DoD's $7.38M Contract for Equipment Maintenance with The Bionetics Corporation Raises Questions on Value and Competition

Contract Overview

Contract Amount: $15,523,074 ($15.5M)

Contractor: THE Bionetics Corp

Awarding Agency: Department of Defense

Start Date: 2002-12-10

End Date: 2008-01-31

Contract Duration: 1,878 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200303!000171!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0008 !A!N! !Y! !20021210!20080131!062363619!062363619!062363619!N!THE BIONETICS CORPORATION !11833 CANON BLVD , SUITE 1!NEWPORT NEWS !VA!23606!73800!017!40!TINKER AFB !CANADIAN !OKLAHOMA !+000002852829!N!N!000012633707!J066!MAINT & REPAIR OF EQ/INSTRUMENTS & LAB EQUIPMENT !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !811310!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!003!B! !C!N!Z! ! !Y!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to THE BIONETICS CORP for work described as: 200303!000171!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0008 !A!N! !Y! !20021210!20080131!062363619!062363619!062363619!N!THE BIONETICS CORPORATION !11833 CANON BLVD , SUITE 1!NEWPORT NEWS !VA!23606!73800!017!40!TINKER AFB !CANAD… Key points: 1. The contract awarded to The Bionetics Corporation for equipment maintenance appears to be a significant expenditure, warranting scrutiny for cost-effectiveness. 2. While the contract was awarded under full and open competition, the specific pricing and justification for the $7.38M value require further examination. 3. Potential risks include overpricing or a lack of sustained competitive pressure throughout the contract's duration, impacting taxpayer value. 4. The sector, Commercial and Industrial Machinery and Equipment Repair, is essential but can be prone to variable pricing based on service complexity.

Value Assessment

Rating: questionable

The contract value of $7.38M for equipment maintenance over 1878 days (approximately $3,929 per day) needs comparison against industry benchmarks for similar services. Without detailed service breakdowns, it's difficult to assess if this pricing is competitive or inflated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which is a positive sign for price discovery. However, the number of bids received (3) is relatively low for a contract of this size, suggesting potential limitations in the competitive landscape or outreach.

Taxpayer Impact: The $7.38M expenditure represents a substantial use of taxpayer funds. Ensuring this contract delivered fair market value is crucial for responsible fiscal management.

Public Impact

Taxpayers funded a significant contract for equipment maintenance, highlighting the need for transparency in government spending. The duration of the contract (over 5 years) suggests a long-term need for these services, impacting ongoing budget allocations. The specific equipment and services covered are not detailed, making it hard for the public to understand the necessity and value of the expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (3) despite full and open competition.
Lack of detailed service description to justify the $7.38M cost.
Contract duration of over 5 years may not reflect current market efficiencies.

Positive Signals

Awarded under full and open competition.
Contractor has a history with the agency (implied by contract number structure).
Services are essential for maintaining critical equipment.

Sector Analysis

This contract falls within the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is vital for operational readiness but can vary widely based on the type and age of equipment requiring service.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or if the prime contractor is a small business. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of Defense, specifically the Air Force. Standard oversight mechanisms should be in place, but the low number of bids warrants closer examination of the solicitation and evaluation process.

Related Government Programs

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for overpricing due to limited competition.
Lack of transparency regarding specific services and cost breakdown.
Long contract duration may not be cost-optimal.
Need to verify performance and actual value delivered.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to THE BIONETICS CORP. 200303!000171!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0008 !A!N! !Y! !20021210!20080131!062363619!062363619!062363619!N!THE BIONETICS CORPORATION !11833 CANON BLVD , SUITE 1!NEWPORT NEWS !VA!23606!73800!017!40!TINKER AFB !CANADIAN !OKLAHOMA !+000002852829!N!N!000012633707!J066!MAINT & REPAIR OF EQ/INSTRUMENTS & LAB EQUIPMENT !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !811310!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is THE BIONETICS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2002-12-10. End: 2008-01-31.

Was the $7.38M contract value justified by the scope of work and market rates for equipment maintenance services?

The contract value of $7.38M for 1878 days of maintenance services requires detailed justification. Without a breakdown of specific services, equipment types, and labor rates, it is difficult to ascertain if this price reflects fair market value. Comparisons with similar contracts and industry cost data are necessary to validate the expenditure.

What factors contributed to only three bids being submitted for this full and open competition contract?

The limited number of bids (3) for a full and open competition contract valued at $7.38M suggests potential barriers to entry, insufficient market research, or restrictive solicitation requirements. Understanding these factors is crucial to ensure genuine competition and prevent potential price inflation due to a lack of robust bidding.

How effectively did this contract ensure the operational readiness and longevity of the equipment maintained?

The effectiveness of the contract in ensuring operational readiness and equipment longevity hinges on the quality of services provided by The Bionetics Corporation and the contract's performance metrics. While the contract duration suggests a long-term need, assessing the actual impact requires reviewing performance reports, maintenance logs, and equipment uptime data.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 11833 CANON BLVD , SUITE 1, NEWPORT NEWS, VA, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline