DoD's $45.4M contract for road transportation support services awarded to Professional Contract Services, Inc. raises value questions

Contract Overview

Contract Amount: $45,408,946 ($45.4M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-05-31

End Date: 2014-01-31

Contract Duration: 2,802 days

Daily Burn Rate: $16.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $45.4 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: Key points: 1. The contract's duration of over 7 years and firm fixed-price structure suggest potential for cost overruns if initial estimates were inaccurate. 2. Limited competition raises concerns about price discovery and whether the government secured the best possible value. 3. The lack of specific performance metrics or clear risk indicators in the provided data makes a comprehensive assessment challenging. 4. This contract falls under 'Other Support Activities for Road Transportation,' a broad category that requires further breakdown for precise benchmarking. 5. The contractor, Professional Contract Services, Inc., has a significant contract value, indicating a substantial operational capacity. 6. The contract's value of $45.4 million over its term warrants scrutiny regarding its efficiency and necessity.

Value Assessment

Rating: questionable

Benchmarking this contract's value is difficult without detailed service descriptions and performance data. The total award of $45.4 million over approximately 7.5 years averages to about $6 million annually. Without comparable contracts for similar road transportation support activities, it's hard to definitively assess if this represents good value. The firm fixed-price nature, while offering budget certainty, can lead to overpayment if the scope of work or market conditions change unfavorably for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits the government's ability to leverage market competition to drive down prices and ensure the most innovative solutions are considered. The justification for a sole-source award would typically involve unique capabilities or circumstances, which are not detailed here.

Taxpayer Impact: Sole-source awards generally mean taxpayers may not benefit from competitive pricing, potentially leading to higher costs compared to a competed contract.

Public Impact

Military personnel and operations relying on road transportation infrastructure and support services are the primary beneficiaries. The contract supports essential logistical functions for the Department of Defense, ensuring operational readiness. The geographic impact is likely concentrated around military installations or operational areas where road transportation is critical. Workforce implications could include direct employment by the contractor and indirect support to military logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Long contract duration without clear performance benchmarks increases risk.
Limited transparency on the justification for sole-source award.
Potential for cost overruns due to fixed-price contract in a long-term scenario.
Difficulty in assessing true value-for-money without detailed performance data.

Positive Signals

Contract awarded to a single entity suggests specialized capability.
Firm fixed-price contract provides budget certainty for the agency.
Long-term award indicates a stable, ongoing need for these services.
Contractor has secured a significant award, implying established operational capacity.

Sector Analysis

The 'Other Support Activities for Road Transportation' sector is broad and encompasses a range of services essential for maintaining and operating transportation networks. This includes maintenance, repair, logistics, and potentially specialized support for military vehicles and infrastructure. The market size for such services within the defense sector is substantial, driven by the constant need for mobility and logistical support. This contract represents a significant portion of spending within this niche, highlighting its importance to the Department of Defense's operations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a factor in this contract award. There is no indication of small business set-asides or subcontracting requirements. This means the contract did not contribute to the government's small business utilization goals and did not provide direct opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and program managers. Accountability measures would be tied to the contract's performance clauses, though these are not detailed here. Transparency is limited due to the sole-source nature and lack of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Contracts
Military Transportation Services
Road Maintenance and Construction Contracts
Federal Vehicle Fleet Management
Department of Transportation Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration increases risk of cost escalation.
Limited performance data hinders value assessment.
Broad service category makes specific risk identification difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to PROFESSIONAL CONTRACT SERVICES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, INC..

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 $45.4 million.

What is the period of performance?

Start: 2006-05-31. End: 2014-01-31.

What specific road transportation support services does this contract cover, and how do they align with the Department of Defense's mission requirements?

The contract falls under NAICS code 488490, 'Other Support Activities for Road Transportation.' This broad category can encompass a wide range of services, including dispatching, freight transport arrangement, towing, vehicle maintenance and repair, and potentially specialized support for military vehicles and infrastructure. Without a detailed statement of work, it's difficult to ascertain the precise services. However, these services are critical for ensuring the mobility of personnel and equipment, supporting deployment readiness, and maintaining operational logistics for the Department of Defense. The duration and value suggest a sustained need for these foundational support activities.

Can the $45.4 million award value be benchmarked against similar contracts for road transportation support services within the federal government?

Benchmarking this $45.4 million contract is challenging without more specific details on the services rendered and the geographic scope. The NAICS code 488490 is very broad. To perform a meaningful comparison, one would need to identify contracts with similar statements of work, contract types (firm fixed-price), durations (approx. 7.5 years), and agencies (DoD). Publicly available contract databases might reveal other large contracts for transportation support, but direct apples-to-apples comparisons are often difficult due to variations in service levels, performance requirements, and market conditions across different regions and time periods. The lack of competition further complicates value assessment.

What are the primary risks associated with a sole-source, firm fixed-price contract of this magnitude and duration?

The primary risks associated with this sole-source, firm fixed-price contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved in an open market. There's a risk that the contractor is not operating at peak efficiency or offering the best possible value. Secondly, the firm fixed-price structure, especially over a long duration (approx. 7.5 years), carries the risk of cost escalation for the government if market conditions change, material costs rise, or the initial cost estimates were inaccurate. While it provides budget certainty, it can lead to overpayment if the contractor's actual costs are significantly lower than anticipated.

What does the contractor's track record and past performance indicate regarding their ability to deliver on this contract?

The provided data does not include specific details on Professional Contract Services, Inc.'s track record or past performance. While the award of a $45.4 million contract suggests a certain level of capability and experience, a thorough assessment would require reviewing past performance evaluations, any documented issues or successes on previous government contracts, and their financial stability. Without this information, it's impossible to definitively assess their reliability and effectiveness in delivering the required road transportation support services.

How has federal spending in 'Other Support Activities for Road Transportation' evolved over the past five years, and where does this contract fit in?

Analyzing federal spending trends in 'Other Support Activities for Road Transportation' (NAICS 488490) requires accessing historical contract databases. Generally, spending in this sector can fluctuate based on defense readiness levels, infrastructure projects, and overall government priorities. A $45.4 million contract awarded over a 7.5-year period represents a significant, albeit potentially isolated, investment. To understand its place, one would need to compare its value against the total annual federal outlays for this NAICS code. If total annual spending in this category is, for example, $100 million, this contract represents a substantial portion. Conversely, if total spending is in the billions, it's a smaller component. This contract's long duration and sole-source nature make it a notable data point within its category.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Road Transportation › Other Support Activities for Road Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › MOTOR POOL OR PACKING/CRATING

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5700 S MO PAC EXPY BLDG E, AUSTIN, TX, 90

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,408,946

Exercised Options: $45,408,946

Current Obligation: $45,408,946

Contract Characteristics

Cost or Pricing Data: NO

Timeline