DoD awards $83.6M for depot maintenance support, with R&D focus and full competition

Contract Overview

Contract Amount: $83,558,101 ($83.6M)

Contractor: Truestone, LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2027-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTRACT FIELD TEAM (CFT) SERVICES TO SUPPORT TOBYHANNA ARMY DEPOT (TYAD) MAINTENANCE

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $83.6 million to TRUESTONE, LLC for work described as: CONTRACT FIELD TEAM (CFT) SERVICES TO SUPPORT TOBYHANNA ARMY DEPOT (TYAD) MAINTENANCE Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Full and open competition was utilized, suggesting a broad search for qualified bidders. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spans four years, indicating a need for sustained support. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The primary service area is Tobyhanna Army Depot, a key maintenance and logistics hub.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more specific data on the services provided. However, the award amount of $83.6 million over four years for specialized R&D support at a major depot appears reasonable within the defense sector. The Cost Plus Fixed Fee structure, while common, necessitates careful oversight to ensure costs remain controlled and the fixed fee is justified by the scope of work. Comparing this to similar R&D support contracts at other depots or for similar technical services would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The presence of 5 bidders suggests a healthy level of interest and competition for this type of specialized support. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a wider pool of potential offerors, leading to more cost-effective solutions.

Public Impact

The primary beneficiaries are the Tobyhanna Army Depot and the broader Department of Defense, which will receive critical R&D support for maintenance operations. Services delivered will likely enhance the efficiency and effectiveness of depot maintenance through applied research and engineering. The geographic impact is centered on Tobyhanna Army Depot in Pennsylvania, supporting its mission. Workforce implications may include the need for specialized scientific and engineering personnel at the contractor's facilities and potentially on-site at the depot.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns.
The specific nature of R&D can introduce inherent uncertainties and potential for scope creep.
Reliance on a single delivery order under a potential IDIQ could indicate a concentrated need or a specific project focus.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
The four-year performance period indicates a stable, long-term need for these critical services.
The contract supports a vital Army depot, contributing to national defense readiness.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is substantial, with significant government investment aimed at technological advancement and maintaining military superiority. Contracts like this support the innovation pipeline for military equipment and sustainment. Comparable spending benchmarks would involve analyzing other R&D service contracts awarded by the DoD or other federal agencies for similar technical capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, TRUESTONE, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and technical representatives. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs and deliver on the fixed fee scope. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Tobyhanna Army Depot Maintenance Operations
Department of Defense Research and Development Programs
Army Logistics and Sustainment Contracts
Engineering Support Services Contracts
Physical and Engineering Sciences Research

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
R&D inherently involves technical uncertainty and potential for scope creep.
Contract performance depends on the specific capabilities of TRUESTONE, LLC.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.6 million to TRUESTONE, LLC. CONTRACT FIELD TEAM (CFT) SERVICES TO SUPPORT TOBYHANNA ARMY DEPOT (TYAD) MAINTENANCE

Who is the contractor on this award?

The obligated recipient is TRUESTONE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $83.6 million.

What is the period of performance?

Start: 2023-03-01. End: 2027-02-28.

What is the track record of TRUESTONE, LLC in performing similar R&D services for the Department of Defense?

Assessing TRUESTONE, LLC's track record requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented successes or failures in delivering R&D support, particularly within the physical, engineering, and life sciences domains. Information on their experience with Army depots and Cost Plus Fixed Fee contracts would also be pertinent. Without specific past performance data, it's difficult to definitively gauge their capability for this $83.6 million award.

How does the $83.6 million contract value compare to similar R&D support contracts at other Army depots?

Direct comparison of the $83.6 million value requires identifying contracts for comparable R&D support services at other Army depots. Factors such as the specific scientific disciplines, the scope of research, the duration of the contract (4 years), and the complexity of the work at each depot would need to be aligned. Generally, large depots with extensive maintenance and modernization needs, like Tobyhanna, often require significant R&D investment. This award appears substantial, suggesting a comprehensive scope of support, but its relative value is best understood by benchmarking against contracts with similar technical requirements and service levels across the Army's depot network.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risks with a CPFF contract for R&D services revolve around cost control and scope definition. While the fixed fee provides the contractor with an incentive to manage costs efficiently to protect their profit margin, the 'cost plus' element means the government bears the risk of actual costs incurred. For R&D, which is inherently uncertain, there's a risk that costs could escalate beyond initial projections if unforeseen technical challenges arise. Additionally, defining the precise scope of R&D work can be difficult, potentially leading to disputes over contract modifications or contractor performance if the objectives are not clearly articulated and agreed upon from the outset. Robust government oversight is crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money in specialized R&D procurements?

Full and open competition is generally considered the most effective method for ensuring value for money in specialized R&D procurements. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. This broad competition drives down costs and encourages contractors to propose their best technical approaches. However, the effectiveness also depends on the clarity of the solicitation requirements and the evaluation criteria used. For highly specialized R&D, ensuring that evaluators possess the necessary technical expertise to assess proposals accurately is critical to selecting the offer that represents the best overall value, not just the lowest price.

What is the historical spending trend for R&D support services at Tobyhanna Army Depot?

Analyzing historical spending trends for R&D support services at Tobyhanna Army Depot would involve examining contract awards over several fiscal years. This would reveal whether spending in this category has been consistent, increasing, or decreasing. It would also indicate the typical contract types, durations, and values awarded for such services. A consistent or increasing trend might suggest a growing reliance on external R&D support for depot operations, while a decreasing trend could indicate shifts in strategy or increased in-house capabilities. Understanding this history provides context for the current $83.6 million award and helps forecast future needs.

What are the potential performance challenges given the contract is a delivery order?

The fact that this is a delivery order (DO) implies it is issued under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Potential performance challenges can arise if the underlying IDIQ contract has limitations or if this specific DO represents a significant portion of the IDIQ's ceiling. Challenges might include ensuring timely availability of funds for subsequent orders if this is one of many, or potential coordination issues if the IDIQ contract vehicle is managed broadly across multiple programs. However, DOs are standard mechanisms for tasking specific work, and performance hinges more on the contractor's execution and the clarity of the tasking within the DO itself.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dowl, LLC

Address: 13873 PARK CENTER RD STE 300N, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $194,078,596

Exercised Options: $151,788,062

Current Obligation: $83,558,101

Actual Outlays: $4,188,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0137

IDV Type: IDC

Timeline