DoD's $41.9M contract for aircrew health services aims to reduce injuries and speed return to duty

Contract Overview

Contract Amount: $41,924,873 ($41.9M)

Contractor: LMR Technical Group LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2025-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: A3 OHWS SERVICE WHICH INCREASES THE PHYSICAL CAPACITY OF FIGHTER AIRCREW, DECREASING THE RATE OF INJURIES, AND ACCELERATING RETURN TO DUTY.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to LMR TECHNICAL GROUP LLC for work described as: A3 OHWS SERVICE WHICH INCREASES THE PHYSICAL CAPACITY OF FIGHTER AIRCREW, DECREASING THE RATE OF INJURIES, AND ACCELERATING RETURN TO DUTY. Key points: 1. The contract focuses on enhancing physical capacity for fighter aircrew, directly addressing injury reduction and faster recovery. 2. Competition was full and open after exclusion of sources, suggesting a broad search for qualified providers. 3. The contract's fixed-price nature provides cost certainty for the government, aligning contractor incentives with performance. 4. Performance is benchmarked against industry standards for similar health and rehabilitation services. 5. This service falls within the broader healthcare and defense support sectors, contributing to military readiness. 6. The contract duration of five years indicates a long-term commitment to improving aircrew well-being.

Value Assessment

Rating: good

The contract value of $41.9 million over five years for specialized aircrew health services appears reasonable when considering the critical nature of the services and the target population. Benchmarking against similar contracts for advanced physical therapy and rehabilitation services within the Department of Defense or other federal agencies would provide a more precise value assessment. However, the focus on injury prevention and accelerated return to duty suggests a potential for significant cost savings through reduced medical treatment costs and increased operational readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria or prior relationships. The number of bidders (10) suggests a healthy level of interest, but the 'exclusion of sources' aspect warrants further investigation to ensure no qualified and competitive sources were unfairly prevented from bidding. This approach can sometimes lead to less aggressive pricing compared to truly unrestricted full and open competition.

Taxpayer Impact: While 10 bidders indicate some competition, the exclusion of certain sources might have limited the potential for the most competitive pricing. Taxpayers benefit from specialized services that enhance aircrew readiness, but the full extent of cost savings from competition is not fully clear without understanding the excluded sources.

Public Impact

Fighter aircrew benefit directly from services designed to improve their physical health and reduce injury rates. The services delivered aim to decrease the time aircrew spend on injury recovery, thereby increasing operational availability. The contract's impact is primarily within military installations where fighter aircrews are based. Workforce implications include potentially improved morale and retention among aircrew due to better health support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition process could limit the breadth of competitive pricing.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the service.
The contract's long duration could pose risks if technology or medical best practices evolve significantly.

Positive Signals

Focus on injury prevention and accelerated return to duty directly supports military readiness and reduces long-term healthcare costs.
The contract is with LMR TECHNICAL GROUP LLC, a known entity in providing technical services.
A firm fixed-price contract structure incentivizes the contractor to manage costs effectively.
The number of bidders (10) suggests a competitive marketplace for these specialized services.

Sector Analysis

This contract falls within the Healthcare and Defense Support services sector. The market for specialized health and rehabilitation services for high-performance individuals, such as military aircrew, is niche but critical. Comparable spending benchmarks would typically involve contracts for physical therapy, sports medicine, and occupational health services, often with a focus on performance enhancement and injury management. The size of this contract ($41.9M) is moderate within the broader context of defense spending but significant for specialized health services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is also unclear if LMR TECHNICAL GROUP LLC is a small business. Therefore, the direct impact on small businesses through set-asides or subcontracting opportunities is not discernible from the information given. Further analysis would be needed to determine if subcontracting goals were established and met.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which ties payment to delivery of services. Transparency is generally maintained through contract award databases, though specific performance monitoring details are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Health System Services
Aerospace Medicine Programs
Combat Support Services
Physical and Occupational Therapy Services
Defense Health Agency Contracts

Risk Flags

Competition limitations due to source exclusion.
Potential for performance gaps if service quality is not rigorously monitored.
Long-term contract duration may not adapt to rapid technological or medical advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to LMR TECHNICAL GROUP LLC. A3 OHWS SERVICE WHICH INCREASES THE PHYSICAL CAPACITY OF FIGHTER AIRCREW, DECREASING THE RATE OF INJURIES, AND ACCELERATING RETURN TO DUTY.

Who is the contractor on this award?

The obligated recipient is LMR TECHNICAL GROUP 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 $41.9 million.

What is the period of performance?

Start: 2020-07-01. End: 2025-06-30.

What is the track record of LMR TECHNICAL GROUP LLC in providing similar aircrew health services?

Information regarding LMR TECHNICAL GROUP LLC's specific track record in providing aircrew health services is not detailed in the provided data. However, the award of a definitive contract by the Department of the Air Force suggests they have met the necessary qualifications and demonstrated capability to perform the required services. To fully assess their track record, one would need to review past performance evaluations, any prior contracts for similar services, and their overall company history in defense contracting. Without this specific data, it's assumed the Department of Defense conducted due diligence to ensure the contractor's suitability for this critical role in enhancing aircrew physical capacity and reducing injuries.

How does the value of this contract compare to similar aircrew health and performance enhancement programs?

The $41.9 million contract value over five years for specialized aircrew health services is a significant investment. Direct comparisons to similar programs are challenging without access to proprietary data or specific program details across different military branches or allied nations. However, the stated goal of decreasing injury rates and accelerating return to duty suggests a focus on operational readiness, which has intrinsic value far exceeding the contract cost. If this program demonstrably reduces long-term injury treatment costs and increases flight hours, its value proposition would be strong. Benchmarking against contracts for high-performance athlete rehabilitation or specialized occupational health services in demanding industries could offer indirect comparisons.

What are the primary risk indicators associated with this contract?

Key risk indicators for this contract include the potential for scope creep if the definition of 'physical capacity' is not tightly managed, and the risk of contractor underperformance if the specialized health services do not yield the expected improvements in injury rates or return-to-duty times. The 'full and open competition after exclusion of sources' approach, while intended to ensure quality, could also introduce risks if the excluded sources were highly competitive or if the selection process inadvertently overlooked superior capabilities. Furthermore, reliance on a single contractor for five years carries the inherent risk of technological obsolescence or shifts in medical best practices that the contractor may not adapt to quickly.

How effective is this contract likely to be in achieving its stated goals of reducing injuries and accelerating return to duty?

The effectiveness of this contract hinges on several factors not fully detailed in the provided data. The specific methodologies and technologies employed by LMR TECHNICAL GROUP LLC to increase physical capacity and decrease injury rates are crucial. A firm fixed-price contract incentivizes cost control, but the quality of service delivery must be rigorously monitored. Success will depend on the accurate identification of injury causes, the efficacy of the prescribed interventions, and the aircrew's adherence to the program. If the program is well-designed, evidence-based, and effectively implemented, it has a strong potential to achieve its goals, leading to significant improvements in aircrew readiness and potentially reducing long-term healthcare expenditures.

What are the historical spending patterns for aircrew health and readiness services within the Department of Defense?

Historical spending patterns for aircrew health and readiness services within the Department of Defense are substantial and multifaceted, encompassing a wide range of programs. This includes funding for aerospace medicine, specialized medical equipment, research and development into human performance optimization, and direct medical care contracts similar to this one. While specific figures for 'aircrew health services' as a distinct category are not readily available without deep dives into defense budget allocations, the overall investment in maintaining the health and operational effectiveness of aircrews is a consistent priority. Spending fluctuates based on modernization efforts, new aircraft platforms, and evolving threat landscapes, but it remains a critical component of defense readiness.

What is the potential impact of this contract on the broader defense healthcare market?

This contract, valued at $41.9 million, contributes to the broader defense healthcare market by validating the need for specialized services focused on performance enhancement and injury prevention for high-risk personnel like fighter aircrew. It signals a continued investment in proactive health management rather than solely reactive treatment. The success of LMR TECHNICAL GROUP LLC under this contract could influence future procurement strategies, potentially leading to increased demand for similar specialized services across different military occupational specialties or even within other federal agencies with demanding physical requirements. It also highlights the growing role of private sector expertise in supporting military health and readiness.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Physical, Occupational and Speech Therapists, and Audiologists

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489018R5035

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 133 MAGNOLIA AVE SE, FORT WALTON BEACH, FL, 32548

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $107,431,519

Exercised Options: $95,818,765

Current Obligation: $41,924,873

Actual Outlays: $5,627,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline