Air Force awards $35.9M contract for Remotely Piloted Aircraft Squadron Operations Center Enterprise support

Contract Overview

Contract Amount: $35,897,754 ($35.9M)

Contractor: KOA Lani JV LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-22

End Date: 2026-08-21

Contract Duration: 1,095 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REMOTELY PILOTED AIRCRAFT SQUADRON OPERATIONS CENTER ENTERPRISE (RPA SOC-E), CONVENTIONAL SUPPORT

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to KOA LANI JV LLC for work described as: REMOTELY PILOTED AIRCRAFT SQUADRON OPERATIONS CENTER ENTERPRISE (RPA SOC-E), CONVENTIONAL SUPPORT Key points: 1. Contract provides essential support for RPA squadron operations, crucial for modern air combat. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Performance period spans three years, indicating a medium-term commitment to these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This award is part of a larger enterprise effort for RPA operations. 6. The contractor, KOA LANI JV LLC, is a joint venture, potentially bringing specialized capabilities.

Value Assessment

Rating: good

The contract value of $35.9 million over three years appears reasonable for specialized IT and operational support services for a critical defense function. Benchmarking against similar contracts for enterprise-level IT operations and squadron support would provide a more precise value-for-money assessment. The Firm Fixed Price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns. However, without detailed cost breakdowns or comparisons to industry standards for similar managed services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on prior performance or other criteria. Six bids were received, suggesting a healthy level of interest and competition for this requirement. The presence of multiple bidders generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The government received multiple offers, allowing for comparison and selection of the best value.

Public Impact

The primary beneficiaries are the U.S. Air Force's Remotely Piloted Aircraft (RPA) squadrons, ensuring their operational readiness and effectiveness. Services delivered include enterprise-level support for operations centers, critical for managing and controlling RPA missions. The contract is geographically focused on Florida (st/sn), indicating a concentration of RPA operations or support infrastructure in that state. This contract supports specialized IT and operational roles, potentially impacting the workforce skilled in managing complex aviation and data systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the joint venture's proprietary systems become deeply integrated.
Reliance on a joint venture structure could introduce complexities in management and accountability.
The 'after exclusion of sources' clause warrants scrutiny to understand the rationale behind exclusions and ensure fairness.
Scope creep could become an issue if the definition of 'enterprise operations' is not tightly managed.

Positive Signals

Full and open competition suggests a robust market exists for these services.
Firm Fixed Price contract shifts cost risk to the contractor, providing budget certainty.
The three-year duration allows for stable support and performance.
Award to a joint venture may indicate a strategic approach to leveraging diverse expertise.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on IT services supporting critical defense operations. The market for enterprise IT support, particularly for specialized applications like RPA operations centers, is significant and growing. Comparable spending benchmarks would likely be found in contracts for managed IT services, network operations, and specialized software support within the federal government and large defense contractors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, the joint venture structure of the prime contractor, KOA LANI JV LLC, might involve subcontracting opportunities for small businesses, depending on the JV's internal structure and subcontracting plans. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will likely be managed by the Department of the Air Force contracting and program management offices responsible for RPA operations. Accountability measures are typically embedded within the contract's performance work statement (PWS) and include metrics for service delivery, uptime, and responsiveness. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may remain classified.

Related Government Programs

Air Force RPA Operations Support
Defense IT Infrastructure Management
Intelligence, Surveillance, and Reconnaissance (ISR) Support Services
Aerospace Command and Control Systems

Risk Flags

Potential for performance issues due to contractor inexperience.
Risk of scope creep in undefined 'enterprise operations'.
Cybersecurity vulnerabilities in supported systems.
Potential management complexities with joint venture structure.
Rationale for 'exclusion of sources' requires clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to KOA LANI JV LLC. REMOTELY PILOTED AIRCRAFT SQUADRON OPERATIONS CENTER ENTERPRISE (RPA SOC-E), CONVENTIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is KOA LANI JV 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 $35.9 million.

What is the period of performance?

Start: 2023-08-22. End: 2026-08-21.

What is the track record of KOA LANI JV LLC in performing similar federal contracts?

Information regarding the specific track record of KOA LANI JV LLC is limited in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established record. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to identify past performance evaluations, contract awards, and any reported issues. Understanding the experience of the individual entities forming the joint venture would also be crucial for assessing their capability to fulfill this complex requirement. Without this specific data, assessing their reliability relies heavily on the competitive process and the government's due diligence during award.

How does the $35.9 million contract value compare to similar RPA operations support contracts?

Directly comparing the $35.9 million value requires access to a database of similar contracts, which is not provided. However, for context, enterprise-level IT support for complex operational systems within the Department of Defense can range from tens to hundreds of millions of dollars over several years. The three-year duration (1095 days) and the nature of supporting RPA squadron operations suggest this is a significant but not exceptionally large contract within the defense IT services landscape. Factors influencing value include the scope of services (e.g., 24/7 operations, cybersecurity, system maintenance), the number of users/systems supported, and the specific technologies involved. A benchmark analysis would involve identifying contracts with similar service descriptions, agencies, and contract types.

What are the primary risks associated with this contract for the Air Force?

Key risks include potential performance deficiencies by the contractor, leading to disruptions in RPA operations. Given the 'after exclusion of sources' clause, there's a risk that the exclusion criteria might have inadvertently limited the pool of highly capable vendors, potentially impacting long-term innovation or cost-effectiveness. Another risk is the potential for scope creep if the 'enterprise operations' definition is not rigorously managed, leading to cost increases. Cybersecurity vulnerabilities within the supported systems also represent a significant risk, requiring robust security protocols from the contractor. Finally, the reliance on a joint venture structure could introduce management complexities or potential disputes among partners, impacting service continuity.

How effective is the Firm Fixed Price (FFP) contract type in managing costs for this type of service?

The Firm Fixed Price (FFP) contract type is generally effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For IT services like RPA SOC-E, where requirements can evolve, FFP shifts the risk of cost overruns to the contractor. This provides budget certainty for the Air Force. However, if the contractor underestimates costs or encounters unforeseen technical challenges, they may cut corners on quality or service delivery to maintain profitability, potentially impacting performance. Conversely, if the scope is not precisely defined, the contractor may seek change orders, negating some FFP benefits. Effective management and clear PWS are crucial for FFP success in dynamic IT environments.

What are the historical spending patterns for RPA squadron operations support within the Air Force?

Historical spending patterns for RPA squadron operations support within the Air Force have likely shown a consistent increase over the past decade, driven by the expanding role of unmanned systems in military operations. This includes investments in training, maintenance, intelligence analysis, and the IT infrastructure required to operate and control these aircraft. Contracts for similar support functions, including operations center management and IT services, would represent a significant portion of this spending. Analyzing past awards for RPA operations centers, mission planning systems, and associated IT infrastructure would reveal trends in contract values, durations, and the types of services procured, indicating a growing reliance on contracted support for these capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12565 RESEARCH PKWY STE 300, ORLANDO, FL, 32826

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,355,705

Exercised Options: $36,143,413

Current Obligation: $35,897,754

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA489022D0003

IDV Type: IDC

Timeline