DoD's $40.8M A&AS IV Services contract awarded to ITILITY, L.L.C. for pilot augmentees

Contract Overview

Contract Amount: $40,830,340 ($40.8M)

Contractor: Itility, L.L.C

Awarding Agency: Department of Defense

Start Date: 2020-03-01

End Date: 2024-08-31

Contract Duration: 1,644 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A&AS IV SERVICES: USAFE/A3 PILOT AUGMENTEES

Plain-Language Summary

Department of Defense obligated $40.8 million to ITILITY, L.L.C for work described as: A&AS IV SERVICES: USAFE/A3 PILOT AUGMENTEES Key points: 1. The contract's value of $40.8M over approximately 4.5 years suggests a significant investment in specialized support services. 2. Awarded under full and open competition, this indicates a broad market search for qualified vendors. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code points to a diverse range of potential support functions. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The duration of 1644 days (approx. 4.5 years) allows for sustained support but also requires careful performance monitoring. 6. The absence of small business set-aside flags suggests the primary focus was on obtaining the best overall solution. 7. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract's value of $40.8M for A&AS IV services, encompassing pilot augmentees for USAFE/A3, appears reasonable given the duration and specialized nature of the support. Benchmarking against similar contracts for professional, scientific, and technical services within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost risks for the government, but the ultimate value depends on the effective delivery of augmentee support and the impact on pilot readiness and training.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Air Force sought proposals from all responsible sources. The fact that it resulted in a single delivery order (no. 3) implies that multiple bids may have been received, but ITILITY, L.L.C. was selected as the most advantageous. The level of competition is a positive indicator for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services. It ensures that a wide range of potential contractors have the opportunity to bid, preventing potential monopolies and encouraging innovation.

Public Impact

The primary beneficiaries are the United States Air Forces in Europe (USAFE) and Air Force Air Staff (A3) directorate, receiving augmented personnel to support pilot training and operations. The services delivered likely involve providing skilled personnel to fill gaps in pilot training, mission planning, or operational support, enhancing overall readiness. The geographic impact is primarily within the USAFE AOR (Area of Responsibility), supporting European-based Air Force operations and training initiatives. Workforce implications include the potential for highly skilled technical and aviation professionals to be employed on this contract, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'pilot augmentees' is not clearly delineated.
Dependence on ITILITY, L.L.C. for critical augmentation could pose a risk if contractor performance falters.
Ensuring the qualifications and continued proficiency of augmentee personnel is crucial for mission success.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost predictability for the government.
Long-term duration allows for sustained support and relationship building with the contractor.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide array of support functions for government agencies. Spending in this sector is substantial across the federal government, supporting everything from administrative tasks to highly specialized technical and analytical support. The Department of Defense is a major consumer of these services, often utilizing them to augment military personnel or fill specialized skill gaps.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was competed broadly, and the primary evaluation criteria likely focused on technical capability and overall best value rather than small business participation. There is no explicit information on subcontracting plans, but given the lack of a small business set-aside, the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Training Support Services
Professional and Technical Services Contracts
Pilot Training Augmentation Programs
Defense Support Services
USAFE Operations Support

Risk Flags

Potential for extended duration to lead to price uncompetitiveness if market rates change.
Need for robust oversight to ensure quality and effectiveness of augmentee services.
Dependence on a single contractor for critical augmentation requires strong performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to ITILITY, L.L.C. A&AS IV SERVICES: USAFE/A3 PILOT AUGMENTEES

Who is the contractor on this award?

The obligated recipient is ITILITY, L.L.C.

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 $40.8 million.

What is the period of performance?

Start: 2020-03-01. End: 2024-08-31.

What is the specific role and expected contribution of the 'pilot augmentees' under this contract?

The contract description 'A&AS IV SERVICES: USAFE/A3 PILOT AUGMENTEES' suggests that the 'pilot augmentees' are personnel provided by ITILITY, L.L.C. to supplement the existing workforce within the USAFE (United States Air Forces in Europe) and the Air Staff's A3 directorate (likely related to air operations and readiness). Their specific roles could range from providing subject matter expertise in aviation and flight operations, assisting with training curriculum development and delivery, supporting mission planning and analysis, to potentially filling temporary gaps in operational crew positions where civilian augmentation is permissible and beneficial. The exact nature of their contribution would be detailed in the Statement of Work (SOW) associated with the delivery order, outlining their duties, required qualifications, and performance metrics. The goal is likely to enhance pilot training effectiveness, improve operational readiness, and provide specialized skills that may be in short supply within the military ranks.

How does the $40.8M contract value compare to similar 'All Other Professional, Scientific, and Technical Services' contracts within the Department of Defense?

The $40.8M contract value for 'All Other Professional, Scientific, and Technical Services' awarded to ITILITY, L.L.C. is a substantial figure, indicative of a significant scope of work. To benchmark this value, one would typically compare it against other contracts under the same or similar NAICS codes (e.g., 541990, 541611, 541690) awarded by the Department of Defense or other federal agencies over comparable timeframes. Contracts for specialized technical support, advisory services, or augmentation personnel within defense can range widely, from a few million to hundreds of millions of dollars, depending on the duration, complexity, and criticality of the services. Given the approximately 4.5-year duration and the specialized nature of pilot augmentation for a major combatant command like USAFE, $40.8M appears to be within a reasonable range for such a requirement. However, a precise comparison would require access to detailed contract data for similar services, including the specific deliverables and performance standards.

What are the primary risks associated with a firm-fixed-price contract of this duration (over 4 years)?

The primary risks associated with a firm-fixed-price (FFP) contract of this duration (1644 days, approx. 4.5 years) primarily revolve around potential cost overruns for the contractor and potential for reduced value for the government if market conditions or requirements change significantly. For the contractor, unforeseen increases in labor costs, inflation, or operational expenses could erode profit margins, potentially leading to performance issues or requests for contract modification. For the government, the risk is that the fixed price may become uncompetitive if market rates decrease or if the scope of work needs to be significantly altered due to evolving mission requirements. If the contractor is locked into an unfavorable price, they might cut corners on quality or service delivery to maintain profitability. Effective contract management, including regular performance reviews and clear change order procedures, is crucial to mitigate these risks over such an extended period.

What does the 'DELIVERY ORDER' award type signify in the context of this contract?

The 'DELIVERY ORDER' award type signifies that this contract is likely structured under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract, a blanket purchase agreement (BPA), or a similar contract vehicle. Instead of awarding a single, large contract for the entire anticipated need, agencies often establish IDIQ contracts that allow them to issue multiple delivery orders (for supplies) or task orders (for services) over a specified period. This provides flexibility for the government to order services as needed, up to a certain ceiling amount. In this case, the $40.8M represents the value of this specific delivery order issued to ITILITY, L.L.C. under a broader contract. This approach allows the Air Force to procure pilot augmentation services efficiently and adapt to fluctuating requirements without needing to conduct a full, separate competition for each individual need.

Are there any indications of contractor performance issues or past performance concerns with ITILITY, L.L.C. based on publicly available data?

Publicly available data, such as contract award databases (like FPDS), typically does not contain detailed information on contractor performance issues unless they have led to formal disputes, contract terminations, or significant corrective actions that are publicly documented. The award of this $40.8M contract to ITILITY, L.L.C. under full and open competition suggests that, at the time of award, the contractor met the required performance standards and was deemed capable of fulfilling the contract requirements. Past performance is usually a significant evaluation factor in competitive procurements. Without access to internal government performance reviews or specific protest filings, it is difficult to definitively assess any past performance concerns. However, the issuance of a delivery order of this magnitude implies a level of confidence in the contractor's ability to perform.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14840 CONFERENCE CTR DR STE 100, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $41,190,495

Exercised Options: $41,190,495

Current Obligation: $40,830,340

Actual Outlays: $29,542,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA564119DA006

IDV Type: IDC

Timeline