Air Force awards $14.1M contract for pilot training decision model maintenance to Lone Star Aerospace

Contract Overview

Contract Amount: $14,148,267 ($14.1M)

Contractor: Lone Star Aerospace, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2026-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE OF THE AETC EXECUTIVE DECISION MODEL WHICH QUANTIFIES THE IMPACT OF RESOURCING DECISION ACROSS THE COMMAND'S PILOT TRAINING ENTERPRISE.

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to LONE STAR AEROSPACE, INC. for work described as: MAINTENANCE OF THE AETC EXECUTIVE DECISION MODEL WHICH QUANTIFIES THE IMPACT OF RESOURCING DECISION ACROSS THE COMMAND'S PILOT TRAINING ENTERPRISE. Key points: 1. Contract focuses on maintaining a critical decision support tool for pilot training resource allocation. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration (5 years) necessitates careful monitoring of performance and evolving needs. 4. Firm-fixed-price structure aims to control costs, but requires clear scope definition. 5. Geographic concentration in Texas for contract performance. 6. No small business set-aside, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $14.1 million over five years for maintaining a specialized executive decision model appears reasonable given the critical nature of pilot training. However, without comparable contract data for similar decision support systems or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price contract type suggests an attempt to cap costs, but the lack of competition limits the ability to benchmark pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Lone Star Aerospace, Inc., was considered. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The justification for a sole-source award would need to demonstrate why only this specific contractor could fulfill the requirement, potentially due to unique capabilities or prior development.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to compete for government contracts.

Public Impact

Benefits the Department of the Air Force by ensuring the continued functionality of a tool vital for optimizing pilot training resources. Services delivered include the maintenance and potential updates to the AETC Executive Decision Model. Geographic impact is primarily within Texas, where the contractor is located. Workforce implications are likely focused on specialized IT and analytical roles within Lone Star Aerospace.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs over the contract's lifespan.
Sole-source nature limits transparency and potential for innovation from a wider market.
Long-term contract duration could result in vendor lock-in if not managed proactively.
Scope creep could increase costs if not tightly controlled under the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government, assuming a well-defined scope.
Focus on maintaining a critical decision support system addresses a core operational need.
Contract duration allows for stability in supporting a complex, long-term training enterprise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically custom computer programming. The market for specialized decision support systems, particularly those tailored to complex training enterprises like military aviation, is often niche. Benchmarking would ideally involve comparing the cost and scope to similar software development and maintenance contracts within the defense sector, though direct comparisons can be difficult due to unique requirements.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary contractor, Lone Star Aerospace, Inc., is either not a small business or that the nature of the requirement did not lend itself to a set-aside. Consequently, there may be limited direct impact on the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program management within the Department of the Air Force. Accountability measures are established through the contract terms and conditions, including performance metrics and payment schedules. Transparency is limited due to the sole-source nature, but contract award details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Education and Training Command (AETC) Operations
Pilot Training Modernization Programs
Defense Software Development Contracts
IT Services for Military Training

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration requires diligent oversight to prevent cost creep and ensure continued relevance.
Potential for vendor lock-in due to specialized knowledge of the decision model.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to LONE STAR AEROSPACE, INC.. MAINTENANCE OF THE AETC EXECUTIVE DECISION MODEL WHICH QUANTIFIES THE IMPACT OF RESOURCING DECISION ACROSS THE COMMAND'S PILOT TRAINING ENTERPRISE.

Who is the contractor on this award?

The obligated recipient is LONE STAR AEROSPACE, 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 $14.1 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-29.

What is the specific functionality and criticality of the AETC Executive Decision Model?

The AETC Executive Decision Model is a sophisticated tool designed to quantify the impact of resourcing decisions across the Air Force's pilot training enterprise. Its criticality lies in its ability to provide data-driven insights for optimizing resource allocation, such as aircraft, instructors, and training facilities, to meet pilot production goals efficiently. By modeling various scenarios, it helps leadership make informed choices that affect training throughput, cost-effectiveness, and the overall readiness of the pilot force. The maintenance contract ensures this vital analytical capability remains operational and up-to-date, supporting strategic planning and day-to-day management of one of the Air Force's most crucial functions.

What is the justification for the sole-source award to Lone Star Aerospace, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when a unique capability, proprietary technology, or essential follow-on work from a previous contract resides with only one vendor. For this contract, the justification might stem from Lone Star Aerospace, Inc. possessing unique expertise in the specific architecture and algorithms of the AETC Executive Decision Model, potentially developed by them previously. Without the official justification document (e.g., a Justification and Approval document), it is difficult to definitively assess the necessity of bypassing the competitive process. This lack of competition is a key area for scrutiny regarding potential value for money.

How does the firm-fixed-price contract type mitigate risks for the government?

The firm-fixed-price (FFP) contract type is generally favored by the government for its cost control benefits. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns from the government to the contractor. For the maintenance of the AETC Executive Decision Model, an FFP contract provides a predictable cost ceiling, allowing the Air Force to budget effectively. However, the success of an FFP contract hinges on a clearly defined scope of work. If the scope is ambiguous or changes frequently, it can lead to disputes or costly change orders, potentially negating some of the intended cost savings.

What are the potential implications of the 5-year contract duration?

A five-year duration for maintaining a specialized decision support model offers significant advantages in terms of stability and continuity. It allows Lone Star Aerospace, Inc. to develop deep expertise and ensure the model remains current with evolving Air Force training needs and technological advancements. This long-term engagement can foster a strong working relationship and reduce transition costs associated with frequent contract changes. However, it also presents risks. A lengthy contract period can lead to vendor lock-in, potentially reducing the government's leverage in future negotiations. Furthermore, the model's requirements might evolve in ways not fully anticipated at the outset, necessitating careful contract management and potential modifications to ensure continued relevance and value.

Are there any comparable contracts for similar decision support systems in the federal government?

Identifying directly comparable contracts for highly specialized decision support systems like the AETC Executive Decision Model can be challenging due to the unique nature of such tools, particularly within niche areas like military pilot training. While the North American Industry Classification System (NAICS) code 541511 (Custom Computer Programming Services) covers a broad range of software development, the specific application and complexity of this model are key differentiators. Benchmarking would ideally involve looking at other Department of Defense or federal agency contracts for advanced analytical modeling, simulation software maintenance, or resource optimization platforms. However, contract values and scopes vary widely, and publicly available data may not always capture the full context needed for a precise comparison. The lack of competition for this specific award further complicates external benchmarking efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA300221R000X

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4555 EXCEL PKWY STE 500, ADDISON, TX, 75001

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

Financial Breakdown

Contract Ceiling: $14,693,289

Exercised Options: $14,635,877

Current Obligation: $14,148,267

Actual Outlays: $7,754,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline