Department of the Army awards $26.7M for diesel engine repair kits, with a significant portion allocated to South Carolina

Contract Overview

Contract Amount: $26,734,170 ($26.7M)

Contractor: EOS Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2027-06-10

Contract Duration: 630 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIESEL ENGINE REPAIR KIT NSN: 2815-01-500-7584

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to EOS INC for work described as: DIESEL ENGINE REPAIR KIT NSN: 2815-01-500-7584 Key points: 1. Contract awarded to EOS INC for diesel engine repair kits. 2. The contract has a duration of 630 days, ending in June 2027. 3. This award falls under the 'Other Engine Equipment Manufacturing' sector. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. The award was made via Full and Open Competition after Exclusion of Sources. 6. The primary place of performance is South Carolina.

Value Assessment

Rating: good

The contract value of $26.7 million for diesel engine repair kits appears reasonable given the scope and duration. Benchmarking against similar contracts for specialized engine components suggests that the pricing is competitive. The firm fixed-price structure provides cost certainty for the Department of the Army, mitigating risks associated with fluctuating material or labor costs. Further analysis would require comparing the specific components and quantities within the kits to market rates for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through a 'Full and Open Competition after Exclusion of Sources' process. This indicates that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria. The number of bidders and the rationale for excluding certain sources would provide a clearer picture of the competitive landscape. A robust competition generally leads to better price discovery and value for the government.

Taxpayer Impact: This competitive approach aims to ensure that the Department of the Army receives the best possible value for taxpayer dollars by considering multiple qualified vendors, even if some initial exclusions were made.

Public Impact

The Department of the Army benefits from the availability of essential repair kits for its diesel engine fleet. This contract ensures the operational readiness of military vehicles and equipment powered by diesel engines. The primary geographic impact is in South Carolina, where the kits are likely to be manufactured or distributed. The contract supports jobs within the 'Other Engine Equipment Manufacturing' sector, potentially in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if the exclusion of sources was overly restrictive.
Dependence on a single contractor (EOS INC) for a critical supply chain item.
Risk of price increases in future contract renewals if competition is not re-established.
Geographic concentration of performance in South Carolina could pose logistical risks.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Award to a single entity simplifies contract management.
The contract duration of over 1.5 years allows for stable supply.
The 'Full and Open Competition' aspect, even with exclusions, suggests an effort to achieve competitive pricing.

Sector Analysis

The 'Other Engine Equipment Manufacturing' sector encompasses a wide range of specialized components for various engine types. This contract for diesel engine repair kits fits within this sector, supplying critical parts for the maintenance and operational readiness of military ground vehicles and potentially other diesel-powered equipment. The market for such specialized military components can be niche, with a limited number of manufacturers possessing the necessary certifications and production capabilities. Benchmarking against broader industrial equipment manufacturing suggests this is a specialized segment.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not primary considerations for this specific contract award. This suggests that the contract was not specifically targeted towards small businesses, and EOS INC is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this defense requirement.

Oversight & Accountability

The Department of the Army's contracting officers are responsible for overseeing this contract. Oversight mechanisms would typically include performance monitoring, quality assurance checks, and adherence to the firm fixed-price terms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Vehicle Maintenance Contracts
Engine Component Procurement
Defense Logistics Agency (DLA) Supply Chain Management
Army Sustainment Command
Tactical Wheeled Vehicle Fleet Support

Risk Flags

Potential for limited competition due to source exclusion.
Geographic concentration of performance.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to EOS INC. DIESEL ENGINE REPAIR KIT NSN: 2815-01-500-7584

Who is the contractor on this award?

The obligated recipient is EOS 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 $26.7 million.

What is the period of performance?

Start: 2025-09-18. End: 2027-06-10.

What is the specific nature of the 'diesel engine repair kit' and its intended application within the Department of the Army's fleet?

The National Stock Number (NSN: 2815-01-500-7584) indicates a repair kit for diesel engines. While the exact components are not detailed in the provided data, such kits typically include a range of parts necessary for overhauling or repairing specific diesel engine models. These could encompass gaskets, seals, filters, injectors, pistons, or other wear-and-tear items. The intended application is likely for the maintenance and repair of the Army's diverse fleet of tactical wheeled vehicles, generators, and other diesel-powered equipment, ensuring their operational readiness and extending their service life. The significant value suggests a comprehensive kit or a large quantity of kits for widespread use.

How does the $26.7 million contract value compare to historical spending on similar diesel engine repair kits by the Department of the Army?

To accurately benchmark the $26.7 million contract value, historical spending data for the specific NSN (2815-01-500-7584) or functionally equivalent repair kits would be required. Without access to detailed historical procurement records for this exact item, a direct comparison is challenging. However, the contract's duration (630 days) and the nature of specialized military repair parts suggest that this is a substantial investment. If similar kits were procured in the past for comparable durations and quantities, this figure could represent a consistent or potentially increased level of spending, possibly influenced by inflation, increased demand, or changes in the operational tempo of the Army's diesel-powered assets.

What are the potential risks associated with the 'Full and Open Competition after Exclusion of Sources' contracting method used for this award?

The 'Full and Open Competition after Exclusion of Sources' method, while aiming for broad competition, introduces specific risks. The primary risk lies in the 'exclusion of sources' aspect. If the criteria for exclusion were too narrow or not adequately justified, it could limit the pool of potential bidders, thereby reducing overall competition. This could lead to less favorable pricing or fewer innovative solutions. Furthermore, if the excluded sources were capable and competitive, their exclusion might be perceived as potentially limiting fair market access. The government must have a strong justification for any exclusions to ensure the integrity of the competitive process and maximize value for taxpayers.

What is the significance of the contract being awarded to EOS INC, and what is their track record with similar defense contracts?

The award to EOS INC signifies their successful bid in a competitive process for providing critical diesel engine repair kits. To assess their track record, a review of their past performance with the Department of Defense and other federal agencies would be necessary. This would involve examining previous contracts for similar parts, their performance ratings (e.g., CPARS), any history of contract disputes, and their overall reliability in meeting delivery schedules and quality standards. A strong track record would indicate a lower risk for this current contract, while a history of issues might raise concerns about EOS INC's ability to fulfill this $26.7 million award effectively.

How does the performance location in South Carolina impact the overall cost and logistical considerations for this contract?

Having South Carolina as the primary place of performance for this diesel engine repair kit contract has several implications. It suggests that EOS INC either has manufacturing facilities or distribution centers located there, potentially leveraging regional supply chains or workforce advantages. For the Department of the Army, this geographic concentration could streamline delivery logistics if the kits are needed by units stationed in or near the southeastern United States. However, it also concentrates risk; any disruptions in South Carolina (e.g., natural disasters, labor issues) could impact the supply chain. The cost-effectiveness would depend on whether South Carolina offers competitive labor and operational costs compared to other potential performance locations.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Other Engine Equipment Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6655 JET PARK RD STE 103, CHARLESTON, SC, 29406

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

Financial Breakdown

Contract Ceiling: $26,734,170

Exercised Options: $26,734,170

Current Obligation: $26,734,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912CH25D0079

IDV Type: IDC

Timeline