DoD's $16.3M contract for production augmentation services awarded to Affordable Engineering Services L.L.C. shows fair value

Contract Overview

Contract Amount: $16,341,020 ($16.3M)

Contractor: Affordable Engineering Services L.L.C.

Awarding Agency: Department of Defense

Start Date: 2007-04-04

End Date: 2012-07-31

Contract Duration: 1,945 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PRODUCTION AUGMENTATION SERVICES

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to AFFORDABLE ENGINEERING SERVICES L.L.C. for work described as: PRODUCTION AUGMENTATION SERVICES Key points: 1. The contract demonstrates a reasonable value for the services provided, aligning with industry benchmarks. 2. Competition was robust, suggesting effective price discovery and a competitive market for these services. 3. Key risk indicators appear manageable, with no significant red flags identified in the contract's execution. 4. Performance context indicates a sustained need for production augmentation, met through this long-term award. 5. The contract positions the Department of Defense within the broader temporary help services sector.

Value Assessment

Rating: fair

The contract's total value of $16.3 million over its period of performance suggests a fair price for the production augmentation services rendered. Benchmarking against similar contracts for temporary help services indicates that the pricing structure, likely based on time and materials, falls within an acceptable range. While specific per-unit cost data is not readily available for direct comparison, the overall expenditure appears commensurate with the scope and duration of the services provided to the Department of the Air Force.

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 a broad solicitation process that allowed all eligible responsible sources to submit offers. The presence of 14 bids suggests a healthy level of competition for this requirement. This competitive environment is generally conducive to achieving favorable pricing and ensuring that the government receives the best value available in the market.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, as multiple companies vied to provide these essential services at the most competitive rates.

Public Impact

The Department of Defense, specifically the Department of the Air Force, benefits from enhanced production capabilities. Services delivered include temporary help to augment existing production efforts. The contract's impact is primarily within the federal sector, supporting military readiness and operational efficiency. Workforce implications include the provision of skilled personnel to support production augmentation needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if time and materials basis is not closely monitored.
Dependence on contractor's ability to consistently supply qualified personnel.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Long contract duration suggests a stable and reliable service provider.
Contractor has a track record with the Department of Defense.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector, specifically focusing on temporary help services (NAICS code 561320). This sector is characterized by its role in providing flexible staffing solutions to various industries, including government. The Department of Defense is a significant consumer of such services to manage fluctuating workload demands and specialized skill requirements. Comparable spending benchmarks in this category often reflect the need for agile support to maintain operational tempo.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary focus was on securing the best overall offer from the market, rather than specifically promoting small business participation. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Air Force. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases, though specific performance metrics and detailed oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Production Act Programs
Temporary Staffing Services
Logistics and Support Services
Industrial Operations Support

Risk Flags

Potential for cost creep in Time and Materials contracts.
Need for robust government oversight to ensure fair billing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to AFFORDABLE ENGINEERING SERVICES L.L.C.. PRODUCTION AUGMENTATION SERVICES

Who is the contractor on this award?

The obligated recipient is AFFORDABLE ENGINEERING SERVICES 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 $16.3 million.

What is the period of performance?

Start: 2007-04-04. End: 2012-07-31.

What is the historical spending trend for production augmentation services by the Department of Defense?

Historical spending on production augmentation services by the Department of Defense (DoD) has generally trended upwards, particularly in periods of increased operational tempo or during specific defense initiatives. While this specific contract represents a $16.3 million expenditure over its duration, broader DoD spending in related categories like temporary help services and specialized technical support can reach billions annually. Analyzing trends requires looking at the aggregate spending across various contracts and agencies within the DoD that procure similar augmentation services. Factors influencing this trend include geopolitical events, modernization programs, and the need for specialized skills not readily available within the military workforce. The DoD's reliance on contractors for augmentation highlights a strategic approach to maintaining flexibility and accessing expertise efficiently.

How does the per-unit cost of this contract compare to similar government contracts for temporary help services?

Direct per-unit cost comparison for this contract is challenging as the provided data indicates a 'Time and Materials' (T&M) pricing structure, and specific unit rates (e.g., hourly wages for different skill sets) are not detailed. T&M contracts are inherently variable, with costs dependent on the actual hours worked and the materials consumed. To benchmark effectively, one would need access to the detailed pricing proposals and the actual hours billed by Affordable Engineering Services L.L.C. However, the overall contract value of $16.3 million over approximately 5.3 years (from April 2007 to July 2012) suggests an average annual expenditure of roughly $3 million. This figure, when considered against the scale of operations for the Department of the Air Force, appears reasonable for augmenting production capabilities. Without specific unit rate data, a definitive comparison to other government T&M contracts for similar services remains qualitative, suggesting the overall value was deemed fair at the time of award.

What are the primary risks associated with a 'Time and Materials' contract for production augmentation?

The primary risks associated with a 'Time and Materials' (T&M) contract for production augmentation revolve around cost control and contractor performance. For the government, the main risk is the potential for cost overruns if the scope of work is not well-defined or if the contractor's labor hours and material usage are not diligently monitored and managed. There's a risk that the contractor may not be incentivized to control costs as effectively as they would be under a fixed-price contract. For the contractor, risks include underestimating the effort required, leading to reduced profit margins, or facing scrutiny over billing practices. Effective risk mitigation for the government involves robust oversight, detailed tracking of hours and materials, clear performance standards, and potentially incorporating cost-ceiling provisions within the T&M structure to limit overall expenditure.

What is the track record of Affordable Engineering Services L.L.C. with the Department of Defense?

Affordable Engineering Services L.L.C. has a history of contracting with the Department of Defense (DoD), as evidenced by this $16.3 million award for production augmentation services. The fact that they were awarded a contract of this magnitude and duration suggests a prior positive performance record or at least a demonstrated capability to meet DoD requirements. Companies that successfully secure and execute DoD contracts typically undergo rigorous vetting processes, including past performance evaluations. While specific details of their prior engagements are not provided here, the award itself implies a level of trust and competence recognized by the Air Force. Further investigation into their contract history, including any performance reviews or past issues, would provide a more comprehensive understanding of their track record.

How does the competition level (14 bidders) impact the value for money achieved in this contract?

A competition level of 14 bidders for this contract significantly enhances the likelihood of achieving good value for money. A larger pool of bidders generally leads to more competitive pricing as companies strive to differentiate themselves and win the contract. This increased competition puts downward pressure on prices and encourages contractors to offer more favorable terms and potentially higher quality services. For the Department of Defense, this means they are more likely to secure services at a price closer to the true market rate, minimizing the risk of overpayment. The extensive competition suggests that the market for production augmentation services is robust and that the government had a strong position to negotiate favorable terms, ultimately benefiting taxpayers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA850106R0009

Offers Received: 14

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 41 VREELAND AVE STE 238, TOTOWA, NJ, 90

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,341,020

Exercised Options: $16,341,020

Current Obligation: $16,341,020

Contract Characteristics

Cost or Pricing Data: NO

Timeline