DoD's $18.1M contract for machinery repair services awarded to EASON ENTERPRISES L.L.C. shows fair value

Contract Overview

Contract Amount: $18,128,464 ($18.1M)

Contractor: Eason Enterprises L.L.C

Awarding Agency: Department of Defense

Start Date: 2000-07-26

End Date: 2007-04-30

Contract Duration: 2,469 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to EASON ENTERPRISES L.L.C for work described as: Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The duration of the contract (2469 days) indicates a long-term need for these services. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The North American Industry Classification System (NAICS) code 811310 points to a specialized repair and maintenance sector. 5. The contract was awarded by the Department of the Air Force, a major component of the DoD. 6. The contract's performance period spanned from 2000 to 2007, providing historical context for current spending.

Value Assessment

Rating: fair

Benchmarking the value of this $18.1 million contract is challenging without specific service details or comparable contract data. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government. The contract's long duration implies a sustained need, and the awarded amount over its lifespan suggests a consistent, albeit not necessarily exceptional, level of service delivery. Further analysis would require comparing the unit costs of specific repair services to industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised, and multiple bids were likely considered. While the 'after exclusion of sources' phrasing might suggest some initial limitations, the overall 'full and open' designation implies a robust competitive process. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are likely military operations and readiness, as the contract supports the maintenance of essential machinery and equipment. Services delivered include the repair and maintenance of commercial and industrial machinery and equipment, crucial for operational continuity. The geographic impact is centered around the Department of the Air Force's installations, potentially within Oklahoma where the contract was awarded. Workforce implications include the employment of skilled technicians and mechanics required for specialized equipment repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the types of machinery repaired makes it difficult to assess if the $18.1M was optimally spent.
The long contract duration could potentially lead to vendor lock-in if not managed carefully.
The 'after exclusion of sources' clause warrants further investigation to understand any initial limitations on competition.

Positive Signals

The firm fixed-price contract type shifts cost risk to the contractor, which is generally favorable for the government.
Awarding under full and open competition suggests a deliberate effort to maximize market participation and achieve competitive pricing.
The contract's long duration indicates a stable and predictable need, allowing for efficient resource planning.

Sector Analysis

The contract falls within the Industrial Machinery and Equipment Repair and Maintenance sector, a critical support industry for various government operations. This sector is characterized by specialized technical expertise and often involves long-term service agreements. Benchmarking spending in this area requires comparing the contract's value against similar maintenance contracts for complex machinery within the defense or industrial sectors, considering the specific types of equipment serviced.

Small Business Impact

There is no indication that this contract included a small business set-aside, as the 'sb' field is false. This suggests that small businesses were not specifically targeted for this procurement. Consequently, the impact on the small business ecosystem is likely indirect, potentially through subcontracting opportunities if EASON ENTERPRISES L.L.C. engaged smaller firms, though this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance Services
General Services Administration (GSA) Professional Services Schedule (PSS)
Department of Defense (DoD) Equipment Maintenance Contracts
Air Force Materiel Command (AFMC) Support Services

Risk Flags

Potential for undefined scope in 'after exclusion of sources' competition.
Lack of detailed performance metrics makes value assessment difficult.
Long contract duration may pose long-term vendor management challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to EASON ENTERPRISES L.L.C. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is EASON ENTERPRISES L.L.C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2000-07-26. End: 2007-04-30.

What specific types of machinery and equipment were covered under this contract, and what was the breakdown of repair costs by equipment type?

The provided data indicates the contract (awarded to EASON ENTERPRISES L.L.C. for $18.1M) falls under NAICS code 811310, which covers Commercial and Industrial Machinery and Equipment Repair and Maintenance. However, the specific types of machinery and equipment are not detailed in the provided summary. Without this granular information, it's impossible to break down repair costs by equipment type. This level of detail is typically found in the contract's statement of work (SOW) or task orders. Understanding the specific equipment (e.g., aircraft ground support equipment, specialized manufacturing machinery, IT infrastructure hardware) is crucial for assessing the appropriateness of the $18.1M expenditure and for comparing it to industry benchmarks for similar repair services.

How does the per-unit cost of repairs under this contract compare to industry benchmarks for similar services?

Determining the per-unit cost of repairs requires specific data on the number of repair actions performed and the cost associated with each. The provided data summarizes the total contract value ($18.1M) and duration (2469 days) but lacks the transactional details needed for per-unit cost analysis. To benchmark effectively, one would need to identify the average cost for repairing specific types of machinery (e.g., a turbine engine, a hydraulic press, a server) and compare it to the rates charged under this contract. Without access to the contract's task orders or detailed service records, such a comparison remains speculative. The firm fixed-price nature suggests that EASON ENTERPRISES L.L.C. would have priced these units competitively upfront.

What was the track record of EASON ENTERPRISES L.L.C. prior to and during this contract regarding performance and compliance?

The provided data indicates EASON ENTERPRISES L.L.C. was awarded this contract and that its status was 'OK' with a 'sn' (satisfactory rating) of 'OKLAHOMA'. This suggests a generally positive or satisfactory performance rating at the time of award or during its tenure. However, 'OK' is a broad assessment. A comprehensive review of the contractor's track record would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any documented disputes, claims, or contract modifications, and their history with other federal agencies. Without access to these detailed performance records, it's difficult to provide a definitive assessment of their overall reliability and compliance during this specific contract period.

How did the total spending of $18.1M compare to historical spending patterns for similar machinery repair services within the Department of the Air Force?

The $18.1 million contract value represents a significant investment in machinery repair and maintenance over its nearly 7-year duration (2469 days). To compare this to historical spending patterns, one would need to analyze the Air Force's budget allocations and expenditures for similar services (NAICS 811310 or comparable codes) in the years preceding, during, and following this contract period (2000-2007). This analysis would involve looking at trends in maintenance spending, the types of equipment being serviced, and the overall operational tempo. A higher or lower spending level compared to historical averages could indicate changes in equipment age, operational demands, or procurement strategies. Without access to historical budget data, this comparison remains qualitative.

What were the key performance indicators (KPIs) for this contract, and how did EASON ENTERPRISES L.L.C. perform against them?

The provided summary data does not specify the Key Performance Indicators (KPIs) established for this contract. Typically, for machinery repair and maintenance contracts, KPIs might include metrics such as response time to service calls, equipment uptime percentages, turnaround time for repairs, adherence to maintenance schedules, and quality of workmanship (e.g., defect rates). The 'st' (status) and 'sn' (satisfactory rating) fields are listed as 'OK', suggesting general compliance, but they do not provide quantitative performance data against specific KPIs. A thorough assessment would require reviewing the contract's SOW and any performance reports generated during its execution.

Were there any significant risks identified during the contract lifecycle, and how were they mitigated?

The provided data does not explicitly list identified risks or mitigation strategies for this contract. However, common risks in long-term, fixed-price machinery repair contracts include scope creep (uncontrolled changes or additions to the work), unforeseen technical challenges with aging equipment, availability of spare parts, and contractor performance issues. The firm fixed-price nature inherently mitigates the risk of cost overruns for the government, provided the scope is well-defined. The 'after exclusion of sources' element in the competition type might hint at potential initial challenges in finding qualified bidders or specific technical requirements that limited the pool. Effective mitigation would have involved robust contract management, clear communication, and proactive issue resolution by the contracting officer's representative (COR).

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 4110 E FAIRVIEW ST, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline