Army Reserve Logistics Support Contract Awarded to VSE Corporation for $169.5M
Contract Overview
Contract Amount: $169,519,852 ($169.5M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2008-04-07
End Date: 2011-01-30
Contract Duration: 1,028 days
Daily Burn Rate: $164.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: CR-2058 ARMY RESERVE EQUIPMENT, MAINT, & LOGISTICS READINESS SUPPORT
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $169.5 million to VSE CORPORATION for work described as: CR-2058 ARMY RESERVE EQUIPMENT, MAINT, & LOGISTICS READINESS SUPPORT Key points: 1. Contract value of $169.5M for equipment, maintenance, and logistics readiness support. 2. VSE Corporation, a large business, secured this contract. 3. The contract was awarded under full and open competition. 4. This falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: good
The contract's total value is $169.5M. Without specific per-unit cost data or benchmarks for similar logistics support services, a precise value assessment is difficult. However, the duration and scope suggest a reasonable allocation of funds for the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair pricing for the required logistics support services.
Public Impact
Ensures operational readiness for the Army Reserve by providing essential equipment maintenance and logistics. Supports a large corporation, VSE Corporation, contributing to its revenue and employment. The contract's duration of over 1000 days highlights a significant, long-term commitment to these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcome-based evaluations.
- Potential for cost overruns in time and materials contracts if not closely managed.
- Limited visibility into the specific types of equipment and logistics supported.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Supports critical Army Reserve operational readiness.
- Long contract duration suggests a stable and reliable service provider.
Sector Analysis
This contract falls within the broader defense logistics and support sector. Spending in this area is crucial for maintaining military readiness. Benchmarks for similar large-scale logistics contracts can vary significantly based on scope and specific services.
Small Business Impact
The contract was awarded to VSE Corporation, identified as a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and performance standards.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials contract type.
- Lack of detailed performance metrics.
- No explicit small business participation noted.
- Contract awarded to a large business.
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 $169.5 million to VSE CORPORATION. CR-2058 ARMY RESERVE EQUIPMENT, MAINT, & LOGISTICS READINESS SUPPORT
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 $169.5 million.
What is the period of performance?
Start: 2008-04-07. End: 2011-01-30.
What specific performance metrics are used to evaluate the effectiveness of VSE Corporation's logistics support?
The provided data does not detail specific performance metrics or Key Performance Indicators (KPIs) for this contract. Effective oversight would require the Department of the Army to track metrics related to equipment uptime, maintenance turnaround times, supply chain efficiency, and overall readiness impact.
What is the potential risk associated with the 'Time and Materials' contract type for this extensive logistics support?
Time and Materials (T&M) contracts carry a risk of cost escalation if not managed diligently. Without clear ceilings or robust oversight, the contractor could incur significant labor hours or material costs, potentially exceeding initial estimates and impacting the overall value for taxpayers.
How does this contract contribute to the overall readiness and operational capability of the Army Reserve?
This contract is designed to directly enhance Army Reserve readiness by ensuring equipment is maintained and logistics operations are supported. The $169.5M investment suggests a significant commitment to maintaining the necessary infrastructure and services for the Reserve's operational effectiveness.
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: $169,519,852
Exercised Options: $169,519,852
Current Obligation: $169,519,852
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB012
IDV Type: IDC
Timeline
Start Date: 2008-04-07
Current End Date: 2011-01-30
Potential End Date: 2011-01-30 00:00:00
Last Modified: 2015-06-09
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