DoD awards $12.9M for VX-9 China Lake CFT Support, with 2 bids received

Contract Overview

Contract Amount: $12,948,672 ($12.9M)

Contractor: 4M HR Logistics LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-03

End Date: 2026-10-31

Contract Duration: 1,032 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT FIELD TEAM (CFT) SUPPORT SERVICES - VX-9 CHINA LAKE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to 4M HR LOGISTICS LLC for work described as: CONTRACT FIELD TEAM (CFT) SUPPORT SERVICES - VX-9 CHINA LAKE Key points: 1. Contract value appears reasonable given the scope of support services. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. Contract duration of over 1000 days warrants close performance monitoring. 4. Services are critical for the operational readiness of VX-9. 5. This contract falls within the broader Defense sector's support services spending.

Value Assessment

Rating: good

The contract value of approximately $12.9 million over roughly 3 years appears to be within a reasonable range for specialized technical support services. Benchmarking against similar contracts for CFT support at other Naval Air Warfare Centers or similar research and development wings would provide a more precise value-for-money assessment. The firm fixed-price structure incentivizes cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. With only two bids received, the level of competition is moderate. This suggests that while some price discovery occurred, it may not have reached the optimal level achievable with a larger pool of bidders, potentially impacting the final price.

Taxpayer Impact: The limited number of bidders may have resulted in a slightly higher price for taxpayers compared to a scenario with more robust competition.

Public Impact

The primary beneficiaries are the VX-9 China Lake personnel who will receive essential support services. Services delivered include critical technical and logistical support for aircraft research and development. The geographic impact is concentrated at the China Lake facility in California. Workforce implications include the direct employment of personnel by 4M HR LOGISTICS LLC and indirect support for the government workforce at VX-9.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to specialized nature of support.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical support functions.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contractor has a track record of providing similar services.
Clear performance period with defined start and end dates.

Sector Analysis

This contract operates within the Defense sector, specifically supporting research, development, testing, and evaluation (RDT&E) activities for naval aviation. The market for specialized technical and logistical support services for government RDT&E facilities is competitive but often requires specific clearances and expertise. Spending in this sub-sector is driven by defense modernization and readiness requirements.

Small Business Impact

The contract was not specifically set aside for small businesses, and the awardee, 4M HR LOGISTICS LLC, is a small business. However, the contract details do not indicate any specific subcontracting requirements for small businesses. The impact on the broader small business ecosystem will depend on whether 4M HR LOGISTICS LLC utilizes other small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and the technical point of contact within VX-9. Performance will be monitored against the terms of the firm fixed-price contract. Transparency is facilitated by the Federal Procurement Data System (FPDS) reporting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Warfare Center (NAWC) Contracts
VX-9 Test Wing Support Services
Aircraft R&D Support Contracts
Logistics and Technical Support Services

Risk Flags

Limited competition
Potential for contractor performance issues
Dependence on specialized contractor support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to 4M HR LOGISTICS LLC. CONTRACT FIELD TEAM (CFT) SUPPORT SERVICES - VX-9 CHINA LAKE

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 $12.9 million.

What is the period of performance?

Start: 2024-01-03. End: 2026-10-31.

What is the track record of 4M HR LOGISTICS LLC in providing similar support services to the Department of Defense?

4M HR LOGISTICS LLC has a history of performing contracts for the Department of Defense, often in the realm of logistics, HR, and administrative support. While specific details on their performance for VX-9 or similar RDT&E wings would require deeper data analysis, their presence in the federal contracting space suggests experience. A review of past performance evaluations and contract awards would provide a clearer picture of their reliability and capability in delivering complex support services. It's important to note that 'similar services' can vary widely, so the exact nature of past contracts is crucial for a comprehensive assessment.

How does the awarded price compare to market rates for similar CFT support services?

Directly comparing the awarded price of $12.9 million to precise market rates for similar Contract Field Team (CFT) support services is challenging without access to proprietary benchmarking data or detailed cost breakdowns. However, given the specialized nature of supporting VX-9's research and development activities at China Lake, costs are likely influenced by the need for cleared personnel, specific technical expertise, and adherence to stringent security protocols. The firm fixed-price nature suggests the contractor absorbed potential cost fluctuations. A more robust comparison would involve analyzing data from similar contracts awarded to other entities supporting comparable RDT&E commands within the DoD, considering factors like contract duration, scope of work, and geographic location.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential contractor performance issues, scope creep, and over-reliance on a single provider for critical functions. Mitigation strategies likely involve rigorous performance monitoring by the government technical point of contact, clearly defined contract deliverables and milestones, and established procedures for managing any changes to the scope of work. The firm fixed-price structure inherently shifts some cost risk to the contractor. Furthermore, the limited competition aspect could pose a risk if the contractor fails to perform, as finding a replacement quickly might be difficult. The government's oversight mechanisms and the contractor's past performance record serve as indicators of potential risk.

What is the expected effectiveness of these support services in enabling VX-9's mission?

The effectiveness of these support services is expected to be high, as they are designed to directly enable VX-9's mission of advancing naval aviation capabilities through research and development. By providing essential logistical, technical, and potentially administrative support, the contractor allows the government personnel at VX-9 to focus on core RDT&E activities. The contract's duration and scope suggest a comprehensive support package. The ultimate measure of effectiveness will be the continued operational readiness and successful execution of VX-9's research programs, which are indirectly facilitated by the services rendered under this contract.

How does this contract's value and duration compare to historical spending patterns for VX-9 support?

Analyzing historical spending patterns for VX-9 support requires access to historical contract data. However, a contract valued at approximately $12.9 million over a period of roughly three years (1032 days) suggests a significant, medium-term investment in support services. This value is likely consistent with the operational tempo and RDT&E requirements of a major naval aviation test wing. Without specific historical data, it's difficult to ascertain if this represents an increase or decrease in spending relative to previous periods, but it indicates a sustained need for these services. The firm fixed-price nature might also represent a shift in contracting strategy compared to cost-reimbursement contracts.

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

Solicitation ID: FA810814R0001

Offers Received: 2

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: $20,481,417

Exercised Options: $18,363,071

Current Obligation: $12,948,672

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