DoD awards $33.6M for comprehensive on-site maintenance of QT equipment to Federal Resources Supply Company, LLC

Contract Overview

Contract Amount: $33,619,469 ($33.6M)

Contractor: Federal Resources Supply Company, LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-28

End Date: 2022-04-05

Contract Duration: 98 days

Daily Burn Rate: $343.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4555817400!COMPREHENSIVE ON-SITE MAINTENANCE FOR QT

Place of Performance

Location: STEVENSVILLE, QUEEN ANNES County, MARYLAND, 21666

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC for work described as: 4555817400!COMPREHENSIVE ON-SITE MAINTENANCE FOR QT Key points: 1. Spending is concentrated with one vendor, Federal Resources Supply Company, LLC. 2. The contract was awarded under full and open competition after exclusion of sources. 3. The contract duration is 98 days, indicating a short-term need. 4. The total award value is $33.6 million, with a significant portion obligated. 5. The PSC code is missing, hindering detailed sector analysis.

Value Assessment

Rating: fair

The award of $33.6 million for a 98-day service period appears high. Benchmarking against similar maintenance contracts for specialized equipment is difficult without more specific service details and PSC codes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting an initial exclusion followed by a broader competition. This method can sometimes lead to less competitive pricing if the initial exclusion was too restrictive.

Taxpayer Impact: Taxpayer funds are being used for essential equipment maintenance. The pricing needs to be scrutinized to ensure value for money, especially given the short duration and high cost.

Public Impact

Ensures operational readiness of critical QT equipment. Supports a specific vendor's revenue stream. Potential for service disruptions if maintenance is not performed effectively. Limited visibility into the specific services provided due to missing PSC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls under Service Establishment Equipment and Supplies Merchant Wholesalers. Without a specific PSC, it's hard to benchmark against typical spending in this broad category. The high value for a short duration suggests specialized or urgent maintenance needs.

Small Business Impact

The data indicates the awardee is Federal Resources Supply Company, LLC. There is no information provided to determine if this is a small business or if small businesses were subcontracted.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, suggesting established oversight processes. However, the limited duration and specific nature of the service may require focused oversight to ensure performance and cost control.

Related Government Programs

Risk Flags

Tags

service-establishment-equipment-and-supp, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC. 4555817400!COMPREHENSIVE ON-SITE MAINTENANCE FOR QT

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES SUPPLY COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2021-12-28. End: 2022-04-05.

What specific QT equipment is being maintained, and what is the criticality of this equipment to DoD operations?

The provided data does not specify the type of 'QT' equipment. Understanding the equipment's function and its role in military operations is crucial for assessing the necessity and value of the $33.6 million maintenance contract. Without this context, it's difficult to determine if the expenditure is justified.

How does the per-day cost of this maintenance contract compare to industry benchmarks for similar specialized equipment, considering the 'full and open competition after exclusion' method?

The contract's daily cost is approximately $343,000 ($33.6M / 98 days). Benchmarking is challenging without knowing the specific equipment and services. While competition was involved, the 'exclusion of sources' clause warrants scrutiny to ensure it didn't unduly limit competitive offers, potentially inflating the price compared to truly open market rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this maintenance contract, and how is performance being measured to ensure effectiveness?

The data does not detail the KPIs or SLAs for this contract. Effective oversight would require clear metrics for maintenance quality, response times, and equipment uptime. Without these, it's difficult to objectively assess whether the $33.6 million investment is yielding the expected operational effectiveness and value for the DoD.

Industry Classification

NAICS: Wholesale TradeMachinery, Equipment, and Supplies Merchant WholesalersService Establishment Equipment and Supplies Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: FRS Holdings, Inc.

Address: 235-G LOG CANOE CIR, STEVENSVILLE, MD, 21666

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

Financial Breakdown

Contract Ceiling: $33,619,469

Exercised Options: $33,619,469

Current Obligation: $33,619,469

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1021

IDV Type: IDC

Timeline

Start Date: 2021-12-28

Current End Date: 2022-04-05

Potential End Date: 2022-04-05 00:00:00

Last Modified: 2022-04-07

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