Department of the Army awarded $16.7M for GSE Comm. & Armament Maint., with 15 bids received

Contract Overview

Contract Amount: $16,674,204 ($16.7M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-06-09

End Date: 2010-09-26

Contract Duration: 474 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GSE COMM. & ARMAMENT MAINT.

Plain-Language Summary

Department of Defense obligated $16.7 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: GSE COMM. & ARMAMENT MAINT. Key points: 1. The contract value of $16.7 million for GSE Comm. & Armament Maint. represents a significant investment in operational readiness. 2. Full and open competition suggests a robust market response, potentially leading to competitive pricing. 3. The definitive contract type indicates a clear scope of work and established terms. 4. A duration of 474 days points to a substantial, ongoing requirement for these services. 5. The absence of specific small business set-asides warrants further investigation into subcontracting opportunities. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar armament maintenance services. The $16.7 million expenditure over approximately 1.5 years suggests a substantial operational need. However, without data on the specific services rendered or the scope of 'GSE Comm. & Armament Maint.', it's difficult to definitively assess value for money. The fixed-price contract type implies that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 15 bids received, this suggests a healthy level of interest and a competitive marketplace for these services. A higher number of bidders generally correlates with better price discovery and a greater likelihood of securing services at a favorable cost to the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive bids for the required armament maintenance and GSE communication services.

Public Impact

The primary beneficiaries are likely military personnel and units relying on well-maintained ground support equipment (GSE) and operational armament systems. Services delivered include maintenance and communication support crucial for military readiness and operational effectiveness. The geographic impact is likely concentrated around the bases or operational areas where the Army units utilizing this equipment are stationed. Workforce implications may include the employment of skilled technicians and support staff for the maintenance and communication tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'GSE Comm. & Armament Maint.' makes it difficult to assess the full value and potential risks.
The undisclosed domestic awardees prevent an analysis of contractor track record or potential conflicts of interest.
No specific small business participation goals were identified, raising questions about opportunities for smaller enterprises.
The fixed-price contract, while shifting risk, could lead to scope creep if not meticulously managed.

Positive Signals

Awarded under full and open competition with 15 bids, indicating a competitive process.
The definitive contract type suggests a well-defined scope and established terms.
The firm-fixed-price structure places cost control responsibility on the contractor.
The contract duration of 474 days indicates a sustained need and commitment to operational support.

Sector Analysis

The defense sector, particularly within the Army, relies heavily on robust maintenance and communication systems for its ground support equipment (GSE) and armament systems. This contract falls under the broader category of defense logistics and maintenance services. The market for such services is specialized, involving contractors with expertise in military hardware and communication technologies. Comparable spending benchmarks would typically be found within the Department of Defense's budget for sustainment and readiness, often measured in billions annually across various service branches for similar support functions.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the competition was full and open, there is no explicit information regarding subcontracting plans or goals. This means that opportunities for small businesses to participate as subcontractors are not guaranteed and would depend on the prime contractor's procurement strategy. Further analysis would be needed to determine if small businesses were among the 15 bidders or if they are expected to benefit from subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the definitive contract structure and the firm-fixed-price terms, which obligate the contractor to deliver specified services. Transparency regarding the specific awardees and detailed cost breakdowns is limited in the provided data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Ground Support Equipment Maintenance
Armament Systems Support
Military Logistics and Sustainment
Defense Communication Systems
Army Readiness Programs

Risk Flags

Undisclosed Awardee(s)
Lack of Specific Service Details
No Identified Small Business Goals
Limited Performance Metrics Available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to DOMESTIC AWARDEES (UNDISCLOSED). GSE COMM. & ARMAMENT MAINT.

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2009-06-09. End: 2010-09-26.

What specific types of Ground Support Equipment (GSE) and Armament Systems were covered under this contract?

The provided data does not specify the exact types of Ground Support Equipment (GSE) or Armament Systems covered. 'GSE Comm. & Armament Maint.' is a broad category. GSE typically includes vehicles and equipment used to service aircraft and support ground operations (e.g., tow tractors, generators, hydraulic mules). Armament systems refer to weapons platforms and their associated components. The maintenance likely encompassed routine servicing, repair, troubleshooting, and potentially upgrades or calibration, while 'Comm.' suggests ensuring the communication capabilities of these systems were functional. Without further details, the precise scope remains undefined, making a granular assessment of value or risk difficult.

How does the $16.7 million contract value compare to historical spending on similar GSE and armament maintenance services by the Department of the Army?

Comparing the $16.7 million contract value to historical spending requires access to historical contract databases and specific service categories. However, as a single definitive contract awarded in 2009 for a duration of 474 days (approx. 1.3 years), it represents a significant but potentially standard investment for a specific unit or theater of operations. Annual defense spending on maintenance and sustainment for the Army runs into billions of dollars. To assess if this specific contract was high or low, one would need to identify comparable contracts for similar equipment types, geographic locations, and service scopes awarded around the same period or more recently, and then analyze their total values and durations.

What were the key performance indicators (KPIs) or service level agreements (SLAs) established for this contract?

The provided data does not include information on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a typical firm-fixed-price contract for maintenance and support, KPIs would likely focus on metrics such as response time for service requests, equipment uptime percentages, repair turnaround times, and adherence to maintenance schedules. SLAs would define the expected level of service quality and availability. The absence of this information makes it challenging to evaluate the contractor's performance objectively beyond meeting the basic contractual requirements.

Were there any identified risks associated with the contractor's performance or the nature of the services provided?

The provided data does not explicitly list identified risks for this contract. However, potential risks inherent in 'GSE Comm. & Armament Maint.' contracts include the complexity and potential obsolescence of the equipment, the need for specialized technical expertise, supply chain disruptions for parts, and the critical nature of ensuring operational readiness. For a firm-fixed-price contract, a key risk is that the contractor might cut corners on quality to maintain profitability if not adequately monitored. The lack of disclosed awardee information also prevents an assessment of the contractor's specific track record and associated risks.

What is the typical profit margin for contractors providing similar defense maintenance and communication services?

Determining the typical profit margin for defense contractors in maintenance and communication services is complex and varies significantly based on contract type, competition level, specific services, and contractor overhead. For firm-fixed-price contracts like this one, where the contractor assumes more risk, profit margins might range from 5% to 15% of the contract value, depending on efficiency and market conditions. However, this is a general estimate. Actual profit margins are influenced by factors such as the contractor's efficiency, the accuracy of their initial cost estimations, and any unforeseen challenges encountered during performance. Without access to the contractor's cost structure or specific industry benchmarks for this niche, precise profit margin analysis is not feasible.

How has the Department of Defense's approach to contracting for GSE and armament maintenance evolved since this contract was awarded in 2009?

Since 2009, the Department of Defense (DoD) has increasingly focused on performance-based logistics (PBL), data analytics for predictive maintenance, and enhancing cybersecurity for communication systems. There's a greater emphasis on lifecycle sustainment and total system support rather than just break-fix services. Contracting strategies have evolved to incorporate more outcome-based metrics and incentivize contractor innovation and efficiency. Furthermore, the DoD has continued efforts to streamline acquisition processes, though challenges remain. The push for greater transparency and data-driven decision-making in contracting has also grown, influencing how contracts like this are structured and overseen today.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM09R0028

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,674,204

Exercised Options: $16,674,204

Current Obligation: $16,674,204

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline