DoD Awards $13.3M Contract for Chemical/Biological Detection Equipment Support

Contract Overview

Contract Amount: $13,306,497 ($13.3M)

Contractor: Murtech, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-24

End Date: 2026-02-28

Contract Duration: 980 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE OBJECTIVE OF THIS EFFORT IS TO PROVIDE PEFORMANCE BASED LOGISTICS/CONTRACTOR LOGISTICS SUPPORT SERVICES FOR THE FIELDED CHEMICAL AND BIOLOGICAL DETECTION EQUIPMENT IN BOTH CONTINENTAL UNITED STATED AND OUTSIDE THE CONTINENTAL UNITED STATES.

Place of Performance

Location: GLEN BURNIE, ANNE ARUNDEL County, MARYLAND, 21061

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to MURTECH, INC. for work described as: THE OBJECTIVE OF THIS EFFORT IS TO PROVIDE PEFORMANCE BASED LOGISTICS/CONTRACTOR LOGISTICS SUPPORT SERVICES FOR THE FIELDED CHEMICAL AND BIOLOGICAL DETECTION EQUIPMENT IN BOTH CONTINENTAL UNITED STATED AND OUTSIDE THE CONTINENTAL UNITED STATES. Key points: 1. Contract focuses on performance-based logistics for critical detection equipment. 2. Services span both CONUS and OCONUS locations, indicating broad operational scope. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Electronic and Precision Equipment Repair and Maintenance, vital for national security.

Value Assessment

Rating: good

The contract value of $13.3M appears reasonable for comprehensive logistics support of specialized detection equipment over its period of performance. Benchmarking against similar contracts for maintenance of sensitive equipment would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure suggests a streamlined procurement process.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense logistics.

Public Impact

Ensures readiness of critical chemical and biological detection systems for military personnel. Supports operational capabilities both domestically and in deployed environments. Maintains the functionality of advanced equipment, contributing to national security. Provides essential repair and maintenance services, extending equipment lifespan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a Cost Plus Fixed Fee structure if not closely managed.
Geographic dispersion (CONUS/OCONUS) may introduce logistical complexities and costs.

Positive Signals

Performance-based logistics can drive efficiency and contractor accountability.
Full and open competition generally leads to better pricing.
Essential service for maintaining critical defense capabilities.

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector, a critical area for defense readiness. Spending in this sector is often substantial due to the high cost and complexity of military hardware.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, MURTECH, INC., is likely a large business. Further analysis would be needed to determine if small business subcontracting opportunities exist.

Oversight & Accountability

The use of delivery orders under a larger contract suggests a framework for oversight. However, the effectiveness of oversight will depend on the specific terms of the base contract and the diligence of the contracting officer in monitoring performance and costs.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost control in CPFF structure
Performance monitoring across diverse locations
Ensuring adequate technical expertise for specialized equipment
Potential for scope creep if requirements evolve significantly

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to MURTECH, INC.. THE OBJECTIVE OF THIS EFFORT IS TO PROVIDE PEFORMANCE BASED LOGISTICS/CONTRACTOR LOGISTICS SUPPORT SERVICES FOR THE FIELDED CHEMICAL AND BIOLOGICAL DETECTION EQUIPMENT IN BOTH CONTINENTAL UNITED STATED AND OUTSIDE THE CONTINENTAL UNITED STATES.

Who is the contractor on this award?

The obligated recipient is MURTECH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2023-06-24. End: 2026-02-28.

What is the projected cost per unit for the repair and maintenance services across the different types of detection equipment?

The provided data does not specify a per-unit cost for individual repair or maintenance actions. The contract is a Cost Plus Fixed Fee (CPFF) for logistics support, with a total award amount of $13.3M. Detailed breakdowns of service costs would typically be found in the contract's schedule or task order details, which are not included here.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured to mitigate risks?

As a performance-based logistics contract, it likely includes specific KPIs related to equipment readiness, response times, and repair turnaround. The CPFF structure necessitates robust government oversight to ensure contractor performance aligns with these KPIs and that costs remain within acceptable parameters, mitigating risks of inefficiency.

How does the pricing structure (Cost Plus Fixed Fee) compare to other potential contract types for similar logistics support services in terms of cost-effectiveness for the government?

CPFF contracts are often used when the scope of work is not precisely defined or involves high uncertainty. While they offer flexibility, they can carry higher risk for the government if not managed carefully, as costs are reimbursed. Fixed-price contracts might offer more predictable costs but could be less suitable for unpredictable repair needs.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911SR22RJECL

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 820 CROMWELL PK DR STE J, GLEN BURNIE, MD, 21061

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,332,902

Exercised Options: $13,793,140

Current Obligation: $13,306,497

Actual Outlays: $1,230,340

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR23D0028

IDV Type: IDC

Timeline