DoD Awards $138M Maintenance Contract to Eagle Group International for Combat Vehicles

Contract Overview

Contract Amount: $138,228,750 ($138.2M)

Contractor: Eagle Group International LLC

Awarding Agency: Department of Defense

Start Date: 2004-03-27

End Date: 2006-09-24

Contract Duration: 911 days

Daily Burn Rate: $151.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200407!000475!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0008 !A!N! !N!0052 ! !20040327!20040924!926881327!926881327!926881327!N!EAGLE GROUP INTERNATIONAL, INC!4751 BEST ROAD !ATLANTA !GA!30337!31068!029!13!FORT STEWART !BRYAN !GEORGIA !+000005000000!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !000 !* !811118!E! !5!B!M! !A!A!20040924!B! ! !A! !A!N!U!2!010!B! !Z!N!Z! ! !N!A!N!N!C! ! ! !A!A!00 !A!B!N! ! ! !Y!2100!AFLG01!0001! !

Place of Performance

Location: ATLANTA, GEORGIA, 30330

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $138.2 million to EAGLE GROUP INTERNATIONAL LLC for work described as: 200407!000475!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0008 !A!N! !N!0052 ! !20040327!20040924!926881327!926881327!926881327!N!EAGLE GROUP INTERNATIONAL, INC!4751 BEST ROAD !ATLANTA !GA!30337!31068!029!13!FORT STEWART !BRYA… Key points: 1. Contract awarded for maintenance and repair of equipment, vehicles, trailers, and cycles. 2. Eagle Group International, LLC is the sole contractor for this $138M award. 3. The contract falls under the Combat Vehicles category, indicating a focus on military hardware. 4. Potential risk associated with a single contractor for critical maintenance services.

Value Assessment

Rating: fair

The contract value of $138M over approximately 2 years suggests a significant investment. Benchmarking against similar maintenance contracts for combat vehicles is necessary to assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are allocated for essential maintenance, but the limited competition raises concerns about cost-effectiveness.

Public Impact

Ensures operational readiness of combat vehicles through essential maintenance. Supports military logistics and deployment capabilities. Potential for job creation within the defense contracting sector. Funds allocated to a specific company for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may inflate costs.
  • Single contractor dependency for critical services.
  • Contract duration and value require close monitoring.

Positive Signals

  • Addresses a critical need for vehicle maintenance.
  • Potential for specialized expertise from the contractor.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the maintenance and repair of combat vehicles. Spending benchmarks in this area are highly dependent on the type and quantity of vehicles requiring service.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight will be crucial to ensure the contractor meets performance standards and that the fixed-fee structure remains cost-effective throughout the contract's duration. Accountability for maintenance quality is paramount.

Related Government Programs

  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition.
  • Sole source dependency.
  • Cost Plus Fixed Fee structure.
  • Potential for cost overruns.
  • Contract performance monitoring.

Tags

department-of-defense, ga, do, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $138.2 million to EAGLE GROUP INTERNATIONAL LLC. 200407!000475!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!DAKF1199D0008 !A!N! !N!0052 ! !20040327!20040924!926881327!926881327!926881327!N!EAGLE GROUP INTERNATIONAL, INC!4751 BEST ROAD !ATLANTA !GA!30337!31068!029!13!FORT STEWART !BRYAN !GEORGIA !+000005000000!N!N!000000000000!J023!MAINT & REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !000 !* !811118!E! !5!B!M! !A!A!200

Who is the contractor on this award?

The obligated recipient is EAGLE GROUP 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 $138.2 million.

What is the period of performance?

Start: 2004-03-27. End: 2006-09-24.

What is the justification for limiting the competition for this significant maintenance contract?

The justification for limiting competition, as indicated by 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' needs thorough examination. Typically, such exclusions are based on specific technical requirements, proprietary technology, or urgent needs where only a limited number of sources can fulfill the contract. Understanding the precise reasons is key to assessing if the exclusion was warranted and if it resulted in a fair price.

What are the risks associated with a single contractor performing maintenance on critical combat vehicles?

The primary risks of a sole contractor include potential disruptions to service if the contractor faces financial, operational, or legal issues. This dependency can also reduce leverage for negotiating favorable terms or ensuring competitive pricing over time. Furthermore, a lack of competition might disincentivize the contractor from innovating or improving service quality beyond the contract's minimum requirements.

How does the 'COST PLUS FIXED FEE' pricing structure impact overall value for taxpayers?

A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover allowable costs plus a fixed fee representing profit. While it can incentivize contractors to control costs to maximize their fee, it also shifts some risk to the government if costs exceed projections. For taxpayers, the value depends on the government's ability to effectively monitor costs and ensure the fixed fee is reasonable for the services rendered.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 3475 N DESERT DR 1-100, ATLANTA, GA, 90

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAKF1199D0008

IDV Type: IDC

Timeline

Start Date: 2004-03-27

Current End Date: 2006-09-24

Potential End Date: 2006-09-24 00:00:00

Last Modified: 2014-12-15

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