DoD awards $5.9M for Automotive Repair, with Ducom Inc. securing the delivery order

Contract Overview

Contract Amount: $5,947,874 ($5.9M)

Contractor: Ducom, Incorporated

Awarding Agency: Department of Defense

Start Date: 2023-11-20

End Date: 2026-11-29

Contract Duration: 1,105 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: NEW CONTRACT OF THE RAS CLS REQUIREMENT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to DUCOM, INCORPORATED for work described as: NEW CONTRACT OF THE RAS CLS REQUIREMENT Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are low, with a single delivery order against an existing requirement. 4. Performance context is within general automotive repair services. 5. Sector positioning is within the Defense sector's support services.

Value Assessment

Rating: good

The contract value of $5.9 million over approximately three years for general automotive repair services appears to be within a reasonable range. Benchmarking against similar contracts for fleet maintenance and repair services would provide a more precise value-for-money assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure fair rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The specific number of bidders is not provided, but the nature of the competition suggests that the government sought the best value from a range of qualified vendors. This approach generally leads to more competitive pricing and a wider selection of service providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that government funds are used efficiently by selecting the most cost-effective offer.

Public Impact

Military personnel and equipment operating in Maryland will benefit from timely automotive repairs. Services include general automotive repair, ensuring vehicle readiness and operational capability. The geographic impact is primarily within Maryland, supporting local military installations. Workforce implications include potential employment opportunities for automotive technicians in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely monitored.
Dependence on a single contractor for a critical support function.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Clear definition of services (General Automotive Repair) reduces scope creep risk.
Contract duration aligns with typical fleet maintenance cycles.

Sector Analysis

The defense sector relies heavily on robust support services, including vehicle maintenance and repair, to ensure operational readiness. The market for automotive repair services is large and diverse, with many commercial providers capable of meeting government needs. This contract fits within the broader category of logistics and maintenance support for military assets, a consistent area of federal spending.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the service, it is possible that smaller, specialized automotive repair shops could have participated in the bidding process if they met the qualifications. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting office responsible for the award. Accountability measures would include performance reviews, adherence to labor hour reporting, and quality control of repair services. Transparency is facilitated by the contract award notice, but detailed performance metrics and cost breakdowns are typically internal.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
General Automotive Repair Services
Military Logistics and Support Contracts

Risk Flags

Potential for cost creep if labor hours are not meticulously tracked.
Dependence on a single vendor for critical repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to DUCOM, INCORPORATED. NEW CONTRACT OF THE RAS CLS REQUIREMENT

Who is the contractor on this award?

The obligated recipient is DUCOM, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2023-11-20. End: 2026-11-29.

What is the historical spending pattern for similar automotive repair services by the Department of the Army?

Analyzing historical spending for similar automotive repair services by the Department of the Army requires access to detailed procurement databases. Generally, the Army, like other branches of the military, maintains a significant fleet of vehicles requiring regular maintenance and repair. Spending in this category can fluctuate based on the age of the fleet, operational tempo, and specific maintenance requirements. Contracts for such services are often awarded through competitive bidding processes, with values varying widely based on the scope, duration, and geographic location. Past awards might show a trend towards longer-term contracts for routine maintenance or task orders for specific repair needs. Understanding these patterns helps in assessing whether the current $5.9 million award is consistent with historical investment in fleet readiness or represents an increase or decrease in spending.

How does the awarded amount compare to the estimated value or benchmark for similar automotive repair contracts?

The awarded amount of $5.9 million for approximately three years of general automotive repair services provides a baseline for comparison. To benchmark this value effectively, one would need to identify comparable contracts awarded by the Department of Defense or other federal agencies for similar services, considering factors like contract duration, scope of work (e.g., types of vehicles, complexity of repairs), geographic location, and labor rates. If similar contracts over a similar period were awarded for significantly less, it might suggest this contract is priced higher than the market average. Conversely, if comparable contracts were awarded for more, it could indicate good value. Without specific benchmark data, it's challenging to definitively assess if $5.9 million represents excellent, fair, or questionable value for money.

What are the specific risks associated with a contract for general automotive repair services?

Risks associated with general automotive repair contracts primarily revolve around cost control, quality of service, and operational continuity. Cost risks include potential overruns due to unforeseen repair needs, inflated labor hours, or parts markups. Quality risks involve subpar repairs leading to vehicle downtime or safety issues. Operational continuity can be threatened if the contractor fails to meet response times or service level agreements, impacting military readiness. Additionally, there's a risk of contractor performance issues, such as lack of skilled technicians or poor management. For this specific contract, awarded under full and open competition, the primary risks might be mitigated by competitive pricing and clear performance standards, but diligent oversight remains crucial.

What is the track record of Ducom, Incorporated in performing similar government contracts?

Assessing the track record of Ducom, Incorporated requires a review of their past performance on federal contracts, particularly those involving automotive repair, fleet maintenance, or similar logistical support services. Information on past performance, including contract history, past performance evaluations (if publicly available), and any history of contract disputes or terminations, would be crucial. A positive track record with successful completion of similar contracts at or below negotiated prices would indicate a lower performance risk. Conversely, a history of performance issues or unresolved claims could raise concerns about their ability to meet the requirements of this new contract effectively and efficiently.

How does the 'General Automotive Repair' classification (NAICS 811111) typically translate into contract scope and value?

The NAICS code 811111 for General Automotive Repair covers establishments primarily engaged in providing mechanical and electrical repair services for automobiles, such as engine repair, transmission repair, brake repair, and electrical system repair. For federal contracts, this typically means maintaining and repairing a wide range of government-owned vehicles, from light-duty sedans to potentially heavier trucks and specialized equipment, depending on the agency's fleet. The scope can range from routine maintenance (oil changes, tire rotations) to complex diagnostics and repairs. Contract values under this NAICS code can vary significantly, from small, localized service agreements to large, multi-year contracts covering entire fleets at multiple installations, as suggested by the $5.9 million award for this delivery order.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8630 FENTON ST STE 505, SILVER SPRING, MD, 20910

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,947,874

Exercised Options: $5,947,874

Current Obligation: $5,947,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W56HZV22DER14

IDV Type: IDC

Timeline