DoD's $22.5M contract for student support services at Royal Jordanian Air Academy shows limited competition

Contract Overview

Contract Amount: $22,544,253 ($22.5M)

Contractor: Royal Jordanian AIR Academy

Awarding Agency: Department of Defense

Start Date: 2014-08-13

End Date: 2015-08-08

Contract Duration: 360 days

Daily Burn Rate: $62.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF STUDENT SUPPORT - MEALS, LAUNDRY

Plain-Language Summary

Department of Defense obligated $22.5 million to ROYAL JORDANIAN AIR ACADEMY for work described as: IGF::OT::IGF STUDENT SUPPORT - MEALS, LAUNDRY Key points: 1. The contract value of $22.5M for student support services appears substantial for the specified duration. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. The absence of a small business set-aside suggests larger contractors or direct awards were prioritized. 4. Performance context is limited, with no clear metrics provided on the effectiveness of 'meals and laundry' services. 5. This contract falls within the 'Other Technical and Trade Schools' NAICS code, indicating a focus on specialized training support. 6. The firm-fixed-price contract type shifts risk to the contractor, but oversight is crucial to ensure service delivery. 7. The contract was awarded via a delivery order, implying it's part of a larger indefinite-delivery vehicle.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging without more detailed service descriptions and performance data. The $22.5M for a one-year period (August 2014 - August 2015) for student support services like meals and laundry at a foreign air academy seems high. Comparisons to similar domestic or international contracts for educational support services are difficult due to the unique location and specialized nature of the client. Without clear performance metrics or a competitive bidding process, it's hard to ascertain if the price reflects fair market value or represents a good use of funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' designation, indicating a sole-source or limited competition scenario. The specific justification for this limited competition is not provided in the data. Typically, such awards occur when only one source can fulfill the requirement due to unique capabilities, urgent need, or other specific circumstances. The lack of a competitive process means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive bidding, potentially resulting in higher costs for taxpayers. It also reduces transparency and opportunities for a wider range of vendors to compete for government contracts.

Public Impact

The primary beneficiaries are the students and staff of the Royal Jordanian Air Academy, who receive essential support services. Services delivered include meals and laundry, crucial for the daily operations and well-being of the academy's population. The geographic impact is concentrated in Jordan, supporting a key international military training partnership. Workforce implications are likely minimal for the US federal workforce, with the services likely provided by local or third-party contractors in Jordan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential for inflated costs.
Limited data on service delivery and performance makes it difficult to assess value for money.
The 'NOT AVAILABLE FOR COMPETITION' status requires further scrutiny to ensure it was fully justified.
The substantial dollar amount for a one-year contract warrants a detailed review of the scope and necessity.

Positive Signals

The firm-fixed-price contract type transfers some performance risk to the contractor.
Awarding a delivery order suggests this contract is part of a potentially larger, established framework.
Support services like meals and laundry are essential for the operational continuity of the air academy.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector, specifically supporting an international military aviation training facility. While not a direct IT or defense procurement, it supports defense-related training infrastructure. The market for such specialized support services, particularly in international contexts, can be limited. Comparable spending benchmarks are difficult to establish due to the unique nature of the client and location, but the $22.5M value for a single year suggests a significant operational scale or scope of services provided.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The 'NOT AVAILABLE FOR COMPETITION' status further suggests that small business participation was likely not a primary consideration or was precluded by the award method. This means opportunities for small businesses to subcontract or directly compete were likely missed, potentially limiting their access to federal contracting dollars in this instance.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a Department of Defense contract awarded to a foreign entity (Royal Jordanian Air Academy), oversight would likely involve the relevant Air Force contracting office and potentially the Department of State or other intergovernmental agreements. Accountability measures would depend on the specific terms within the delivery order and the overarching contract vehicle. Transparency is limited due to the sole-source nature and the lack of publicly available performance reports.

Related Government Programs

Department of Defense Foreign Military Sales
International Military Education and Training Programs
Defense Security Cooperation Agency Contracts
Global Training Support Services

Risk Flags

Limited Competition
Lack of Performance Metrics
Sole-Source Justification Unclear
High Contract Value for Support Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to ROYAL JORDANIAN AIR ACADEMY. IGF::OT::IGF STUDENT SUPPORT - MEALS, LAUNDRY

Who is the contractor on this award?

The obligated recipient is ROYAL JORDANIAN AIR ACADEMY.

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 $22.5 million.

What is the period of performance?

Start: 2014-08-13. End: 2015-08-08.

What specific services are included under 'meals and laundry' and what are the performance standards?

The provided data is limited and does not specify the exact services included under 'meals and laundry' beyond their general description, nor does it detail the performance standards or metrics. Typically, 'meals' would encompass food provision, potentially including menu planning, preparation, and service, while 'laundry' would involve cleaning and maintenance of uniforms or linens. Without a detailed statement of work or performance work statement, it is impossible to assess the quality or quantity of services delivered. This lack of specificity makes it difficult to evaluate the contract's effectiveness or compare its value to industry benchmarks. Further investigation into the contract's documentation would be required to obtain these details.

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

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source or limited competition scenario. The specific justification for this designation is not provided. Common reasons for sole-source awards include the existence of only one responsible source capable of providing the required services, urgent and compelling circumstances that preclude full and open competition, or specific international agreements that dictate the awardee. Without access to the Justification and Approval (J&A) document typically associated with such awards, the precise rationale remains unknown. This lack of transparency is a concern for ensuring fair and competitive procurement practices.

How does the $22.5M contract value compare to similar international student support contracts?

Direct comparison of the $22.5 million contract value for student support services (meals, laundry) at the Royal Jordanian Air Academy to similar international contracts is challenging due to several factors. Firstly, the data lacks specific details on the number of students or personnel served, the scope and quality of services, and the contract duration beyond the August 2014-August 2015 timeframe. Secondly, international military training support contracts are often unique, influenced by geopolitical considerations, local economic conditions, and specific partnership agreements. The 'NOT AVAILABLE FOR COMPETITION' status also suggests that market-driven pricing, a key factor in comparisons, was not fully utilized. Therefore, without more granular data and context on comparable agreements, assessing the value-for-money aspect is speculative.

What is the track record of the Royal Jordanian Air Academy as a government contractor?

The provided data identifies the Royal Jordanian Air Academy (CO: ROYAL JORDANIAN AIR ACADEMY) as the contractor. As an educational institution and likely a foreign government entity, its track record as a direct federal contractor in the U.S. is not readily available through standard federal procurement databases like FPDS. It is probable that this contract was established through specific intergovernmental agreements or foreign military sales mechanisms rather than a typical competitive bidding process. Therefore, assessing its 'track record' in the conventional sense of performance on U.S. federal contracts is difficult. Its primary role is likely as a recipient of training and support, not as a typical service provider to the U.S. government.

What are the potential risks associated with a sole-source award for essential support services?

Sole-source awards for essential support services like meals and laundry carry several risks. Primarily, the lack of competition can lead to inflated pricing, as the contractor faces no pressure to offer competitive rates. This can result in a poor value for taxpayer money. Secondly, without competitive benchmarking, it's harder to ensure the services meet required quality standards. The government may overpay for subpar services. Thirdly, sole-source awards can stifle innovation and efficiency, as there's less incentive for the contractor to improve processes or offer cost-saving solutions. Finally, it raises transparency concerns, making it difficult for oversight bodies and the public to verify that the contract was awarded appropriately and is being executed effectively.

What is the significance of the NAICS code 611519 (Other Technical and Trade Schools) in this context?

The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' categorizes the primary business activity of the contractor or the nature of the service being procured. In this case, it signifies that the contract is supporting an entity that provides specialized technical or vocational training. The Royal Jordanian Air Academy, focused on aviation, fits this classification. This code helps in understanding the sector the contract operates within and allows for potential comparisons with other government spending on similar training institutions or support services, although the international and military context adds complexity to direct benchmarking.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA300212R0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: MARKA AIRPORT, AMMAN

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,544,253

Exercised Options: $22,544,253

Current Obligation: $22,544,253

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300212D0006

IDV Type: IDC

Timeline