DoD's $13.8M contract for technician services awarded to Allegiance Supply, Inc. with 5 bidders

Contract Overview

Contract Amount: $13,808,907 ($13.8M)

Contractor: Allegiance Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-18

End Date: 2026-09-17

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: YOKOSUKA TECHNICIAN

Plain-Language Summary

Department of Defense obligated $13.8 million to ALLEGIANCE SUPPLY, INC. for work described as: YOKOSUKA TECHNICIAN Key points: 1. The contract value of $13.8 million over five years suggests a moderate annual spend. 2. Competition dynamics indicate a healthy bidding environment with 5 offers received. 3. Risk indicators appear low given the firm-fixed-price structure and defined period of performance. 4. Performance context is tied to communication equipment repair and maintenance, a critical support function. 5. Sector positioning places this contract within the broader defense logistics and maintenance industry.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides cost certainty. Benchmarking against similar communication equipment repair contracts would be necessary for a precise value-for-money assessment. However, the presence of multiple bidders suggests competitive pricing was likely achieved. The annual value, approximately $2.76 million, falls within a typical range for specialized technical support services.

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 that while full and open competition was sought, specific sources were initially excluded before the final award. The fact that five bidders submitted offers suggests a reasonably competitive landscape for this type of service. The level of competition is generally positive for price discovery and ensuring a fair market price.

Taxpayer Impact: The competitive bidding process likely resulted in a more favorable price for taxpayers compared to a sole-source award. Multiple bidders help drive down costs and ensure the government receives good value.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through the reliable maintenance of communication equipment. Services delivered include essential repair and maintenance for communication equipment, ensuring operational readiness. The geographic impact is likely concentrated around naval bases or operational areas where the supported communication equipment is deployed. Workforce implications may include the employment of skilled technicians by Allegiance Supply, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance requirements are not clearly defined.
Dependence on a single contractor for critical communication equipment repair could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure limits cost overruns for the government.
Defined period of performance provides clear expectations and timelines.
Multiple bidders indicate a healthy market and potential for quality service providers.

Sector Analysis

This contract falls within the broader defense industry, specifically the segment focused on maintenance, repair, and overhaul (MRO) of specialized equipment. The market for communication equipment repair and maintenance is competitive, with numerous firms offering specialized technical services. The annual spending of approximately $2.76 million is moderate for a defense contract of this nature, fitting within the typical range for sustainment and support services.

Small Business Impact

The data indicates 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 provision. The primary impact on the small business ecosystem would be through potential indirect opportunities if Allegiance Supply, Inc. chooses to subcontract portions of the work to small businesses, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Naval Sea Systems Command (NAVSEA) Maintenance Contracts
Communication Systems Procurement and Maintenance
Department of Defense Information Technology Support

Risk Flags

Potential for performance issues impacting critical communication systems.
Dependency on a single contractor for specialized repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to ALLEGIANCE SUPPLY, INC.. YOKOSUKA TECHNICIAN

Who is the contractor on this award?

The obligated recipient is ALLEGIANCE SUPPLY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2021-09-18. End: 2026-09-17.

What is the track record of Allegiance Supply, Inc. with the Department of Defense?

A thorough review of Allegiance Supply, Inc.'s track record with the Department of Defense would involve examining past contract performance, any reported issues or disputes, and their history of delivering similar services. Without specific historical contract data beyond this award, it's difficult to provide a detailed assessment. However, the award of a multi-year, firm-fixed-price contract suggests a level of confidence from the contracting agency in the company's ability to perform. Further investigation into their past performance ratings and any contract modifications or terminations would offer a more comprehensive understanding of their reliability and capabilities within the federal contracting landscape.

How does the awarded price compare to similar communication equipment repair contracts?

Benchmarking this contract's price against similar communication equipment repair and maintenance services requires access to a broader dataset of federal contracts. The annual value of approximately $2.76 million for this definitive contract, awarded under full and open competition, provides a baseline. To assess value for money, one would compare this annual spend to contracts with similar scope, duration, and complexity, considering factors like the specific types of communication equipment serviced and the geographic locations. Without direct comparative contract data, it's challenging to definitively state if the price is above or below market rates. However, the competitive bidding process suggests the price is likely aligned with market expectations.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues if Allegiance Supply, Inc. fails to meet the required service levels for communication equipment repair and maintenance. Given the firm-fixed-price nature, there's a risk of the contractor cutting corners to maintain profitability, potentially impacting service quality. Another risk is the dependency on a single contractor for critical support functions; any disruption to their operations could impact the Navy's communication readiness. Furthermore, unforeseen technical challenges or obsolescence of communication equipment could lead to increased maintenance demands beyond initial projections, though the firm-fixed-price structure aims to mitigate this for the government.

How effective is the competition level in ensuring good value for taxpayers?

The competition level for this contract, with five bidders participating under a full and open competition framework, is generally effective in ensuring good value for taxpayers. A higher number of bidders typically leads to more competitive pricing as companies vie for the award. This process encourages efficiency and innovation from the contractors to offer the most attractive bid. The "after exclusion of sources" aspect warrants a closer look to understand if any potentially competitive sources were unduly excluded, but the presence of five bidders suggests a robust market was engaged. Overall, this level of competition is a positive indicator for price discovery and cost control.

What is the historical spending trend for communication equipment repair and maintenance by the Department of the Navy?

Analyzing historical spending trends for communication equipment repair and maintenance by the Department of the Navy would require access to historical contract data over several fiscal years. This specific contract, valued at $13.8 million over five years, represents an annual spend of approximately $2.76 million. To understand trends, one would need to aggregate spending on similar services across various Navy commands and fiscal periods. This would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify any significant shifts in contracting strategies or technology adoption that might influence these expenditures.

What is the potential impact of this contract on the small business ecosystem?

As this contract was not awarded as a small business set-aside, its direct impact on the small business ecosystem is limited. Allegiance Supply, Inc., as the prime contractor, is responsible for fulfilling the contract requirements. There is no explicit requirement for subcontracting to small businesses mandated by the contract terms provided. However, the potential for indirect impact exists if Allegiance Supply, Inc. voluntarily chooses to subcontract portions of the work to small businesses, leveraging their specialized capabilities. The extent of this indirect impact would depend on the contractor's subcontracting strategy and the availability of qualified small businesses in the relevant service areas.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0040621R0003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Allegiance Supply Inc.

Address: 2120 JIMMY DURANTE BLVD STE 108, DEL MAR, CA, 92014

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,808,907

Exercised Options: $13,808,907

Current Obligation: $13,808,907

Actual Outlays: $4,941,236

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline