DoD's $1.26B EGLIN O&M Services Contract Awarded to Reliance Test & Technology Under Full and Open Competition

Contract Overview

Contract Amount: $1,259,959,813 ($1.3B)

Contractor: Reliance Test & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2016-04-01

End Date: 2026-03-31

Contract Duration: 3,651 days

Daily Burn Rate: $345.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF EGLIN - OPERATION&MAINTENANCE SERVICES (E-OMS)

Place of Performance

Location: CRESTVIEW, OKALOOSA County, FLORIDA, 32536

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $1.26 billion to RELIANCE TEST & TECHNOLOGY, LLC for work described as: IGF::OT::IGF EGLIN - OPERATION&MAINTENANCE SERVICES (E-OMS) Key points: 1. The contract value is substantial at $1.26 billion, indicating significant long-term service needs. 2. Reliance Test & Technology, LLC secured this award through full and open competition. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. The Engineering Services sector is critical for supporting complex defense operations.

Value Assessment

Rating: good

The Cost Plus Award Fee structure allows for performance incentives. Pricing will be assessed based on the awarded fee structure and actual costs incurred, compared against industry benchmarks for similar engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method aims to ensure the government receives competitive pricing by allowing all eligible offerors to participate.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Supports critical Air Force operations at Eglin Air Force Base. Long-term contract (10 years) provides stability for service provider and government planning. Potential for innovation and efficiency gains through award fee structure. Ensures continued availability of essential engineering and maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent monitoring to ensure costs remain reasonable and award fees are justified.
The long duration of the contract could present challenges in adapting to evolving technological needs or market conditions.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Long-term contract provides stability and predictability for essential services.
Focus on operational and maintenance services suggests a critical need being met.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for supporting complex government operations, particularly in defense. Spending benchmarks in this sector vary widely based on the specific services and scale, but large-scale, long-term contracts like this represent significant investments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are not directly benefiting from this specific award, though they may participate as subcontractors.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates robust oversight to ensure contractor performance aligns with objectives and costs are managed effectively. The Department of the Air Force will need to actively monitor expenditures and award fee determinations.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost growth in Cost Plus Award Fee contracts.
Long contract duration may not keep pace with technological advancements.
Lack of small business set-aside limits direct participation.
Reliance on a single prime contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.26 billion to RELIANCE TEST & TECHNOLOGY, LLC. IGF::OT::IGF EGLIN - OPERATION&MAINTENANCE SERVICES (E-OMS)

Who is the contractor on this award?

The obligated recipient is RELIANCE TEST & TECHNOLOGY, LLC.

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 $1.26 billion.

What is the period of performance?

Start: 2016-04-01. End: 2026-03-31.

How will the award fee structure be monitored to ensure it drives desired performance without inflating costs?

The Department of the Air Force will establish clear performance metrics and evaluation criteria for the award fee. Regular reviews of contractor performance against these metrics, along with detailed cost analysis, will be crucial. Independent government cost estimators and contracting officer representatives will play a key role in validating performance and justifying any awarded fees, ensuring alignment with taxpayer value.

What mechanisms are in place to address potential cost overruns or performance deficiencies over the 10-year contract duration?

The Cost Plus Award Fee structure inherently includes provisions for performance evaluation, which directly impacts the fee. The contract likely contains clauses for corrective action plans if performance dips below acceptable levels. Regular contract reviews and communication channels between the government and Reliance Test & Technology will be vital for early identification and mitigation of potential issues.

How does the pricing compare to similar long-term engineering services contracts awarded by the DoD or other federal agencies?

Benchmarking this contract's pricing requires detailed analysis of the specific services rendered and the associated labor categories, overhead rates, and profit/fee structures. Given the full and open competition, the initial award price is presumed competitive. However, ongoing monitoring of actual costs and awarded fees against industry standards for similar scope and duration is essential for long-term value assessment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA248616R0002

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4050 S FERDON BLVD, CRESTVIEW, FL, 32536

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

Financial Breakdown

Contract Ceiling: $1,461,076,070

Exercised Options: $1,403,245,778

Current Obligation: $1,259,959,813

Actual Outlays: $32,740,092

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline