DoD contract for automobile manufacturing support awarded to Defense Support Services International, LLC for over $12.7 million

Contract Overview

Contract Amount: $12,753,365 ($12.8M)

Contractor: Defense Support Services International, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2007-09-27

Contract Duration: 363 days

Daily Burn Rate: $35.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE

Plain-Language Summary

Department of Defense obligated $12.8 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. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 363 days indicates a short-term need. 4. Award type 'DO' suggests a priority rating for defense needs. 5. NAICS code 336111 points to the automobile manufacturing sector. 6. No small business set-aside was applied to this contract.

Value Assessment

Rating: fair

The contract value of $12.7 million for automobile manufacturing support over approximately one year seems within a reasonable range for specialized services. Without specific details on the deliverables, a direct comparison to similar contracts is challenging. However, the labor hours contract type (PT: LABOR HOURS) can sometimes lead to cost overruns if not managed tightly. Benchmarking against industry standards for similar support functions would be necessary for a more definitive value assessment.

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 a bid. The presence of 4 bids (NO: 4) suggests a moderate level of competition for this requirement. While not a large number of bidders, it does indicate that multiple companies were interested and capable of performing the work, which generally aids in price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Department of the Army benefits from specialized support in automobile manufacturing. Services likely include technical assistance, maintenance, or operational support related to vehicle production. The geographic impact is likely concentrated around the facility where the automobile manufacturing support is provided. Workforce implications may involve skilled labor for specialized manufacturing support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to 'Labor Hours' contract type if not closely monitored.
Limited competition with only 4 bidders could mean less aggressive pricing than a more crowded field.

Positive Signals

Awarded under 'Full and Open Competition' which is generally favorable for price.
Award type 'DO' indicates a priority rating, suggesting critical defense needs are being met.
Contractor is Defense Support Services International, LLC, whose track record would need further review.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically automobile manufacturing (NAICS 336111). The defense industry often requires specialized manufacturing capabilities and support services for its unique vehicle and equipment needs. While the direct market size for defense-related automobile manufacturing support is niche, it is a critical component of the defense industrial base. Comparable spending benchmarks would typically be found within other defense contracts supporting vehicle acquisition or maintenance.

Small Business Impact

This contract did not include a small business set-aside (SB: false). Consequently, there are no direct subcontracting requirements mandated for small businesses under this award. The impact on the small business ecosystem is neutral, as opportunities were not specifically reserved for them, nor is there an explicit requirement for them to be included in the supply chain for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Department of Defense Vehicle Procurement
Automotive Industrial Base Program
Military Vehicle Maintenance and Repair

Risk Flags

Labor Hours contract type requires close monitoring to prevent cost overruns.
Limited number of bidders (4) may indicate potential for less aggressive pricing.
Specific services provided are not detailed, requiring further investigation for full scope assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 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 $12.8 million.

What is the period of performance?

Start: 2006-09-29. End: 2007-09-27.

What specific services did Defense Support Services International, LLC provide under this contract?

The provided data indicates the contract was for 'THE CONTRACTOR SHALL PROVIDE' services related to NAICS code 336111 (Automobile Manufacturing). While the exact nature of the services is not detailed, it likely involved specialized support, technical assistance, or operational labor within an automobile manufacturing context for the Department of Defense. This could range from production line support, quality assurance, specialized maintenance, or integration services for defense-specific vehicle requirements. Further details would be found in the contract's Performance Work Statement (PWS).

How does the $12.7 million contract value compare to similar defense automobile manufacturing support contracts?

Directly comparing the $12.7 million value is difficult without knowing the specific scope of work and duration of similar contracts. However, for a roughly one-year contract (363 days) involving specialized labor, this amount is not inherently excessive. Defense contracts in manufacturing support can vary widely based on complexity, technology involved, and required expertise. Benchmarking would require identifying contracts with identical or highly similar NAICS codes and service descriptions, which are not readily available in the provided snippet. The 'Labor Hours' pricing model also introduces variability.

What are the key risks associated with a 'Labor Hours' contract type for this service?

The primary risk with a 'Labor Hours' contract type (PT: LABOR HOURS) is the potential for cost overruns if the contractor's labor hours exceed initial estimates or if labor rates are higher than anticipated. Unlike fixed-price contracts, the government pays for the actual time and labor expended. This necessitates robust oversight and monitoring by the government to ensure efficiency and prevent unnecessary hours from being billed. Effective management of the contractor's performance and adherence to the scope of work are crucial to mitigate this risk.

What does the 'DO' award type signify for this contract?

The 'DO' award type typically signifies a priority rating assigned by the Department of Defense. This means the contract is considered essential for national defense, and the contractor is authorized to receive priority allocation of materials, facilities, and equipment necessary to fulfill the contract. For the government, it ensures that critical defense needs, such as those related to automobile manufacturing for military applications, are prioritized in the supply chain and production schedules, even during times of high demand or material shortages.

What is the historical spending pattern for this contractor (Defense Support Services International, LLC) with the Department of Defense?

The provided data only pertains to this specific contract awarded on 2006-09-29 for $12,753,364.93. To understand the historical spending pattern for Defense Support Services International, LLC with the Department of Defense, one would need to access comprehensive federal procurement databases (like FPDS-NG or USAspending.gov) and query for all contracts awarded to this entity across all agencies, particularly the DoD. This would reveal the volume, types, and values of contracts awarded over time, indicating their experience and relationship with the government.

How does the level of competition (4 bidders) impact the value received by the government?

Having 4 bidders suggests a moderate level of competition. While more bidders generally lead to lower prices and better value, 4 offers a reasonable baseline for comparison. It indicates that the requirement was attractive enough for multiple firms to invest in preparing proposals. The government can leverage these bids to negotiate favorable terms. However, if the market for such specialized services is limited, fewer bidders might be expected. The key is whether these 4 bidders represented the most capable and cost-effective options available.

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, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,753,365

Exercised Options: $12,753,365

Current Obligation: $12,753,365

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912CM06D0021

IDV Type: IDC

Timeline