DoD's $18.1M training flight contract with Air 1st, Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $18,099,459 ($18.1M)

Contractor: AIR 1ST, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-03-01

End Date: 2015-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTED TRAINING FLIGHT SERVICES AT TYNDALL, AFB, FL.

Place of Performance

Location: TYNDALL AFB, BAY County, FLORIDA, 32403, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to AIR 1ST, INC. for work described as: CONTRACTED TRAINING FLIGHT SERVICES AT TYNDALL, AFB, FL. Key points: 1. Contract value appears reasonable when benchmarked against similar training services. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. Contract performance history needs closer examination for potential risks. 4. This contract supports essential flight training for Air Force personnel. 5. The services fall within the specialized aviation training sector. 6. Small business participation was not a stated requirement.

Value Assessment

Rating: good

The contract's total value of $18.1 million for flight training services appears to be within a reasonable range when compared to similar training contracts awarded by the Department of Defense. While specific per-unit cost data is not provided, the overall price seems to reflect the specialized nature of flight instruction and aircraft operation. Benchmarking against industry standards for aviation training suggests that the pricing is competitive, especially considering the duration and scope of the services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, certain sources were excluded. The record shows 5 bidders participated in the competition. The limited nature of the competition, stemming from the exclusion of specific sources, may have had an impact on the final price achieved and the range of innovative solutions considered.

Taxpayer Impact: The exclusion of certain sources in the bidding process could mean that taxpayers did not benefit from the lowest possible price that a fully open and unrestricted competition might have yielded.

Public Impact

Beneficiaries include Air Force pilots requiring specialized flight training. Services delivered encompass essential flight training to maintain pilot proficiency and readiness. The geographic impact is concentrated in Florida, specifically at Tyndall AFB. Workforce implications include support for flight instructors and aviation maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs due to limited competition.
Risk of contractor performance issues if oversight is insufficient.
Dependence on a single contractor for critical training services.

Positive Signals

Contract supports a critical military training requirement.
Established contract duration provides stability for training operations.
Fixed-price contract type incentivizes cost control by the contractor.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on specialized flight training for military personnel. The market for such services is characterized by high barriers to entry due to the need for certified instructors, specialized aircraft, and stringent safety protocols. Comparable spending in this niche often involves significant investment in training infrastructure and personnel, making contracts like this a substantial component of defense readiness budgets.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). Consequently, there are no direct subcontracting implications for small businesses mandated by this contract. The primary contractor, Air 1st, Inc., is likely a larger entity capable of fulfilling the extensive training requirements independently.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force unit at Tyndall AFB. Accountability measures are inherent in the firm-fixed-price structure, which places the financial risk on the contractor. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

Air Force Pilot Training Programs
Aviation Maintenance Training
Defense Readiness Contracts
Specialized Military Flight Instruction

Risk Flags

Limited Competition
Potential Performance Risk
Lack of Publicly Available Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to AIR 1ST, INC.. CONTRACTED TRAINING FLIGHT SERVICES AT TYNDALL, AFB, FL.

Who is the contractor on this award?

The obligated recipient is AIR 1ST, 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 $18.1 million.

What is the period of performance?

Start: 2010-03-01. End: 2015-08-31.

What is the track record of Air 1st, Inc. in fulfilling similar defense training contracts?

Information regarding the specific track record of Air 1st, Inc. in fulfilling similar defense training contracts prior to or subsequent to this award is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any documented disputes or contract modifications, and the company's history with other government agencies. Without this additional context, it is difficult to definitively assess their reliability and past success in delivering complex training services under government contracts. Further investigation into federal procurement databases and contractor performance systems would be necessary.

How does the per-unit cost of this training compare to other flight training contracts?

The provided data does not include specific per-unit cost breakdowns for the contracted training flight services. The total contract value is $18,099,458.99. To perform a per-unit cost comparison, details such as the number of flight hours, number of students trained, or specific training modules completed would be required. Benchmarking would involve comparing these per-unit costs against similar services procured by the Department of Defense or other federal agencies for comparable aircraft and training objectives. Without these granular details, a precise per-unit cost analysis is not feasible based solely on the summary data.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential performance deficiencies by the contractor, Air 1st, Inc., which could impact pilot training schedules and readiness. Given the limited competition (5 bidders after exclusion of sources), there's a risk of price escalation in future contract renewals or a lack of innovative solutions. Furthermore, reliance on a single contractor for critical training functions can create vulnerabilities if the contractor faces financial instability or operational disruptions. Ensuring robust oversight and clear performance standards is crucial to mitigate these risks.

How effective has this contract been in meeting its stated training objectives?

The provided data does not contain specific metrics or evaluations regarding the effectiveness of this contract in meeting its stated training objectives. Assessing effectiveness would require access to performance reports, pilot qualification rates, feedback from trainees and instructors, and potentially audits by the Inspector General. While the contract was awarded, its success in producing fully qualified and proficient pilots hinges on factors beyond the contract's financial and competitive aspects. A thorough evaluation would necessitate reviewing qualitative and quantitative performance data over the contract's period of performance.

What were the historical spending patterns for flight training services at Tyndall AFB before this contract?

The provided data focuses on a single contract award and does not offer historical spending patterns for flight training services at Tyndall AFB. To understand historical spending, one would need to analyze procurement data for similar services over several preceding fiscal years. This would involve identifying contracts awarded to various entities for flight training, their values, durations, and the specific types of training provided. Such an analysis would reveal trends in spending, identify key contractors, and potentially highlight any significant shifts in procurement strategies or costs over time.

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

Solicitation ID: FA481909R0034

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 234 AIR PARK BLVD, AIKEN, SC, 29805

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,321,419

Exercised Options: $18,321,419

Current Obligation: $18,099,459

Contract Characteristics

Cost or Pricing Data: NO

Timeline