Department of the Army awarded $107.5M for vehicle maintenance, with a 673-day duration

Contract Overview

Contract Amount: $107,534,909 ($107.5M)

Contractor: Eagle Group International LLC

Awarding Agency: Department of Defense

Start Date: 2006-03-29

End Date: 2008-01-31

Contract Duration: 673 days

Daily Burn Rate: $159.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TAS::21 2020::TAS 200607!600422!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!GS10F0397N !C!N! !N!W911SE06F0052! !20060329!20070228!926881327!926881327!926881327!N!EAGLE GROUP INTERNATIONAL, LLC!4751 BEST RD STE 300 !ATLANTA !GA!30337!38964!179!13!HINESVILLE !LIBERTY !GEORGIA !+000012190235!N!N!000000000000!J023!MAINT&REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !000 !* !811118!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! !2100!W911SE!0001! !

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30330

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $107.5 million to EAGLE GROUP INTERNATIONAL LLC for work described as: TAS::21 2020::TAS 200607!600422!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!GS10F0397N !C!N! !N!W911SE06F0052! !20060329!20070228!926881327!926881327!926881327!N!EAGLE GROUP INTERNATIONAL, LLC!4751 BEST RD STE 300 !ATLANTA !GA!30337!38964!179!13!HINESVI… Key points: 1. Contract value of over $107 million for vehicle and equipment repair. 2. Full and open competition indicates a competitive bidding process. 3. Potential for cost savings due to competitive bidding. 4. Contract duration of 673 days suggests a significant operational need. 5. Service category includes maintenance and repair of vehicles, trailers, and cycles. 6. Geographic focus on Hinesville, Georgia, within Liberty County.

Value Assessment

Rating: good

The contract value of $107.5 million for vehicle and equipment maintenance appears substantial. Benchmarking against similar contracts would provide a clearer picture of value for money. The pricing structure, identified as Time and Materials, can sometimes lead to cost overruns if not closely managed, but it also offers flexibility for unforeseen repair needs. The total award amount suggests a significant scope of work over the contract's duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition implies that the government sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Army units requiring maintenance for their vehicles, trailers, and cycles. Services delivered include essential repair and maintenance to ensure operational readiness of equipment. The geographic impact is concentrated in Hinesville, Georgia, supporting local military operations. Workforce implications include employment opportunities for skilled technicians and support staff in the Atlanta and Hinesville areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation under Time and Materials pricing if not managed stringently.
Dependence on a single contractor for a critical maintenance function over an extended period.
Ensuring consistent quality of service across all repair and maintenance activities.
Managing the logistics of parts procurement and availability for diverse vehicle types.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration of over 1.5 years indicates a sustained need and potential for stable service delivery.
The contractor, EAGLE GROUP INTERNATIONAL, LLC, has a track record with this specific contract.
The contract covers a broad range of maintenance needs for vehicles, trailers, and cycles.

Sector Analysis

This contract falls within the broader defense maintenance and repair sector, a critical component of military readiness. The market for such services is substantial, driven by the constant need to maintain a vast fleet of vehicles and equipment. Comparable spending benchmarks would involve analyzing other large-scale maintenance contracts awarded by the Department of Defense for similar equipment types. The specific service code (NAICS 541611) suggests a focus on administrative and management consulting, which might be a component of the overall service delivery or reporting, though the description points heavily towards physical maintenance.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The contractor, EAGLE GROUP INTERNATIONAL, LLC, is listed with a size standard of 179 employees, which could classify it as a small business depending on the specific industry NAICS code definition. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures would be embedded in the contract's performance work statement, including service level agreements and quality control standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
Army Logistics and Readiness Support
Equipment Repair and Servicing Contracts
Defense Maintenance and Repair Services

Risk Flags

Time and Materials pricing structure requires close monitoring to prevent cost overruns.
Contract duration of over 1.5 years necessitates ongoing performance evaluation.
Potential for scope creep if the definition of 'maintenance and repair' is not clearly delineated.
Dependence on contractor's ability to source parts and skilled labor effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $107.5 million to EAGLE GROUP INTERNATIONAL LLC. TAS::21 2020::TAS 200607!600422!2100!W911SE!ACA, SOUTH REGION CONTRACTING CT!GS10F0397N !C!N! !N!W911SE06F0052! !20060329!20070228!926881327!926881327!926881327!N!EAGLE GROUP INTERNATIONAL, LLC!4751 BEST RD STE 300 !ATLANTA !GA!30337!38964!179!13!HINESVILLE !LIBERTY !GEORGIA !+000012190235!N!N!000000000000!J023!MAINT&REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !000 !* !811118!E!

Who is the contractor on this award?

The obligated recipient is EAGLE GROUP INTERNATIONAL 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 $107.5 million.

What is the period of performance?

Start: 2006-03-29. End: 2008-01-31.

What is the historical spending pattern for vehicle and equipment maintenance by the Department of the Army in Georgia?

Analyzing historical spending patterns for vehicle and equipment maintenance by the Department of the Army in Georgia requires access to comprehensive federal procurement data over several fiscal years. While this specific contract awarded to EAGLE GROUP INTERNATIONAL, LLC for $107.5 million is a significant data point, a broader analysis would involve aggregating all similar contracts awarded within the state. Factors to consider include the number of contracts, their values, the types of services rendered (e.g., routine maintenance, major overhauls, parts supply), and the specific Army installations or commands involved. Trends might reveal increasing or decreasing investment in maintenance, shifts in contracting strategies (e.g., from sole-source to competitive), and the prevalence of specific service providers. Understanding these patterns helps in assessing whether current spending levels are consistent with historical needs and budget allocations, and whether there are opportunities for cost efficiencies or consolidation.

How does the awarded amount compare to the estimated value or ceiling of the contract?

The provided data indicates a total award of $107,534,908.50. However, it does not explicitly state the contract's ceiling value or estimated value at the time of award. Contracts, especially those using Time and Materials (T&M) pricing like this one, often have a ceiling that the contractor cannot exceed without a modification. The difference between the awarded amount and the ceiling can indicate how much of the available funding was utilized. If the awarded amount is close to the ceiling, it suggests the contractor is performing at or near the maximum anticipated level of effort or cost. Conversely, if the awarded amount is significantly lower than the ceiling, it might imply that the actual work performed was less than initially projected, or that cost controls were effective. Without the ceiling value, a direct comparison is not possible, but the substantial award suggests a high level of anticipated or actual work.

What are the specific types of vehicles, trailers, and cycles covered under this contract?

The contract description 'MAINT&REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES' and the associated Product Service Code (PSC) or Federal Supply Group (FSG) information would typically detail the scope of equipment covered. While the provided data snippet does not list specific vehicle types, contracts of this nature often encompass a wide range of military assets. This could include tactical vehicles (e.g., Humvees, trucks, armored personnel carriers), support vehicles (e.g., buses, maintenance trucks), trailers of various sizes and purposes, and potentially motorcycles or all-terrain vehicles used for specific military operations. The 'COMBAT VEHICLES' category mentioned further suggests that specialized military hardware is included. A detailed review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to ascertain the precise inventory of equipment eligible for maintenance and repair under this award.

What is EAGLE GROUP INTERNATIONAL, LLC's track record with similar Department of Defense contracts?

EAGLE GROUP INTERNATIONAL, LLC has a history of performing contracts with the Department of Defense, as evidenced by this specific award. To assess their track record comprehensively, one would need to examine their past performance on similar maintenance and repair contracts, particularly those involving vehicles and equipment. This includes reviewing contract values, durations, performance evaluations (if publicly available), and any instances of contract disputes or terminations. Data from sources like the Federal Procurement Data System (FPDS) can reveal the breadth and depth of their DoD engagements. A positive track record typically involves consistent on-time delivery, adherence to quality standards, and effective cost management. Conversely, a history of performance issues or contract modifications due to contractor fault would raise concerns about their reliability for future awards.

What are the potential risks associated with a Time and Materials contract of this magnitude?

Time and Materials (T&M) contracts, especially those valued at over $100 million like this one, carry inherent risks primarily related to cost control. The government pays for the actual labor hours expended and the cost of materials used, plus a fixed fee or percentage for overhead and profit. This structure can lead to cost overruns if the contractor's labor hours are not efficiently managed or if material costs escalate unexpectedly. Without a firm ceiling or robust oversight, the total cost can exceed initial estimates significantly. For taxpayers, the risk is paying more than the anticipated value of the services. Mitigation strategies include establishing a clear contract ceiling, implementing stringent monitoring of labor hours and material costs, requiring detailed progress reports, and ensuring effective quality assurance surveillance to prevent unnecessary work or inflated charges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 4751 BEST RD STE 300, ATLANTA, GA, 30337

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS10F0397N

IDV Type: FSS

Timeline