Department of Defense awarded $18.3M for vehicle maintenance, with Hallmark-Phoenix 3, LLC securing the contract
Contract Overview
Contract Amount: $18,329,535 ($18.3M)
Contractor: Hallmark-Phoenix 3, LLC
Awarding Agency: Department of Defense
Start Date: 2008-07-30
End Date: 2013-07-31
Contract Duration: 1,827 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VEHICLE/EQUIPMENT MAINTENANCE FY 09
Place of Performance
Location: CANAVERAL AIR STATION, BREVARD County, FLORIDA, 32925
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to HALLMARK-PHOENIX 3, LLC for work described as: VEHICLE/EQUIPMENT MAINTENANCE FY 09 Key points: 1. The contract value of $18.3 million over five years suggests a significant need for ongoing automotive repair services. 2. Full and open competition after exclusion of sources indicates a deliberate process to ensure fair market access. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing overall expenditure. 4. Awarded to Hallmark-Phoenix 3, LLC, the contract's duration of 1827 days (approx. 5 years) points to a long-term service requirement. 5. The primary service area is General Automotive Repair, aligning with the NAICS code 811111. 6. The contract was awarded in Florida, suggesting a concentration of Air Force vehicle maintenance needs in that region.
Value Assessment
Rating: good
The total award of $18.3 million over approximately five years averages to about $3.66 million annually. Without specific benchmarks for vehicle maintenance contracts of this scale and scope within the Department of the Air Force, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure is generally favorable for the government as it caps costs. The number of bidders (3) suggests some level of competition, which typically aids in achieving reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on predefined criteria. Three bidders participated in this competition. The presence of multiple bidders, even if limited to three, generally supports price discovery and encourages competitive pricing.
Taxpayer Impact: A competitive bidding process, even with a limited number of bidders, helps ensure that taxpayer funds are used efficiently by preventing inflated prices that might occur with a sole-source award.
Public Impact
The primary beneficiaries are the Department of the Air Force, which will receive essential vehicle maintenance services. The services delivered include general automotive repair, ensuring the operational readiness of the Air Force's vehicle fleet. The geographic impact is concentrated in Florida, where the contractor is located and services are likely performed. This contract supports jobs within the automotive repair sector, particularly for the winning contractor, Hallmark-Phoenix 3, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if market conditions change significantly over the five-year contract term, despite the fixed-price nature.
- Dependence on a single contractor for a critical service could pose risks if the contractor faces financial or operational difficulties.
Positive Signals
- The firm-fixed-price contract type provides cost certainty for the government.
- The competitive bidding process, even with three bidders, suggests an effort to secure fair market pricing.
- The long contract duration indicates a stable, ongoing need that the contractor is positioned to meet.
Sector Analysis
The automotive repair industry is a mature sector providing essential maintenance services. Federal contracts for vehicle maintenance are common across various agencies, particularly those with large vehicle fleets like the Department of Defense. This contract fits within the broader category of support services for government operations. Benchmarking against similar contracts would require detailed analysis of scope, location, and specific vehicle types serviced.
Small Business Impact
The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Hallmark-Phoenix 3, LLC, may engage small businesses for subcontracting opportunities, though this is not explicitly detailed in the provided data.
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 embedded in the firm-fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Vehicle Maintenance Contracts
- General Automotive Repair Services
- Air Force Fleet Support Contracts
- Firm Fixed Price Service Contracts
Risk Flags
- Contract Duration
- Competition Level
- Contract Type Risk
Tags
department-of-defense, department-of-the-air-force, vehicle-maintenance, general-automotive-repair, firm-fixed-price, full-and-open-competition, hallmark-phoenix-3-llc, florida, large-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to HALLMARK-PHOENIX 3, LLC. VEHICLE/EQUIPMENT MAINTENANCE FY 09
Who is the contractor on this award?
The obligated recipient is HALLMARK-PHOENIX 3, 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 $18.3 million.
What is the period of performance?
Start: 2008-07-30. End: 2013-07-31.
What is the track record of Hallmark-Phoenix 3, LLC with federal contracts, particularly within the Department of Defense?
Information on Hallmark-Phoenix 3, LLC's specific track record with federal contracts, especially within the Department of Defense, is not detailed in the provided data snippet. A comprehensive analysis would require querying federal procurement databases (like FPDS or SAM.gov) to identify past awards, performance history, and any reported issues or commendations. Understanding their history with similar firm-fixed-price contracts for vehicle maintenance would be crucial to assessing their reliability and past performance in delivering services within budget and schedule.
How does the average annual value of this contract compare to similar vehicle maintenance contracts awarded by the Air Force?
The average annual value of this contract is approximately $3.66 million ($18.3M / 5 years). To benchmark this against similar contracts, one would need to identify other Department of the Air Force (or broader DoD) contracts for general automotive repair services awarded within a similar timeframe, with comparable contract durations and scopes of work. Factors such as the number and types of vehicles serviced, geographic location, and specific maintenance requirements (e.g., preventative vs. extensive repairs) would need to be considered. Without access to a broader dataset of comparable contracts, it's difficult to definitively state if this represents a high, low, or average annual expenditure.
What are the primary risks associated with a five-year firm-fixed-price contract for vehicle maintenance?
The primary risks for the government in a five-year firm-fixed-price contract for vehicle maintenance include potential cost increases if market prices for parts or labor rise significantly beyond projections, although the contractor bears the brunt of this risk. A key risk is contractor performance; if Hallmark-Phoenix 3, LLC underperforms, lacks capacity, or faces financial instability, it could disrupt essential maintenance services, impacting fleet readiness. Ensuring adequate quality control and performance monitoring throughout the contract's life is crucial. Additionally, the long duration might lead to technological obsolescence in repair methods or parts if not managed proactively.
How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for this type of service?
The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. By excluding certain sources, the agency might be targeting contractors with specific capabilities or past performance relevant to Air Force vehicle maintenance. While it's a form of open competition, the exclusion of some potential bidders could theoretically limit the number of competitive offers received, potentially impacting price discovery compared to a truly unrestricted full and open competition. However, if the exclusions are well-justified and the remaining pool of bidders is robust, it can still lead to competitive pricing. The fact that three bidders participated suggests a reasonable level of competition was achieved.
What are the historical spending patterns for vehicle maintenance within the Department of the Air Force, and how does this contract fit?
Historical spending patterns for vehicle maintenance within the Department of the Air Force are substantial, given the vast size and operational tempo of its fleet. Agencies like the Air Force typically allocate significant budgets to ensure vehicle readiness through regular maintenance and repair. This $18.3 million contract represents a portion of that overall spending, likely focused on a specific geographic region (Florida) or a particular category of vehicles/services. Analyzing historical data would reveal trends in contract values, types of services procured, and dominant contractors over time, helping to contextualize this award within the larger spending landscape.
Industry Classification
NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA252107R8506
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6800 SAND POINT DR, HOUSTON, TX, 90
Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,301,954
Exercised Options: $18,329,536
Current Obligation: $18,329,535
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-07-30
Current End Date: 2013-07-31
Potential End Date: 2013-10-30 00:00:00
Last Modified: 2013-08-20
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)