DoD's $24.9M Taiwan Patriot Support Contract Awarded to Far East Support Services LLC

Contract Overview

Contract Amount: $24,915,499 ($24.9M)

Contractor: FAR East Support Services LLC

Awarding Agency: Department of Defense

Start Date: 2013-02-06

End Date: 2019-05-05

Contract Duration: 2,279 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SERVICE AND SUPPORT OF TAIWAN PATRIOT PROGRAM

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to FAR EAST SUPPORT SERVICES LLC for work described as: SERVICE AND SUPPORT OF TAIWAN PATRIOT PROGRAM Key points: 1. Contract awarded for essential support services to the Taiwan Patriot Program. 2. Services provided are critical for maintaining the operational readiness of a key defense asset. 3. The contract was not competed, raising questions about potential cost efficiencies. 4. Long contract duration suggests a sustained need for these specialized services. 5. Fixed-price contract type aims to control costs, but competition dynamics are absent. 6. The awardee has a specific focus on supporting defense programs in the Far East region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable contracts for Taiwan Patriot Program support. The firm fixed-price structure provides some cost certainty for the government. However, without a competitive bidding process, it's difficult to definitively assess if the pricing represents optimal value for money. The total award amount of approximately $24.9 million over its duration indicates a significant investment in maintaining this critical defense capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential bidders. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a competitive solicitation. The absence of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competed contracts, as there is less pressure on the contractor to offer competitive pricing.

Public Impact

The primary beneficiaries are the U.S. Department of Defense and the Taiwanese forces utilizing the Patriot missile defense system. Services delivered include crucial support and maintenance for the Taiwan Patriot Program, ensuring its operational effectiveness. The geographic impact is focused on Taiwan, where the Patriot system is deployed. Workforce implications may involve specialized technical personnel required for the maintenance and support of advanced missile defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises concerns about transparency and potential for inflated costs.
Long contract duration without competitive re-evaluation could lead to price creep over time.

Positive Signals

Firm fixed-price contract type provides cost predictability.
Awardee likely possesses specialized knowledge critical for the Patriot program.
Contract ensures continued operational readiness of a key defense asset.

Sector Analysis

The defense sector, particularly missile defense systems, represents a significant area of government spending. Contracts for the sustainment and support of such advanced platforms are crucial for national security. The market for specialized defense support services is often characterized by high barriers to entry due to technical expertise and security clearances required. This contract fits within the broader category of defense logistics and sustainment services, ensuring the readiness of critical military assets.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not readily available for this specific contract. Given the specialized nature of supporting advanced defense systems like the Patriot program, it is possible that the prime contractor possesses unique capabilities that limit subcontracting opportunities for small businesses. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army and the Department of Defense. Standard contract administration and oversight mechanisms would be in place to monitor performance and ensure compliance with contract terms. Transparency regarding the justification for the sole-source award and ongoing performance metrics would be key areas for public accountability.

Related Government Programs

Patriot Missile Defense System
Foreign Military Sales Support
Department of Defense Logistics and Sustainment

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to FAR EAST SUPPORT SERVICES LLC. SERVICE AND SUPPORT OF TAIWAN PATRIOT PROGRAM

Who is the contractor on this award?

The obligated recipient is FAR EAST SUPPORT SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2013-02-06. End: 2019-05-05.

What is the track record of Far East Support Services LLC in supporting defense programs, particularly missile defense systems?

Far East Support Services LLC appears to specialize in providing support services to defense programs, particularly in the Far East region. While specific details on their track record with missile defense systems like the Patriot program are not extensively detailed in public contract databases, their award for this specific contract suggests they possess the necessary qualifications and experience. Further due diligence would involve examining past performance reviews, any prior government audits, and the company's history of delivering similar complex technical support services to ensure a robust understanding of their capabilities and reliability.

How does the pricing of this contract compare to similar support services for defense systems, considering it was sole-sourced?

Direct price comparisons for this sole-sourced contract are inherently difficult due to the lack of competitive bidding. Typically, sole-source awards may not reflect the most competitive pricing achievable in an open market. To assess value, one would need to benchmark against internal cost estimates, historical pricing for similar services (if available), or industry benchmarks for specialized defense support. The absence of competition means the government relied on negotiation and its own cost analysis to determine a fair price, which may or may not be as advantageous as a competed award.

What are the primary risks associated with a sole-source award for critical defense support services?

The primary risks associated with a sole-source award for critical defense support services include potential for higher costs due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a potential lack of transparency in the procurement process. There's also a risk that the government may not be aware of alternative solutions or contractors that could provide the services more effectively or at a lower cost. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks and ensure taxpayer value.

How effective has the Taiwan Patriot Program been in its operational deployment, and how does this contract contribute to that effectiveness?

The Taiwan Patriot Program is a critical component of Taiwan's air and missile defense capabilities, designed to protect against ballistic missiles, cruise missiles, and advanced aircraft. Its effectiveness is generally considered high, providing a significant deterrent. This contract directly contributes to that effectiveness by ensuring the sustained operational readiness, maintenance, and support of the Patriot systems. Without reliable support services, the system's availability and performance could be compromised, thereby diminishing Taiwan's overall defense posture.

What has been the historical spending pattern for support services related to the Taiwan Patriot Program?

Historical spending patterns for support services related to the Taiwan Patriot Program are not readily available in the public domain for detailed analysis. This specific contract, awarded in 2013 and ending in 2019, represents a significant investment over its duration. To understand broader historical spending, one would need to access classified or internal DoD procurement data that tracks all contracts, modifications, and task orders associated with the Patriot program in Taiwan over extended periods. This would reveal trends in contract types, awardees, and overall expenditure.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that indicate its success?

Specific performance metrics or Key Performance Indicators (KPIs) for this contract are not publicly disclosed. However, for critical defense support contracts, typical KPIs would likely include metrics related to response times for maintenance requests, system uptime/availability, quality of repairs, and adherence to delivery schedules for parts or services. The success of the contract would be evaluated based on the contractor's ability to meet these (likely internal) performance standards, ensuring the Patriot system remains operational and effective for the U.S. Department of Defense and its allies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q13R0067

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 39 SIMON ST STE 2B, NASHUA, NH, 03060

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $50,307,339

Exercised Options: $24,915,499

Current Obligation: $24,915,499

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline