DoD awards $36.5M for soldier armor plate testing equipment maintenance, spanning over 20 months

Contract Overview

Contract Amount: $36,463,048 ($36.5M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-27

End Date: 2025-06-20

Contract Duration: 2,093 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AWARD OF RS3-19-0034. THIS TASK ORDER ESTABLISHES AND MAINTAINS FIELD OPERATING TEAMS THAT WILL OPERATE AND MAINTAIN NON DESTRUCTIVE TEST EQUIPMENT (NDTE) TO CONDUCT TESTING OF ARMOR PROTECTIVE PLATES WORN AND USED BY SOLDIERS.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to IAP WORLD SERVICES, INC. for work described as: AWARD OF RS3-19-0034. THIS TASK ORDER ESTABLISHES AND MAINTAINS FIELD OPERATING TEAMS THAT WILL OPERATE AND MAINTAIN NON DESTRUCTIVE TEST EQUIPMENT (NDTE) TO CONDUCT TESTING OF ARMOR PROTECTIVE PLATES WORN AND USED BY SOLDIERS. Key points: 1. Value for money is assessed through comparison with similar contracts for specialized equipment maintenance. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the contract type (Cost Plus Fixed Fee), which can lead to cost overruns. 4. Performance context involves maintaining non-destructive test equipment crucial for soldier safety. 5. Sector positioning is within Research and Development, specifically for physical and engineering sciences.

Value Assessment

Rating: fair

The award of $36.5 million for maintaining non-destructive test equipment (NDTE) for armor protective plates appears to be within a reasonable range for specialized technical services. Benchmarking against similar contracts for equipment maintenance and field support in the defense sector is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as it allows for cost reimbursement plus a fixed fee, potentially leading to higher final costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders suggests a reasonably competitive environment. A competitive process generally helps in achieving better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on essential soldier safety equipment maintenance.

Public Impact

Soldiers benefit from the reliable operation of non-destructive test equipment, ensuring the integrity of their armor. The services delivered include the operation and maintenance of specialized NDTE equipment. The geographic impact is primarily within Maryland, where the task order is stated to be. Workforce implications include the need for skilled technicians to operate and maintain complex testing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize contractor to incur costs to increase the fixed fee.
Potential for scope creep in task orders for maintenance and operation of complex equipment.
Reliance on a single contractor for critical equipment maintenance could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract duration of over 20 months provides stability for service delivery.
Focus on soldier safety equipment maintenance addresses a critical defense need.

Sector Analysis

This contract falls within the Research and Development sector, specifically under the North American Industry Classification System (NAICS) code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation and specialized technical services. The market for defense-related R&D and equipment maintenance is substantial, with significant government spending allocated to ensuring the readiness and safety of military personnel and equipment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, IAP World Services, Inc., is likely a large business, and any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to monitor costs and ensure adherence to the fixed fee. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Equipment Maintenance
Army Test and Evaluation Command (ATEC) Services
Naval Sea Systems Command (NAVSEA) Technical Services
Air Force Materiel Command (AFMC) Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Reliance on contractor for maintenance of critical safety equipment.
Potential for performance degradation if contractor resources are mismanaged.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to IAP WORLD SERVICES, INC.. AWARD OF RS3-19-0034. THIS TASK ORDER ESTABLISHES AND MAINTAINS FIELD OPERATING TEAMS THAT WILL OPERATE AND MAINTAIN NON DESTRUCTIVE TEST EQUIPMENT (NDTE) TO CONDUCT TESTING OF ARMOR PROTECTIVE PLATES WORN AND USED BY SOLDIERS.

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $36.5 million.

What is the period of performance?

Start: 2019-09-27. End: 2025-06-20.

What is the track record of IAP World Services, Inc. in performing similar defense contracts, particularly those involving equipment maintenance and field operations?

IAP World Services, Inc. has a significant history of performing various services for the U.S. military, including logistics, facilities management, and technical support. Their experience often spans complex operational environments. For contracts involving equipment maintenance, particularly specialized non-destructive testing equipment, a review of past performance evaluations and any reported issues or successes would be crucial. Assessing their ability to manage CPFF contracts effectively, control costs, and meet performance metrics on similar defense contracts would provide insight into their reliability for this specific task order. A deeper dive into their contract history with the Department of the Army and Department of Defense would reveal their proficiency in handling sensitive and critical support functions.

How does the awarded amount of $36.5 million compare to the estimated value or historical spending on similar NDTE maintenance contracts for armor protective plates?

Comparing the $36.5 million award to similar contracts requires access to a broader dataset of defense procurements. However, given the duration of over 20 months and the specialized nature of maintaining non-destructive test equipment for soldier armor, this figure appears to be within a plausible range for such services. Factors influencing cost include the type and quantity of equipment, the complexity of maintenance procedures, the required certifications for personnel, and the geographic location of operations. Without direct comparable contract data, it's difficult to definitively benchmark the value. However, the full and open competition suggests an effort to achieve competitive pricing, which should theoretically align the award with market rates for comparable services.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and what mitigation strategies are in place?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. The 'fixed fee' component is negotiated upfront and remains constant, but the total cost can escalate if actual costs exceed estimates. In this case, for maintaining NDTE equipment, risks include potential overruns in labor hours, material costs for repairs, and overhead. Mitigation strategies typically involve robust government oversight, detailed cost tracking, regular audits, and clear performance metrics. The contracting officer must actively monitor expenditures and ensure that the contractor is operating efficiently and within the scope of the contract to manage potential cost escalations.

What is the expected impact of this contract on soldier safety and readiness, given its focus on armor protective plate testing equipment?

This contract directly impacts soldier safety and readiness by ensuring that the non-destructive test equipment (NDTE) used to evaluate armor protective plates is operational and accurate. Reliable NDTE is critical for verifying the structural integrity and protective capabilities of the armor soldiers wear. If this equipment malfunctions or provides inaccurate readings, it could lead to the deployment of substandard armor, thereby compromising soldier protection. By maintaining this equipment, the contract ensures that armor plates are rigorously tested, reducing the risk of failure in the field and contributing to overall soldier survivability and mission effectiveness.

How has spending on R&D services related to soldier protection and equipment maintenance evolved over the past five years, and does this contract represent a significant shift?

Analyzing spending trends in R&D for soldier protection requires access to historical budget data and contract awards across relevant agencies. Generally, there is a consistent and often increasing investment in soldier protection technologies and the R&D supporting them, driven by evolving threats and the need for advanced materials and equipment. Contracts for maintenance and testing of protective gear are a crucial, albeit less visible, part of this ecosystem. This $36.5 million award for NDTE maintenance appears to be a standard operational expenditure rather than a significant shift, reflecting ongoing needs rather than a new program initiation. However, tracking the aggregate spending on such maintenance services over time would reveal broader trends in defense readiness investments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6905 N WICKHAM RD STE 500, MELBOURNE, FL, 32940

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,041,048

Exercised Options: $40,041,048

Current Obligation: $36,463,048

Actual Outlays: $2,345,090

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $14,868,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0146

IDV Type: IDC

Timeline