DoD's $23.5M Automotive Repair Contract with SFS Global, LLC Raises Questions on Value and Competition
Contract Overview
Contract Amount: $23,546,092 ($23.5M)
Contractor: SFS Global, LLC
Awarding Agency: Department of Defense
Start Date: 2013-07-01
End Date: 2015-03-31
Contract Duration: 638 days
Daily Burn Rate: $36.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF SERVICES, NON-PERSONNEL
Place of Performance
Location: BARSTOW, SAN BERNARDINO County, CALIFORNIA, 92311
Plain-Language Summary
Department of Defense obligated $23.5 million to SFS GLOBAL, LLC for work described as: IGF::OT::IGF SERVICES, NON-PERSONNEL Key points: 1. Contract value of $23.5M for automotive repair services. 2. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential limitations. 3. Risk of inflated pricing due to limited competition and time-and-materials contract type. 4. Sector is General Automotive Repair, a common service need for the Department of the Navy.
Value Assessment
Rating: questionable
The contract's value of $23.5M for automotive repair is substantial. Without specific benchmarks for similar services, it's difficult to definitively assess value. The time and materials pricing structure can lead to cost overruns if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders and impacting price discovery.
Taxpayer Impact: The limited competition and time-and-materials pricing may result in taxpayers paying more than necessary for automotive repair services.
Public Impact
Ensures operational readiness of the Navy's vehicle fleet. Supports local economy through contract services. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Time and Materials pricing
- Lack of clear performance metrics (implied)
- No indication of small business participation
Positive Signals
- Essential service for military operations
- Contract awarded by Department of Defense
Sector Analysis
The General Automotive Repair sector is critical for maintaining the operational readiness of any fleet. Spending benchmarks vary widely based on the scope and complexity of repairs, but large contracts like this warrant scrutiny for efficiency.
Small Business Impact
The data indicates that small business participation was not a factor in this contract (sb: false). There is no information provided on whether subcontracting opportunities were offered to small businesses.
Oversight & Accountability
Oversight of this contract would involve monitoring repair quality, adherence to pricing, and ensuring the necessity of all services rendered. The 'exclusion of sources' aspect of the competition warrants specific attention from oversight bodies.
Related Government Programs
- General Automotive Repair
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing due to limited competition.
- Risk of cost overruns with Time and Materials contract.
- Lack of transparency in the exclusion of sources.
- No clear indication of small business utilization.
- Contract duration of 638 days (approx. 1.75 years) for repair services may be lengthy.
Tags
general-automotive-repair, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to SFS GLOBAL, LLC. IGF::OT::IGF SERVICES, NON-PERSONNEL
Who is the contractor on this award?
The obligated recipient is SFS GLOBAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2013-07-01. End: 2015-03-31.
What was the justification for excluding specific sources in the competition for this automotive repair contract?
The justification for excluding specific sources is not provided in the data. This exclusion raises concerns about whether the government received the most competitive pricing possible. Further investigation would be needed to understand the rationale behind this decision and its impact on the final contract price.
How does the 'time and materials' pricing structure compare to fixed-price contracts for similar automotive repair services in terms of cost control?
Time and materials contracts generally offer less cost certainty than fixed-price contracts. While they can be flexible for undefined scopes, they carry a higher risk of cost escalation if not rigorously managed. Fixed-price contracts, conversely, shift more risk to the contractor but require a well-defined scope of work upfront.
What mechanisms were in place to ensure the effectiveness and necessity of the automotive repair services performed under this contract?
The provided data does not detail the specific mechanisms for ensuring effectiveness and necessity. Typically, this would involve detailed work orders, independent inspections, and performance reviews. The limited competition and T&M structure suggest a heightened need for robust oversight to prevent unnecessary services or inflated charges.
Industry Classification
NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair
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: M6700413R0012
Offers Received: 8
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1626-B MAIN ST, SUSANVILLE, CA, 96130
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Labor Surplus Area Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,546,092
Exercised Options: $23,546,092
Current Obligation: $23,546,092
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $3,357,737
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-07-01
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2016-11-01
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