Department of the Army's $14.4M contract for air transportation services awarded to Syndetix Inc

Contract Overview

Contract Amount: $14,422,188 ($14.4M)

Contractor: Syndetix Inc

Awarding Agency: Department of Defense

Start Date: 2006-07-31

End Date: 2010-05-31

Contract Duration: 1,400 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: AIRFRAMES

Place of Performance

Location: KEY WEST, MONROE County, FLORIDA, 33040

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to SYNDETIX INC for work described as: AIRFRAMES Key points: 1. Contract awarded for nonscheduled chartered freight air transportation. 2. Significant duration of 1400 days indicates a long-term need for these services. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type 'COST NO FEE' implies the government bears the cost risk. 5. Geographic scope appears to be Florida, based on the 'ST' and 'SN' fields. 6. The 'AW' field 'DO' might indicate a specific type of delivery order or award action.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and the market rates for nonscheduled chartered freight air transportation in Florida during the contract period (2006-2010). The 'COST NO FEE' contract type suggests that the contractor is reimbursed for allowable costs, which can sometimes lead to less price certainty compared to fixed-price contracts. Without comparable contract data or a clear understanding of the scope and volume of services, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The presence of full and open competition generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the required air transportation services.

Public Impact

The primary beneficiaries are likely military units or government agencies requiring rapid and flexible air freight capabilities. Services delivered include nonscheduled chartered freight air transportation, essential for logistical support. The geographic impact is centered in Florida, suggesting operations or deployments originating from or within the state. Workforce implications could include pilots, ground crew, and logistical support personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type shifts cost risk to the government, potentially leading to higher overall expenditures if not managed carefully.
Lack of specific performance metrics or delivery details makes it hard to assess the efficiency and effectiveness of the air transportation provided.
The long contract duration (1400 days) without clear break clauses could lock the government into a potentially suboptimal arrangement if market conditions or needs change.

Positive Signals

Awarded through full and open competition, which typically fosters competitive pricing and wider vendor participation.
The contract addresses a critical need for flexible air freight, supporting operational readiness.
The contractor, Syndetix Inc., was selected through a formal procurement process, implying they met the required qualifications.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on air cargo services. The market for nonscheduled chartered air freight is dynamic, influenced by factors such as fuel prices, aircraft availability, and demand for rapid deployment. Government contracts in this space often support military operations, disaster relief, or specialized cargo transport. Comparable spending benchmarks would typically involve analyzing other government contracts for similar air charter services, considering factors like aircraft type, route, and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('sb': false). There is no explicit information regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal unless Syndetix Inc. utilizes small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract clauses, focusing on delivery of services and adherence to terms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Air Cargo Operations
Logistics and Transportation Services
Chartered Flight Services
Department of Defense Procurement

Risk Flags

Cost Reimbursement Risk
Lack of Specific Performance Metrics
Limited Detail on Service Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to SYNDETIX INC. AIRFRAMES

Who is the contractor on this award?

The obligated recipient is SYNDETIX 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 $14.4 million.

What is the period of performance?

Start: 2006-07-31. End: 2010-05-31.

What was the specific nature and volume of 'nonscheduled chartered freight air transportation' provided under this contract?

The provided data specifies the contract type as 'Nonscheduled Chartered Freight Air Transportation' (ND: 481212) but lacks granular detail on the specific types of freight, the volume transported (e.g., weight, cubic feet), the frequency of flights, or the specific routes serviced. This information is crucial for a comprehensive understanding of the contract's operational scope and for accurately benchmarking its value. Without these details, it's difficult to assess if the $14.4 million expenditure was commensurate with the services rendered.

How did Syndetix Inc.'s pricing compare to other bidders during the full and open competition?

While the contract was awarded under 'FULL AND OPEN COMPETITION' (CT: FULL AND OPEN COMPETITION), the specific pricing details of Syndetix Inc. relative to other bidders are not provided in the summary data. Full and open competition suggests that multiple proposals were likely received and evaluated. To assess value for money, a comparison of the proposed costs, including the government's estimate and the winning bid, would be necessary. The 'COST NO FEE' (PT: COST NO FEE) award type further complicates direct price comparison, as it focuses on reimbursement of allowable costs rather than a fixed price.

What were the key performance indicators (KPIs) and how did Syndetix Inc. perform against them?

The available data does not specify the key performance indicators (KPIs) established for this contract or provide details on Syndetix Inc.'s performance against them. For a 'COST NO FEE' contract, performance monitoring is critical to ensure efficient use of government funds and timely delivery of services. Without insight into KPIs related to on-time delivery, cargo integrity, flight safety, or cost control, it is impossible to evaluate the contractor's effectiveness or the overall success of the contract in meeting the Department of the Army's needs.

What is the significance of the 'AW: DO' designation and its impact on contract execution?

The 'AW: DO' designation likely refers to a 'Delivery Order' or a similar type of award action within a larger contract vehicle or framework. In the context of federal procurement, a Delivery Order typically specifies the quantity and delivery details for supplies or services under an existing contract. If this $14.4 million represents a single large delivery order or the sum of multiple orders under a base contract, it implies a structured approach to tasking the contractor. The specific implications depend on the underlying contract structure, but it generally signifies a formal request for specific goods or services to be provided.

What is the historical spending pattern for nonscheduled chartered freight air transportation by the Department of the Army?

The provided data pertains to a single contract awarded in 2006. To understand historical spending patterns for nonscheduled chartered freight air transportation by the Department of the Army, a broader analysis of contract awards over multiple fiscal years would be required. This would involve examining trends in contract values, the number of awards, the primary contractors, and the types of services procured. Such an analysis could reveal whether this $14.4 million contract was typical, unusually large, or part of a consistent spending strategy for this service category.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 2820 N TELSHOR BOULEVARD, LAS CRUCES, NM, 02

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,406,714

Exercised Options: $15,406,714

Current Obligation: $14,422,188

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126005D0001

IDV Type: IDC

Timeline