BLACK LABEL D1D2 PROGRAM contract awarded to OMNI FED LLC for $7.18M by the Department of the Air Force

Contract Overview

Contract Amount: $7,179,344 ($7.2M)

Contractor: Omni FED LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-16

End Date: 2026-05-15

Contract Duration: 515 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BLACK LABEL D1D2 PROGRAM

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78258

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $7.2 million to OMNI FED LLC for work described as: BLACK LABEL D1D2 PROGRAM Key points: 1. Contract value of $7.18 million for research and development services. 2. Awarded by the Department of the Air Force, indicating a focus on defense-related R&D. 3. Contract type is a Firm Fixed Price, suggesting defined scope and cost control. 4. Duration of 515 days, spanning over a year and a half. 5. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery contract. 6. No specific small business set-aside was indicated for this award.

Value Assessment

Rating: fair

The contract value of $7.18 million for R&D services appears to be within a typical range for specialized research projects. However, without specific benchmarks for the 'BLACK LABEL D1D2 PROGRAM' or comparable contracts for similar R&D efforts, a precise value-for-money assessment is challenging. The firm fixed price structure provides some cost certainty, but the overall value is contingent on the successful delivery of research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is often used when a specific contractor possesses unique capabilities, intellectual property, or has already demonstrated expertise critical to the project's success. The lack of competition may limit price discovery and potentially lead to higher costs compared to a fully competed scenario.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to leverage competitive bidding to secure the best possible price. This necessitates a strong reliance on the government's negotiation and oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other defense entities requiring the research outcomes. Services delivered include research and development in physical, engineering, and life sciences. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications include employment opportunities for researchers and technical staff at OMNI FED LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could result in a higher price than if multiple bids were solicited.
Sole-source awards require robust government oversight to ensure fair pricing and performance.
The specific nature of the R&D may make it difficult to benchmark against publicly available data.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
The contractor, OMNI FED LLC, has been awarded this contract, suggesting they meet specific requirements.
The contract is for research and development, potentially leading to advancements in defense technology.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically within physical, engineering, and life sciences. This sector is crucial for defense innovation, with significant government investment. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus of the 'BLACK LABEL D1D2 PROGRAM'. However, R&D contracts can range from millions to billions of dollars depending on the scope and technological advancement sought.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This suggests that the primary contractor, OMNI FED LLC, is either not a small business or the nature of the R&D project did not lend itself to small business participation goals. The impact on the small business ecosystem is neutral in this instance, as there were no specific provisions made for them.

Oversight & Accountability

Oversight for this contract would primarily rest with the Department of the Air Force contracting officers and program managers. Accountability measures are embedded in the Firm Fixed Price contract terms, requiring delivery of specified research outcomes. Transparency is limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Federal Research Grants and Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of specific program details hinders full value assessment.
Contract performance risk lies primarily with the contractor under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.2 million to OMNI FED LLC. BLACK LABEL D1D2 PROGRAM

Who is the contractor on this award?

The obligated recipient is OMNI FED 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 $7.2 million.

What is the period of performance?

Start: 2024-12-16. End: 2026-05-15.

What is the specific nature of the 'BLACK LABEL D1D2 PROGRAM' and its objectives?

The provided data does not specify the exact objectives or nature of the 'BLACK LABEL D1D2 PROGRAM'. This program falls under the North American Industry Classification System (NAICS) code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). Such programs within the Department of Defense often focus on developing new technologies, materials, or methodologies to enhance military capabilities, improve operational efficiency, or address emerging threats. Without further classified or detailed public information, the precise goals remain undisclosed, but it is reasonable to infer a focus on advancing scientific and engineering knowledge for defense applications.

How does the contract value of $7.18 million compare to similar R&D contracts awarded by the Air Force?

Comparing the $7.18 million contract value requires access to a database of similar R&D contracts awarded by the Air Force, ideally for projects with comparable scope and complexity under NAICS code 541715. General R&D contracts can vary significantly in price. Smaller, focused research efforts might be in the low millions, while large-scale, multi-year development programs can reach hundreds of millions or even billions. Given the firm fixed price and a duration of approximately 1.5 years, $7.18 million suggests a moderately sized R&D project. Without specific comparable contract data, it's difficult to definitively state if this represents excellent, fair, or concerning value, but it is not an exceptionally large sum for defense R&D.

What are the potential risks associated with a sole-source R&D contract of this nature?

The primary risk of a sole-source R&D contract is the potential for inflated pricing due to the absence of competitive pressure. The government may not achieve the best possible value for its investment. Another risk is contractor performance; if OMNI FED LLC encounters unforeseen technical challenges or fails to deliver the expected research outcomes, the government has limited recourse compared to a scenario with multiple bidders vying for the contract. Furthermore, sole-source awards can sometimes indicate a lack of readily available alternative sources or a reliance on proprietary technology, which can create long-term dependencies and limit future flexibility. Robust government oversight and clear performance metrics are crucial to mitigate these risks.

What is the track record of OMNI FED LLC in securing and performing on federal R&D contracts?

The provided data indicates OMNI FED LLC is the contractor for this specific award. To assess their track record, one would need to examine their past performance on federal contracts, particularly those related to R&D and within the physical, engineering, and life sciences domain. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to OMNI FED LLC, reviewing contract performance reports (if publicly available), and looking for any past performance issues or commendations. Without this historical data, it is impossible to evaluate their track record effectively.

How does the firm fixed price (FFP) contract type influence the risk and reward for both the government and the contractor?

A Firm Fixed Price (FFP) contract shifts most of the cost risk to the contractor, OMNI FED LLC. The government agrees to pay a set price regardless of the contractor's actual costs incurred in performing the work. This provides budget certainty for the government and incentivizes the contractor to manage costs efficiently to maximize profit. For the contractor, the reward is the potential for higher profit if they can complete the work below the fixed price. However, it also means that if costs exceed the fixed price due to unforeseen circumstances or poor management, the contractor absorbs the loss. This contract type is generally preferred for R&D when the scope of work is well-defined and technical risks are manageable.

What are the implications of this contract being a 'Delivery Order' rather than a standalone contract?

The designation of this award as a 'Delivery Order' implies that it is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means that OMNI FED LLC likely has a master contract in place with the Department of the Air Force or another agency, allowing for the issuance of multiple delivery orders over a specified period. The 'BLACK LABEL D1D2 PROGRAM' award represents one specific task or project within that broader contractual framework. This approach allows agencies to procure services more efficiently and rapidly as needs arise, without needing to establish a new contract for each individual requirement. The total value of the IDIQ contract would be significantly higher than this single delivery order.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7528 RIO GRANDE WAY, GAINESVILLE, VA, 20155

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,704,938

Exercised Options: $7,879,969

Current Obligation: $7,179,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: FA228024G0004

IDV Type: BOA

Timeline