DoD Awards $272.5M for Route Clearance Equipment Logistics in Iraq/Afghanistan
Contract Overview
Contract Amount: $272,544,623 ($272.5M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2008-02-15
End Date: 2009-02-18
Contract Duration: 369 days
Daily Burn Rate: $738.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: TASK ORDER FOR PM AMS CONTRACTOR LOGISTIC SUPPORT FOR ROUTE CLEARANCE EQUIPMENT. THEATER OF OPERATIONS IRAQ AND AFGHANISTAN.
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $272.5 million to VSE CORPORATION for work described as: TASK ORDER FOR PM AMS CONTRACTOR LOGISTIC SUPPORT FOR ROUTE CLEARANCE EQUIPMENT. THEATER OF OPERATIONS IRAQ AND AFGHANISTAN. Key points: 1. Significant contract for critical theater operations support. 2. VSE Corporation is the sole awardee for this task order. 3. Potential risks include operational disruptions and cost overruns in austere environments. 4. Spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: fair
The contract is Time and Materials, which can lead to cost uncertainty. The awarded amount is substantial, and without a fixed price, it's difficult to assess value definitively against similar contracts without more detailed cost breakdowns.
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. However, as a Time and Materials contract, the final price is dependent on actual labor and material costs incurred, potentially impacting price discovery.
Taxpayer Impact: Taxpayers bear the cost of logistics support for essential equipment in active theaters, with the final amount subject to actual hours and materials used.
Public Impact
Ensures operational readiness of route clearance equipment in combat zones. Supports military personnel by providing necessary logistical services. Contributes to the safety and effectiveness of missions in Iraq and Afghanistan.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Time and Materials pricing structure
- Operational risks in theater
- Sole awardee for this specific task order
Positive Signals
- Full and open competition utilized
- Essential support for critical military operations
Sector Analysis
This spending is within the defense sector, specifically supporting logistical operations for specialized equipment. Benchmarks for similar logistics support contracts in active theaters can vary widely due to environmental factors and specific equipment needs.
Small Business Impact
The data indicates the awardee is VSE Corporation, a large business. There is no specific information provided regarding small business participation in this task order.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Army to ensure timely delivery and adherence to contract terms. Accountability for cost and performance rests with VSE Corporation and the contracting officer.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing
- Operational environment risks
- Lack of detailed cost breakdown
- Potential for scope creep
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $272.5 million to VSE CORPORATION. TASK ORDER FOR PM AMS CONTRACTOR LOGISTIC SUPPORT FOR ROUTE CLEARANCE EQUIPMENT. THEATER OF OPERATIONS IRAQ AND AFGHANISTAN.
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $272.5 million.
What is the period of performance?
Start: 2008-02-15. End: 2009-02-18.
What specific route clearance equipment is being supported, and what is the criticality of this support to ongoing operations?
The specific route clearance equipment is not detailed in the provided data. However, its criticality is implied by its use in active theaters like Iraq and Afghanistan, where route clearance is vital for troop safety and mission success. This support likely ensures the operational readiness and maintenance of vehicles designed to detect and neutralize explosive threats.
What are the primary risks associated with a Time and Materials contract for logistics support in a theater of operations?
The primary risks of a Time and Materials contract in a theater of operations include potential cost overruns due to unpredictable labor hours and material needs, difficulty in establishing a firm ceiling price, and challenges in ensuring contractor efficiency. The lack of a fixed price can make budget forecasting less precise for the government.
How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code relate to route clearance equipment logistics?
While 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' might seem tangential, it likely encompasses specialized components or manufacturing capabilities that are also utilized in the production or maintenance of advanced route clearance vehicles. These vehicles often incorporate complex systems, some of which may share manufacturing origins or components with aerospace applications.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 22303
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $272,544,623
Exercised Options: $272,544,623
Current Obligation: $272,544,623
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB012
IDV Type: IDC
Timeline
Start Date: 2008-02-15
Current End Date: 2009-02-18
Potential End Date: 2009-02-18 00:00:00
Last Modified: 2015-06-09
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