Army awards $76.7M contract for OCONUS ISR aircraft pilot and flight operations support to IAP Worldwide Services

Contract Overview

Contract Amount: $76,732,946 ($76.7M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-07-31

End Date: 2019-10-10

Contract Duration: 801 days

Daily Burn Rate: $95.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF RTEP 1032_U.S. ARMY FIXED WING PROJECT OFFICE (FWPO), SEMA AIRCRAFT PRODUCT DIRECTORATE HAS A REQUIREMENT FOR CONTRACTUAL SERVICES TO BE PROVIDED IN THE AREA OF PILOT AND FLIGHT OPERATIONS SUPPORT FOR DEPLOYED GOVERNMENT OWNED ISR AIRCRAFT. THIS EFFORT REQUIRES THE MANAGEMENT AND DEPLOYMENT OF PILOTS AND FLIGHT OPERATIONS MANAGERS (FOMS) TO FULLY SUPPORT OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) CONTINGENCY OPERATIONS.

Plain-Language Summary

Department of Defense obligated $76.7 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF RTEP 1032_U.S. ARMY FIXED WING PROJECT OFFICE (FWPO), SEMA AIRCRAFT PRODUCT DIRECTORATE HAS A REQUIREMENT FOR CONTRACTUAL SERVICES TO BE PROVIDED IN THE AREA OF PILOT AND FLIGHT OPERATIONS SUPPORT FOR DEPLOYED GOVERNMENT OWNED ISR AIRCRAFT. THIS EFFORT REQUIRES THE M… Key points: 1. Contract provides critical flight operations support for intelligence, surveillance, and reconnaissance (ISR) aircraft in contingency operations. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 801 days indicates a significant, ongoing operational requirement. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure may introduce cost underrun/overrun risks. 5. The contract value of $76.7M positions it as a substantial investment in aviation support services. 6. Services are required for Outside the Continental United States (OCONUS) deployments, highlighting operational complexity and logistical demands.

Value Assessment

Rating: fair

The contract value of $76.7M for 801 days of support appears to be within a reasonable range for specialized OCONUS flight operations. Benchmarking against similar contracts for ISR aircraft support is challenging due to the specific nature of pilot and flight operations management in contingency environments. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, warrants scrutiny for potential cost escalations. Further analysis of the fixed fee relative to the total contract value would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The data shows 3 bids were received. A competitive process is generally expected to yield better pricing and service terms for the government by fostering price discovery among potential contractors. The level of competition, with three bidders, suggests a moderately competitive environment for this specialized service.

Taxpayer Impact: Taxpayers benefit from the government's effort to solicit bids from all responsible sources, which should drive down costs and ensure fair market pricing for essential flight operations support.

Public Impact

The primary beneficiaries are the U.S. Army and its operational units requiring ISR aircraft support in deployed environments. Services delivered include the management and deployment of pilots and flight operations managers. The geographic impact is focused on Outside the Continental United States (OCONUS) contingency operations. Workforce implications include the employment of specialized aviation personnel, including pilots and flight operations managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently.
OCONUS operations introduce logistical and security risks.
Reliance on a single contractor for critical flight operations support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract addresses a clear operational need for ISR aircraft support.
The contractor, IAP Worldwide Services, Inc., likely possesses relevant experience in providing global aviation support services.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support and personnel deployment for government operations. The market for such specialized services is often characterized by a limited number of highly qualified contractors capable of operating in demanding OCONUS environments. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of ISR flight operations management, but overall government spending on aviation support services is substantial.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses within the given information. Therefore, the direct impact on the small business ecosystem from this particular award appears minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, which requires detailed cost reporting and justification. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

ISR Aircraft Operations
Contingency Operations Support
Aviation Personnel Services
Global Logistics Support
Department of Defense Aviation Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
OCONUS operations introduce logistical and security risks.
Dependence on a single contractor for critical services.
Potential for performance issues in remote or austere environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.7 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF RTEP 1032_U.S. ARMY FIXED WING PROJECT OFFICE (FWPO), SEMA AIRCRAFT PRODUCT DIRECTORATE HAS A REQUIREMENT FOR CONTRACTUAL SERVICES TO BE PROVIDED IN THE AREA OF PILOT AND FLIGHT OPERATIONS SUPPORT FOR DEPLOYED GOVERNMENT OWNED ISR AIRCRAFT. THIS EFFORT REQUIRES THE MANAGEMENT AND DEPLOYMENT OF PILOTS AND FLIGHT OPERATIONS MANAGERS (FOMS) TO FULLY SUPPORT OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) CONTINGENCY OPERATIONS.

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $76.7 million.

What is the period of performance?

Start: 2017-07-31. End: 2019-10-10.

What is the track record of IAP Worldwide Services, Inc. in supporting similar government aviation contracts, particularly in OCONUS environments?

IAP Worldwide Services, Inc. has a significant history of providing aviation support, logistics, and base operations services to government agencies, including the Department of Defense, often in challenging OCONUS locations. Their experience typically includes managing complex logistical chains, providing skilled personnel such as pilots and maintenance crews, and operating in austere environments. While specific details on past ISR flight operations support contracts would require deeper research into their contract portfolio, their general profile suggests they are a capable provider for this type of requirement. Reviewing past performance evaluations and any documented issues on previous contracts would be crucial for a comprehensive assessment.

How does the pricing structure (Cost Plus Fixed Fee) compare to other methods for procuring similar flight operations support, and what are the inherent risks?

The Cost Plus Fixed Fee (CPFF) pricing structure is commonly used for complex services where the scope of work may evolve or is difficult to define precisely upfront, such as in contingency operations. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing their profit. Compared to fixed-price contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government if costs escalate beyond initial estimates. The government's oversight and auditing capabilities are critical to managing this risk and ensuring costs are reasonable and allocable. Other methods like Cost Plus Incentive Fee (CPIF) could offer better cost control if performance targets are met.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how is contractor performance monitored?

While specific KPIs are not detailed in the provided data, typical performance metrics for such a contract would likely include pilot availability and readiness rates, flight hour completion as scheduled, adherence to safety protocols, timely deployment of personnel, and overall mission support effectiveness for ISR operations. Contractor performance is generally monitored through regular progress reports, site visits by government representatives, and formal performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). The government contracting officer and contract specialists are responsible for overseeing contractor adherence to the contract terms and conditions, including performance standards.

What is the historical spending trend for pilot and flight operations support for ISR aircraft within the Department of the Army?

Historical spending on pilot and flight operations support for ISR aircraft within the Department of the Army is likely substantial and has seen fluctuations based on operational tempo, technological advancements in ISR platforms, and evolving mission requirements. While this specific contract represents a significant award, it is part of a larger, ongoing investment in maintaining ISR capabilities. Analyzing aggregated spending data across multiple fiscal years for similar service categories, particularly those related to aviation support and contractor-operated flight services, would reveal trends. Factors such as increased deployment tempo in recent decades and the growing reliance on unmanned ISR platforms (which still require ground control and operational support) have likely influenced spending patterns.

What are the potential risks associated with relying on a single contractor for critical OCONUS ISR flight operations support, and what mitigation strategies are in place?

Relying on a single contractor for critical OCONUS ISR flight operations support presents several risks, including potential performance degradation, contractor default, price gouging if competition is limited in future renewals, and supply chain vulnerabilities. Mitigation strategies typically involve robust contract oversight, clear performance standards, contingency planning for contractor failure (e.g., identifying alternative sources), and potentially incorporating incentive clauses in the contract to ensure sustained high performance. The government also maintains the right to terminate the contract for default or convenience, though this process can be disruptive.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,132,545

Exercised Options: $80,132,544

Current Obligation: $76,732,946

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,590,345

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DD416

IDV Type: IDC

Timeline