DoD's $20.8M contract for electronic equipment repair awarded to Goldbelt Falcon LLC shows fair value

Contract Overview

Contract Amount: $20,864,253 ($20.9M)

Contractor: Goldbelt Falcon LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-01

End Date: 2019-09-30

Contract Duration: 1,855 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to GOLDBELT FALCON LLC for work described as: IGF::OT::IGF Key points: 1. Contract value of $20.8M over 5 years suggests a steady demand for specialized repair services. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract's duration of 1855 days (approx. 5 years) provides stability for the contractor and consistent service for the agency. 4. Fixed-price contract type likely incentivizes cost control by the contractor. 5. The specific NAICS code (811219) points to a niche market for electronic equipment repair. 6. The contract was awarded to a single entity, Goldbelt Falcon LLC, suggesting specialized capabilities.

Value Assessment

Rating: good

The contract's total value of $20.8 million over approximately five years averages to about $4.16 million annually. Benchmarking this against similar contracts for electronic equipment repair and maintenance services within the Department of Defense would be necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. The number of bids received (2) is on the lower side for a full and open competition, which might warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that proposals were solicited from all eligible responsible sources, but certain sources were excluded from consideration. While it started as full and open, the exclusion of sources suggests a specific reason for limiting the pool. Only two bids were received, which is a relatively low number for a contract of this value and duration. This limited competition could potentially impact price discovery and may indicate fewer options available to the agency.

Taxpayer Impact: The limited number of bidders (2) in this 'full and open' competition may have resulted in less aggressive pricing than if more vendors had participated. Taxpayers may not have received the most competitive pricing possible due to the restricted bidder pool.

Public Impact

The Department of the Air Force benefits from the continued maintenance and repair of critical electronic and precision equipment, ensuring operational readiness. Services delivered likely include diagnostics, repair, and calibration of various electronic systems essential for military operations. The contract's performance location in Alaska (AK) suggests a focus on supporting military installations or operations within that specific geographic region. The contract supports specialized technical roles within the defense sector, potentially creating or sustaining jobs for skilled technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids (2) in a full and open competition could indicate potential issues with market reach or contractor interest.
The 'after exclusion of sources' clause requires scrutiny to ensure fair competition was not unduly limited.
Lack of specific performance metrics or outcome data makes it difficult to assess the true effectiveness and value delivered.

Positive Signals

Fixed-price contract type aligns incentives for cost efficiency.
Long-term contract duration (approx. 5 years) provides service continuity.
Awarded to a single entity suggests specialized capability meeting specific agency needs.

Sector Analysis

The electronic and precision equipment repair and maintenance sector is a critical component of the defense industrial base, ensuring the operational readiness of military assets. This contract falls under the broader category of specialized technical services. The market size for such services is substantial, driven by the continuous need to maintain complex and often aging electronic systems. Comparable spending benchmarks would typically involve analyzing other contracts for similar repair services across different branches of the military or other government agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (SS is false, SB is false). Therefore, there are no direct subcontracting requirements mandated for small businesses as part of this award. The impact on the small business ecosystem is minimal unless Goldbelt Falcon LLC voluntarily engages small businesses for support services not covered by the primary contract scope.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance, Repair, and Overhaul (MRO) Services
Air Force Sustainment Center Contracts
Department of Defense IT and Electronic Equipment Maintenance
Government Electronic Component Repair Contracts

Risk Flags

Limited Competition
Potential for Price Inflation due to Limited Bidders
Need for Detailed Performance Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to GOLDBELT FALCON LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is GOLDBELT FALCON LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2014-09-01. End: 2019-09-30.

What is the track record of Goldbelt Falcon LLC in performing similar electronic repair and maintenance contracts for the Department of Defense?

Assessing the track record of Goldbelt Falcon LLC 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 issues or successes. Without specific data on their past performance, it's difficult to definitively state their reliability. However, being awarded a multi-year, multi-million dollar contract by the Department of the Air Force suggests they likely possess the necessary qualifications and have demonstrated satisfactory performance on prior engagements. Further investigation into their CPARS ratings and any debriefings from previous competitions would provide a more comprehensive understanding of their capabilities and reliability.

How does the average annual value of this contract compare to similar electronic repair contracts awarded by the DoD?

This contract has an average annual value of approximately $4.16 million ($20.8M / 5 years). To benchmark this effectively, one would need to compare it against a dataset of similar contracts for electronic and precision equipment repair and maintenance services awarded by the Department of Defense or other federal agencies. Key comparison points would include the specific types of equipment serviced, the scope of work (e.g., depot-level vs. field-level repair), contract duration, and the number of bidders. If comparable contracts typically range from $2 million to $6 million annually for similar services, then this contract's value would be considered within a reasonable range. A lower average annual value for comparable contracts might suggest this one is priced higher, while a higher average might indicate this one represents good value.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns (mitigated by the firm fixed-price structure, shifting risk to the contractor), contractor performance deficiencies (mitigated by contract oversight, COR monitoring, and performance evaluations), and potential supply chain disruptions for parts (mitigated by contractor's own risk management and potentially agency-level supply chain security measures). Another risk is the limited competition (2 bidders), which could impact long-term pricing and innovation. Mitigation here is less direct but involves ensuring robust contract management and potentially encouraging broader participation in future solicitations. The specific nature of the electronic equipment being repaired also presents a risk if technology rapidly evolves, rendering repair capabilities obsolete, which would require proactive contract modifications or new solicitations.

What is the historical spending pattern for electronic equipment repair and maintenance within the Department of the Air Force?

Historical spending patterns for electronic equipment repair and maintenance within the Department of the Air Force are likely substantial and consistent, given the critical role of such equipment in military operations. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract values, types of services procured, and the primary contractors involved. Spending in this category typically fluctuates based on modernization programs, equipment lifecycles, and operational tempo. The Air Force relies heavily on advanced electronics for aviation, communications, intelligence, and command and control systems, necessitating significant and ongoing investment in their upkeep. This $20.8M contract represents a portion of that overall historical expenditure.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the fairness of the competition?

This designation implies that while the initial solicitation was intended for all eligible sources, specific entities were subsequently excluded from the competition. The reasons for exclusion must be justifiable and documented, often related to security requirements, specific technical capabilities, or prior performance issues. The fairness hinges on whether these exclusions were legitimate and non-discriminatory. If the exclusions were based on valid criteria directly related to the government's needs, then the competition, though limited, could still be considered fair. However, if the exclusions were arbitrary or created an undue advantage for the remaining bidders, it could raise concerns about fairness and potentially limit price discovery, as seen with only two bids being submitted.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA489013R0111

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Goldbelt, Incorporated (UEI: 096763800)

Address: 860 GREENBRIER CIR STE 410, CHESAPEAKE, VA, 23320

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,864,263

Exercised Options: $20,864,263

Current Obligation: $20,864,253

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA489014D0002

IDV Type: IDC

Timeline