federal acquisition regulations rather than specific small business set-aside requirements for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures would be tied to the terms and conditions of the delivery order, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Logistics Support Contracts
Automotive Maintenance and Repair Services
Defense Industrial Base Support
Federal Vehicle Procurement and Maintenance

Risk Flags

Labor Hours Contract Type Risk
Short Contract Duration
Limited Performance Data Available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to DEFENSE SUPPORT SERVICES INTERNATIONAL, LLC. THE CONTRACTOR SHALL PROVIDE

Who is the contractor on this award?

The obligated recipient is DEFENSE SUPPORT SERVICES INTERNATIONAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2006-09-28. End: 2007-09-27.

What is the track record of Defense Support Services International, LLC with the Department of Defense?

Defense Support Services International, LLC has a history of contracts with the Department of Defense, as indicated by this award. To fully assess their track record, a comprehensive review of their past performance on similar contracts would be necessary. This would involve examining metrics such as on-time delivery, quality of service, adherence to budget, and any past performance evaluations or disputes. Without access to detailed performance data and a broader contract history, it is difficult to definitively characterize their overall reliability and effectiveness as a contractor for the DoD.

How does the value of this contract compare to similar automotive support contracts within the DoD?

The contract value of approximately $15.1 million for a 364-day period, awarded under a labor hours basis, needs to be benchmarked against comparable contracts. Similar contracts for automotive manufacturing support or specialized vehicle maintenance within the Department of Defense would provide a clearer picture of value for money. Factors such as the specific services rendered, the level of expertise required, geographic location, and the number of labor hours estimated are crucial for a fair comparison. If this contract's per-hour rate or total cost significantly deviates from the average for similar services, it could indicate either exceptional value or potential overpricing.

What are the primary risks associated with a labor hours contract type for this service?

A primary risk associated with a labor hours contract type, such as this one, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, the total cost is directly tied to the number of hours worked and the agreed-upon hourly rates. This means that if the contractor requires more hours than initially estimated, or if hourly rates are higher than anticipated, the total cost to the government can escalate. Effective oversight, including rigorous tracking of labor hours, validation of work performed, and adherence to the contract's scope, is crucial to mitigate these risks and ensure the government receives good value.

What is the significance of the NAICS code 336111 (Automobile Manufacturing) in the context of this defense contract?

The assignment of NAICS code 336111, 'Automobile Manufacturing,' to this Department of Defense contract suggests that the services provided are directly related to the automotive manufacturing industry. This could encompass a range of activities, such as providing specialized technical support for the production or maintenance of military vehicles that are manufactured using automotive processes, supplying components or expertise related to automotive assembly lines, or offering services that require deep knowledge of automotive manufacturing standards and practices. It indicates a specific industrial focus for the support being procured by the Army.

What does the 'Delivery Order' award type imply about this contract?

The 'Delivery Order' award type signifies that this contract is a task order issued under a previously established indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of basic ordering agreement. This means that the underlying contract vehicle was already in place, likely having undergone its own competitive process. The delivery order then specifies the exact goods or services to be provided, the quantity, delivery schedule, and price for this particular instance. This approach allows agencies to procure services or supplies efficiently over a period, often with pre-negotiated terms and conditions.

How does the short duration (364 days) impact the assessment of this contract?

The short duration of 364 days for this contract suggests it is intended for a specific, time-bound requirement or a service that is reviewed and re-competed frequently. For a labor-hours contract, a shorter duration can sometimes limit the potential for significant cost escalation compared to a multi-year contract, assuming effective oversight. However, it also implies that the need for these services is ongoing, potentially leading to a series of follow-on contracts. The short timeframe might also indicate that the scope of work is well-defined and manageable within that period, reducing the risk of scope creep.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile Manufacturing

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

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Aviation and Technical Services LLC (UEI: 139847276)

Address: 12000 HORIZON WAY, MOUNT LAUREL, NJ, 08054

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,108,195

Exercised Options: $15,108,195

Current Obligation: $15,108,195

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912CM06D0021

IDV Type: IDC

Timeline