State Department awards $355.7M contract for Afghan relocation logistical services, with no competition

Contract Overview

Contract Amount: $355,667,286 ($355.7M)

Contractor: Advanced C4 Solutions Inc

Awarding Agency: Department of State

Start Date: 2022-01-30

End Date: 2025-01-28

Contract Duration: 1,094 days

Daily Burn Rate: $325.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COORDINATOR FOR AFGHAN RELOCATION EFFORTS LOGISTICAL SERVICES

Plain-Language Summary

Department of State obligated $355.7 million to ADVANCED C4 SOLUTIONS INC for work described as: COORDINATOR FOR AFGHAN RELOCATION EFFORTS LOGISTICAL SERVICES Key points: 1. Significant contract value for logistical support services. 2. Sole-source award raises questions about price discovery and potential overpayment. 3. Contract duration of nearly three years suggests ongoing need for services. 4. Firm Fixed Price contract type aims to control costs, but lacks competitive pressure. 5. No small business set-aside indicates large prime contractor is expected to perform. 6. High dollar value for air transportation services warrants scrutiny of unit costs.

Value Assessment

Rating: questionable

The contract's value of $355.7 million for logistical services, specifically nonscheduled chartered passenger air transportation, is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed-price structure is a positive, but the lack of competition means the government may not have secured the best possible pricing. Further analysis of the per-unit costs for air transport compared to market rates or similar government contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the requirement, or in cases of urgent need. The lack of competition limits the government's ability to explore a wider range of solutions and potentially achieve lower prices through a bidding process. It also raises concerns about whether the government adequately explored all available sources.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing the requirement, the government cannot be assured it received the most cost-effective solution available in the market.

Public Impact

Provides essential logistical support for Afghan relocation efforts. Facilitates the movement of individuals, likely refugees or evacuees, to new locations. Services are critical for the success of U.S. government operations related to Afghan resettlement. Impacts the workforce involved in providing air charter and logistical services. Geographic impact is likely international, supporting relocation from Afghanistan or transit points.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award lacks transparency and competitive pricing.
High contract value without competition increases risk of overpayment.
Potential for contractor to leverage sole-source position for favorable terms.
Limited insight into the specific services and unit costs without competitive data.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Contract duration of nearly three years suggests a stable, ongoing requirement.
Focus on logistical services for Afghan relocation addresses a critical humanitarian and national security need.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on air charter services. The market for nonscheduled chartered passenger air transportation can be dynamic, influenced by global events, fuel prices, and demand. Given the scale of operations related to Afghan relocation, this contract represents a significant expenditure within this niche. Benchmarking against other large-scale government air charter contracts or commercial charter rates would be relevant for assessing cost-effectiveness.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the prime contractor, ADVANCED C4 SOLUTIONS INC, is expected to perform the majority of the work. The absence of small business participation in this large sole-source award means limited direct benefit to the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Given the sole-source nature and significant value, robust oversight is crucial to ensure performance standards are met and costs are reasonable. Transparency may be limited due to the lack of a competitive process, but contract performance reports and financial audits would be key accountability measures. The Inspector General for the Department of State would have jurisdiction for audits and investigations.

Related Government Programs

Afghan Special Immigrant Visa Program
Operation Allies Welcome
Department of State Bureau of Population, Refugees, and Migration
U.S. Transportation Command (USTRANSCOM) air charter services

Risk Flags

Sole-source award
Lack of competition
High contract value
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $355.7 million to ADVANCED C4 SOLUTIONS INC. COORDINATOR FOR AFGHAN RELOCATION EFFORTS LOGISTICAL SERVICES

Who is the contractor on this award?

The obligated recipient is ADVANCED C4 SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $355.7 million.

What is the period of performance?

Start: 2022-01-30. End: 2025-01-28.

What is the track record of ADVANCED C4 SOLUTIONS INC with the Department of State and other federal agencies, particularly regarding large logistical support contracts?

A review of federal procurement data indicates that ADVANCED C4 SOLUTIONS INC has received numerous contracts across various federal agencies, including the Department of Defense and the Department of State. While the company has a history of performing logistical and support services, the specific nature and scale of past contracts, especially those involving extensive air charter operations and humanitarian support, would need detailed examination. Information on past performance, including any past performance evaluations or disputes, is crucial for assessing the contractor's reliability and capability for this significant sole-source award. Without readily available detailed performance metrics for this specific contract, historical data on similar awards and their successful execution by the contractor would be the primary basis for evaluation.

How does the per-unit cost of nonscheduled chartered passenger air transportation under this contract compare to market rates or similar government contracts?

Determining the precise per-unit cost comparison is challenging without specific line-item data from the contract, such as cost per passenger mile or cost per flight hour for different aircraft types. However, given the sole-source nature of this $355.7 million contract, there is a heightened risk that the per-unit costs may be higher than what could be achieved through a competitive process. Market rates for nonscheduled air charter can vary significantly based on aircraft availability, route, demand, and fuel costs. Government contracts, especially those awarded competitively, often include negotiated rates that reflect bulk purchasing power and stringent oversight. A detailed analysis would require access to the contract's pricing structure and a comparison with publicly available charter rates or data from similar government air transportation awards.

What specific risks are associated with a sole-source award of this magnitude for critical logistical services?

The primary risks associated with a sole-source award of this magnitude include potential overpricing due to the lack of competitive pressure, limited innovation from the contractor, and a reduced incentive to optimize performance beyond contractual minimums. There's also a risk that the government may not have access to the most suitable or cost-effective solutions available in the market. Furthermore, a sole-source award can raise concerns about fairness and transparency in the procurement process. For critical logistical services, any performance issues could have significant downstream impacts on the Afghan relocation efforts, potentially affecting timelines, costs, and the well-being of individuals being relocated.

What is the expected effectiveness of these logistical services in supporting the overall goals of Afghan relocation efforts?

The effectiveness of these logistical services is directly tied to the successful and timely transportation of individuals and associated resources. The contract's focus on nonscheduled chartered passenger air transportation suggests a need for flexible and rapid deployment capabilities, which are crucial for managing evolving relocation scenarios. The nearly three-year duration indicates an expectation of sustained operational tempo. The success will depend on the contractor's ability to provide reliable air transport, manage complex logistics, and adapt to changing requirements. Positive outcomes would include efficient movement of people, minimal disruptions, and adherence to safety and security protocols, thereby directly contributing to the government's broader objectives for Afghan relocation.

How does this contract's spending compare to historical federal spending on similar logistical support or air charter services, particularly in crisis response scenarios?

Comparing this $355.7 million contract to historical spending requires context regarding the scale and duration of the Afghan relocation effort. Federal spending on large-scale logistical support and air charter services can fluctuate significantly based on geopolitical events and humanitarian crises. For instance, during the initial withdrawal from Afghanistan in 2021, there was a surge in demand for air transport and related services. This contract, spanning nearly three years, represents a substantial, sustained investment. Benchmarking against specific past operations, such as the evacuation of Kabul or other large-scale refugee resettlement efforts, would provide a clearer picture of whether this spending level is commensurate with the operational scope and duration, especially considering it was awarded without competition.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4017 W DR MARTIN LUTHER KING JR BLVD, TAMPA, FL, 33614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $365,034,936

Exercised Options: $365,034,936

Current Obligation: $355,667,286

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline