DoD's $194M Contract for Field Support Services: Limited Competition Raises Concerns
Contract Overview
Contract Amount: $74,523,788 ($74.5M)
Contractor: World Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2021-08-03
Contract Duration: 5,423 days
Daily Burn Rate: $13.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200612!009690!2100!W56HZV!TACOM - WARREN !W56HZV06C0406 !A!N! !Y! ! !20060928!20140930!194163481!194163481!076637073!N!FIELD SUPPORT SERVICES, INC !3900 C ST STE 803 !ANCHORAGE !AK!99503!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000001564583!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH&DEVELOPMENT-BASIC RESEARCH !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!K! !A!Y!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $74.5 million to WORLD TECHNICAL SERVICES INC for work described as: 200612!009690!2100!W56HZV!TACOM - WARREN !W56HZV06C0406 !A!N! !Y! ! !20060928!20140930!194163481!194163481!076637073!N!FIELD SUPPORT SERVICES, INC !3900 C ST STE 803 !ANCHORAGE !AK!99503!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000001564583!N!N!000000000000!AZ11!RDTE/OTHER RES… Key points: 1. The Department of Defense awarded a $194 million contract for field support services, primarily to support combat vehicles. 2. Competition for this contract was limited, potentially impacting price discovery and taxpayer value. 3. The contract spans over 15 years, from 2006 to 2021, indicating a long-term need for these services. 4. The primary sector is Research and Development, specifically basic research related to combat vehicles. 5. The awarded amount is substantial, warranting close scrutiny of its efficiency and effectiveness.
Value Assessment
Rating: questionable
The contract value of $194,163,481 over 15 years is difficult to benchmark without specific per-unit cost data. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential overpricing due to lack of competitive pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition award. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: Limited competition can result in inflated prices, meaning taxpayers may be paying more than necessary for these field support services.
Public Impact
Taxpayers may be overpaying for essential field support services due to a lack of competitive bidding. The long duration of the contract raises questions about the government's ability to adapt to changing technological needs or secure better pricing over time. The focus on combat vehicles suggests a critical defense need, but the procurement process warrants review for future contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of detailed cost data
Positive Signals
- Supports critical defense needs (combat vehicles)
- Long-term service provision
Sector Analysis
This contract falls under the Research and Development sector, specifically basic research for combat vehicles. Benchmarking R&D spending can be challenging due to its specialized nature, but the significant value suggests a substantial investment in this area.
Small Business Impact
There is no indication that small businesses were involved in this contract, as the awardee is listed as FIELD SUPPORT SERVICES, INC. Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status suggests potential weaknesses in the oversight of the procurement process. Robust oversight is crucial to ensure fair pricing and value for taxpayer money, especially in long-term, sole-source contracts.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to inflated costs.
- Lack of transparency in pricing justification.
- Long contract duration may reduce flexibility and innovation.
- Potential for vendor lock-in.
- Insufficient data for robust cost-benefit analysis.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.5 million to WORLD TECHNICAL SERVICES INC. 200612!009690!2100!W56HZV!TACOM - WARREN !W56HZV06C0406 !A!N! !Y! ! !20060928!20140930!194163481!194163481!076637073!N!FIELD SUPPORT SERVICES, INC !3900 C ST STE 803 !ANCHORAGE !AK!99503!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000001564583!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH&DEVELOPMENT-BASIC RESEARCH !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!K! !A!Y!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !
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 Army).
What is the total obligated amount?
The obligated amount is $74.5 million.
What is the period of performance?
Start: 2006-09-28. End: 2021-08-03.
What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' status for this contract, and were alternatives explored?
The justification for 'NOT AVAILABLE FOR COMPETITION' is not detailed in the provided data. Typically, such designations are made when only one source can fulfill the requirement due to unique capabilities, urgent needs, or specific circumstances. Without further information, it's impossible to assess if alternatives were adequately explored or if this designation was appropriate, potentially impacting the government's ability to secure competitive pricing.
How does the cost of these field support services compare to similar contracts or industry benchmarks, given the limited competition?
Direct comparison is difficult due to the limited competition and lack of detailed cost breakdowns. However, contracts awarded without robust competition often carry a risk of being priced higher than market rates. The absence of competitive bids means there's no external validation of the pricing's fairness, raising concerns about potential overspending by the Department of Defense.
What is the long-term effectiveness and adaptability of the services provided under this contract, considering its 15-year duration?
The 15-year duration suggests a stable, long-term requirement for these field support services. However, it also raises questions about the contract's adaptability to evolving technologies and operational needs within the combat vehicle domain. Ensuring the services remain effective and relevant throughout the contract's life, without opportunities for re-competition or modification, is a key oversight challenge.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 6303 IVY LN STE 130, GREENBELT, MD, 20770
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $76,276,696
Exercised Options: $76,276,696
Current Obligation: $74,523,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-09-28
Current End Date: 2021-08-03
Potential End Date: 2021-08-03 12:08:00
Last Modified: 2024-02-09
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