DoD's $28.5M contract for logistics support services awarded to South Western Oklahoma Development Authority shows concerning value

Contract Overview

Contract Amount: $28,477,055 ($28.5M)

Contractor: South Western Oklahoma Development Authority

Awarding Agency: Department of Defense

Start Date: 2003-01-29

End Date: 2011-03-31

Contract Duration: 2,983 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200304!000037!5700!JA35 !97 CONS/CC !F3461203C0002 !A!N! !Y! !20030129!20030930!849751102!849751102!849751102!N!SOUTH WESTERN OKLAHOMA DEVELOP!420 SOONER DRIVE !BURNS FLAT !OK!73624!10250!149!40!BURNS FLAT !WASHITA !OKLAHOMA !+000002231852!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !488119!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!C!N!Z! ! !Y!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: BURNS FLAT, WASHITA County, OKLAHOMA, 73624, UNITED STATES OF AMERICA

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to SOUTH WESTERN OKLAHOMA DEVELOPMENT AUTHORITY for work described as: 200304!000037!5700!JA35 !97 CONS/CC !F3461203C0002 !A!N! !Y! !20030129!20030930!849751102!849751102!849751102!N!SOUTH WESTERN OKLAHOMA DEVELOP!420 SOONER DRIVE !BURNS FLAT !OK!73624!10250!149!40!BURNS FLAT !WASHI… Key points: 1. The contract's value appears high relative to the services provided, raising questions about cost-effectiveness. 2. Limited competition for this significant award warrants scrutiny of the procurement process. 3. The long duration of the contract and its ultimate value suggest potential for cost overruns or inefficiencies. 4. Performance context is limited, making it difficult to assess the contractor's effectiveness and value. 5. This contract falls within the 'Other Airport Operations' category, suggesting a niche but potentially critical support function.

Value Assessment

Rating: concerning

The total value of $28.5 million over its extended period (2003-2011) for logistics support services seems disproportionately high, especially given the lack of detailed performance metrics. Without comparable contracts or clear benchmarks for 'logistics support services' in this specific context, it's challenging to definitively assess value. However, the sheer scale of the award for what appears to be operational support raises a red flag regarding potential overpricing or inefficient resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed openly. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The absence of multiple bidders means the government did not benefit from competitive pressures that typically drive down prices and improve service offerings.

Taxpayer Impact: Sole-source awards mean taxpayers may have paid a premium, as there was no competitive pressure to ensure the lowest possible price for these essential logistics services.

Public Impact

The primary beneficiary is the South Western Oklahoma Development Authority, a non-profit organization. The contract provides essential logistics support services, likely crucial for the operational readiness of the Air Force facility. The geographic impact is concentrated in Burns Flat, Oklahoma, supporting local employment and economic activity. Workforce implications include potential job creation and retention within the local community through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price fairness and potential for inflated costs.
The extended contract duration (8 years) increases the risk of cost escalation and reduced flexibility.
Limited public information on performance metrics makes it difficult to assess the true value and effectiveness of the services.
The sole-source nature of the award bypasses standard competitive processes, potentially disadvantaging taxpayers.

Positive Signals

The award to a development authority suggests a focus on supporting local economic development and community resources.
Logistics support services are critical for maintaining operational capabilities, indicating a potentially vital function.
The contract was awarded to an established entity, potentially indicating a known and reliable provider for these specific needs.

Sector Analysis

This contract falls under the broad category of 'Services' and specifically 'Other Airport Operations' within the defense sector. The market for logistics support services is vast and diverse, encompassing everything from supply chain management to base operations. While specific benchmarks for this niche are hard to pinpoint, defense logistics contracts often represent significant portions of agency budgets. The value of this contract, $28.5 million, is substantial for a single award, even within the context of defense spending.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made directly to the South Western Oklahoma Development Authority, and information regarding its size or its utilization of small businesses in fulfilling the contract is not readily available. This suggests that the primary economic impact for small businesses would be indirect, if at all.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a Department of Defense contract, it would typically fall under the purview of the Department of Defense Inspector General for audits and investigations. However, the lack of transparency regarding performance metrics and the sole-source nature of the award limit the assessment of accountability and effectiveness.

Related Government Programs

Base Operations Support
Logistics and Supply Chain Management
Airfield Operations Services
Federal Aviation Administration Contracts
Department of Defense Procurement

Risk Flags

Sole-source award bypasses competition, potentially increasing costs.
Lack of performance data hinders value assessment.
Extended contract duration increases risk of cost escalation.
Significant contract value warrants scrutiny for efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to SOUTH WESTERN OKLAHOMA DEVELOPMENT AUTHORITY. 200304!000037!5700!JA35 !97 CONS/CC !F3461203C0002 !A!N! !Y! !20030129!20030930!849751102!849751102!849751102!N!SOUTH WESTERN OKLAHOMA DEVELOP!420 SOONER DRIVE !BURNS FLAT !OK!73624!10250!149!40!BURNS FLAT !WASHITA !OKLAHOMA !+000002231852!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !488119!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is SOUTH WESTERN OKLAHOMA DEVELOPMENT AUTHORITY.

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 $28.5 million.

What is the period of performance?

Start: 2003-01-29. End: 2011-03-31.

What is the specific nature of the 'logistics support services' provided under this contract?

The provided data classifies the service as 'LOGISTICS SUPPORT SERVICES' under the PSC code 'R706' and notes 'Other Airport Operations' under the NAICS code '488119'. While specific details are not elaborated, this typically encompasses a range of activities essential for the functioning of an airport or air base. These could include supply chain management, inventory control, transportation of goods, maintenance support, and potentially facility management related to logistical operations. Given the 'Other Airport Operations' classification, it's likely tied to supporting the infrastructure and operational needs of an airfield, possibly related to aircraft maintenance, ground support equipment, or airfield facilities.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED' and classified as 'sole-source'. Specific justifications for sole-source awards are typically documented by the procuring agency and often involve situations where only one responsible source can provide the required supplies or services. Reasons can include unique capabilities, urgent and compelling needs, or specific government property requirements. Without the agency's justification documentation, the precise reason for this sole-source award remains unknown. However, such awards bypass the competitive process, which can lead to higher costs for the government compared to fully competed contracts.

How does the $28.5 million total value compare to similar logistics support contracts?

Directly comparing the $28.5 million total value to similar logistics support contracts is challenging without more specific details on the scope of services and the location/type of facility. However, for a contract spanning from 2003 to 2011 (8 years), this value averages approximately $3.56 million per year. This figure is substantial and falls within the range of significant service contracts awarded by the Department of Defense. However, the 'Other Airport Operations' classification suggests a potentially specialized niche. Without access to a database of comparable sole-source or competed contracts for similar airport logistics support, a precise benchmark is difficult to establish, but the overall value is considerable.

What performance metrics or outcomes were tracked for this contract?

The provided data does not include any specific performance metrics, key performance indicators (KPIs), or outcome-based measures for this contract. This lack of detail makes it impossible to assess the contractor's performance, the effectiveness of the logistics support services, or whether the government received adequate value for the $28.5 million invested. Standard government contracts usually include performance standards and evaluation criteria, especially for long-term service agreements. The absence of this information suggests a potential gap in contract management or transparency.

What is the track record of South Western Oklahoma Development Authority as a government contractor?

The data indicates that South Western Oklahoma Development Authority (SWODA) was awarded this specific contract (NAICS 488119, PSC R706) by the Department of the Air Force. Beyond this single award, the provided data does not offer information on SWODA's broader track record as a government contractor, such as the number of other contracts held, their values, performance history, or past issues. SWODA is identified as a non-profit organization, suggesting its primary mission may not be government contracting, but rather community and economic development. Further research would be needed to ascertain their full history and performance across various contracts.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

A sole-source contract of this magnitude ($28.5 million) and duration (8 years) carries several inherent risks. Firstly, the lack of competition means the government likely paid a higher price than it would have in a competitive bidding process. Secondly, the long duration reduces flexibility; if the government's needs change or a better solution emerges, it is difficult and costly to switch providers. Thirdly, without competitive pressure, the contractor may have less incentive to innovate or improve efficiency, potentially leading to complacency. Finally, sole-source awards can be perceived as less transparent and may face greater scrutiny regarding fairness and value for taxpayer money.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 420 SOONER DRIVE, BURNS FLAT, OK, 73624

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline