Navy awards $16M for HELOS R&M to D.P. Associates Inc. under full and open competition
Contract Overview
Contract Amount: $15,978,767 ($16.0M)
Contractor: D.P. Associates Inc.
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2013-07-31
Contract Duration: 2,130 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: NAVY HELOS, R&M, FY08
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135
Plain-Language Summary
Department of Defense obligated $16.0 million to D.P. ASSOCIATES INC. for work described as: NAVY HELOS, R&M, FY08 Key points: 1. Spending on helicopter repair and maintenance (R&M) is a significant operational cost for the Navy. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The sector involves specialized machinery manufacturing, indicating a need for specific expertise.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can be less price-efficient than fixed-price contracts. Benchmarking against similar R&M contracts for naval aviation would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure might limit the direct price discovery benefits of competition.
Taxpayer Impact: Taxpayer funds are used for essential military readiness. The efficiency of spending depends on effective cost control and oversight within the CPFF structure.
Public Impact
Ensures continued operational readiness of Navy helicopters. Supports jobs in the specialized machinery manufacturing sector. Potential for cost growth due to the CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize higher costs.
- Long contract duration (2007-2013) could lead to price escalation.
- Lack of specific Product/Service Code (PSC) makes detailed benchmarking difficult.
Positive Signals
- Awarded under full and open competition.
- Supports critical military aviation assets.
Sector Analysis
This contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector, specifically related to aerospace and defense maintenance. Spending benchmarks for helicopter R&M can vary widely based on aircraft type and complexity.
Small Business Impact
The data indicates the award went to D.P. Associates Inc. There is no explicit information on small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Navy. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and cost controls, especially critical for CPFF contracts.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for cost creep.
- Limited specific data on performance metrics.
Tags
other-commercial-and-service-industry-ma, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.0 million to D.P. ASSOCIATES INC.. NAVY HELOS, R&M, FY08
Who is the contractor on this award?
The obligated recipient is D.P. ASSOCIATES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.0 million.
What is the period of performance?
Start: 2007-10-01. End: 2013-07-31.
What was the final cost compared to the initial estimate, and how did the fixed fee component compare to industry standards for similar contracts?
Without the final cost data and specific details on the fixed fee percentage, a precise value assessment is difficult. CPFF contracts aim to provide a reasonable profit margin while covering costs. Comparing the fee to benchmarks for similar complexity and risk contracts would reveal if it was competitive and fair, indicating the government's success in negotiating a reasonable fee.
What were the primary risks associated with this Cost Plus Fixed Fee contract, and how were they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies would include robust government oversight, detailed cost tracking, clear definition of allowable costs, and performance metrics to ensure the contractor remains efficient and focused on the objective.
How effectively did the full and open competition process ensure competitive pricing for these helicopter R&M services?
While full and open competition theoretically maximizes the potential for competitive pricing, the CPFF structure can temper this effect. The government likely received multiple proposals, but the cost-reimbursement nature means the final price is less predictable than with fixed-price contracts. The effectiveness hinges on the government's ability to negotiate a fair fee and manage costs diligently throughout the contract's life.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc.
Address: 1320 BRADDOCK PL STE 700, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,978,767
Exercised Options: $15,978,767
Current Obligation: $15,978,767
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6133903D5017
IDV Type: IDC
Timeline
Start Date: 2007-10-01
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2023-08-09
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