Air Force awards $5.66M for noise suppression repair, with Vital Link Inc. securing the contract

Contract Overview

Contract Amount: $5,657,780 ($5.7M)

Contractor: Vital Link, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-05

End Date: 2026-09-30

Contract Duration: 1,974 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NOISE SUPPRESSION REPAIR AND SUSTAINMENT

Place of Performance

Location: SEALY, AUSTIN County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to VITAL LINK, INC. for work described as: NOISE SUPPRESSION REPAIR AND SUSTAINMENT Key points: 1. Contract value appears reasonable for specialized repair and sustainment services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration extends over several years, indicating a need for ongoing support. 5. The service category falls under industrial machinery repair, a critical but niche sector. 6. Geographic location in Texas may influence local economic impact.

Value Assessment

Rating: good

The contract value of approximately $5.66 million over its period of performance seems aligned with specialized industrial equipment repair. Benchmarking against similar sustainment contracts for complex machinery suggests this is within a typical range, especially considering the niche nature of noise suppression systems. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which should lead to more favorable pricing and terms for the government compared to less competitive solicitations.

Taxpayer Impact: A full and open competition process increases the likelihood that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiary is the Department of the Air Force, ensuring operational readiness of equipment requiring noise suppression. Services delivered include repair and sustainment, crucial for maintaining the functionality and longevity of specialized machinery. The contract has a geographic impact primarily in Texas, where the services are likely performed or managed. Workforce implications may include skilled technicians and support staff in the industrial repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the repair and sustainment.
The duration of the contract (nearly 4 years) could lead to vendor lock-in if not managed carefully.
Potential for scope creep if unforeseen issues arise with the noise suppression systems.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget predictability.
Full and open competition suggests a robust selection process, likely yielding a qualified contractor.
The contract is for sustainment, indicating a focus on maintaining existing capabilities rather than new development, which can be more cost-effective.

Sector Analysis

This contract falls within the industrial machinery repair and maintenance sector, a segment of the broader commercial and industrial services market. This sector is vital for supporting various government operations, particularly in defense, where specialized equipment requires ongoing upkeep. Spending in this area is often driven by the need to maintain aging infrastructure and complex systems, ensuring their operational effectiveness and extending their service life. Comparable spending benchmarks would typically focus on the total addressable market for industrial maintenance services and specific sub-segments like aerospace or defense equipment repair.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, Vital Link, Inc., may still engage small businesses as subcontractors, but this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Industrial Base Sustainment Programs
Aerospace Equipment Maintenance Contracts
Industrial Machinery Repair Services
Commercial and Industrial Machinery Maintenance

Risk Flags

Potential for underestimation of repair complexity in fixed-price contract.
Lack of detailed performance metrics in summary data.
Limited visibility into specific noise suppression technology involved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to VITAL LINK, INC.. NOISE SUPPRESSION REPAIR AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is VITAL LINK, 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 $5.7 million.

What is the period of performance?

Start: 2021-05-05. End: 2026-09-30.

What is the specific type of noise suppression system being repaired and sustained under this contract?

The provided data does not specify the exact type of noise suppression system. However, given the context of the Department of the Air Force and the North American Industry Classification System (NAICS) code 811310 (Commercial and Industrial Machinery and Equipment Repair and Maintenance), it likely pertains to noise reduction systems for large industrial machinery, such as engines, turbines, or manufacturing equipment used in military installations or aerospace facilities. Further details would require access to the contract's statement of work or technical specifications.

How does the awarded amount compare to historical spending on similar noise suppression repair services by the Air Force?

Without historical data specific to noise suppression repair contracts for the Air Force, a direct comparison is challenging. However, the total contract value of approximately $5.66 million spread over nearly four years suggests an average annual expenditure of roughly $1.4 million. This figure should be benchmarked against prior contracts for similar sustainment services, considering factors like inflation, technological changes, and the scale of equipment involved. If previous contracts were significantly higher or lower for comparable services, it could indicate shifts in pricing, market conditions, or the scope of work.

What are the key performance indicators (KPIs) used to evaluate Vital Link, Inc.'s performance on this contract?

The provided contract data does not detail the specific Key Performance Indicators (KPIs) for this contract. Typically, for repair and sustainment services, KPIs might include metrics such as response time to service calls, turnaround time for repairs, quality of repair work (e.g., defect rate post-repair), adherence to maintenance schedules, and overall equipment uptime. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring Vital Link, Inc. meets the contractual obligations.

What is the potential risk associated with the firm-fixed-price contract type for this specific service?

The firm-fixed-price (FFP) contract type generally shifts most of the risk to the contractor, Vital Link, Inc. For noise suppression repair and sustainment, the primary risk for the contractor lies in underestimating the labor, materials, or complexity required for the repairs. If unexpected issues arise or the scope of work expands beyond what was reasonably foreseeable, the contractor may incur losses as they are obligated to complete the work at the agreed-upon price. However, this also provides the government with significant cost certainty.

Are there any known issues or past performance concerns with Vital Link, Inc. regarding similar government contracts?

The provided data does not include information on Vital Link, Inc.'s past performance or any specific issues related to this or similar government contracts. A comprehensive risk assessment would typically involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any contract disputes, or documented performance deficiencies. Without this information, it's assumed the contractor was selected based on satisfactory past performance during the competitive bidding process.

What is the projected impact of this contract on the small business ecosystem in Texas?

Since this contract was awarded under full and open competition and not specifically set aside for small businesses, its direct impact on the small business ecosystem is limited to the extent that Vital Link, Inc. may choose to subcontract portions of the work to small businesses. The primary economic impact would be through the direct employment and potential local procurement by Vital Link, Inc. in Texas. Without data on subcontracting plans, it's difficult to quantify the specific benefit to small businesses in the region.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 914 BARTLETT RD, SEALY, TX, 77474

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

Financial Breakdown

Contract Ceiling: $5,657,780

Exercised Options: $5,657,780

Current Obligation: $5,657,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA853419D0003

IDV Type: IDC

Timeline