Air Force awards $40M flight training contract to BGI LLC, with 6 bidders competing

Contract Overview

Contract Amount: $39,950,125 ($40.0M)

Contractor: BGI LLC

Awarding Agency: Department of Defense

Start Date: 2013-07-31

End Date: 2019-01-31

Contract Duration: 2,010 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF CONTRACT AWARD. PHASE-IN: EC-130H&A-10 CAT/CWD AT DAVIS-MONTHAN AFB, AZ AND MOODY AFB, GA.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85707

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to BGI LLC for work described as: IGF::OT::IGF CONTRACT AWARD. PHASE-IN: EC-130H&A-10 CAT/CWD AT DAVIS-MONTHAN AFB, AZ AND MOODY AFB, GA. Key points: 1. Contract value appears reasonable given the scope of specialized flight training services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The number of bidders indicates a healthy level of market interest for this niche service. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Contract duration of over 5 years provides stability for training continuity. 6. Geographic distribution across two major Air Force bases ensures broad operational support.

Value Assessment

Rating: good

The contract value of approximately $40 million for specialized flight training over five years seems aligned with industry standards for such services. Benchmarking against similar contracts for advanced aircraft training would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary financial risk, which can be advantageous for the government if costs are managed effectively by BGI LLC.

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 the competition was open, specific sources may have been excluded based on pre-defined criteria. With six bidders participating, the competition level appears adequate, suggesting that multiple firms were capable of meeting the requirements. This level of competition likely contributed to price discovery and a competitive award.

Taxpayer Impact: The presence of multiple bidders in a competitive process generally benefits taxpayers by driving down prices and ensuring the government receives fair market value for the services procured.

Public Impact

Pilots and aircrew at Davis-Monthan AFB, AZ, and Moody AFB, GA, will receive essential flight training. The services delivered are critical for maintaining combat readiness and operational effectiveness of EC-130H&A-10 aircraft. The geographic impact is concentrated at two key Air Force installations in Arizona and Georgia. The contract supports specialized aviation training roles, potentially impacting a cadre of highly skilled military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond initial specifications.
Dependence on BGI LLC for specialized expertise could pose a risk if contractor performance falters.
Ensuring consistent training quality across two geographically dispersed locations requires robust oversight.

Positive Signals

Firm fixed-price contract aligns incentives for cost control.
Multiple bidders indicate a competitive market for these specialized services.
Long-term contract provides stability for critical training programs.
Clear performance period reduces uncertainty for both parties.

Sector Analysis

This contract falls within the broader aerospace and defense training sector, a critical component of military readiness. The market for specialized flight training is often characterized by a limited number of highly qualified providers due to the unique expertise and equipment required. Spending in this area is directly tied to the operational needs and modernization efforts of military branches, with significant government investment typically allocated to ensure pilot proficiency and aircraft system mastery.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While BGI LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring BGI LLC to meet defined training objectives within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance metrics may be internal.

Related Government Programs

Aircrew Training Services
Specialized Flight Instruction
Aircraft Systems Training
Military Pilot Training Programs
Defense Contractor Services

Risk Flags

Potential for contractor performance issues
Oversight challenges due to geographic dispersion
Dependence on specialized contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to BGI LLC. IGF::OT::IGF CONTRACT AWARD. PHASE-IN: EC-130H&A-10 CAT/CWD AT DAVIS-MONTHAN AFB, AZ AND MOODY AFB, GA.

Who is the contractor on this award?

The obligated recipient is BGI LLC.

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 $40.0 million.

What is the period of performance?

Start: 2013-07-31. End: 2019-01-31.

What is the track record of BGI LLC in providing similar flight training services to the Department of Defense?

Information regarding BGI LLC's specific track record for this type of specialized flight training is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, previous contract awards, and any reported issues or successes with similar DoD training programs. Understanding their experience with EC-130H&A-10 aircraft or comparable complex systems would be crucial. Without this historical data, it is difficult to fully gauge their capability and reliability for this specific contract, though the award itself suggests they met initial qualification criteria.

How does the awarded price compare to market rates for similar specialized flight training?

The provided data does not include specific per-unit costs or detailed breakdowns that would allow for a direct comparison to market rates. The total award of approximately $40 million over a period of roughly five years (July 2013 - January 2019) offers a general benchmark. To assess value for money, one would need to compare this contract's total cost and duration against other DoD or civilian contracts for training on similar aircraft types or complexity levels. Factors like instructor hours, simulator usage, curriculum development, and geographic location all influence market pricing.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around contractor performance and potential cost overruns if the firm fixed-price structure is not managed effectively by BGI LLC. Ensuring the quality and consistency of training across two different bases (Davis-Monthan AFB and Moody AFB) presents an oversight challenge. There's also a risk related to the specialized nature of the training; if BGI LLC experiences significant personnel turnover or faces unforeseen operational difficulties, it could disrupt the continuity of essential pilot training. Finally, reliance on a single contractor for such a critical function carries inherent risk.

How effective is this contract in ensuring the combat readiness of the involved Air Force units?

The effectiveness of this contract in ensuring combat readiness hinges on the quality and comprehensiveness of the flight training provided by BGI LLC. The contract supports training for EC-130H&A-10 aircraft, which are specialized assets, implying the training is crucial for their effective operation. If the training successfully maintains and enhances pilot and aircrew proficiency in mission-critical skills, then the contract is highly effective. However, effectiveness is difficult to quantify solely from the award data; it would require performance metrics, pilot qualification rates, and feedback from the operational units receiving the training.

What has been the historical spending trend for flight training services by the Department of the Air Force?

Historical spending data for flight training services by the Department of the Air Force is not provided in this specific award notice. However, it is generally understood that the Air Force allocates substantial resources annually to pilot and aircrew training across various aircraft platforms. This spending fluctuates based on force structure, new aircraft procurements, modernization programs, and operational tempo. Contracts like this one represent a portion of that overall training budget, focusing on specific aircraft types or mission sets. Analyzing broader DoD spending trends would reveal a consistent and significant investment in aviation training.

Were there any specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award are not detailed in the provided data. This procurement method typically involves a broad solicitation but allows the agency to exclude offerors who do not meet specific, pre-defined technical, capability, or responsibility criteria outlined in the solicitation. These exclusions are usually based on stringent requirements necessary for specialized services like advanced flight training, ensuring only qualified entities can compete. The rationale would be documented within the agency's procurement file.

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: FA489012R0024

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 520 S MAIN ST STE 2448, AKRON, OH, 44311

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

Financial Breakdown

Contract Ceiling: $39,950,125

Exercised Options: $39,950,125

Current Obligation: $39,950,125

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline