DoD Awards $62M Depot Maintenance Support Task Order to EPS Corporation via Full and Open Competition
Contract Overview
Contract Amount: $62,163,010 ($62.2M)
Contractor: EPS Corporation
Awarding Agency: Department of Defense
Start Date: 2020-07-16
End Date: 2025-12-15
Contract Duration: 1,978 days
Daily Burn Rate: $31.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PURPOSE OF THIS ACTION IS TO AWARD THE TASK ORDER FOR RFP RS3-19-0087 FOR DEPOT MAINTENANCE SUPPORT SERVICES.
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307
Plain-Language Summary
Department of Defense obligated $62.2 million to EPS CORPORATION for work described as: PURPOSE OF THIS ACTION IS TO AWARD THE TASK ORDER FOR RFP RS3-19-0087 FOR DEPOT MAINTENANCE SUPPORT SERVICES. Key points: 1. The contract is for depot maintenance support services, a critical function for military readiness. 2. EPS Corporation, the awardee, will provide these services under a Cost Plus Fixed Fee contract. 3. The contract duration is substantial, spanning over 1900 days, indicating a long-term need. 4. The NAICS code 541712 suggests a focus on R&D in physical and engineering sciences, potentially related to advanced maintenance techniques.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall value is difficult to assess without detailed cost breakdowns and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the CPFF structure may limit the direct price competition benefits compared to fixed-price contracts.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers. The CPFF structure, however, warrants close monitoring to ensure costs remain reasonable and do not exceed initial estimates.
Public Impact
Ensures continued operational readiness for military equipment through specialized maintenance. Supports advanced research and development in engineering and physical sciences related to maintenance. Provides long-term employment opportunities within the defense sector. The use of a CPFF contract type requires robust oversight to prevent cost creep.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases exposure to potential inefficiencies.
- NAICS code suggests R&D focus, which can have less predictable cost outcomes.
Positive Signals
- Awarded via full and open competition.
- Supports critical military maintenance functions.
- Long-term commitment provides stability for services.
Sector Analysis
The defense sector relies heavily on specialized maintenance and R&D services to maintain its technological edge and operational readiness. Spending in this area is often driven by complex requirements and long procurement cycles, with contract types varying based on risk and innovation.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this particular task order. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army's oversight will be crucial, particularly given the CPFF contract type. Robust auditing and performance monitoring are essential to ensure cost control and effective service delivery.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration increases risk exposure.
- Lack of specific small business participation noted.
- R&D component may introduce cost uncertainty.
- Need for robust government oversight.
Tags
research-and-development-in-the-physical, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.2 million to EPS CORPORATION. PURPOSE OF THIS ACTION IS TO AWARD THE TASK ORDER FOR RFP RS3-19-0087 FOR DEPOT MAINTENANCE SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is EPS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $62.2 million.
What is the period of performance?
Start: 2020-07-16. End: 2025-12-15.
What specific R&D activities are included under this depot maintenance support contract, and how do they contribute to long-term cost savings or efficiency improvements?
The contract's NAICS code (541712) points to Research and Development in Physical, Engineering, and Life Sciences. While the primary purpose is depot maintenance support, the R&D component likely focuses on developing innovative maintenance techniques, improving diagnostic capabilities, or enhancing the longevity of equipment. The specific R&D activities need further clarification, but their contribution to long-term cost savings would stem from reduced repair times, fewer failures, and extended asset lifecycles, ultimately lowering the total cost of ownership for the equipment.
How will the government ensure cost control and prevent potential overruns with the Cost Plus Fixed Fee (CPFF) contract structure over its nearly five-year duration?
Effective cost control under a CPFF contract relies on stringent government oversight, including detailed cost accounting standards, regular audits, and performance-based metrics. The government must establish clear milestones and deliverables, closely monitor the contractor's incurred costs against the estimated cost base, and ensure the fixed fee is justified by the scope of work. Proactive communication and a strong contract management team are vital to identify and address potential cost deviations early in the contract lifecycle.
What is the benchmark for similar depot maintenance support services, and how does the awarded amount of $62.16 million compare to industry standards for comparable contracts?
Benchmarking depot maintenance support services is complex due to variations in equipment types, service levels, and geographic locations. However, for large-scale, long-term contracts involving specialized R&D and maintenance for military assets, a $62.16 million award over approximately five years is within a plausible range. A more precise comparison would require access to detailed cost breakdowns, the specific systems being maintained, and a review of recent contract awards for similar scope and complexity within the Department of Defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 78 APPLE ST, TINTON FALLS, NJ, 07724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $70,749,848
Exercised Options: $69,352,072
Current Obligation: $62,163,010
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0114
IDV Type: IDC
Timeline
Start Date: 2020-07-16
Current End Date: 2025-12-15
Potential End Date: 2025-12-15 00:00:00
Last Modified: 2025-06-09
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