DoD's $13.6M Flight Training Contract with Harris Enterprises Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $13,654,194 ($13.7M)
Contractor: Harris Enterprises Inc
Awarding Agency: Department of Defense
Start Date: 2004-02-11
End Date: 2010-12-31
Contract Duration: 2,515 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $13.7 million to HARRIS ENTERPRISES INC for work described as: Key points: 1. Significant contract value of $13.6 million awarded to Harris Enterprises Inc. 2. Competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' raises questions about true market engagement. 3. Potential risk associated with the long duration (2515 days) and fixed-price nature impacting adaptability. 4. Sector context: Flight training is critical for military readiness, but efficiency and cost-effectiveness are paramount.
Value Assessment
Rating: questionable
The contract value of $13.6 million for flight training needs further benchmarking against similar DoD contracts. Without detailed cost breakdowns or comparisons, assessing the value for money is difficult. The fixed-price nature suggests a defined scope, but the long duration could lead to cost inefficiencies if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, specific sources were excluded. This limits the pool of potential bidders and may not have resulted in the most competitive pricing or innovative solutions.
Taxpayer Impact: The long duration and potentially limited competition could mean taxpayers are not receiving the best possible price for these essential flight training services.
Public Impact
Taxpayer funds totaling $13.6 million are allocated to this contract. The exclusion of sources in the competition process may limit the diversity of training providers. Long-term commitment to a single provider could impact the adoption of new training technologies. Ensuring the quality and effectiveness of flight training is crucial for Air Force readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- Long contract duration (2515 days)
- Fixed-price contract with potential for cost overruns if scope changes
- Lack of clear performance metrics or value assessment
Positive Signals
- Awarded to a single, established entity (Harris Enterprises Inc.)
- Contract supports critical flight training needs for the Air Force
Sector Analysis
Flight training is a vital component of military readiness, requiring specialized instructors, aircraft, and facilities. Spending in this sector is driven by operational tempo and modernization needs. Benchmarks for flight hours and training program costs are essential for evaluating contract efficiency.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
The 'exclusion of sources' clause warrants closer oversight to ensure fair competition and prevent potential collusion or favoritability. Regular performance reviews and cost audits are necessary given the contract's duration and value.
Related Government Programs
- Flight Training
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition despite 'full and open' designation
- Long contract duration (2515 days)
- Potential for cost inefficiencies due to fixed-price structure over extended period
- Lack of transparency regarding excluded sources
- Need for clear performance metrics and value assessment
Tags
flight-training, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.7 million to HARRIS ENTERPRISES INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is HARRIS ENTERPRISES INC.
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 $13.7 million.
What is the period of performance?
Start: 2004-02-11. End: 2010-12-31.
What specific criteria led to the exclusion of certain sources in this 'full and open competition'?
The exclusion of sources suggests that while the competition was advertised broadly, specific requirements or pre-qualification criteria may have inadvertently or intentionally limited the number of eligible bidders. Understanding these criteria is crucial to determine if the exclusion was justified based on technical capabilities, security clearances, or other essential factors, or if it unduly restricted market access.
How does the $13.6 million contract value compare to industry benchmarks for similar flight training services over a 2515-day period?
Benchmarking this $13.6 million contract against similar flight training services is essential for assessing value. Factors like the type of aircraft, complexity of training, instructor-to-student ratios, and geographic location influence costs. Without comparative data, it's difficult to ascertain if this price represents efficient use of taxpayer funds or if potential cost savings were missed due to limited competition.
What mechanisms are in place to ensure the effectiveness and quality of flight training under this long-term, fixed-price contract?
Given the 2515-day duration and fixed-price nature, robust oversight is critical to ensure training effectiveness and quality. This includes regular performance evaluations, adherence to curriculum standards, and mechanisms for addressing any deficiencies promptly. The fixed-price structure necessitates careful monitoring to prevent scope creep or a decline in service quality to maintain profitability.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Flight Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 155 - 31ST AVENUE S W, VERO BEACH, FL, 08
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-02-11
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-12-29
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