Army awards $17.3M for artillery system support, with GSA managing contract

Contract Overview

Contract Amount: $17,269,092 ($17.3M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: General Services Administration

Start Date: 2020-04-01

End Date: 2025-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: US ARMY PROJECT MANAGER TOWED ARTILLERY SYSTEMS

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $17.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: US ARMY PROJECT MANAGER TOWED ARTILLERY SYSTEMS Key points: 1. Contract provides essential administrative and management consulting services for towed artillery systems. 2. The contract duration spans over five years, indicating a long-term need for these services. 3. Services are delivered under a labor-hours contract, allowing flexibility but requiring careful monitoring of effort. 4. The award was made through full and open competition, suggesting a competitive marketplace for these services. 5. The contractor, LOYAL SOURCE GOVERNMENT SERVICES LLC, has secured this significant award. 6. The contract is managed by the General Services Administration, leveraging their acquisition expertise.

Value Assessment

Rating: good

The contract value of $17.3 million over five years for administrative and management consulting services appears reasonable, especially given the specialized nature of supporting Army artillery systems. Benchmarking against similar contracts for program management support in the defense sector suggests this pricing is within expected ranges. The use of labor hours allows for flexibility, but effective management is key to ensuring value for money and preventing cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a healthy level of interest and competition for this requirement. This competitive process is expected to drive fair pricing and ensure the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure funds are used efficiently and that the services procured are priced appropriately.

Public Impact

The US Army's Project Manager for Towed Artillery Systems directly benefits from enhanced administrative and management support. Services delivered are crucial for the effective management and sustainment of critical artillery systems. The contract's impact is primarily within the defense sector, supporting military readiness. Workforce implications include the employment of personnel by LOYAL SOURCE GOVERNMENT SERVICES LLC to fulfill contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor-hours contract type requires diligent oversight to ensure efficient use of resources and prevent scope creep.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Specialized nature of artillery systems support may limit the pool of highly qualified contractors.
Reliance on a single award for these critical services could pose a risk if contractor performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Managed by GSA, leveraging established procurement expertise and oversight.
Contract duration suggests a stable requirement and a committed partner for the Army.
The contractor has secured a significant award, implying confidence in their capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on administrative and management consulting. The defense industry relies heavily on such support services to manage complex programs and systems. Comparable spending in this category often involves significant investments in program management, logistics, and technical support for major defense platforms. The market size for defense-related consulting is substantial, driven by the continuous need for modernization and operational support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses in their subcontracting efforts.

Oversight & Accountability

The General Services Administration (GSA) provides oversight for this contract, utilizing its established Federal Acquisition Service. Accountability is maintained through performance metrics and reporting requirements inherent in the contract. Transparency is facilitated by the public nature of contract awards and the availability of contract details through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Aviation and Missile Command Support Contracts
Defense Contract Management Agency Services
General Services Administration Schedule Contracts
Professional Services Schedule (PSS) Contracts
Department of Defense Program Management Support

Risk Flags

Labor-hours contract type requires close monitoring to ensure cost control.
Long contract duration necessitates sustained performance oversight.
Potential for contractor performance issues impacting critical defense systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. US ARMY PROJECT MANAGER TOWED ARTILLERY SYSTEMS

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-09-30.

What is the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC in performing similar administrative and management consulting services for the Department of Defense?

LOYAL SOURCE GOVERNMENT SERVICES LLC has a history of providing various support services to government agencies, including the Department of Defense. While specific details on past performance for artillery system management consulting are not immediately available in this summary, their ability to secure this contract suggests they meet the required qualifications. A deeper dive into their contract history, past performance evaluations (e.g., CPARS reports), and any relevant certifications would provide a more comprehensive understanding of their track record. Their success in winning competitive bids indicates a level of competence and experience that the Army deemed sufficient for this requirement.

How does the awarded value compare to similar administrative and management consulting contracts for defense programs?

The awarded value of approximately $17.3 million over five years for administrative and management consulting services for the Army's towed artillery systems is generally in line with market rates for specialized defense program support. Contracts of this nature, especially those requiring deep technical understanding and long-term engagement, can range from several million to tens of millions of dollars annually, depending on the scope and complexity. Benchmarking against contracts for program management, logistics support, or technical consulting for other major defense platforms managed by agencies like GSA or directly by DoD components would provide a more precise comparison. The labor-hours pricing structure also means the final cost can vary based on actual effort expended.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to the labor-hours contract type if not managed diligently, contractor performance issues impacting the critical artillery systems support, and potential personnel turnover affecting institutional knowledge. Mitigation strategies likely involve robust GSA oversight, clearly defined performance work statements (PWS), regular progress reviews, and performance metrics. The full and open competition process also mitigates the risk of selecting an unqualified vendor. The long-term nature of the contract implies a need for proactive risk management and contingency planning by both the contractor and the contracting officer.

What is the expected effectiveness of these services in improving the management and sustainment of towed artillery systems?

The effectiveness of these services hinges on the contractor's ability to provide high-quality administrative and management consulting tailored to the specific needs of towed artillery systems. Expected improvements could include streamlined logistical support, enhanced readiness reporting, more efficient maintenance scheduling, and better program planning. The services aim to free up military personnel from administrative burdens, allowing them to focus on core operational duties. The success will be measured by the contractor's adherence to performance standards and the tangible improvements in the program's efficiency and effectiveness as assessed by the Army.

What are the historical spending patterns for similar administrative and management support services within the Army's artillery programs?

Historical spending on administrative and management support for Army artillery programs would likely show a consistent need for such services, particularly during periods of modernization or sustained operational tempo. Spending patterns can fluctuate based on budget allocations, program lifecycle stages, and specific acquisition strategies. Contracts for program management offices (PMOs) supporting major weapon systems often represent significant investments. Analyzing past contract awards for the PM Towed Artillery Systems or comparable programs would reveal trends in contract values, durations, and types of services procured, providing context for the current $17.3 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12612 CHALLENGER PKWY, ORLANDO, FL, 32826

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,476,925

Exercised Options: $21,138,092

Current Obligation: $17,269,092

Actual Outlays: $345,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA18D008T

IDV Type: FSS

Timeline