USMC corrosion control contract awarded to JADIN TECH, LLC for $9.46M, with a high benchmarked per-unit cost

Contract Overview

Contract Amount: $9,456,061 ($9.5M)

Contractor: Jadin Tech, LLC

Awarding Agency: General Services Administration

Start Date: 2023-03-28

End Date: 2026-03-27

Contract Duration: 1,095 days

Daily Burn Rate: $8.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USMC 2ND MAW CORROSION CONTROL

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $9.5 million to JADIN TECH, LLC for work described as: USMC 2ND MAW CORROSION CONTROL Key points: 1. Value for money appears questionable due to a high per-unit cost compared to benchmarks. 2. Competition dynamics indicate a sole-source award, limiting price discovery and potentially increasing costs. 3. Risk indicators include the sole-source nature and a potentially high unit price. 4. Performance context is for corrosion control services for the USMC 2nd MAW. 5. Sector positioning is within 'Other Support Activities for Air Transportation' under GSA. 6. The contract duration is 3 years, with a firm fixed-price structure.

Value Assessment

Rating: questionable

The contract's value is difficult to fully assess without more granular data on the specific services provided. However, the benchmarked per-unit cost of $8636 is significantly higher than comparable services, suggesting potential overpayment or a scope of work that justifies the higher cost. Further analysis of the specific deliverables and market rates for similar specialized corrosion control services would be needed to definitively determine value.

Cost Per Unit: $8,636 per unit (high benchmark)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized capabilities or when urgency dictates a direct award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or fostered innovation.

Taxpayer Impact: The sole-source award limits the government's ability to secure the best possible price through competitive bidding, potentially resulting in higher costs for taxpayers.

Public Impact

The primary beneficiary is the U.S. Marine Corps (USMC) 2nd Marine Aircraft Wing (MAW), which will receive essential corrosion control services. Services delivered include specialized maintenance and protection against corrosion for aircraft and related infrastructure. The geographic impact is primarily focused on the locations where the USMC 2nd MAW operates, likely within North Carolina. Workforce implications may involve skilled technicians and specialists employed by JADIN TECH, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
High per-unit cost raises concerns about value for money.
Lack of transparency in the justification for sole-source award.

Positive Signals

Contract addresses a critical maintenance need for aviation assets.
Firm fixed-price contract provides cost certainty for the government.
Long-term relationship with a specialized provider may ensure continuity of service.

Sector Analysis

This contract falls under the 'Other Support Activities for Air Transportation' sector, which is a niche but critical area supporting military aviation readiness. The market for specialized corrosion control services for military aircraft is often characterized by a limited number of highly qualified providers due to stringent technical requirements and security clearances. Comparable spending benchmarks in this specific sub-sector are difficult to ascertain without more detailed service descriptions, but general maintenance and repair services for aviation assets can range widely in cost.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to JADIN TECH, LLC, a single entity, suggests that the scope of work or the specialized nature of the services may not have been conducive to small business participation or subcontracting opportunities in this instance.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Marine Corps contracting officers and potentially the General Services Administration (GSA) as the awarding agency. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, with justifications for such awards usually available through specific government contracting portals.

Related Government Programs

USMC Aviation Maintenance Contracts
Defense Logistics Agency (DLA) Support Contracts
Federal Aviation Administration (FAA) Maintenance Services
General Services Administration (GSA) Professional Services Schedules

Risk Flags

Sole-source award
High per-unit cost benchmark
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.5 million to JADIN TECH, LLC. USMC 2ND MAW CORROSION CONTROL

Who is the contractor on this award?

The obligated recipient is JADIN TECH, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2023-03-28. End: 2026-03-27.

What is the specific scope of corrosion control services covered by this contract?

The provided data indicates the contract is for 'USMC 2ND MAW CORROSION CONTROL.' While specific details are not itemized, corrosion control for a Marine Air Wing typically involves comprehensive services such as inspection, cleaning, treatment, and application of protective coatings to aircraft, vehicles, and infrastructure. This is crucial for maintaining the airworthiness of aircraft and extending the lifespan of valuable assets, especially in environments prone to corrosive elements like salt air. The services likely encompass both preventative measures and remediation of existing corrosion.

How does the per-unit cost of $8,636 compare to similar corrosion control contracts for military aviation?

The per-unit cost of $8,636 is considered high when benchmarked against general maintenance or repair services. However, for highly specialized corrosion control services tailored to military aviation, particularly for a Marine Air Wing operating in potentially harsh environments, this figure might be justifiable if it reflects the complexity, materials, and expertise required. Without knowing the exact unit of measure (e.g., per aircraft, per hour, per square foot of treatment) and the specific services rendered, a direct comparison is challenging. Typically, specialized military maintenance contracts can command higher prices due to stringent quality standards, unique material requirements, and the critical nature of the assets being serviced.

What are the risks associated with a sole-source award for this type of service?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to innovate or optimize service delivery. Taxpayers may end up paying more than necessary for the services. Additionally, sole-source awards can raise concerns about fairness and transparency in the procurement process. If the justification for the sole-source award is not robust, it could indicate potential inefficiencies or a lack of market research by the procuring agency. This contract's sole-source nature means the government did not explore potential cost savings or alternative solutions that a competitive bidding process might have revealed.

What is the track record of JADIN TECH, LLC in providing similar services to the government?

Information regarding JADIN TECH, LLC's specific track record in providing corrosion control services to the government is not detailed in the provided data. As a sole-source awardee, understanding their past performance, client satisfaction, and history of delivering similar specialized services is crucial for assessing the risk and value of this contract. Further investigation into their contract history, performance evaluations (e.g., CPARS), and any prior experience with military aviation maintenance would be necessary to fully evaluate their capabilities and reliability for this critical function.

How does this contract fit into the broader spending patterns for USMC aviation maintenance?

This contract represents a specific allocation of funds towards maintaining the operational readiness of the USMC 2nd MAW's aviation assets. Spending on aviation maintenance is a significant component of the Department of Defense's budget, essential for ensuring aircraft safety and longevity. Contracts like this, focused on specialized areas such as corrosion control, are part of a larger ecosystem of maintenance, repair, and overhaul (MRO) services. Analyzing this contract in isolation provides a snapshot, but understanding its place within the overall USMC aviation maintenance budget requires examining historical spending trends, other maintenance contracts, and the strategic priorities of the Marine Corps' aviation branch.

What are the potential implications of the firm fixed-price contract type for this service?

A firm fixed-price (FFP) contract type means that the contractor, JADIN TECH, LLC, is obligated to perform the work for a predetermined price, regardless of the actual costs incurred. This shifts the cost risk from the government to the contractor. For the government, this provides budget certainty and predictability. However, it also means that if the contractor encounters unforeseen difficulties or cost overruns, they bear the financial burden. Conversely, if the contractor can perform the work more efficiently than anticipated, they can achieve a higher profit margin. For specialized services like corrosion control, where material costs or labor complexities might fluctuate, an FFP contract incentivizes the contractor to manage their resources effectively.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFRA23Q0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 W BENSON BLVD STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,456,061

Exercised Options: $9,456,061

Current Obligation: $9,456,061

Actual Outlays: $6,406,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline