DoD contract for automobile manufacturing support awarded to Defense Support Services International, LLC for $13.25M

Contract Overview

Contract Amount: $13,248,820 ($13.2M)

Contractor: Defense Support Services International, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2009-05-15

Contract Duration: 228 days

Daily Burn Rate: $58.1K/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 $13.2 million to DEFENSE SUPPORT SERVICES INTERNATIONAL, LLC for work described as: THE CONTRACTOR SHALL PROVIDE Key points: 1. Contract value of $13.25M for a duration of 228 days indicates a significant investment in specialized support services. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The 'Automobile Manufacturing' Product Service Code (PSC) points to a niche requirement within the Defense sector. 4. The contract's short duration (228 days) may suggest a project-specific need rather than ongoing operational support. 5. The absence of small business set-aside flags indicates the primary award was not specifically targeted to small businesses. 6. The contract type 'LABOR HOURS' implies payment based on the time and effort expended by personnel.

Value Assessment

Rating: fair

The contract value of $13.25M for a 228-day period suggests a daily burn rate of approximately $58,109. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. Comparing this to similar contracts for specialized defense support in the automotive sector would be necessary for a more precise assessment. The pricing structure based on labor hours can be efficient if managed well, but also carries a risk of cost overruns if not closely monitored.

Cost Per Unit: $58,109 per day (estimated daily burn rate)

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. The number of bids received is not specified, but this method generally fosters competitive pricing. The open nature of the competition suggests the government sought the best possible offer from the market, which can lead to more favorable terms for the taxpayer.

Taxpayer Impact: Full and open competition typically results in better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of the Army benefits from specialized support services related to automobile manufacturing. The services delivered are likely critical for specific defense-related automotive operations or projects. The geographic impact is not specified but likely localized to where the services are performed. Workforce implications could include the employment of skilled labor in automotive support and defense contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to labor hour contract type if not closely managed.
Lack of specific performance metrics makes value assessment challenging.
Short contract duration might indicate a one-off need, limiting long-term strategic value.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Addresses a specific niche requirement within the Department of Defense.
Contractor has a defined role in providing essential support services.

Sector Analysis

This contract falls within the broader 'Automobile Manufacturing' sector, specifically relating to Product Service Code 336111. While typically associated with commercial vehicle production, its application here is within the defense industry, likely supporting specialized military vehicle needs or related logistics. The market for defense-related automotive support is a subset of the larger automotive industry, characterized by stringent requirements and specific government procurement processes. Benchmarking spending in this niche requires comparison to similar defense contracts for vehicle maintenance, modification, or specialized manufacturing support.

Small Business Impact

The contract data indicates that this was not a small business set-aside award (ss: false, sb: false). This suggests that the primary contract was awarded without specific provisions to prioritize small businesses. However, the prime contractor, Defense Support Services International, LLC, may engage small businesses as subcontractors to fulfill portions of the contract, depending on their subcontracting plans and the nature of the services required. The impact on the small business ecosystem would depend on whether such subcontracting opportunities are pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and administrative contracting officer within the Department of the Army. Accountability measures would be defined in the contract's statement of work and terms. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Military Vehicle Maintenance and Repair Contracts
Department of Defense Automotive Procurement
Specialized Manufacturing Support Services

Risk Flags

Potential for cost overruns due to labor hour contract type.
Lack of detailed performance metrics for value assessment.
Short contract duration limits long-term performance evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 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 $13.2 million.

What is the period of performance?

Start: 2008-09-29. End: 2009-05-15.

What specific automobile manufacturing support services does Defense Support Services International, LLC provide under this contract?

The provided data indicates the contract is for 'AUTOMOBILE MANUFACTURING' support under PSC 336111, awarded to Defense Support Services International, LLC by the Department of the Army. However, the specific nature of the 'THE CONTRACTOR SHALL PROVIDE' is abbreviated. Typically, such contracts could encompass a range of services including vehicle maintenance, repair, modification, assembly, parts fabrication, or specialized technical support for military or government-owned automotive equipment. Without the full statement of work, the precise services remain undefined. The contract type being 'LABOR HOURS' suggests a focus on personnel effort rather than fixed-price deliverables, implying services that might be variable or difficult to scope precisely upfront.

How does the $13.25 million contract value compare to similar defense contracts for automotive support?

The contract value of $13.25 million for a duration of 228 days (approximately 7.5 months) represents a significant investment. The estimated daily burn rate is approximately $58,109. To benchmark this effectively, comparisons would need to be made with other Department of Defense contracts awarded for similar automotive support services, particularly those under the 336111 PSC or related categories. Factors such as the scope of work (e.g., depot-level maintenance vs. field support, new modifications vs. routine upkeep), the specific types of vehicles or equipment involved, and the geographic location of service delivery would be crucial for a meaningful comparison. Contracts for large-scale vehicle fleet maintenance or specialized military vehicle production would likely be substantially larger.

What are the potential risks associated with a 'LABOR HOURS' contract type for this service?

The 'LABOR HOURS' contract type, while offering flexibility, carries inherent risks, primarily concerning cost control. Since payment is based on the hours worked by contractor personnel, there is a risk of cost overruns if the project takes longer than anticipated or if labor hours are not efficiently utilized. This necessitates robust oversight from the government to monitor progress, ensure productivity, and validate the necessity of all labor hours charged. Without clear performance metrics and diligent monitoring, the contractor may have less incentive to complete tasks efficiently, potentially leading to higher overall costs for the government compared to fixed-price contracts where the contractor bears more risk for cost overruns.

What is the significance of the 'Automobile Manufacturing' PSC (336111) in a defense context?

The Product Service Code (PSC) 336111, 'Automobile Manufacturing,' typically falls under the manufacturing sector. In a defense context, its application suggests the contract is related to the production, modification, or support of vehicles used by the military. This could range from the manufacturing of specialized components for military vehicles, the assembly or modification of existing platforms to meet specific defense requirements, or potentially the support services needed during the manufacturing or integration phase of such vehicles. It indicates a requirement that goes beyond standard vehicle maintenance and delves into the production or specialized engineering aspects within the automotive domain for defense purposes.

How does the short contract duration (228 days) impact the overall program or contractor performance assessment?

A contract duration of 228 days (approximately 7.5 months) is relatively short for many types of government contracts, especially those involving complex manufacturing or long-term support. This short duration might indicate that the contract is intended to fulfill a specific, time-bound project, address an immediate need, or serve as an initial phase before a larger, longer-term effort. For the contractor, it means a concentrated period of effort is required. From a performance assessment perspective, it allows for a focused evaluation over a defined period, but it may not provide sufficient data to assess long-term reliability, sustained performance, or the contractor's capacity for larger, ongoing programs. It also limits the opportunity for the government to observe performance trends over an extended duration.

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

Solicitation ID: W912CM06R0005

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 12000 HORIZON WAY, MOUNT LAUREL, NJ, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,248,820

Exercised Options: $13,248,820

Current Obligation: $13,248,820

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912CM06D0021

IDV Type: IDC

Timeline