DoD's $356M IGF Contract Awarded to Al Raha Group Raises Competition Concerns

Contract Overview

Contract Amount: $355,905,111 ($355.9M)

Contractor: AL Raha Group for Technical S Ervices

Awarding Agency: Department of Defense

Start Date: 2013-05-21

End Date: 2017-12-31

Contract Duration: 1,685 days

Daily Burn Rate: $211.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF INTEGRATED FLEET SUPPORT (IFS) CONTRACT

Plain-Language Summary

Department of Defense obligated $355.9 million to AL RAHA GROUP FOR TECHNICAL S ERVICES for work described as: IGF::OT::IGF INTEGRATED FLEET SUPPORT (IFS) CONTRACT Key points: 1. The contract value is substantial at $355.9 million. 2. Limited competition is a significant factor, with the contract noted as 'NOT AVAILABLE FOR COMPETITION'. 3. The risk profile is elevated due to the lack of competitive bidding. 4. The sector is Defense, specifically logistics consulting services.

Value Assessment

Rating: questionable

The contract was awarded as a firm fixed price, which can be beneficial for cost control. However, without competitive benchmarking, it's difficult to assess if the $355.9 million price represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is explicitly stated as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract (over 4 years) means sustained potential for inflated costs. Lack of transparency in the procurement process could indicate broader systemic issues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Oversight Indicated

Positive Signals

Firm Fixed Price contract type

Sector Analysis

This contract falls within the Defense sector, specifically for logistics consulting services. Spending in this area is critical for operational efficiency but requires rigorous oversight to ensure cost-effectiveness, especially given the specialized nature of the services.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to Al Raha Group suggests a focus on larger, established entities.

Oversight & Accountability

The data provided does not offer details on specific oversight mechanisms employed during the contract's lifecycle. The 'NOT AVAILABLE FOR COMPETITION' status warrants closer examination of the justification and any subsequent oversight to ensure accountability.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding raises concerns about price fairness.
Potential for inflated costs due to sole-source award.
Limited transparency in the procurement process.
No clear indication of small business participation.
Insufficient information on oversight and performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $355.9 million to AL RAHA GROUP FOR TECHNICAL S ERVICES. IGF::OT::IGF INTEGRATED FLEET SUPPORT (IFS) CONTRACT

Who is the contractor on this award?

The obligated recipient is AL RAHA GROUP FOR TECHNICAL S ERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $355.9 million.

What is the period of performance?

Start: 2013-05-21. End: 2017-12-31.

What was the specific justification for awarding this contract without competition, and was it adequately documented and approved?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION' but does not detail the specific justification. Typically, such justifications require rigorous documentation proving that only one source could fulfill the requirement, often due to unique capabilities or urgent needs. Without this documentation, it's impossible to assess the validity of the sole-source award and ensure taxpayer funds were protected.

How was the 'fair and reasonable' price determined for this sole-source contract, and what benchmarks were used?

Determining a 'fair and reasonable' price for a sole-source contract is challenging without competitive bids. Agencies usually rely on historical pricing, commercial item pricing, or cost-plus analysis. The absence of this information for the $355.9 million IGF contract makes it difficult to ascertain if the government received good value, raising concerns about potential overpayment.

What performance metrics and quality assurance measures were in place to ensure the effectiveness of the logistics consulting services provided?

The contract type is Firm Fixed Price, which implies performance expectations are defined. However, the data doesn't specify the performance metrics or quality assurance processes used by the Department of Defense to monitor Al Raha Group's services. Effective oversight is crucial, especially in sole-source situations, to ensure the services delivered met the required standards and achieved the intended operational outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

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: BUILDING 40 PRINCE FAWWAZ BIN, RIYADH

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $355,905,111

Exercised Options: $355,905,111

Current Obligation: $355,905,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline