DoD Awards $35.2M Engine Rebuild Contract to Fairbanks Morse, LLC for Army Operations
Contract Overview
Contract Amount: $35,205,987 ($35.2M)
Contractor: Fairbanks Morse, LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-31
End Date: 2027-11-11
Contract Duration: 1,533 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NO. 1 ENGINE REBUILD, SERIAL NO. 38D8700
Place of Performance
Location: MARIANNA, LEE County, ARKANSAS, 72360
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $35.2 million to FAIRBANKS MORSE, LLC for work described as: NO. 1 ENGINE REBUILD, SERIAL NO. 38D8700 Key points: 1. Significant investment in critical machinery maintenance for Army. 2. Fairbanks Morse, LLC is a key player in engine repair. 3. Potential for long-term operational readiness and cost savings. 4. Sector focus on industrial machinery repair and maintenance.
Value Assessment
Rating: fair
The contract value of $35.2 million for engine rebuilds appears substantial. Benchmarking against similar large-scale industrial equipment repair contracts would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are being utilized for essential military equipment maintenance, aiming for long-term operational efficiency.
Public Impact
Ensures operational readiness of critical Army equipment. Supports specialized industrial repair services and associated jobs. Contributes to the longevity and reliability of high-value assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in complex rebuilds.
- Dependence on a single vendor for critical repairs.
Positive Signals
- Awarded through full and open competition.
- Long-term contract duration ensures sustained support.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the industrial machinery repair and maintenance sector, which is crucial for supporting large government assets. Spending benchmarks in this niche can vary widely based on equipment complexity and scale.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not listed as a small business. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, focusing on performance and financial accountability.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if scope expands.
- Risk of delays impacting military readiness.
- Dependence on a single contractor for critical repairs.
- Lack of detailed performance metrics in summary data.
Tags
commercial-and-industrial-machinery-and-, department-of-defense, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.2 million to FAIRBANKS MORSE, LLC. NO. 1 ENGINE REBUILD, SERIAL NO. 38D8700
Who is the contractor on this award?
The obligated recipient is FAIRBANKS MORSE, 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 $35.2 million.
What is the period of performance?
Start: 2023-08-31. End: 2027-11-11.
What is the specific scope of work for the engine rebuilds, and how does it align with the contract value?
The provided data identifies the work as 'NO. 1 ENGINE REBUILD, SERIAL NO. 38D8700' with a value of $35,205,986.71. A detailed scope of work would typically outline the specific components to be rebuilt, diagnostic procedures, testing requirements, and expected performance standards post-rebuild. Understanding these specifics is crucial to assess if the contract value is appropriate for the expected deliverables and to ensure the rebuilds meet the Army's operational needs.
What are the key performance indicators (KPIs) and potential risks associated with this engine rebuild contract?
Key performance indicators would likely include engine reliability post-rebuild, turnaround time, adherence to specifications, and warranty provisions. Potential risks involve unforeseen complexities during the rebuild process leading to cost increases (despite fixed price), delays impacting operational readiness, and the possibility of the rebuilt engines not meeting performance expectations, requiring further costly interventions.
How does the firm fixed price (FFP) structure impact the government's ability to manage costs and ensure contractor performance?
A firm fixed price contract shifts most of the risk to the contractor, providing the government with cost certainty. This structure incentivizes the contractor to control costs and perform efficiently. However, it can also lead to contractors cutting corners if not adequately monitored, or potentially higher initial pricing to account for contractor risk. Robust government oversight is still essential to ensure quality and adherence to the SOW.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: W912EQ23B0006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cooper Machinery Services LLC
Address: 701 WHITE AVE, BELOIT, WI, 53511
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,463,786
Exercised Options: $35,205,987
Current Obligation: $35,205,987
Actual Outlays: $5,323,987
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-31
Current End Date: 2027-11-11
Potential End Date: 2028-02-11 00:00:00
Last Modified: 2025-12-23
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