DoD's $24.8M contract for machinery repair awarded to Barragan Corp. faces scrutiny over limited competition
Contract Overview
Contract Amount: $24,799,140 ($24.8M)
Contractor: Barragan Corp. International
Awarding Agency: Department of Defense
Start Date: 2020-12-15
End Date: 2025-12-15
Contract Duration: 1,826 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAINTENANCE, REPAIR AND SUPPORT SERVICES
Place of Performance
Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055
Plain-Language Summary
Department of Defense obligated $24.8 million to BARRAGAN CORP. INTERNATIONAL for work described as: MAINTENANCE, REPAIR AND SUPPORT SERVICES Key points: 1. Significant contract value of $24.8 million over five years. 2. Competition method raises questions about price discovery and potential overpayment. 3. Lack of small business participation noted. 4. Sector: Industrial Machinery Repair & Maintenance.
Value Assessment
Rating: questionable
The contract's value of $24.8 million over five years, with a base value of $13.6 million, warrants closer examination. Benchmarking against similar contracts for industrial machinery repair and maintenance is crucial to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may restrict the pool of potential bidders, potentially impacting price discovery and leading to less favorable terms for the government.
Taxpayer Impact: The limited competition raises concerns about taxpayer value, as alternative, potentially lower-cost bids may have been excluded.
Public Impact
Taxpayers may be overpaying due to restricted competition. Potential for reduced service quality if competition is insufficient. Lack of small business involvement limits economic opportunity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- No small business participation
- Potential for inflated pricing
Positive Signals
- Long-term contract provides stability
- Firm Fixed Price contract limits cost overrun risk
Sector Analysis
This contract falls within the industrial machinery repair and maintenance sector, which is critical for operational readiness across various government agencies. Spending benchmarks in this sector vary widely based on the complexity and type of machinery.
Small Business Impact
The contract explicitly states 'sb': false, indicating no small business participation. This is a missed opportunity to support small businesses and could suggest a lack of outreach or specific requirements that favor larger corporations.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause requires careful oversight to ensure it was justified and that the exclusion of other sources was appropriate and documented. The contracting agency should provide clear rationale for this approach.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition raises concerns about fair pricing.
- Lack of small business participation.
- Potential for non-competitive pricing due to source exclusion.
- Contract duration may lock in potentially suboptimal pricing.
Tags
commercial-and-industrial-machinery-and-, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to BARRAGAN CORP. INTERNATIONAL. MAINTENANCE, REPAIR AND SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is BARRAGAN CORP. INTERNATIONAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2020-12-15. End: 2025-12-15.
What specific justification was provided for excluding sources in this 'full and open competition' scenario?
The justification for excluding sources in a 'full and open competition after exclusion of sources' award is critical. Agencies must document why specific sources were excluded and demonstrate that the remaining competition, though limited, still served the government's best interest and achieved fair and reasonable pricing. Without this documentation, the award process appears questionable.
How does the pricing compare to industry benchmarks for similar machinery repair services?
A thorough price analysis against industry benchmarks is essential. Given the $24.8 million value, comparing rates for labor, parts, and overhead to similar contracts awarded through more robust competition is necessary. Deviations from benchmarks could indicate potential overpricing or unique service requirements.
What is the long-term strategy for ensuring competitive pricing in this service area?
The long-term strategy should focus on increasing competition for future contracts. This could involve breaking down the requirement into smaller lots, actively seeking out and encouraging small business participation, and reviewing the necessity of source exclusions. Proactive market research is key to fostering a competitive environment.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M0068120R0017
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 41707 WINCHESTER RD STE 304, TEMECULA, CA, 92590
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $24,799,140
Exercised Options: $24,799,140
Current Obligation: $24,799,140
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-15
Current End Date: 2025-12-15
Potential End Date: 2025-12-15 00:00:00
Last Modified: 2025-04-10
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