DoD's $201M F-15 Repair Contract Awarded to Al Raha Group Amidst Limited Competition

Contract Overview

Contract Amount: $201,036,669 ($201.0M)

Contractor: AL Raha Group for Technical S Ervices

Awarding Agency: Department of Defense

Start Date: 2014-05-30

End Date: 2018-08-28

Contract Duration: 1,551 days

Daily Burn Rate: $129.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF REPAIR AND RETURN SERVICES FOR RSAF F-15 UNCLASSIFIED ITEMS

Plain-Language Summary

Department of Defense obligated $201.0 million to AL RAHA GROUP FOR TECHNICAL S ERVICES for work described as: IGF::OT::IGF REPAIR AND RETURN SERVICES FOR RSAF F-15 UNCLASSIFIED ITEMS Key points: 1. Significant contract value of $201 million for F-15 repair and return services. 2. Limited competition raises questions about potential price overpayment and value for taxpayer dollars. 3. Contract awarded to Al Raha Group for Technical Services, with specific sector focus on Defense. 4. Long contract duration of over 4 years (1551 days) warrants close monitoring for performance and cost.

Value Assessment

Rating: questionable

The contract value of $201 million is substantial. Without clear benchmarks or competitive pricing data, it's difficult to definitively assess if this represents excellent value. The lack of readily available comparable contract data makes a precise pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited approach. This significantly restricts price discovery and potentially leads to higher costs for the government compared to a fully competitive scenario.

Taxpayer Impact: The limited competition raises concerns about taxpayer impact, as the government may not have secured the best possible price for these critical F-15 repair services.

Public Impact

Ensures continued operational readiness of the F-15 fleet through essential repair services. Supports a specific contractor, Al Raha Group, within the defense sector. Potential for increased costs to taxpayers due to limited competition. Long-term commitment impacts budget allocation for defense maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of clear pricing benchmarks
Long contract duration

Positive Signals

Supports critical defense asset (F-15) maintenance
Firm Fixed Price contract type can control cost overruns

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft maintenance and repair. Spending benchmarks in this area are highly variable based on aircraft type, age, and required services. The $201 million figure is significant for a single aircraft platform's sustainment.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to Al Raha Group suggests a focus on larger, established entities within the defense contracting space.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA). Given the contract's duration and value, continuous monitoring of performance, cost, and adherence to terms is crucial to ensure accountability and value for money.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Limited competition
Lack of transparency in pricing justification
Potential for cost overruns due to limited oversight on pricing
Dependency on a single contractor for critical F-15 sustainment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $201.0 million to AL RAHA GROUP FOR TECHNICAL S ERVICES. IGF::OT::IGF REPAIR AND RETURN SERVICES FOR RSAF F-15 UNCLASSIFIED ITEMS

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 $201.0 million.

What is the period of performance?

Start: 2014-05-30. End: 2018-08-28.

What was the justification for limiting competition on this significant F-15 repair contract?

The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique capabilities, urgent needs, or specific government requirements that only one source can meet. Without this information, it's impossible to assess if the limitation was warranted or if it was a missed opportunity for better pricing through broader competition.

How does the $201 million contract value compare to industry benchmarks for similar F-15 repair services?

Direct comparison to industry benchmarks is challenging without more specific details on the scope of 'repair and return services' and the specific F-15 variants involved. However, $201 million over approximately four years represents a substantial investment in sustainment. A lack of competitive bidding makes it difficult to ascertain if this figure represents optimal market pricing or an inflated cost.

What are the potential risks associated with a long-term, limited-competition contract for critical aircraft maintenance?

Key risks include potential cost escalation over time if pricing mechanisms are not robust, reduced incentive for the contractor to innovate or improve efficiency due to lack of competitive pressure, and the possibility of the government becoming locked into a less-than-optimal solution. Furthermore, if the contractor's performance falters, finding and transitioning to an alternative provider mid-contract can be complex and costly.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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: $250,637,856

Exercised Options: $250,637,856

Current Obligation: $201,036,669

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline