Air Force awards $2.56M for overhead production support, with 3 bidders competing
Contract Overview
Contract Amount: $2,563,013 ($2.6M)
Contractor: Siertek, Ltd.
Awarding Agency: Department of Defense
Start Date: 2022-11-15
End Date: 2023-11-14
Contract Duration: 364 days
Daily Burn Rate: $7.0K/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: OVERHEAD PRODUCTION SUPPORT SERVICES
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $2.6 million to SIERTEK, LTD. for work described as: OVERHEAD PRODUCTION SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics were present with three bidders vying for the contract. 3. No immediate risk indicators are apparent from the provided data. 4. The contract duration of one year provides a defined period for service delivery. 5. This contract falls within administrative management and general management consulting services. 6. The firm-fixed-price contract type shifts risk to the contractor.
Value Assessment
Rating: good
The contract value of $2.56 million for a one-year period of overhead production support seems within a reasonable range for administrative management consulting services. Benchmarking against similar contracts would provide a more precise assessment, but the presence of multiple bidders suggests a competitive pricing environment. The firm-fixed-price structure indicates that the contractor is responsible for managing costs to meet the agreed-upon price, which can be advantageous for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. With three bidders, the competition level is moderate, suggesting that the government received multiple proposals. This level of competition generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from a more competitive price than might have been achieved through a less open process. The exclusion of certain sources, if justified, ensures the best value is sought within the permissible competitive framework.
Public Impact
The Department of the Air Force benefits from essential overhead production support services. These services are crucial for the efficient functioning of production operations. The contract is geographically located in Utah, potentially impacting the local workforce. The specific impact on the workforce depends on the nature of the support services provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition, indicating a broad search for qualified contractors.
- Firm-fixed-price contract type, which transfers cost overrun risk to the contractor.
- Moderate number of bidders (3) suggests a healthy level of interest and capability in the market.
- Contract duration of one year allows for regular performance evaluation and potential re-competition.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for supporting government operations across various agencies. The market for such services is competitive, with numerous firms offering specialized expertise. The contract value is modest within the broader context of federal IT and professional services spending.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss=false, sb=false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. The competitive nature of the award suggests that larger, established firms may have been the primary bidders.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring against the firm-fixed-price terms and delivery order requirements would be key accountability measures. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available.
Related Government Programs
- Defense Production Support Services
- Administrative Management Consulting
- General Management Consulting Services
- Air Force Operations Support
Tags
administrative-management, general-management-consulting, overhead-production-support, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, delivery-order, utah, professional-services, management-consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.6 million to SIERTEK, LTD.. OVERHEAD PRODUCTION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SIERTEK, LTD..
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 $2.6 million.
What is the period of performance?
Start: 2022-11-15. End: 2023-11-14.
What is the track record of SIERTEK, LTD. with federal contracts, particularly with the Department of Defense?
A review of federal procurement data indicates that SIERTEK, LTD. has a history of receiving federal contracts, primarily with the Department of Defense. While specific details on past performance quality are not provided in this summary, the award of this delivery order suggests they met the requirements for overhead production support. Further investigation into their past performance ratings, any past disputes, or contract terminations would be necessary for a comprehensive assessment of their track record. Analyzing their award history across different agencies and contract types can reveal patterns in their service delivery and reliability.
How does the awarded price of $2.56 million compare to similar overhead production support contracts?
Benchmarking this $2.56 million contract against similar overhead production support services requires access to a broader dataset of comparable federal awards. Factors such as the specific scope of work, duration, geographic location, and the complexity of the support needed significantly influence pricing. Given that this is a one-year contract, the value appears moderate for administrative and management consulting services. The presence of three bidders suggests a competitive environment, which typically drives prices towards market rates. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the competitive award is a positive indicator.
What are the primary risks associated with this firm-fixed-price contract for overhead production support?
The primary risk for the government in a firm-fixed-price contract is that the contractor may cut corners on quality or service delivery to maximize profit if costs exceed initial estimates. However, for overhead production support, the risks are generally lower than for complex technical services. The main risks for the contractor include underestimating the effort required, unforeseen cost increases, or failing to meet performance standards, which could lead to financial losses. The government's risk is mitigated by clear performance standards and the ability to hold the contractor accountable for non-performance, potentially through contract termination or withholding payment if milestones are not met.
How effective are overhead production support services in enhancing the Air Force's operational efficiency?
The effectiveness of overhead production support services in enhancing Air Force operational efficiency is highly dependent on the specific nature of the services provided and how well they are executed. These services often encompass administrative tasks, logistical coordination, resource management, and process optimization, all of which are critical for smooth production operations. When performed effectively, they can streamline workflows, reduce bottlenecks, improve resource allocation, and allow primary production personnel to focus on core tasks. The success of this particular contract hinges on SIERTEK, LTD.'s ability to deliver these support functions reliably and efficiently, contributing to the overall productivity and readiness of the Air Force units they serve.
What has been the historical spending trend for overhead production support services by the Department of the Air Force?
Analyzing historical spending trends for overhead production support services by the Department of the Air Force requires access to multi-year procurement data. This specific contract represents a single year's expenditure. To understand trends, one would need to examine spending patterns over several fiscal years, looking at the total amount obligated for similar services, the number of contracts awarded, and the primary contractors involved. Fluctuations in spending could be influenced by changes in operational tempo, budget allocations, strategic priorities, and the insourcing or outsourcing of support functions. This $2.56 million award should be viewed within the context of the Air Force's overall budget and its specific needs for production support.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2763 CHATHAM COURT, BEAVERCREEK, OH, 45431
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $2,563,013
Exercised Options: $2,563,013
Current Obligation: $2,563,013
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA822417D0007
IDV Type: IDC
Timeline
Start Date: 2022-11-15
Current End Date: 2023-11-14
Potential End Date: 2023-11-14 00:00:00
Last Modified: 2026-01-06
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