VSE Corporation awarded $178M for logistics readiness support, highlighting potential value in specialized services

Contract Overview

Contract Amount: $178,376,942 ($178.4M)

Contractor: VSE Corporation

Awarding Agency: General Services Administration

Start Date: 2011-01-20

End Date: 2013-07-20

Contract Duration: 912 days

Daily Burn Rate: $195.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROVIDE FOR EQUIPMENT, ENGINEERING, MAINTENANCE AND LOGISTICS READINESS SUPPORT

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $178.4 million to VSE CORPORATION for work described as: PROVIDE FOR EQUIPMENT, ENGINEERING, MAINTENANCE AND LOGISTICS READINESS SUPPORT Key points: 1. The contract value suggests a significant need for specialized logistics and maintenance expertise. 2. Competition dynamics for this contract type are crucial for ensuring fair pricing. 3. Performance history and on-time delivery metrics will be key indicators of value. 4. The duration of the contract indicates a long-term requirement for these services. 5. This award falls within the broader category of professional services for government operations.

Value Assessment

Rating: good

The contract value of $178 million over approximately 2.5 years suggests a substantial investment in logistics readiness. Benchmarking against similar large-scale government contracts for engineering, maintenance, and logistics support is necessary to fully assess value for money. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively state if the pricing is optimal, but the competitive award process provides a baseline for fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders (3) is moderate, suggesting a reasonable level of interest and competition for this specialized service.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through a competitive bidding process.

Public Impact

Military branches and federal agencies requiring specialized equipment readiness support benefit from this contract. Services include engineering, maintenance, and logistics to ensure operational readiness of equipment. The contract's impact is primarily national, supporting federal operational capabilities. Workforce implications include employment for logistics specialists, engineers, and maintenance technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate oversight.
Reliance on a single contractor for critical readiness support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contract duration indicates a stable, long-term need being met.
VSE Corporation's experience in similar government contracts is a positive signal.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics and engineering support. The market for government logistics readiness support is substantial, driven by the complex needs of defense and civilian agencies. VSE Corporation operates in a competitive space with other firms offering similar capabilities. Benchmarking against industry standards for logistics readiness support would provide further context on the scale and nature of this award.

Small Business Impact

The contract was awarded to VSE Corporation and does not indicate any specific small business set-aside provisions. There is no explicit information on subcontracting plans for small businesses within the provided data. Further review of the contract details would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (General Services Administration) and the requiring agency. Accountability measures are usually embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) support contracts
Military Readiness Support Services
Government Engineering and Maintenance Contracts
Federal Supply Schedule (FSS) Logistics Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Contract duration may lead to contractor complacency if not actively managed.
Dependence on a single contractor for critical readiness support.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $178.4 million to VSE CORPORATION. PROVIDE FOR EQUIPMENT, ENGINEERING, MAINTENANCE AND LOGISTICS READINESS SUPPORT

Who is the contractor on this award?

The obligated recipient is VSE CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $178.4 million.

What is the period of performance?

Start: 2011-01-20. End: 2013-07-20.

What is VSE Corporation's track record with similar government contracts, particularly in logistics and readiness support?

VSE Corporation has a significant history of providing services to the U.S. government, including extensive work in logistics, engineering, and readiness support for various military branches and agencies. Their portfolio often includes ship readiness, aviation support, and base operations. Analyzing their past performance on contracts of similar size and scope, including any past performance evaluations or awards, would provide insight into their reliability and capability. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance databases can offer details on their delivery history, quality of work, and any past disputes or corrective actions, helping to assess their suitability for this specific contract.

How does the awarded amount of $178 million compare to historical spending on similar logistics readiness support contracts?

The $178 million awarded to VSE Corporation for logistics readiness support is a substantial figure, indicative of a significant and long-term requirement. To benchmark this, one would compare it against historical spending by agencies like the Department of Defense or the General Services Administration on similar service contracts. For instance, contracts for depot maintenance, fleet readiness, or specialized equipment sustainment can range from tens to hundreds of millions of dollars. Analyzing the average contract value, duration, and scope for logistics readiness support over the past 5-10 years can reveal whether this award is typical, higher, or lower than historical norms. Factors such as inflation, evolving technological needs, and changes in military or agency operational tempo can influence these historical comparisons.

What are the key performance indicators (KPIs) used to measure the success of this logistics readiness support contract?

Key performance indicators (KPIs) for a logistics readiness support contract typically focus on ensuring equipment availability, operational readiness, and cost-effectiveness. Common KPIs include metrics such as Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), equipment availability rates (e.g., percentage of time equipment is mission-capable), on-time delivery of parts and services, and adherence to maintenance schedules. Cost-related KPIs might involve tracking cost per operating hour or cost per maintenance action. The contract likely specifies Service Level Agreements (SLAs) with defined targets for these KPIs, and performance against these targets would determine contractor success and potential for award fee adjustments or penalties.

What is the potential risk associated with the Time and Materials (T&M) contract type for this service?

Time and Materials (T&M) contract types, like the one used here, carry inherent risks for the government, primarily related to cost control. In a T&M contract, the contractor is reimbursed for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost uncertainty and potential overruns if not managed carefully, as the final cost is not fixed upfront. The government bears a greater risk of cost escalation compared to fixed-price contracts. Effective oversight, detailed tracking of labor hours and material costs, and clear definitions of work are crucial to mitigate these risks and ensure fair pricing. The number of bidders (3) suggests some level of competition, which can help temper T&M costs.

How does this contract align with the General Services Administration's (GSA) mission and its role in providing federal acquisition services?

This contract aligns with the GSA's mission to provide efficient and effective procurement solutions for the federal government. The Federal Acquisition Service (FAS), which falls under GSA, is responsible for managing a wide range of government-wide acquisition programs, including professional services. By facilitating the procurement of specialized logistics and readiness support through competitive processes, GSA enables agencies like the one requiring these services to focus on their core missions. GSA's role is to offer best-value solutions, leverage government-wide buying power, and ensure compliance with acquisition regulations, all of which are demonstrated in the award of this contract under full and open competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9Q1ZDWPS002

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6348 WALKER LANE, ALEXANDRIA, VA, 22310

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $958,940,741

Exercised Options: $516,234,770

Current Obligation: $178,376,942

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0096V

IDV Type: FSS

Timeline