DoD Awards $146M Task Order to VSE Corporation for Aircraft Parts Manufacturing
Contract Overview
Contract Amount: $145,971,380 ($146.0M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2011-01-30
Contract Duration: 852 days
Daily Burn Rate: $171.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: NEW TASK ORDER
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $146.0 million to VSE CORPORATION for work described as: NEW TASK ORDER Key points: 1. Significant contract value of $145.97M awarded to VSE Corporation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. The contract duration is 852 days, ending January 30, 2011.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total award value is substantial, but without specific performance metrics or cost breakdowns, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing, though the Time and Materials pricing structure warrants scrutiny.
Taxpayer Impact: Taxpayer funds are being utilized for aircraft parts manufacturing. The competitive nature of the award is positive, but the Time and Materials contract type requires diligent oversight to ensure cost-effectiveness.
Public Impact
Supports the Department of the Army's aviation readiness and maintenance. Contributes to the broader aerospace and defense manufacturing sector. Potential impact on supply chain stability for critical aircraft components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can inflate costs without strict oversight.
- Contract duration is lengthy, increasing exposure to potential cost changes.
- Specific performance metrics and cost controls are not detailed.
Positive Signals
- Awarded under full and open competition.
- VSE Corporation is an established defense contractor.
- Supports critical Department of Defense aviation needs.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is driven by military readiness requirements and technological advancements. Benchmarks for similar contracts would depend on the specific parts and complexity involved.
Small Business Impact
The data indicates the primary contractor is VSE Corporation. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific task order.
Oversight & Accountability
The Time and Materials contract type necessitates robust oversight from the Department of the Army to monitor labor hours, material costs, and prevent scope creep. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract.
- Lack of specific details on parts procured and their cost justification.
- Long contract duration increases risk exposure.
- Need for robust government oversight to ensure accountability.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $146.0 million to VSE CORPORATION. NEW TASK ORDER
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 $146.0 million.
What is the period of performance?
Start: 2008-09-30. End: 2011-01-30.
What specific aircraft parts or components were procured under this task order, and how do their costs compare to industry standards?
The provided data classifies the procurement under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' but lacks specifics on the exact components. A detailed analysis would require access to the task order's statement of work and itemized cost breakdowns to compare against industry benchmarks and ensure fair pricing for the taxpayer.
What mechanisms were in place to mitigate cost risks associated with the Time and Materials contract type?
While awarded under full and open competition, the Time and Materials (T&M) structure inherently carries cost risk. Effective mitigation would typically involve clearly defined labor categories with capped rates, stringent approval processes for material purchases, and regular performance reviews by the contracting officer to ensure efficient execution and prevent unnecessary expenditures.
How did the competitive bidding process under 'full and open competition' ensure the best value was achieved for the government?
Full and open competition theoretically maximizes the number of potential bidders, driving down prices through market forces. However, the ultimate value achieved also depends on the clarity of the solicitation, the evaluation criteria used, and the government's ability to negotiate favorable terms, especially given the T&M pricing structure which requires careful management post-award.
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: 2
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: $146,027,217
Exercised Options: $146,026,883
Current Obligation: $145,971,380
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB012
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2011-01-30
Potential End Date: 2011-01-30 12:01:00
Last Modified: 2016-09-30
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