DoD Awards $29.6M for MV-22 Osprey Field Team Support to 4M HR Logistics LLC

Contract Overview

Contract Amount: $29,614,002 ($29.6M)

Contractor: 4M HR Logistics LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-10

End Date: 2026-04-09

Contract Duration: 1,065 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT FIELD TEAM (CFT) MV-22 - MAG 16 (MIRAMAR) AND MAG 39 (CAMP PENDLETON)

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to 4M HR LOGISTICS LLC for work described as: CONTRACT FIELD TEAM (CFT) MV-22 - MAG 16 (MIRAMAR) AND MAG 39 (CAMP PENDLETON) Key points: 1. Contract awarded for critical support services to MV-22 Osprey aircraft. 2. 4M HR Logistics LLC secures a significant contract in the aerospace sector. 3. Full and open competition after exclusion of sources indicates a specific justification. 4. The contract duration of 1065 days suggests a long-term need for these services.

Value Assessment

Rating: good

The award amount of $29.6M for 1065 days appears reasonable for specialized field team support. Benchmarking against similar logistics and maintenance contracts for complex aircraft systems would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while initially open, specific criteria or prior exclusions narrowed the field. This method can impact price discovery if the pool of eligible bidders is significantly reduced.

Taxpayer Impact: Taxpayer funds are being utilized for essential military aviation support, with the competition method aiming for a balance between specialized needs and cost-effectiveness.

Public Impact

Ensures operational readiness of MV-22 Osprey aircraft for Marine Corps units. Supports critical maintenance and logistics functions at key military installations. Impacts personnel readiness and deployment capabilities of aviation units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification needs review.
Potential for price creep in firm-fixed-price contracts over long durations.

Positive Signals

Award supports critical defense asset.
Clear contract end date provides budget certainty.

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft manufacturing and maintenance. Spending benchmarks for similar specialized field support services for military aviation are typically high due to the technical expertise and security requirements involved.

Small Business Impact

The contract was awarded to 4M HR Logistics LLC, and it is noted that small business participation (sb) is false. Further analysis would be needed to determine if subcontracting opportunities were offered to small businesses.

Oversight & Accountability

The Department of the Air Force awarded this contract, implying oversight from this agency. The 'exclusion of sources' clause warrants scrutiny to ensure fair and justified competition practices were followed.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition justification.
Potential for contractor cost overruns impacting long-term value.
Lack of explicit small business participation.
Reliance on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to 4M HR LOGISTICS LLC. CONTRACT FIELD TEAM (CFT) MV-22 - MAG 16 (MIRAMAR) AND MAG 39 (CAMP PENDLETON)

Who is the contractor on this award?

The obligated recipient is 4M HR LOGISTICS 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 $29.6 million.

What is the period of performance?

Start: 2023-05-10. End: 2026-04-09.

What specific factors led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary, and only a limited number of vendors can meet them. This could involve specialized knowledge of the MV-22 platform, existing security clearances, or proximity to the operational bases. A detailed review of the solicitation and award documentation would clarify the exact reasons for excluding other potential bidders.

How does the firm-fixed-price (FFP) structure mitigate cost risks for this long-duration contract?

A firm-fixed-price contract shifts most of the cost risk to the contractor, 4M HR Logistics LLC. This means the government pays a set price regardless of the contractor's actual costs. For a long-duration contract like this (1065 days), it provides budget certainty for the DoD. However, it also means the contractor must accurately estimate all costs upfront, and if costs exceed estimates, the contractor absorbs the loss.

What is the potential impact of this contract on the operational readiness and maintenance efficiency of the MV-22 fleet?

This contract directly supports the operational readiness of the MV-22 fleet by providing essential field team services. By ensuring specialized personnel are available at key locations like Miramar and Camp Pendleton, it facilitates timely maintenance, troubleshooting, and logistical support. This can reduce aircraft downtime, improve mission capability rates, and enhance the overall efficiency of the MV-22 program.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3660 THOUSAND OAKS BOULEVARD BUILDING 1 SUITE 116, SAN ANTONIO, TX, 78247

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $30,453,184

Exercised Options: $29,614,002

Current Obligation: $29,614,002

Actual Outlays: $2,178,883

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0001

IDV Type: IDC

Timeline