Original Date: 06/23/1997
Revision Date: 01/18/2007

Letterkenny Army Depot’s (LEAD’s) Directorate of Public Works (DPW) implemented a Multi-Trades Contract with a single local vendor to assist the Depot in performing recurring and routine maintenance and public works operations. The concept was initiated to enable the DPW to be more competitive with the outside labor market and better meet customer needs in terms of quick response, cost, quality, and timeliness for the completion of work.

In the early 1990s, LEAD recognized that national Base Realignment and Closure (BRAC) initiatives would result in manpower reductions and consolidation of core functions throughout the Army industrial community. Within this framework, the DPW began developing a regional public works concept. This strategy included realignment of the Directorate to function as a businesslike organization and expand its workload to include performing work for others in the public sector and for private contractors on the installation. The objective was to enable the DPW to competitively sell its services to tenant activities located at LEAD and to outside customers within a 150-mile radius of the Depot.

This approach is consistent with government initiatives to refocus on core mission competencies and service requirements to provide more business-like and better managed government operations. Office of Management and Budget Circular No. A-76, “Performance of Commercial Activities,” establishes Federal policy for the performance of recurring commercial activities. This policy has been refined in recent years to include guidance and procedures to determine whether recurring commercial activities should be operated under contract with commercial sources, maintained in-house using government facilities and personnel, or operated through inter-service support agreements. Efforts to “reinvent” the way government does business have encouraged options such as privatization, make or buy decisions, adoption of better business management practices, and joint ventures with the private sector.

To implement this approach, LEAD applied for and received authorization to operate as a business-like organization and was given a provisional unit identification code. The Multi-Trades Contract was primarily established to enable the DPW to meet customer requirements at LEAD while expanding its public and private sector workload without hiring additional personnel.

The Multi-Trades Contract is a firm fixed price indefinite quantity service contract awarded to a local vendor (sole source). LEAD uses the contract primarily for cyclic work such as roofing and heating, ventilation, and air conditioning maintenance, and for service orders and small work requests less than $2 thousand in value. Service orders typically involve construction, alteration, or repair (including painting and decorating) of buildings. By using the contractor for small recurring jobs, the Depot reduced the cost of performing this work and allowed the limited DPW workforce to focus on long-term projects and work for other customers.

The categories of trade personnel covered by the Multi-Trades Contracts include (note that * denotes most frequently used; labor is priced on an hourly basis by trade): Laborer, Grounds Maintenance; Pipefitter; Carpenter*; Plumber*; Carpet Layer; Sheet Metal Worker*; Electrician*; Welder; General Maintenance Worker; Woodcraft; Locksmith; Fire Alarm Mechanic; Maintenance Trades Helper; Fire Extinguisher Repair; Mason; Millwright; and Heating, Ventilation and Air Conditioning Mechanic*.

Under the contract, the contractor’s required response times for specified work priorities are: Emergency: four hours; Urgent: two days; and Routine: 20 days.

The contractor must decide to reject individual job orders or service orders for emergencies within 30 minutes and all others within 24 hours. Working hours are 6:00 a.m. to 10:00 p.m. The contractor may perform work within a 150-mile radius of LEAD. Service orders are small jobs less than 40 hours, limited to $2 thousand in value. Individual job orders are jobs of 40 to 10,000 hours, limited to $1 million in value. The Multi-Trades Contract has been used mostly for service orders and provides guaranteed annual minimum levels. Table 2-1 shows how the Contract has been applied to date.

The Multi-Trades Contract has been a very effective mechanism, helping LEAD maintain competitive rates and be responsive to customer requirements. The Contract helped retain existing customers and permitted taking on new public and private sector customers in the region. This strategy is a key part of the Depot’s efforts to meet the changes created by government facilities’ restructuring while addressing the competitive challenges of the future.

For more information see the Point of Contact for this survey.