DoD Awards $27.5M Rail Maintenance Contract to Alltrack, Inc. at NSA Crane

Contract Overview

Contract Amount: $27,539,770 ($27.5M)

Contractor: Alltrack, Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-12

End Date: 2029-06-30

Contract Duration: 1,752 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CAAA MULTI PHASE RAIL MAINTENANCE & REPAIR AT NAVAL SUPPORT ACTIVITY CRANE, INDIANA

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to ALLTRACK, INC for work described as: CAAA MULTI PHASE RAIL MAINTENANCE & REPAIR AT NAVAL SUPPORT ACTIVITY CRANE, INDIANA Key points: 1. Contract awarded to Alltrack, Inc. for rail maintenance and repair. 2. Significant contract value of $27.5 million over nearly five years. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. Sector is 'Other Heavy and Civil Engineering Construction', vital for infrastructure. 5. No small business participation noted, which could be a missed opportunity.

Value Assessment

Rating: fair

The contract value of $27.5M over 1752 days results in approximately $15,719 per day. Benchmarking this against similar large-scale civil engineering construction contracts is difficult without more specific scope details, but the daily rate appears moderate for complex infrastructure maintenance.

Cost Per Unit: $15,719/day (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating that multiple vendors were likely solicited. This method generally promotes competitive pricing and allows the government to select the best value offer. The award type is a 'Delivery Order', suggesting it's part of a larger indefinite-delivery contract vehicle.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance at a naval facility. The competitive process aims to ensure efficient use of these funds, though the specific value for money requires ongoing performance monitoring.

Public Impact

Ensures operational readiness of Naval Support Activity Crane by maintaining critical rail infrastructure. Supports local economy in Indiana through construction and maintenance activities. Long-term contract (nearly 5 years) provides stability for the contractor and predictable maintenance for the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation.
Potential for cost overruns if scope expands beyond initial estimates.
Reliance on a single contractor for critical infrastructure maintenance.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type helps control costs.
Long-term duration allows for planned maintenance and budget predictability.

Sector Analysis

This contract falls under 'Other Heavy and Civil Engineering Construction', a broad category encompassing infrastructure projects. Spending in this sector is crucial for national defense facilities like NSA Crane, ensuring logistical capabilities and operational efficiency. Benchmarks are highly variable based on project specifics.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as 'sb' is false. This represents a missed opportunity to leverage small business capabilities and support economic growth within the small business sector, particularly in Indiana.

Oversight & Accountability

The Department of the Navy, under the DoD, is responsible for oversight. The use of a Firm Fixed Price contract provides some cost control, but diligent monitoring of performance, scope, and adherence to contract terms will be crucial for accountability.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of small business participation.
Potential for unforeseen infrastructure issues requiring scope adjustments.
Long-term reliance on a single contractor for critical maintenance.
Contract performance monitoring is essential to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to ALLTRACK, INC. CAAA MULTI PHASE RAIL MAINTENANCE & REPAIR AT NAVAL SUPPORT ACTIVITY CRANE, INDIANA

Who is the contractor on this award?

The obligated recipient is ALLTRACK, 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 $27.5 million.

What is the period of performance?

Start: 2024-09-12. End: 2029-06-30.

What is the specific scope of 'rail maintenance & repair' covered by this contract, and how does it align with NSA Crane's operational needs?

The contract details the scope of 'rail maintenance & repair' at Naval Support Activity Crane, Indiana. This likely includes routine inspections, track repairs, ballast maintenance, switch servicing, and potentially upgrades to ensure the safe and efficient transport of materials and personnel via rail. The alignment with NSA Crane's needs is critical for its logistical operations and overall mission readiness.

Given the 'Full and Open Competition' and 'Firm Fixed Price' terms, what are the primary risks to cost and schedule for this contract?

The primary risks to cost and schedule under a 'Full and Open Competition' and 'Firm Fixed Price' contract include unforeseen site conditions, material price fluctuations beyond contract allowances, and potential scope creep if maintenance needs exceed initial estimates. While the FFP structure caps profit for the contractor, it shifts risk to them, potentially leading to claims or disputes if unexpected issues arise.

How will the effectiveness of Alltrack, Inc.'s performance be measured to ensure optimal value and infrastructure longevity?

Effectiveness will be measured through key performance indicators (KPIs) likely outlined in the contract's performance work statement (PWS). These could include track condition metrics, response times for emergency repairs, adherence to safety standards, and successful completion of scheduled maintenance. Regular progress reviews and inspections by the Navy contracting officer's representative (COR) will ensure Alltrack, Inc. meets its obligations and delivers optimal value.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008523R2588

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1241 W 900 S, PENDLETON, IN, 46064

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

Financial Breakdown

Contract Ceiling: $27,539,770

Exercised Options: $27,539,770

Current Obligation: $27,539,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N4008524D0017

IDV Type: IDC

Timeline