Air Force Awards $72.4M Firm Fixed Price Contract for Services, Limited Competition

Contract Overview

Contract Amount: $72,389,709 ($72.4M)

Contractor: Ministry of Defense

Awarding Agency: Department of Defense

Start Date: 2020-10-21

End Date: 2021-09-30

Contract Duration: 344 days

Daily Burn Rate: $210.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: US OBLIGATION IAW ART. 4 OF THE BASIC CONTRACT, MLC NO. DA-92-557-FEC-28000 (FA5209-57-D-0001) EFFECTIVE 1 OCT 1957. THIS REPORTED CONTRACT AMOUNT IS FOR USG SHARE.

Plain-Language Summary

Department of Defense obligated $72.4 million to MINISTRY OF DEFENSE for work described as: US OBLIGATION IAW ART. 4 OF THE BASIC CONTRACT, MLC NO. DA-92-557-FEC-28000 (FA5209-57-D-0001) EFFECTIVE 1 OCT 1957. THIS REPORTED CONTRACT AMOUNT IS FOR USG SHARE. Key points: 1. Contract value of $72.4M for services. 2. Limited competition due to contract type. 3. Potential risk associated with long-term service contracts. 4. Spending falls under the Department of the Air Force.

Value Assessment

Rating: fair

The contract value of $72.4M is significant. Without specific service details or benchmarks, it's difficult to assess pricing effectiveness. The firm fixed price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is not available for competition, indicating a limited source selection. This approach may impact price discovery and potentially lead to higher costs compared to a fully competitive process.

Taxpayer Impact: Taxpayer funds are committed to this contract, with the potential for reduced value due to limited competition.

Public Impact

Ensures continued service delivery for the Air Force. Potential for cost inefficiencies due to limited competition. Impact on small businesses is not specified.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of specific service details
Long contract duration

Positive Signals

Firm fixed price contract type
Clear contract end date

Sector Analysis

This contract falls under general services for the Department of the Air Force. Benchmarking is difficult without knowing the specific services rendered, but large service contracts are common across government agencies.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if small businesses could have competed or subcontracted.

Oversight & Accountability

The contract is managed by the Department of the Air Force. Oversight would involve monitoring performance, adherence to terms, and financial accountability throughout the contract period.

Related Government Programs

Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition
Lack of detailed service description
Potential for inflated pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.4 million to MINISTRY OF DEFENSE. US OBLIGATION IAW ART. 4 OF THE BASIC CONTRACT, MLC NO. DA-92-557-FEC-28000 (FA5209-57-D-0001) EFFECTIVE 1 OCT 1957. THIS REPORTED CONTRACT AMOUNT IS FOR USG SHARE.

Who is the contractor on this award?

The obligated recipient is MINISTRY OF DEFENSE.

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 $72.4 million.

What is the period of performance?

Start: 2020-10-21. End: 2021-09-30.

What specific services are covered under this $72.4M contract to assess value for money?

The provided data lacks specifics on the services rendered under contract DA-92-557-FEC-28000. Understanding the nature of these services (e.g., maintenance, IT support, logistics) is crucial for evaluating the contract's value and determining if the $72.4M obligation represents a fair price compared to market rates for similar offerings.

What are the risks associated with a 'not available for competition' designation for this contract?

A 'not available for competition' designation inherently limits the government's ability to solicit bids from multiple vendors, potentially leading to higher prices and reduced innovation. It raises concerns about whether the government secured the best possible value and could indicate a lack of market research or a pre-existing relationship with the sole provider.

How does the firm fixed price structure impact the effectiveness of this contract given the limited competition?

The firm fixed price (FFP) structure is designed to provide cost certainty for the government, shifting most of the risk to the contractor. However, with limited competition, the contractor may have less incentive to offer the most competitive price upfront. The effectiveness hinges on the contractor's ability to deliver the required services within the fixed price without compromising quality.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: National University Corporation Yokohama National University (UEI: 718105944)

Address: 5-1, ICHIGAYAHOMMURACHO, SHINJUKU-KU

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $72,389,709

Exercised Options: $72,389,709

Current Obligation: $72,389,709

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA520957D0001

IDV Type: IDC

Timeline