DoD's $25.5M machinery repair contract awarded to Pollock Research & Design, Inc. shows fair value

Contract Overview

Contract Amount: $25,485,262 ($25.5M)

Contractor: Pollock Research & Design, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-09

End Date: 2022-01-08

Contract Duration: 1,095 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNSCHEDULED MAINTENANCE

Place of Performance

Location: READING, BERKS County, PENNSYLVANIA, 19606

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to POLLOCK RESEARCH & DESIGN, INC. for work described as: UNSCHEDULED MAINTENANCE Key points: 1. The contract's value appears reasonable when benchmarked against similar repair and maintenance services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is contextually aligned with typical maintenance needs for industrial equipment. 5. This contract falls within the broader category of industrial machinery repair and maintenance. 6. The duration of the contract (1095 days) is standard for such service agreements.

Value Assessment

Rating: good

The contract's total value of approximately $25.5 million over three years suggests a moderate annual spend. Benchmarking against similar contracts for industrial machinery repair and maintenance indicates that the pricing is within an acceptable range. The firm fixed-price structure further supports value by capping government liability. While specific cost breakdowns are not available, the overall award appears to represent a fair market price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While a higher number of bidders generally leads to more robust price discovery, two bidders in a specialized service area like industrial machinery repair can still indicate a competitive environment, especially if the bidders were qualified and the scope was well-defined.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality. This approach helps ensure that the government is not overpaying for essential services.

Public Impact

The Department of Defense benefits from the continued operational readiness of its commercial and industrial machinery. Services include unscheduled maintenance and repair, ensuring equipment uptime. The contract's geographic impact is primarily within the operational areas served by USTRANSCOM. The contract supports a workforce skilled in industrial machinery repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only two bidders were truly qualified.
Risk of scope creep if 'unscheduled maintenance' is not tightly defined.
Dependence on a single contractor for critical repair services.

Positive Signals

Firm fixed-price contract mitigates cost uncertainty.
Full and open competition promotes market-based pricing.
Contract duration aligns with typical service needs.

Sector Analysis

This contract operates within the industrial machinery repair and maintenance sector, a critical support industry for government operations, particularly in logistics and transportation. The market for such services is characterized by specialized expertise and often involves long-term service agreements. Comparable spending benchmarks in this sector would typically involve analyzing annual maintenance budgets for large fleets of industrial equipment across various government agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, potentially through subcontracting opportunities if Pollock Research & Design, Inc. utilizes them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, but the absence of set-asides suggests a focus on larger, established prime contractors.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Defense (USTRANSCOM), implying oversight through established federal procurement regulations and agency-specific quality assurance procedures. The firm fixed-price nature provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS. Specific oversight mechanisms would likely involve contract officers, quality assurance representatives, and potentially Inspector General reviews if performance issues arise.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance Contracts
General Services Administration (GSA) Fleet Maintenance
Department of Transportation Vehicle Maintenance
Industrial Equipment Repair Services

Risk Flags

Potential for limited competition due to specialized nature.
Risk of scope creep if 'unscheduled maintenance' is not clearly defined.
Dependence on contractor's ability to manage unpredictable demand.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to POLLOCK RESEARCH & DESIGN, INC.. UNSCHEDULED MAINTENANCE

Who is the contractor on this award?

The obligated recipient is POLLOCK RESEARCH & DESIGN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2019-01-09. End: 2022-01-08.

What is the historical spending trend for unscheduled maintenance and repair services by USTRANSCOM?

Analyzing historical spending for unscheduled maintenance and repair services by USTRANSCOM requires access to detailed procurement data over multiple fiscal years. While this specific contract represents $25.5 million over three years, understanding the trend involves looking at prior contracts for similar services, their values, and durations. A rising trend might indicate increased equipment age or usage, while a stable trend suggests consistent operational tempo. Fluctuations could be tied to specific modernization programs or unforeseen operational demands. Without a broader dataset, it's difficult to establish a definitive trend, but this contract's value provides a significant data point for the period it covers.

How does the number of bidders (2) compare to typical competition levels for similar industrial machinery repair contracts?

The number of bidders for industrial machinery repair contracts can vary significantly based on the specialization required, geographic scope, and contract value. For a contract valued at $25.5 million, receiving two bids under full and open competition suggests a moderately competitive environment. In highly specialized fields, two qualified bidders might represent the extent of the market. However, in broader industrial repair categories, one might expect more bidders. The key takeaway is that while competition existed, further analysis would be needed to determine if it was robust enough to ensure optimal pricing and service innovation.

What are the key performance indicators (KPIs) used to evaluate Pollock Research & Design, Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for a contract involving unscheduled maintenance and repair typically focus on response times, repair completion rates, equipment downtime reduction, and adherence to technical specifications. For this specific contract, USTRANSCOM would likely monitor metrics such as the average time to diagnose and repair equipment, the percentage of repairs completed within a specified timeframe, and the overall impact on operational readiness. Customer satisfaction surveys and adherence to safety protocols would also be crucial. The firm fixed-price nature incentivizes efficient completion, but rigorous quality assurance is essential to ensure repairs are effective and durable.

What is the potential risk associated with the 'unscheduled maintenance' aspect of this contract?

The primary risk associated with 'unscheduled maintenance' is the inherent unpredictability of equipment failures. This can lead to challenges in resource allocation, budgeting, and operational planning for both the contractor and the agency. For the government, there's a risk of extended downtime if repairs are delayed or ineffective. For the contractor, managing unpredictable demand under a firm fixed-price contract requires robust contingency planning and skilled personnel availability. Clear definitions of 'unscheduled' and established service level agreements (SLAs) are critical to mitigate these risks and ensure timely, effective service delivery.

How does the firm fixed-price (FFP) contract type influence the risk and value proposition for the government in this scenario?

The Firm Fixed-Price (FFP) contract type offers significant advantages for the government by establishing a ceiling on costs, thereby transferring most of the cost risk to the contractor. This structure incentivizes the contractor to manage costs efficiently and complete work within the agreed-upon price. For the government, it provides budget certainty and protects against cost overruns, which is particularly valuable for services like maintenance where unexpected issues can arise. The value proposition is strong if the initial price negotiated reflects a realistic assessment of the work required, as the government benefits from predictable spending and the contractor bears the burden of managing unforeseen cost increases.

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: MATERIALS HANDLING EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HTC71119RR001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 VANGUARD DR, READING, PA, 19606

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

Financial Breakdown

Contract Ceiling: $25,485,262

Exercised Options: $25,485,262

Current Obligation: $25,485,262

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline