DoD's $19M Fort Smith Airport Agreement for Installation Support Services Lacks Competition
Contract Overview
Contract Amount: $18,997,313 ($19.0M)
Contractor: Fort Smith Regional Airport
Awarding Agency: Department of Defense
Start Date: 2023-06-01
End Date: 2033-05-31
Contract Duration: 3,652 days
Daily Burn Rate: $5.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: INTERGOVERNMENTAL SUPPORT AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE AIRPORT AUTHORITY OF FORT SMITH ARKANSAS FOR INSTALLATION SUPPORT SERVICES
Place of Performance
Location: FORT SMITH, SEBASTIAN County, ARKANSAS, 72903
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to FORT SMITH REGIONAL AIRPORT for work described as: INTERGOVERNMENTAL SUPPORT AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE AIRPORT AUTHORITY OF FORT SMITH ARKANSAS FOR INSTALLATION SUPPORT SERVICES Key points: 1. Significant 10-year contract for installation support services at Fort Smith Regional Airport. 2. Sole-source award raises concerns about price discovery and potential overspending. 3. Lack of competition limits opportunities for other qualified vendors and innovation. 4. Long-term nature of the agreement warrants close monitoring for continued value.
Value Assessment
Rating: questionable
The contract value of $18,997,313.01 over 10 years averages approximately $1.9M annually. Without competitive bidding, it's difficult to assess if this pricing is optimal compared to similar installation support services at other regional airports.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This method bypasses the price discovery benefits inherent in competitive bidding, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this substantial 10-year contract may result in taxpayers paying more than necessary for installation support services.
Public Impact
Local airport infrastructure receives long-term support funding. Taxpayer funds are committed for a decade without competitive price validation. Potential for reduced service quality or inflated costs due to lack of market pressure. Limited visibility into the specific services provided under 'installation support'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration (10 years)
- Lack of clear justification for sole-source
- Potential for cost overruns
Positive Signals
- Ensures dedicated support for a critical military installation
- Provides long-term stability for service provider
Sector Analysis
This contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (PSC 5202) but is for installation support services, indicating a broad scope. Benchmarking against similar support contracts at other military installations or airports is challenging due to the sole-source nature.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source agreement.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of the Air Force to ensure the Airport Authority is delivering services effectively and at a reasonable cost throughout the 10-year term.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Long-term commitment without performance validation
- Unclear scope of 'installation support services'
- No small business participation noted
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to FORT SMITH REGIONAL AIRPORT. INTERGOVERNMENTAL SUPPORT AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE AIRPORT AUTHORITY OF FORT SMITH ARKANSAS FOR INSTALLATION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is FORT SMITH REGIONAL AIRPORT.
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 $19.0 million.
What is the period of performance?
Start: 2023-06-01. End: 2033-05-31.
What is the specific justification for awarding this installation support services contract on a sole-source basis to the Airport Authority of Fort Smith?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to ascertain the official rationale.
How can the government ensure fair pricing and value for money over the 10-year duration of this sole-source contract?
The government can implement strong contract management practices, including regular performance reviews, cost audits, and benchmarking against industry standards where possible. Establishing clear performance metrics and milestones, along with robust reporting requirements, will help ensure accountability and identify potential cost inefficiencies early on.
What are the potential risks associated with a 10-year sole-source agreement for installation support services at a regional airport?
The primary risks include potential cost escalation over time without competitive pressure, vendor complacency leading to service quality degradation, and the inability to adapt to evolving technological needs or operational requirements. There's also the risk that the initial pricing may not remain competitive throughout the decade.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6700 MCKENNON BLVD STE 200, FORT SMITH, AR, 72903
Business Categories: U.S. Government Authorities, Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,088,207
Exercised Options: $18,997,356
Current Obligation: $18,997,313
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-01
Current End Date: 2033-05-31
Potential End Date: 2033-05-31 00:00:00
Last Modified: 2025-10-02
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