DoD's $26.17M contract for Tier 1 DY Equip Maint-Log Support awarded to ADDON SERVICES LLC shows fair value

Contract Overview

Contract Amount: $26,173,254 ($26.2M)

Contractor: Addon Services LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2025-10-31

Contract Duration: 1,795 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN 0001 TIER 1 DY EQUIP MAINT-LOG SPPT

Place of Performance

Location: SPARTA, MONROE County, WISCONSIN, 54656

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to ADDON SERVICES LLC for work described as: CLIN 0001 TIER 1 DY EQUIP MAINT-LOG SPPT Key points: 1. The contract value of $26.17M over nearly five years suggests a moderate annual spend. 2. ADDON SERVICES LLC, a relatively new entity, secured this significant contract. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance is in Wisconsin, indicating a specific geographic focus for these services. 5. The NAICS code 611430 points to professional and management development training, a specialized service area. 6. The contract was awarded via full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's total value of $26.17M over 1795 days averages approximately $14,581 per day. Benchmarking against similar professional development and logistics support contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the contractor is responsible for managing costs to meet the agreed-upon price, which can be a good indicator of value if performance is satisfactory. The relatively low number of bids (2) in a full and open competition might warrant closer scrutiny of pricing, but without more data, it appears reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Only two bids were received, which is on the lower side for a full and open competition of this value. While competition is present, a higher number of bidders could potentially drive prices lower. The limited number of bids may suggest specific barriers to entry or a niche market for these specialized services.

Taxpayer Impact: The presence of competition, even with only two bidders, is generally beneficial for taxpayers as it encourages contractors to offer competitive pricing. However, the low bid count could indicate that the government did not achieve the full price discovery benefits of a more robustly contested procurement.

Public Impact

The primary beneficiaries are likely Department of Defense personnel requiring specialized equipment maintenance and logistics support training. The services delivered are crucial for maintaining operational readiness and efficiency within the Army. The geographic impact is concentrated in Wisconsin, where the services are being performed. Workforce implications include the creation or sustainment of jobs for individuals with expertise in logistics, training, and equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (2) in a full and open competition could indicate potential issues with market reach or contractor interest.
ADDON SERVICES LLC is a relatively new entity, raising questions about its long-term capacity and track record for a contract of this duration and value.
The specific nature of 'Tier 1 DY EQUIP MAINT-LOG SPPT' is not fully detailed, making it difficult to assess the full scope and potential risks.

Positive Signals

The contract is awarded under a Firm Fixed Price (FFP) type, which transfers cost overrun risk to the contractor.
Full and open competition was utilized, adhering to principles of broad market access and fair opportunity.
The contract duration is substantial (1795 days), suggesting a stable requirement and potential for long-term partnership if performance is good.

Sector Analysis

The professional and management development training sector (NAICS 611430) is a significant market supporting various industries, including government. Federal spending in this area often supports workforce development, specialized skill acquisition, and operational efficiency. This contract fits within the broader defense training and support services market, which is substantial. Comparable spending benchmarks are difficult to establish without more granular data on the specific training and support provided, but the annual value appears moderate within the context of large federal contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contractor, ADDON SERVICES LLC, is likely a small business given its name, but the contract was competed full and open. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is facilitated by public contract databases. Accountability measures are inherent in the firm fixed-price contract type, with performance metrics likely defined in the contract's statement of work. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency Support Contracts
Army Training and Doctrine Command (TRADOC) Services
Professional Development and Training Services
Equipment Maintenance Contracts
Logistics Support Services

Risk Flags

Limited Competition
Contractor Capacity/Track Record
Scope Definition Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to ADDON SERVICES LLC. CLIN 0001 TIER 1 DY EQUIP MAINT-LOG SPPT

Who is the contractor on this award?

The obligated recipient is ADDON 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 $26.2 million.

What is the period of performance?

Start: 2020-12-01. End: 2025-10-31.

What is the track record of ADDON SERVICES LLC in performing similar government contracts?

Information regarding the specific track record of ADDON SERVICES LLC is limited in the provided data. As a relatively new entity, its history of successfully executing contracts of similar size, scope, and duration may not be extensive. Further investigation into contract databases like SAM.gov or FPDS would be necessary to ascertain past performance, any past performance ratings, and the types of services previously rendered. Understanding their experience with Department of Defense requirements, particularly in equipment maintenance and logistics support training, is crucial for assessing their capability to fulfill this current contract effectively and mitigate potential performance risks.

How does the pricing of this contract compare to similar professional development and logistics support contracts?

Directly comparing the pricing of this $26.17M contract to similar professional development and logistics support contracts is challenging without detailed specifications of the services rendered. The average daily rate of approximately $14,581 is a starting point, but the complexity, duration, and specific skill sets required for 'Tier 1 DY EQUIP MAINT-LOG SPPT' are not fully defined. Benchmarking would require identifying contracts with comparable NAICS codes (611430), similar contract types (FFP), and equivalent service scopes within the Department of Defense or other federal agencies. The fact that it was awarded under full and open competition with only two bids suggests that while competitive, the market might be specialized, potentially influencing price levels.

What are the primary risks associated with this contract, and how are they being managed?

Key risks include potential performance deficiencies by ADDON SERVICES LLC, given its potentially limited track record as a newer entity, and the possibility of cost overruns if the scope of 'Tier 1 DY EQUIP MAINT-LOG SPPT' is underestimated by the contractor (though the FFP structure mitigates this for the government). Market risks, such as a lack of sufficient qualified bidders in the future or changes in technology impacting training needs, also exist. Management of these risks is primarily through the FFP contract type, which incentivizes contractor efficiency. Performance monitoring by the Army, adherence to the statement of work, and potential use of contract clauses for remedies are standard oversight mechanisms. The limited number of bidders also presents a risk of reduced competition impacting future pricing.

How effective is the current contract in meeting the Department of the Army's training and logistics support needs?

The effectiveness of this contract in meeting the Department of the Army's needs can only be assessed through performance metrics and outcomes, which are not detailed in the provided data. The contract's duration (nearly five years) suggests a sustained requirement for these services. Its effectiveness hinges on the quality of training provided, the reliability of logistics support, and the overall impact on equipment readiness and operational efficiency. Post-award performance reviews, user feedback from Army personnel, and achievement of key performance indicators outlined in the contract's statement of work would be necessary to evaluate its true effectiveness.

What has been the historical spending pattern for similar equipment maintenance and logistics support training within the Department of the Army?

Historical spending patterns for similar equipment maintenance and logistics support training within the Department of the Army are not provided in the data. To analyze this, one would need to examine past contract awards using relevant NAICS codes (like 611430) and keywords related to 'equipment maintenance,' 'logistics support,' and 'training' over several fiscal years. This would reveal trends in contract values, number of awards, dominant contractors, and fluctuations in spending. Understanding historical spending can help contextualize the current $26.17M award, identifying whether it represents an increase, decrease, or stable level of investment in these critical support functions.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27789 MOUND RD, WARREN, MI, 48092

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $26,236,546

Exercised Options: $26,236,546

Current Obligation: $26,173,254

Actual Outlays: $1,756,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA20D0073

IDV Type: FSS

Timeline