D.P. ASSOCIATES INC. awarded $19.3M for revision and maintenance services, with a significant portion allocated to FY08

Contract Overview

Contract Amount: $19,324,828 ($19.3M)

Contractor: D.P. Associates Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2013-05-31

Contract Duration: 2,069 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REVISION AND MAINTENANCE - FY08

Place of Performance

Location: LEMOORE, KINGS County, CALIFORNIA, 93245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to D.P. ASSOCIATES INC. for work described as: REVISION AND MAINTENANCE - FY08 Key points: 1. The contract's value suggests a substantial need for ongoing support and upkeep of specific systems or equipment. 2. The duration of the contract (2007-2013) indicates a long-term requirement for these services. 3. The 'REVISION AND MAINTENANCE' nature of the contract points to a focus on preserving or improving existing assets rather than acquiring new ones. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 6. The small business indicators are false, suggesting this contract was not specifically set aside for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided. However, a $19.3 million award over six years for revision and maintenance suggests a significant investment. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This can sometimes lead to higher final costs compared to fixed-price contracts if not rigorously overseen. Without comparable contract data for similar maintenance services within the Department of the Navy, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the Department of the Navy sought to leverage market competition to obtain the best value. The number of bidders is not specified, but the open competition framework generally promotes price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a reasonable price, preventing potential overcharges that could occur in a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Department of the Navy, which receives essential revision and maintenance services for its assets. The services delivered ensure the continued operational readiness and longevity of equipment or systems managed by the Navy. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially including naval bases or deployed units. The contract supports jobs within the sector related to commercial and service industry machinery manufacturing and maintenance, though the specific workforce implications are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending if not closely monitored.
  • Lack of specific performance metrics makes it difficult to assess the effectiveness of the revision and maintenance work.
  • The broad 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code lacks specificity regarding the exact nature of the equipment being maintained.

Positive Signals

  • Awarded under full and open competition, suggesting a robust bidding process.
  • The contract duration indicates a stable, long-term need being met.
  • The contractor, D.P. ASSOCIATES INC., has secured a significant award, implying a level of trust and capability.

Sector Analysis

The contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector, which is broad and encompasses a wide range of industrial equipment. Spending in this area is crucial for maintaining the operational capabilities of various government agencies, particularly those with extensive physical assets like the Department of Defense. Comparable spending benchmarks would depend heavily on the specific type of machinery or systems being serviced. The $19.3 million total award over approximately six years suggests a moderately sized, long-term service contract within this industrial support category.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by the 'sb' and 'ss' fields being false. Consequently, there are no direct subcontracting implications specifically tied to small business set-aside requirements. The award to D.P. ASSOCIATES INC. does not inherently signal a positive or negative impact on the broader small business ecosystem, as it was competed openly.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Navy. Accountability measures would be embedded in the contract's terms, including performance standards and reporting requirements. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

  • Department of Defense Maintenance and Repair Contracts
  • Navy Equipment Sustainment Programs
  • Commercial and Service Industry Machinery Support
  • Cost Plus Fixed Fee Service Agreements

Risk Flags

  • Cost Plus Fixed Fee contract type may lead to cost overruns without strong oversight.
  • Lack of specific details on machinery maintained limits understanding of contract criticality.
  • Performance metrics are not provided, making it difficult to assess contractor effectiveness.

Tags

defense, department-of-defense, department-of-the-navy, revision-and-maintenance, cost-plus-fixed-fee, full-and-open-competition, machinery-manufacturing, service-contract, california, medium-value, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to D.P. ASSOCIATES INC.. REVISION AND MAINTENANCE - 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 $19.3 million.

What is the period of performance?

Start: 2007-10-01. End: 2013-05-31.

What specific types of machinery or systems were covered under this 'Revision and Maintenance' contract?

The provided data indicates the contract falls under NAICS code 333319, 'Other Commercial and Service Industry Machinery Manufacturing.' However, this code is very broad and does not specify the exact nature of the machinery or systems requiring revision and maintenance. Without further details, it is impossible to determine if these were specialized military assets, general industrial equipment, or something else entirely. This lack of specificity hinders a precise understanding of the contract's scope and the criticality of the services provided. Further investigation into the contract's statement of work or associated documentation would be necessary to identify the specific equipment.

How did D.P. ASSOCIATES INC.'s pricing compare to other potential bidders during the full and open competition?

The provided data does not include information on the number of bidders or the specific pricing proposals submitted by each. Therefore, a direct comparison of D.P. ASSOCIATES INC.'s pricing against competitors is not possible. While the contract was awarded under full and open competition, which theoretically drives competitive pricing, the final award price reflects the negotiated terms. To assess the competitiveness of the pricing, one would need access to bid data, including the proposed costs and technical approaches of all competing firms. This information is typically not made public for individual contract awards.

What were the key performance indicators (KPIs) for this contract, and did D.P. ASSOCIATES INC. meet them?

The available data does not specify the key performance indicators (KPIs) established for this 'Revision and Maintenance' contract. Contracts of this nature typically include metrics related to response times, quality of repairs, equipment uptime, and adherence to maintenance schedules. Without knowing these specific KPIs, it is impossible to evaluate whether D.P. ASSOCIATES INC. successfully met the performance requirements. Assessing contractor performance usually requires access to contract performance reports, customer satisfaction surveys, or formal evaluations, which are not included in the provided dataset.

What is the historical spending trend for 'Revision and Maintenance' services within the Department of the Navy for similar machinery?

The provided data only includes details for this single contract award to D.P. ASSOCIATES INC. It does not offer historical spending trends for similar 'Revision and Maintenance' services within the Department of the Navy. To establish such trends, one would need to analyze spending data across multiple fiscal years and potentially across different contracts and contractors performing similar functions. This would involve querying federal procurement databases for relevant keywords, NAICS codes, and agency spending patterns over time to identify patterns, fluctuations, and overall investment levels in this service category.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks, primarily related to cost control. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure can incentivize the contractor to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. If the government's oversight and cost accounting standards are not robust, there is a risk that the final contract cost could exceed what might have been achieved under a fixed-price contract. Effective management requires diligent monitoring of costs and strict adherence to allowable cost principles to mitigate this risk.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOther 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: 1

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: $19,324,828

Exercised Options: $19,324,828

Current Obligation: $19,324,828

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: 2013-05-31

Potential End Date: 2013-05-31 00:00:00

Last Modified: 2023-08-09

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