Department of Defense contract for air transportation support awarded to AL RAHA GROUP FOR TECHNICAL SERVICES for over $20.6 million

Contract Overview

Contract Amount: $20,611,696 ($20.6M)

Contractor: AL Raha Group for Technical S Ervices

Awarding Agency: Department of Defense

Start Date: 2013-07-30

End Date: 2017-07-29

Contract Duration: 1,460 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF UCA TAS: 97 8242 000

Plain-Language Summary

Department of Defense obligated $20.6 million to AL RAHA GROUP FOR TECHNICAL S ERVICES for work described as: IGF::CT::IGF UCA TAS: 97 8242 000 Key points: 1. Contract value exceeds $20.6 million, indicating a significant investment in air transportation support services. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. The duration of the contract (1460 days) suggests a long-term need for these services. 4. The firm fixed-price contract type provides cost certainty for the government. 5. The specific nature of 'Other Support Activities for Air Transportation' warrants further detail to assess performance. 6. The awarding agency is the Defense Contract Management Agency, part of the Department of Defense.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable market rates. The absence of competition makes it difficult to assess if the $20.6 million represents a fair price. However, for a multi-year contract of this scale, the pricing structure would typically be scrutinized to ensure it aligns with industry standards and the scope of work. Without competitive bids, there's a risk of overpayment if not rigorously managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Taxpayers may not have received the best value due to the absence of competitive bidding, potentially leading to higher costs than if multiple offers had been considered.

Public Impact

The primary beneficiaries are likely military operations and personnel requiring air transportation support. Services delivered include 'Other Support Activities for Air Transportation,' which could encompass a range of logistical, maintenance, or operational assistance. The geographic impact is not specified but is likely tied to military bases or operational areas requiring air support. Workforce implications could include direct employment by the contractor and indirect support to military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in due to the absence of competitive alternatives.
Difficulty in assessing true market value without comparative bids.

Positive Signals

Firm fixed-price contract provides budget predictability.
Contract awarded by a specialized agency (DCMA) suggests oversight.
Long-term duration indicates a sustained need and potential for stable service delivery.

Sector Analysis

The 'Other Support Activities for Air Transportation' sector is a niche within the broader aerospace and defense industry. This contract likely supports critical logistical functions for military aviation. Comparable spending benchmarks are difficult to establish without knowing the precise services, but contracts in this domain can range from millions to billions depending on scale and complexity. The market often involves specialized firms with specific certifications and security clearances.

Small Business Impact

There is no indication that this contract included small business set-asides or subcontracting requirements. The sole-source nature of the award further suggests that opportunities for small businesses to participate as prime contractors were not pursued. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are typically embedded within the contract terms and conditions, including performance standards and payment schedules. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key to assessing overall oversight effectiveness.

Related Government Programs

Defense Logistics Agency contracts
Air Mobility Command support services
Department of Defense aviation maintenance contracts
Federal Aviation Administration (FAA) related services (if applicable)
Military Sealift Command contracts (for logistical parallels)

Risk Flags

Sole-source award raises concerns about competition and value.
Lack of detailed service description hinders performance assessment.
Contractor's past performance data is not available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to AL RAHA GROUP FOR TECHNICAL S ERVICES. IGF::CT::IGF UCA TAS: 97 8242 000

Who is the contractor on this award?

The obligated recipient is AL RAHA GROUP FOR TECHNICAL S ERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2013-07-30. End: 2017-07-29.

What specific services are included under 'Other Support Activities for Air Transportation' for this contract?

The provided data only specifies the broad category 'Other Support Activities for Air Transportation' (NAICS code 488190). This typically encompasses a range of services related to air transportation infrastructure and operations, but not direct flight operations. Examples could include airport management, air traffic control support, aircraft maintenance and repair services (excluding major overhauling), ground support equipment maintenance, cargo handling, and other logistical support functions at airfields. Without the detailed contract statement of work (SOW), the precise nature and scope of services remain undefined, making it difficult to fully assess performance and value.

What was the justification for awarding this contract on a sole-source basis?

The data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not provided in the abbreviated data. Common reasons for sole-source awards include the existence of only one responsible source, urgent and compelling needs where competition is impractical, or specific national security requirements. A thorough review of the contract file and associated documentation would be necessary to understand the official justification provided by the Department of Defense and the Defense Contract Management Agency.

How does the contract value of over $20.6 million compare to similar contracts for air transportation support?

Direct comparison of the $20.6 million contract value is difficult without knowing the precise services rendered and the geographic location. However, contracts for air transportation support within the Department of Defense can vary significantly. For example, large-scale base operations support contracts, which may include airside services, can run into hundreds of millions of dollars annually. Smaller, specialized contracts for specific maintenance or logistical support might be in the low millions. Given this contract's duration (four years) and its sole-source nature, it represents a substantial commitment. Further analysis would require benchmarking against contracts with similar scopes of work and durations, ideally those awarded competitively.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for reduced value for money. Without competition, the government may pay higher prices than if multiple vendors had bid. There's also a risk of complacency from the contractor, as there is no immediate competitive pressure to innovate or improve service quality. Furthermore, the lack of transparency in the procurement process can raise concerns about fairness and efficiency. Ensuring robust oversight, clear performance metrics, and fair pricing negotiations becomes even more critical in sole-source situations to mitigate these risks.

What is the track record of AL RAHA GROUP FOR TECHNICAL SERVICES with the federal government?

The provided data identifies AL RAHA GROUP FOR TECHNICAL SERVICES as the contractor but does not include information on their past performance or track record with the federal government. To assess their reliability and experience, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Without this information, it's impossible to gauge their past success or potential challenges in fulfilling this contract.

What are the historical spending patterns for 'Other Support Activities for Air Transportation' by the Department of Defense?

Historical spending patterns for 'Other Support Activities for Air Transportation' by the Department of Defense are not detailed in the provided data. To analyze this, one would typically examine federal procurement data over several fiscal years, filtering by the relevant NAICS code (488190) and the Department of Defense as the awarding agency. This analysis would reveal trends in contract values, the number of contracts awarded, the prevalence of competitive versus sole-source awards, and the primary contractors receiving these funds. Such a review could help contextualize the $20.6 million award and identify any significant shifts in spending within this category.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BUILDING 40 PRINCE FAWWAZ BIN, RIYADH

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $24,296,895

Exercised Options: $24,296,895

Current Obligation: $20,611,696

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA850513D0003

IDV Type: IDC

Timeline