DoD Awards $33.6M for Communication Equipment Repair, Highlighting Ongoing Combat Support Needs
Contract Overview
Contract Amount: $33,603,062 ($33.6M)
Contractor: Engineering Solutions & Products LLC
Awarding Agency: Department of Defense
Start Date: 2010-04-23
End Date: 2011-04-25
Contract Duration: 367 days
Daily Burn Rate: $91.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: ONGOING OIF, OIF COMBAT EFFORTS
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $33.6 million to ENGINEERING SOLUTIONS & PRODUCTS LLC for work described as: ONGOING OIF, OIF COMBAT EFFORTS Key points: 1. Significant award for essential communication equipment maintenance, supporting active combat operations. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with the time and materials pricing structure, which can lead to cost overruns. 4. The IT sector benefits from this investment in maintaining critical communication infrastructure.
Value Assessment
Rating: fair
The award amount of $33.6 million for communication equipment repair and maintenance appears reasonable given the ongoing operational needs. However, the time and materials pricing structure warrants close monitoring to ensure costs remain within expected parameters.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing. The use of time and materials, however, can make precise price discovery challenging upfront.
Taxpayer Impact: Taxpayer funds are being used to ensure the operational readiness of communication equipment, which is crucial for national security. The competitive nature of the award aims to secure fair pricing.
Public Impact
Ensures continued operational readiness of critical communication systems for military personnel. Supports ongoing combat efforts by providing essential maintenance services. The award reflects the sustained need for reliable communication technology in defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific small business participation noted
Positive Signals
- Awarded under Full and Open Competition
- Supports critical national security mission
Sector Analysis
This contract falls within the IT services sector, specifically focusing on the repair and maintenance of communication equipment. Spending benchmarks for similar IT maintenance contracts vary widely based on complexity and scope, but this award represents a substantial investment in maintaining operational readiness.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). There is no specific mention of small business subcontracting goals or participation, suggesting a missed opportunity for small business engagement in this significant award.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from this agency. Further details on specific oversight mechanisms, performance reviews, and accountability measures would be necessary to fully assess the effectiveness of oversight.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing structure can lead to unpredictable costs.
- No indication of small business participation or subcontracting.
- Potential for cost overruns without stringent monitoring.
- Ongoing need suggests potential for long-term, high-cost sustainment.
Tags
communication-equipment-repair-and-maint, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to ENGINEERING SOLUTIONS & PRODUCTS LLC. ONGOING OIF, OIF COMBAT EFFORTS
Who is the contractor on this award?
The obligated recipient is ENGINEERING SOLUTIONS & PRODUCTS 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 $33.6 million.
What is the period of performance?
Start: 2010-04-23. End: 2011-04-25.
What is the projected cost ceiling for this Time and Materials contract, and how is it being monitored to prevent cost overruns?
The provided data does not specify a cost ceiling for this Time and Materials contract. Effective oversight would involve establishing a clear ceiling, regular tracking of labor hours and material costs against this ceiling, and proactive communication with the contractor to identify and mitigate potential cost escalations early in the contract lifecycle.
Given the 'full and open competition' award, what was the competitive landscape like, and how did it influence the final negotiated price?
While awarded under 'full and open competition,' the specific details of the bidding process and the number of competing offers are not provided. This method generally fosters price competition, but the final price is also influenced by the contractor's ability to accurately estimate labor and material needs under a Time and Materials structure, which can be less predictable than fixed-price contracts.
How does the ongoing need for communication equipment repair and maintenance reflect the broader technological challenges and sustainment strategies within the Department of Defense?
This contract highlights the persistent need for robust sustainment of communication systems, indicating that the DoD faces ongoing challenges in maintaining aging infrastructure alongside integrating new technologies. It underscores a strategic focus on ensuring operational readiness through reliable equipment maintenance, even as modernization efforts continue.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 4 INDUSTRIAL WAY W FL 3, EATONTOWN, NJ, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,603,062
Exercised Options: $33,603,062
Current Obligation: $33,603,062
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DB201
IDV Type: IDC
Timeline
Start Date: 2010-04-23
Current End Date: 2011-04-25
Potential End Date: 2011-04-25 00:00:00
Last Modified: 2013-10-21
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