DoD's $34.4M Truck Repair Contract Awarded to Foreign Entities Lacks Competition
Contract Overview
Contract Amount: $34,424,142 ($34.4M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2009-09-08
End Date: 2011-07-06
Contract Duration: 666 days
Daily Burn Rate: $51.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TRUCK REPAIR
Plain-Language Summary
Department of Defense obligated $34.4 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: TRUCK REPAIR Key points: 1. Significant spending on truck repair services highlights operational needs. 2. The award to 'MISCELLANEOUS FOREIGN AWARDEES' raises questions about sourcing and domestic economic impact. 3. Lack of competition suggests potential for inflated costs and reduced value for taxpayer dollars. 4. The Facilities Support Services sector often involves complex logistics and maintenance requirements.
Value Assessment
Rating: questionable
The contract value of $34.4M over two years is substantial. Without a competitive bidding process, it's difficult to assess if this price reflects fair market value for truck repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or potentially sole-source award. This significantly restricts price discovery and may lead to higher costs than a competitive process would yield.
Taxpayer Impact: The lack of competition and potential for non-competitive pricing directly impacts taxpayer value, as funds may not be used as efficiently as possible.
Public Impact
Taxpayers may be overpaying for truck repair services due to the absence of competitive bidding. The reliance on foreign awardees for essential services like truck repair could have geopolitical or supply chain implications. Lack of transparency in the procurement process hinders public understanding of defense spending efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Foreign Awardees
- Potential for Overpricing
- Limited Oversight Indicated
Positive Signals
- Contract Awarded
- Services Provided
Sector Analysis
This contract falls under Facilities Support Services, a broad category that includes maintenance and repair. Benchmarks for truck repair within this sector are highly variable based on scope and location, but competitive pricing is generally expected.
Small Business Impact
The data indicates the award went to 'MISCELLANEOUS FOREIGN AWARDEES,' suggesting no direct benefit or opportunity for U.S. small businesses in this specific contract.
Oversight & Accountability
The limited competition and foreign awardees warrant closer oversight to ensure the services are necessary, cost-effective, and meet all security requirements.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding process.
- Award to 'MISCELLANEOUS FOREIGN AWARDEES'.
- Potential for inflated pricing due to limited competition.
- Lack of transparency regarding justification for non-competitive award.
- Possible impact on domestic industry support.
Tags
facilities-support-services, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.4 million to MISCELLANEOUS FOREIGN AWARDEES. TRUCK REPAIR
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.4 million.
What is the period of performance?
Start: 2009-09-08. End: 2011-07-06.
What was the justification for awarding this truck repair contract without competition, and how was the price determined to be fair and reasonable?
The justification for awarding the contract without competition is not provided in the data. Typically, such awards require a detailed justification, such as a sole-source requirement or urgent need. Without this information, it's impossible to assess the price reasonableness or the value obtained for taxpayer funds.
What are the risks associated with awarding a significant truck repair contract to miscellaneous foreign awardees, particularly regarding service quality, security, and cost control?
Awarding truck repair to foreign entities without competition introduces risks related to inconsistent service quality, potential security vulnerabilities if sensitive equipment is involved, and challenges in cost control and oversight. It also bypasses opportunities to support domestic industries and potentially leads to higher costs due to logistical complexities and lack of market pressure.
How effective is the Department of Defense in ensuring competitive pricing and maximizing value for money in its facilities support services contracts?
The effectiveness of the DoD in ensuring competitive pricing varies significantly across contracts. While many contracts are competitively awarded, instances like this, with limited competition and foreign awardees, suggest areas where oversight and procurement strategies could be improved to consistently achieve better value for taxpayer money.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,424,142
Exercised Options: $34,424,142
Current Obligation: $34,424,142
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-08
Current End Date: 2011-07-06
Potential End Date: 2011-07-06 00:00:00
Last Modified: 2011-07-12
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