State Department awards $3.7M for Arbon equipment maintenance, continuing prior support

Contract Overview

Contract Amount: $3,704 ($3.7K)

Contractor: Arbon Equipment Corp

Awarding Agency: Department of State

Start Date: 2026-04-13

End Date: 2027-04-12

Contract Duration: 364 days

Daily Burn Rate: $10/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOLLOW-ON TO 19AQMM25P0474 FOR CONTINUED ARBON EQUIPMENT MAINTENANCE SUPPORT

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22193

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $3,704.4 to ARBON EQUIPMENT CORP for work described as: FOLLOW-ON TO 19AQMM25P0474 FOR CONTINUED ARBON EQUIPMENT MAINTENANCE SUPPORT Key points: 1. Contract value represents continued investment in essential equipment upkeep. 2. Sole-source award suggests limited market alternatives or specific contractor expertise. 3. Potential for cost efficiencies through long-term maintenance relationships. 4. Performance risk is moderate, given the follow-on nature and established contractor. 5. Sector positioning is within industrial machinery repair, a critical support function. 6. Focus on maintenance ensures operational readiness of vital equipment.

Value Assessment

Rating: fair

The $3.7 million award for Arbon equipment maintenance is a follow-on to a previous contract, indicating a continued need for the services. Without direct comparison data for similar Arbon equipment maintenance contracts, assessing value for money is challenging. However, the firm-fixed-price structure provides cost certainty for the government. The duration of the contract (one year) suggests a manageable scope, but the total value warrants scrutiny to ensure it aligns with market rates for specialized industrial equipment maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means that the government did not explore potential cost savings or service improvements that could have arisen from a competitive bidding process. This raises questions about whether the best possible price and terms were secured.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the competitive pricing that could have been achieved through an open bidding process. This could lead to higher overall costs for the government.

Public Impact

The Department of State benefits from the continued operational readiness of its Arbon equipment. Essential maintenance services ensure the reliability of critical machinery. The contract supports the ongoing operations of the agency, likely impacting various administrative and logistical functions. Workforce implications are minimal, as this is a service contract rather than a large-scale procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation and service improvements.
Dependence on a single contractor could create future supply chain risks.

Positive Signals

Follow-on nature suggests contractor performance has met expectations previously.
Firm-fixed-price contract provides budget predictability.
Contract ensures continued support for essential equipment.

Sector Analysis

The industrial machinery repair and maintenance sector is crucial for supporting government operations that rely on specialized equipment. This contract falls within the Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance NAICS code (811310). While specific market size data for Arbon equipment maintenance is not readily available, the broader industrial maintenance market is substantial. This contract represents a small but vital component of the government's overall spending on maintaining its operational infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

As a purchase order issued by the Department of State, this contract is subject to internal agency oversight and potentially the jurisdiction of the Government Accountability Office (GAO) for bid protests. Transparency is limited due to the sole-source nature and lack of public competition details. Further oversight would typically involve agency-level contract management and performance reviews.

Related Government Programs

Department of State Equipment Maintenance Contracts
Industrial Machinery Repair Services
Follow-on Service Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for contractor lock-in.
Limited transparency on performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3,704.4 to ARBON EQUIPMENT CORP. FOLLOW-ON TO 19AQMM25P0474 FOR CONTINUED ARBON EQUIPMENT MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is ARBON EQUIPMENT CORP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $3,704.4.

What is the period of performance?

Start: 2026-04-13. End: 2027-04-12.

What is the historical spending pattern for Arbon equipment maintenance by the Department of State?

The provided data indicates this is a follow-on contract to "19AQMM25P0474". To understand the historical spending pattern, one would need to examine the value and duration of this previous contract, as well as any other contracts awarded for Arbon equipment maintenance. Without access to that specific historical data, it's difficult to establish a trend. However, the fact that it is a follow-on suggests a recurring need and potentially a consistent level of spending for this type of service over time. Further analysis would require accessing the Federal Procurement Data System (FPDS) or similar databases to trace all related awards.

How does the $3.7 million value compare to similar maintenance contracts for specialized industrial equipment?

Benchmarking the $3.7 million value requires comparing it to similar maintenance contracts for specialized industrial equipment, ideally from the same manufacturer (Arbon) or for comparable machinery in terms of complexity and criticality. Without access to a database of such contracts, a precise comparison is difficult. However, for specialized industrial equipment, annual maintenance costs can range significantly, from tens of thousands to hundreds of thousands of dollars, depending on the equipment's size, function, and required service level. A $3.7 million contract over one year suggests either a large fleet of equipment requiring extensive service or particularly high-value, complex machinery. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee value without market comparison.

What are the specific risks associated with a sole-source award for essential equipment maintenance?

The primary risks associated with a sole-source award for essential equipment maintenance include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or improve service quality, and increased dependence on a single provider. This dependence can create vulnerabilities if the contractor faces financial difficulties, operational issues, or decides to discontinue the service. Furthermore, the government loses the opportunity to explore alternative solutions or potentially more cost-effective providers that might emerge in a competitive environment. For critical equipment, this reliance can pose a significant operational risk if maintenance is not performed optimally or if support is disrupted.

What is the track record of Arbon Equipment Corp in fulfilling government contracts?

The provided data indicates that Arbon Equipment Corp is the contractor for this follow-on award, suggesting a prior relationship and likely satisfactory performance on the preceding contract (19AQMM25P0474). To fully assess their track record, a deeper dive into their contract history with the federal government would be necessary. This would involve reviewing past performance evaluations, any reported contract disputes or terminations, and the overall volume and type of contracts they have held. The fact that the Department of State is continuing their support implies a level of confidence in their ability to meet the agency's needs for Arbon equipment maintenance.

What performance metrics are likely being used to evaluate the contractor's success in this maintenance contract?

While specific performance metrics are not detailed in the provided data, typical performance metrics for equipment maintenance contracts include response time to service requests, equipment uptime/availability, quality of repairs (e.g., first-time fix rate), adherence to maintenance schedules, and customer satisfaction. For a firm-fixed-price contract, the focus is often on ensuring the service is delivered as specified within the agreed-upon timeframe and cost. The Department of State would likely have internal quality assurance procedures and potentially a Quality Assurance Surveillance Plan (QASP) to monitor the contractor's adherence to the contract's technical requirements and service level agreements.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 S RITE HITE WAY, MILWAUKEE, WI, 53204

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,704

Exercised Options: $3,704

Current Obligation: $3,704

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline