Department of Defense Issues $854.6 Million "Contract"

The Department of Defense announced a sizable $170.9 million contract Wednesday, with a total of 30 contractors receiving pieces of the work, and the potential for multiple "option" extensions that could ultimately increase its value to $854.6 million.

The contract, for "non-inherently governmental logistics support services," is classified as an indefinite-delivery/indefinite-quantity, performance-based multiple award contract with provisions for firm-fixed-price, time and material, labor hour, cost-plus- fixed-fee task orders. The contract in question is set to run initially through May 2014, although it may be extended as far out as through May 2018 -- or until the mentioned ultimate ceiling value is reached.

As already mentioned, 30 contractors are named as recipients, from well-known contractor names such as Booz Allen Hamilton (NYSE: BAH  ) , General Dynamics (NYSE: GD  ) , Honeywell (NYSE: HON  ) , Lockheed Martin (NYSE: LMT  ) , and Raytheon (NYSE: RTN  ) , all the way down to small businesses with names like PrimeTech International, Metrostar Systems, and Tatitlek Training Services. It is divided into three groupings, with some of the work reserved for section 8(a) Small Businesses and other work only for Reserved Small Business. But the majority of the work is considered "unrestricted," and up for bidding by 19 of the 30 firms named.

All work under the contract will benefit the U.S. Marine Corps and will be performed under the Marine Corps Logistics Support Services Contracts Program.


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