DoD's $28.5M contract for communication equipment repair awarded to ENGINEERING SOLUTIONS & PRODUCTS LLC

Contract Overview

Contract Amount: $28,545,844 ($28.5M)

Contractor: Engineering Solutions & Products LLC

Awarding Agency: Department of Defense

Start Date: 2012-05-19

End Date: 2013-08-19

Contract Duration: 457 days

Daily Burn Rate: $62.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FSR SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to ENGINEERING SOLUTIONS & PRODUCTS LLC for work described as: FSR SUPPORT Key points: 1. Value for money appears fair given the fixed-fee structure, though detailed cost breakdowns are needed for a definitive assessment. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a fixed-fee contract type potentially limiting upside for the contractor but ensuring cost certainty for the government. 4. Performance context is within communication equipment repair and maintenance, a critical but standard service for military operations. 5. Sector positioning is within Defense, specifically supporting the Department of the Army's communication infrastructure needs.

Value Assessment

Rating: fair

The contract's value of $28.5 million over approximately 15 months for communication equipment repair and maintenance is within a typical range for such services. However, without specific details on the scope of work, the number of units repaired, or the complexity of the equipment, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for communication equipment maintenance would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, which generally helps in achieving fair market prices. However, the limited number of bidders could also imply a specialized market or high barriers to entry for potential competitors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a wider range of offers, potentially leading to lower prices and better service quality.

Public Impact

The Department of the Army benefits from the continued operational readiness of its communication equipment. Services delivered include the repair and maintenance of communication equipment, ensuring reliable command and control capabilities. The geographic impact is likely concentrated around the Army installations where the equipment is deployed and serviced. Workforce implications include the employment of skilled technicians for specialized equipment repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-fee structure does not adequately account for unforeseen repair complexities.
Dependence on a single contractor for critical communication equipment maintenance could pose a risk if performance issues arise.
Limited visibility into the specific repair processes and parts used without more granular reporting requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The fixed-fee contract type provides a degree of cost certainty for the government.
The contractor, ENGINEERING SOLUTIONS & PRODUCTS LLC, has a track record of performing government contracts, implying some level of established capability.

Sector Analysis

The defense sector relies heavily on robust communication systems for operational effectiveness. Contracts for the repair and maintenance of this equipment are essential for ensuring readiness. The market for such services is specialized, often requiring specific technical expertise and security clearances. Spending in this area can fluctuate based on equipment lifecycle and modernization efforts, but consistent maintenance is a perpetual requirement.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The award to a single entity without specific small business considerations suggests that the primary focus was on technical capability and price, rather than direct small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to delivery. Transparency is facilitated through contract award databases, though detailed operational reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems Maintenance
Military Equipment Repair Services
Communication Equipment Procurement and Support
Department of Defense IT and Communications Infrastructure

Risk Flags

Contract Type Risk (Cost Plus Fixed Fee)
Limited Competition Bidders
Lack of Specific Equipment Detail
Missing Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to ENGINEERING SOLUTIONS & PRODUCTS LLC. FSR SUPPORT

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 $28.5 million.

What is the period of performance?

Start: 2012-05-19. End: 2013-08-19.

What is the specific type of communication equipment being repaired under this contract, and what is the typical failure rate or lifespan?

The provided data does not specify the exact types of communication equipment covered by this contract, only that it falls under NAICS code 811213 (Communication Equipment Repair and Maintenance). This code encompasses a broad range of equipment, from radio and television broadcasting equipment to telephone and telegraph apparatus, and even computer peripheral equipment repair. Without this specific detail, it is impossible to assess typical failure rates or lifespans. Understanding the specific equipment would allow for a more informed analysis of the maintenance needs and the appropriateness of the contract's duration and value.

How does the awarded amount of $28.5 million compare to historical spending on similar communication equipment repair services by the Department of the Army?

Comparing the $28.5 million award to historical spending requires access to detailed historical contract data for similar services. The provided data indicates this is a single delivery order with a duration of 457 days (approximately 15 months). To benchmark effectively, one would need to aggregate spending on communication equipment repair and maintenance contracts of similar scope, duration, and complexity over several fiscal years. Without this comparative data, it's difficult to ascertain if this specific award represents an increase, decrease, or stable level of investment in these services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how was the contractor's performance measured?

The provided data does not include details on the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for repair and maintenance services, KPIs might include turnaround time for repairs, equipment uptime percentages, quality of repair work (e.g., defect rate), and customer satisfaction. Performance measurement would likely involve regular reporting by the contractor and oversight by government representatives who would assess adherence to these KPIs and SLAs. Failure to meet these metrics could result in penalties or affect future contract awards.

What is the track record of ENGINEERING SOLUTIONS & PRODUCTS LLC in performing similar government contracts, particularly for the Department of Defense?

The data indicates that ENGINEERING SOLUTIONS & PRODUCTS LLC was awarded this contract. To assess their track record, one would need to examine their past performance on similar contracts. This would involve looking at contract history, including the types of services rendered, contract values, durations, and any reported performance issues or accolades. A review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their reliability, quality of work, and overall capability in fulfilling government requirements, especially within the defense sector.

What is the estimated total cost of ownership for the communication equipment being serviced, including procurement, maintenance, and eventual disposal?

The provided data focuses solely on the cost of repair and maintenance services ($28.5 million) for a specific period. It does not encompass the total cost of ownership (TCO) for the communication equipment itself. TCO would include the initial procurement costs, installation, operational expenses, software licensing, upgrades, and eventual disposal or recycling costs. Estimating the TCO would require comprehensive data on the equipment's lifecycle, which is beyond the scope of the information presented for this specific contract.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type, if applicable, influence the risk distribution and potential for cost efficiency compared to other contract types?

The provided data lists the contract type as 'COST PLUS FIXED FEE' (pt: "COST PLUS FIXED FEE"). This contract type involves the government reimbursing the contractor for all allowable costs plus a fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost is not fixed upfront. However, the fixed fee provides the contractor with an incentive to control costs to maximize their profit margin within that fixed amount. It is often used when the scope of work is not well-defined, making fixed-price contracts difficult. Compared to firm-fixed-price contracts, CPFF can lead to higher government expenditure if costs escalate, but it allows for flexibility in evolving requirements.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14566 LEE RD, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $28,545,844

Exercised Options: $28,545,844

Current Obligation: $28,545,844

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T09DB201

IDV Type: IDC

Timeline