BIG SAFARI Logistics Support contract awarded to SRC INC for $17.7M, a sole-source procurement

Contract Overview

Contract Amount: $17,730,737 ($17.7M)

Contractor: SRC Inc

Awarding Agency: Department of Defense

Start Date: 2008-06-20

End Date: 2009-09-30

Contract Duration: 467 days

Daily Burn Rate: $38.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BIG SAFARI LOGISTICS SUPPORT

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to SRC INC for work described as: BIG SAFARI LOGISTICS SUPPORT Key points: 1. The contract's value of $17.7 million for logistics support warrants scrutiny, especially given its sole-source nature. 2. Competition dynamics are absent, as this was a sole-source award, potentially impacting price discovery and value for money. 3. Risk indicators include the lack of competition and the Cost Plus Fixed Fee (CPFF) contract type, which can incentivize cost overruns. 4. Performance context is limited without specific metrics, but the duration of over a year suggests ongoing operational needs. 5. The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, indicating specialized support. 6. The award to SRC INC for logistics support highlights a reliance on specific contractors for critical defense systems.

Value Assessment

Rating: questionable

Benchmarking the value of this $17.7 million contract is challenging due to the lack of competitive bids and detailed performance data. The Cost Plus Fixed Fee (CPFF) structure, while common for complex or uncertain scope work, carries inherent risks of cost escalation. Without comparable sole-source awards or detailed cost breakdowns, it's difficult to definitively assess if the pricing represents fair value for the logistics support provided to the Air Force's BIG SAFARI program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition among multiple vendors. The justification for sole-source procurement is not provided in the data, but it typically implies that only one responsible source was available or that the urgency of the requirement precluded full and open competition. The absence of bidders means there was no price negotiation driven by market forces.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Sole-source awards limit the government's ability to secure the best possible price through market competition.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially the personnel operating the systems supported by this contract. The services delivered are critical logistics support for the BIG SAFARI program, ensuring operational readiness. The geographic impact is primarily within New York (ST: NY), where the contractor is located. Workforce implications include employment opportunities at SRC INC and potentially within the Air Force units relying on this support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially value for money.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
Lack of transparency regarding the justification for sole-source procurement.
Limited public data on performance metrics makes assessing effectiveness difficult.
Contract duration of over a year suggests ongoing, potentially critical, support needs.

Positive Signals

Contract awarded to a specific entity (SRC INC) suggests specialized capabilities.
Logistics support is crucial for maintaining operational readiness of defense systems.
The contract duration indicates a sustained need and potential for long-term partnership.
Awarded by the Department of the Air Force, indicating alignment with strategic defense priorities.

Sector Analysis

This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry (NAICS 334511). This sector is characterized by high-technology manufacturing and specialized systems crucial for defense and aerospace applications. The market often involves complex supply chains and requires significant research and development. Comparable spending benchmarks are difficult to establish without more specific details on the systems supported, but defense logistics and sustainment contracts can range from millions to billions of dollars depending on the scope and criticality.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award and the specific industry suggest it may have been awarded to a large, specialized contractor. Further analysis would be needed to determine if SRC INC has a history of subcontracting with small businesses for this type of work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined within the Cost Plus Fixed Fee contract terms, focusing on cost control and delivery of logistics support. Transparency is limited due to the sole-source nature and the typical classification of defense logistics contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

BIG SAFARI Program
Air Force Logistics Command
Defense Contract Management Agency
Aeronautical and Nautical System Manufacturing

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding
Potential for cost overruns
Limited transparency on program details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to SRC INC. BIG SAFARI LOGISTICS SUPPORT

Who is the contractor on this award?

The obligated recipient is SRC INC.

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 $17.7 million.

What is the period of performance?

Start: 2008-06-20. End: 2009-09-30.

What is the specific nature of the 'BIG SAFARI' program and the logistics support required?

The 'BIG SAFARI' program is a classified initiative within the U.S. Air Force focused on acquiring and supporting special operations forces (SOF) aircraft and related intelligence, surveillance, and reconnaissance (ISR) capabilities. Logistics support for such programs is critical and encompasses a wide range of activities, including maintenance, repair, spare parts management, technical data provision, and operational readiness support for specialized aircraft and systems. Given the sensitive nature of SOF and ISR assets, the logistics requirements are often highly specialized, demanding specific expertise, secure supply chains, and rapid response capabilities to ensure mission effectiveness and personnel safety.

What is the justification for awarding this contract as sole-source to SRC INC?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. While the specific justification is not detailed, common reasons for sole-source procurements in defense include: unique technical capabilities possessed by only one contractor, urgent and compelling requirements where competition is not feasible, or follow-on work to a system where only the original developer/integrator can provide necessary support due to proprietary knowledge or integration complexities. For the BIG SAFARI program, SRC INC may possess unique expertise or proprietary data related to the specific aircraft or systems requiring logistics support, making them the only viable option.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the cost and risk for this logistics support?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor (SRC INC) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is subject to change, as is common in complex logistics and sustainment. While it allows for flexibility, it shifts much of the cost risk to the government. The contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fee) is fixed regardless of the final cost. Effective government oversight is crucial to manage allowable costs and ensure the fixed fee remains fair for the services rendered.

What is SRC INC's track record with similar defense logistics contracts, particularly for specialized aircraft or ISR systems?

Information regarding SRC INC's specific track record with similar defense logistics contracts, especially for specialized aircraft or ISR systems, is not detailed in the provided data. However, SRC INC is known for its work in defense electronics, sensors, and related technologies. Their involvement in logistics support for the BIG SAFARI program suggests they have the necessary technical expertise and security clearances to handle sensitive defense systems. A deeper dive into their contract history, past performance evaluations, and specific capabilities related to aircraft sustainment would be necessary for a comprehensive assessment of their track record in this niche.

How does the $17.7 million contract value compare to historical spending on the BIG SAFARI program or similar logistics efforts?

The $17.7 million contract value represents a significant investment in logistics support for the BIG SAFARI program. However, without access to the program's overall budget, historical spending patterns, or data on other similar logistics contracts for specialized aircraft or ISR systems, it is difficult to provide a direct comparison. The BIG SAFARI program itself is classified, limiting public data on its total cost. This $17.7 million award should be viewed in the context of the program's overall lifecycle costs, which can include acquisition, sustainment, and modernization, and may represent a portion of the total sustainment budget for a specific period.

What are the potential risks associated with the duration of this contract (467 days) and its completion date?

The contract duration of 467 days (approximately 15.5 months) from the start date (June 20, 2008) to the end date (September 30, 2009) suggests a medium-term commitment for logistics support. Potential risks associated with this duration include: scope creep if requirements evolve significantly during the contract period, potential for cost increases if market prices for parts or labor fluctuate, and the need for continuous government oversight to ensure performance standards are met. Given the CPFF structure, extended durations can amplify the risk of cost overruns if not managed diligently. However, a defined duration also provides a clear timeframe for planning and resource allocation for both the contractor and the government.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6225 RUNNING RIDGE RD, NORTH SYRACUSE, NY, 22

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,730,737

Exercised Options: $17,730,737

Current Obligation: $17,730,737

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862007G3021

IDV Type: IDC

Timeline