DoD's $88M contract for Communication Equipment Repair & Maintenance awarded to WORLD TECHNICAL SERVICES, INC
Contract Overview
Contract Amount: $88,087,069 ($88.1M)
Contractor: World Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-10-01
End Date: 2010-03-31
Contract Duration: 3,103 days
Daily Burn Rate: $28.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: EIELSON AFB, FAIRBANKS NORTH STAR County, ALASKA, 99702
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $88.1 million to WORLD TECHNICAL SERVICES, INC. for work described as: Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Long contract duration (3103 days) may indicate specialized needs or lack of market dynamism. 3. The award value of $88M over 9 years suggests significant investment in communication equipment upkeep. 4. No small business participation noted, potentially missing opportunities for smaller enterprises.
Value Assessment
Rating: fair
The contract value of $88M over 9 years averages approximately $9.78M annually. Benchmarking this against similar communication equipment repair and maintenance contracts is difficult without more specific service details and performance metrics.
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, the long duration and single awardee might imply limited active bidders or a focus on a specific capability.
Taxpayer Impact: The $88M expenditure over nearly a decade represents a substantial allocation of taxpayer funds for maintaining critical communication infrastructure.
Public Impact
Ensures continued operational readiness of Air Force communication systems. Supports a significant portion of the Air Force's communication equipment maintenance needs. Potential for long-term employment for personnel involved in repair and maintenance services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- No small business participation
- Limited visibility on specific performance metrics
Positive Signals
- Awarded under full and open competition
- Ensures critical communication equipment maintenance
Sector Analysis
Communication equipment repair and maintenance is a critical support function for military operations. Spending in this sector is driven by the need for reliable and up-to-date communication systems, often involving specialized technical expertise.
Small Business Impact
This contract did not include small business participation. Given the scale and duration, there may have been opportunities to subcontract portions of the work to small businesses, which were not realized.
Oversight & Accountability
The long duration of the contract warrants oversight to ensure continued value and performance. Regular reviews of service delivery and cost-effectiveness would be prudent.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may reduce flexibility and increase risk of price escalation.
- Lack of small business participation may indicate missed opportunities for economic inclusion.
- Single awardee over a long period could lead to reduced competition and innovation.
- Limited data on specific performance metrics makes independent value assessment difficult.
Tags
communication-equipment-repair-and-maint, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.1 million to WORLD TECHNICAL SERVICES, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is WORLD TECHNICAL SERVICES, INC..
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 $88.1 million.
What is the period of performance?
Start: 2001-10-01. End: 2010-03-31.
What was the competitive landscape like during the bidding process for this contract, and did the long duration limit potential bidders?
While the contract was awarded under 'full and open competition,' the extensive 9-year period suggests that only a few firms possessed the sustained capability and financial stability to bid. The government likely sought a long-term partner for specialized maintenance, potentially narrowing the field of interested and qualified competitors despite the initial broad solicitation.
How does the $88M contract value compare to industry benchmarks for similar communication equipment repair and maintenance services over a 9-year period?
Benchmarking this $88M contract is challenging without detailed service scope and performance data. However, for a 9-year period, this averages roughly $9.78M annually. This figure needs to be assessed against the complexity and criticality of the specific communication systems maintained, as well as prevailing labor and parts costs in the defense sector.
What are the potential risks associated with a single awardee maintaining critical communication equipment for an extended period?
A single awardee over a long term can lead to vendor lock-in, reduced incentive for innovation, and potential price increases in later years. There's also a risk if the contractor faces financial instability or operational issues, as finding a replacement quickly for specialized systems would be difficult and disruptive to military communications.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)
Address: 3900 C ST STE 301, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2001-10-01
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2012-09-07
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