DoD's $12.5M contract for bridge manufacturing services awarded to Xebec Government Services, LLC

Contract Overview

Contract Amount: $12,552,061 ($12.6M)

Contractor: Xebec Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-21

End Date: 2027-08-31

Contract Duration: 2,232 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL MISSION BRIDGE FMB-EN

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to XEBEC GOVERNMENT SERVICES, LLC for work described as: FULL MISSION BRIDGE FMB-EN Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for a significant duration, spanning over 5 years. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. The contract is for machinery manufacturing, potentially supporting naval infrastructure. 5. Awarded by the Department of the Navy, indicating a specific defense need. 6. The contract value is substantial, reflecting the scale of the requirement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the bridge components or services rendered. The $12.5 million over approximately 5 years suggests an average annual spend of $2.5 million. Without comparable contract data for similar bridge manufacturing or specialized machinery for naval applications, it's difficult to definitively assess value for money. The firm fixed price structure, however, provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies a deliberate effort to solicit broad market participation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government receives competitive pricing and that the contract is awarded to the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are likely the Department of the Navy, receiving critical bridge manufacturing services. The services delivered are related to machinery manufacturing, potentially for infrastructure or operational support. The geographic impact is primarily within Alabama (AL), where the contractor is located. Workforce implications may include job creation or utilization within Xebec Government Services and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the bridge components or services makes it difficult to assess the true value and necessity.
The long contract duration could present risks if requirements change or technology evolves significantly.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the intensity of competition.

Positive Signals

Awarded through full and open competition, indicating a commitment to competitive sourcing.
Firm Fixed Price contract type offers cost predictability for the government.
The contract is with a specific entity, Xebec Government Services, LLC, suggesting a known contractor.
The contract is for a defined period, providing clarity on the expected service timeline.

Sector Analysis

The contract falls within the broader manufacturing sector, specifically related to machinery and potentially defense-related infrastructure. The market for specialized bridge manufacturing and related heavy machinery can be niche, with a limited number of highly capable firms. This contract's value of $12.5 million is moderate within the context of large federal defense procurements, but significant for specialized manufacturing services.

Small Business Impact

The provided data indicates that small business set-aside (ss) and subcontracting (sb) flags are false. This suggests that the contract was not specifically set aside for small businesses, nor is there an explicit indication of mandated small business subcontracting goals within this award. Therefore, the direct impact on the small business ecosystem through this specific contract may be limited, unless Xebec Government Services voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price structure, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is facilitated by the contract award notice, but further details on performance and specific deliverables would require access to more granular contract data or reporting.

Related Government Programs

Naval Infrastructure Projects
Defense Manufacturing Contracts
Heavy Machinery Procurement
Government Fixed-Price Contracts

Risk Flags

Contract duration exceeds 5 years.
Ambiguity in contract scope ('bridge' definition).
Limited public information on contractor performance for this specific service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to XEBEC GOVERNMENT SERVICES, LLC. FULL MISSION BRIDGE FMB-EN

Who is the contractor on this award?

The obligated recipient is XEBEC GOVERNMENT SERVICES, 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 $12.6 million.

What is the period of performance?

Start: 2021-07-21. End: 2027-08-31.

What specific type of bridges or machinery is this contract for, and what is their intended use by the Department of the Navy?

The contract is categorized under 'Other Commercial and Service Industry Machinery Manufacturing' (NAICS 333318). While the term 'bridge' is used, it's unclear if this refers to literal bridges for infrastructure, or specialized components within a larger system that function as a 'bridge' (e.g., data bridges, power bridges, or mechanical bridging systems). Given the Department of the Navy as the awarding agency, potential uses could range from components for naval vessels, port infrastructure, or specialized equipment for amphibious operations. Without further details in the award notice, the exact nature and application of the manufactured items remain ambiguous, making it difficult to assess their criticality or specific operational impact.

How does the $12.5 million contract value compare to similar bridge manufacturing or specialized machinery contracts awarded by the DoD or other federal agencies?

Comparing the $12.5 million value requires identifying truly comparable contracts. If 'bridge' refers to large infrastructure projects, this value might be on the lower end for major construction. However, if it pertains to specialized machinery or components, the value could be significant. For instance, contracts for complex electronic systems or specialized industrial equipment can range widely. Without knowing the specific product or service, a direct benchmark is difficult. However, for a single-award, firm-fixed-price contract over approximately five years, $12.5 million represents an average annual value of $2.5 million. This is a substantial sum, suggesting a non-trivial requirement, but not exceptionally large in the context of major defense system procurements.

What is the track record of Xebec Government Services, LLC in fulfilling similar government contracts, particularly with the Department of the Navy?

Information on Xebec Government Services, LLC's specific track record for this type of contract is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance history, including on-time delivery, quality of work, and adherence to budget on previous government contracts. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would typically contain such information. Without access to these detailed performance records, it's challenging to evaluate their reliability and expertise specifically for 'bridge' manufacturing or related machinery for the Navy.

What are the potential risks associated with a firm-fixed-price contract of this duration (over 5 years) for specialized machinery manufacturing?

Firm-fixed-price contracts offer cost certainty but can introduce risks, especially over longer durations like this 5-year contract. For the government, the primary risk is that the fixed price may become uncompetitive if market prices decrease or if the contractor experiences unexpected cost savings. Conversely, the contractor bears the risk of cost overruns. In specialized machinery manufacturing, unforeseen technical challenges, material cost volatility, or changes in regulatory requirements could significantly impact the contractor's profitability, potentially leading to performance issues or requests for contract modification. The long duration also increases the risk of obsolescence if the technology or the need for the specific machinery evolves rapidly.

How does the 'Other Commercial and Service Industry Machinery Manufacturing' classification (NAICS 333318) inform our understanding of this contract's scope and potential market?

NAICS code 333318 covers establishments primarily engaged in manufacturing industrial machinery, not elsewhere classified. This includes a wide array of equipment such as printing machinery, packaging machinery, food product machinery, and semiconductor manufacturing equipment. Applying this to the 'FULL MISSION BRIDGE FMB-EN' contract suggests the manufactured item is likely a piece of specialized industrial equipment rather than a literal civil engineering bridge. The market for such machinery can be diverse, involving custom fabrication and engineering solutions tailored to specific client needs, like those of the Department of the Navy. This classification implies a focus on the production of complex machinery, potentially requiring significant engineering and manufacturing expertise.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134017R1003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5030 BRADFORD DR NW STE 130 BLDG 1, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,194,777

Exercised Options: $12,552,061

Current Obligation: $12,552,061

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134018D5019

IDV Type: IDC

Timeline