DLA awards $38.2M for recurring maintenance and repair services, with 6 bidders competing

Contract Overview

Contract Amount: $38,178,844 ($38.2M)

Contractor: Tetra Tech-Maytag Aircraft Corporation Joint Venture

Awarding Agency: Department of Defense

Start Date: 2017-07-17

End Date: 2022-07-16

Contract Duration: 1,825 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DLA FUELS RECURRING MAINTENANCE&REPAIR SERVICES IGF::OT::IGF

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91107

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE for work described as: DLA FUELS RECURRING MAINTENANCE&REPAIR SERVICES IGF::OT::IGF Key points: 1. Contract value of $38.2M over 5 years suggests a significant investment in essential services. 2. Full and open competition indicates a healthy market with multiple potential providers. 3. The number of bidders (6) provides a reasonable level of competition, potentially driving better pricing. 4. Fixed-price contract type shifts risk to the contractor, encouraging cost control. 5. The contract supports critical infrastructure maintenance, aligning with the agency's operational needs. 6. The specific NAICS code (213112) points to specialized support activities within the oil and gas sector.

Value Assessment

Rating: good

The contract value of $38.2 million over five years for recurring maintenance and repair services appears reasonable given the scope. Benchmarking against similar contracts for large-scale infrastructure support would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs.

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 offers. Six bidders participated, indicating a competitive marketplace for these specialized services. A higher number of bidders generally leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition with multiple bidders suggests that taxpayer dollars were likely used efficiently, as competitive pressures tend to drive down prices and improve service quality.

Public Impact

The primary beneficiaries are the Defense Logistics Agency (DLA) and the Department of the Army, ensuring operational readiness through maintained facilities. Services delivered include recurring maintenance and repair, crucial for the upkeep of critical infrastructure. The contract's geographic impact is focused on California, where the services are likely performed. Workforce implications include employment opportunities for skilled labor in maintenance and repair within the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single joint venture contractor could pose a risk if performance issues emerge.
The specific nature of 'Support Activities for Oil and Gas Operations' might imply environmental or safety risks that require stringent oversight.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive market and potentially good pricing.
The contract duration of five years allows for consistent service delivery and relationship building.

Sector Analysis

This contract falls within the broader 'Support Activities for Oil and Gas Operations' sector, specifically NAICS code 213112. This sector is critical for energy infrastructure maintenance and repair. Comparable spending benchmarks would involve analyzing other government contracts for similar maintenance services across various agencies and infrastructure types, particularly those related to energy or industrial facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if the prime contractor utilized small businesses in their supply chain or if there were opportunities missed for small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the DLA or Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

DLA Maintenance and Repair Contracts
Army Facilities Support Services
Oil and Gas Infrastructure Maintenance
Government Support Services Contracts
Energy Sector Service Contracts

Risk Flags

Contractor Performance Risk
Scope Creep Potential
Environmental and Safety Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE. DLA FUELS RECURRING MAINTENANCE&REPAIR SERVICES IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.2 million.

What is the period of performance?

Start: 2017-07-17. End: 2022-07-16.

What is the historical spending pattern for recurring maintenance and repair services by the DLA or Department of the Army in California?

Analyzing historical spending for similar services by the DLA and Department of the Army in California requires accessing contract databases and filtering by agency, geographic location, and service type. Without direct access to this granular data, it's difficult to provide a precise historical spending figure. However, recurring maintenance and repair for critical infrastructure, especially within the defense sector, typically represents a consistent and significant portion of agency budgets. The $38.2 million awarded over five years for this specific contract suggests an ongoing need and a substantial, albeit not necessarily unprecedented, level of investment in this area. Trends in defense spending, infrastructure modernization initiatives, and the specific operational tempo of facilities in California would influence these historical patterns.

How does the per-unit cost of this contract compare to industry benchmarks for similar oil and gas support activities?

Determining a precise per-unit cost for comparison is challenging without knowing the specific units of service (e.g., hours of labor, specific repair tasks, square footage maintained) covered under this $38.2 million firm fixed-price contract. The NAICS code 213112, 'Support Activities for Oil and Gas Operations,' is broad. Industry benchmarks for such services vary widely based on geographic location, complexity of the work, and prevailing labor rates. To perform a meaningful comparison, one would need to identify specific deliverables within the contract and research average market rates for those deliverables from industry reports or databases. Given the competitive bidding process, it's reasonable to infer that the pricing is within a competitive range, but a definitive benchmark requires more detailed contract scope information.

What is the track record of the joint venture 'TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE' with the DLA or Department of the Army?

Assessing the track record of the 'TETRA TECH-MAYTAG AIRCRAFT CORPORATION JOINT VENTURE' requires examining past performance on government contracts, particularly those with the DLA and Department of the Army. Both Tetra Tech and Maytag Aircraft Corporation are established entities with significant experience in government contracting, though their joint venture status for this specific award is key. Information on past performance, including CPARS (Contractor Performance Assessment Reporting System) ratings, would be crucial. A review of their prior work in maintenance, repair, and support activities, especially within the oil and gas or defense sectors, would indicate their capability and reliability. Without specific past performance data for this joint venture on similar contracts, it's presumed they were deemed capable and competitive during the bidding process.

What are the key performance indicators (KPIs) used to measure the success of this maintenance and repair contract?

Key Performance Indicators (KPIs) for a recurring maintenance and repair services contract like this typically focus on timeliness, quality, cost control, and safety. Specific KPIs might include: response time to service requests, completion rate of scheduled maintenance, defect rate for repairs, adherence to budget (though less critical for the government in a fixed-price contract unless change orders occur), safety incident rates, and customer satisfaction scores from the DLA or Army facility managers. The contract's Service Level Agreements (SLAs) would detail these KPIs and any associated performance incentives or penalties. Effective monitoring of these KPIs is essential for ensuring the contractor meets the government's needs and achieves value for money.

Are there any significant risks associated with the contractor's ability to perform these specialized support activities?

Potential risks associated with the contractor's performance include the inherent complexities of maintaining oil and gas operations infrastructure, which can involve hazardous materials and demanding environmental conditions. The joint venture structure itself could introduce management or coordination risks if not effectively integrated. Furthermore, reliance on specialized equipment and skilled personnel is critical; any disruption in these areas could impact service delivery. The firm fixed-price nature means the contractor bears the risk of cost overruns due to unforeseen issues, which could incentivize cutting corners if not properly monitored. However, the competitive award process suggests these risks were assessed and deemed manageable by the agency.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Support Activities for Mining › Support Activities for Oil and Gas Operations

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3475 E FOOTHILL BLVD, PASADENA, CA, 91107

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,178,844

Exercised Options: $38,178,844

Current Obligation: $38,178,844

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0010

IDV Type: BOA

Timeline