DoD awards $27.1M for C-5 technical manuals, raising questions about competition and value

Contract Overview

Contract Amount: $27,101,236 ($27.1M)

Contractor: Mccallie Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-10

End Date: 2026-03-31

Contract Duration: 1,937 days

Daily Burn Rate: $14.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONVERSION OF INTERACTIVE ELECTRONIC TECHNICAL MANUALS ON C-5

Place of Performance

Location: BELLEVUE, SARPY County, NEBRASKA, 68123

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to MCCALLIE ASSOCIATES, INC. for work described as: CONVERSION OF INTERACTIVE ELECTRONIC TECHNICAL MANUALS ON C-5 Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 1937 days (over 5 years) suggests a long-term need for these services. 3. Lack of competition raises concerns about whether the government secured the best possible value. 4. The fixed-price contract type shifts some risk to the contractor, but oversight is crucial. 5. The specific NAICS code (511130 - Book Publishers) indicates a focus on publishing and content creation. 6. The contract's value is moderate within the context of large defense procurements.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source award. Without competitive bids, it's difficult to ascertain if the $27.1 million represents a fair market price for the conversion of interactive electronic technical manuals for the C-5 aircraft. The fixed-price nature provides some cost certainty, but the absence of competition means there's no direct comparison to other offers. Further analysis would require understanding the scope of work and comparing it to similar technical documentation conversion projects, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, McCallie Associates, Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and reduce the potential for achieving the lowest possible cost for the government. The lack of multiple bidders means taxpayers did not benefit from the downward pressure that competition typically provides.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium compared to what could have been achieved through a competitive process. Without competing offers, there is less assurance that the negotiated price reflects the best value available in the market.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel operating and maintaining the C-5 aircraft, who will receive updated technical documentation. The services delivered involve the conversion of existing technical manuals into an interactive electronic format, likely improving usability and accessibility. The geographic impact is primarily within the Department of Defense's operational sphere, supporting a key strategic airlift asset. Workforce implications may include specialized technical writers, illustrators, and software developers involved in the conversion process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Long contract duration could indicate potential for cost overruns if not managed effectively.
The specific value of the contract, while not excessively large, warrants scrutiny due to the lack of competition.

Positive Signals

Fixed-price contract type helps to cap costs for the government.
Conversion to interactive electronic manuals can improve efficiency and reduce errors in maintenance.
The contract supports a critical military asset (C-5 aircraft).

Sector Analysis

The defense sector relies heavily on specialized technical documentation to ensure the safe and effective operation of complex military equipment. This contract falls within the broader information services and publishing industry, specifically focusing on technical publications. The market for such services can be niche, with a limited number of contractors possessing the required expertise and security clearances. Comparable spending benchmarks are difficult to establish without more detailed information on the scope and complexity of the technical manuals being converted.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The prime contractor, McCallie Associates, Inc., is a small business itself, which is a positive signal for the small business ecosystem. However, the lack of explicit set-aside or subcontracting goals means the direct impact on broader small business participation in this specific contract is likely limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the justification for the sole-source award and ongoing performance monitoring are key accountability measures. The Inspector General's office for the Department of Defense may also conduct audits or investigations if specific concerns arise regarding waste, fraud, or abuse.

Related Government Programs

C-5 Galaxy Sustainment Programs
Technical Data and Documentation Services
Defense Logistics Agency (DLA) Information Services
Air Mobility Command (AMC) Operations Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing due to lack of competition.
Long contract duration may increase risk of scope creep or obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to MCCALLIE ASSOCIATES, INC.. CONVERSION OF INTERACTIVE ELECTRONIC TECHNICAL MANUALS ON C-5

Who is the contractor on this award?

The obligated recipient is MCCALLIE ASSOCIATES, INC..

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 $27.1 million.

What is the period of performance?

Start: 2020-12-10. End: 2026-03-31.

What is the specific justification provided by the Department of the Air Force for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED,' which is synonymous with a sole-source award. However, the specific justification for this determination is not included in the abbreviated data. Typically, sole-source awards are justified under circumstances such as the existence of only one responsible source capable of providing the required service or supply, urgent and compelling needs that preclude full and open competition, or when the contract is a follow-on to a competitively awarded contract where only one contractor can provide the necessary services. A detailed review of the contract file and associated justifications would be necessary to understand the Air Force's rationale.

How does the $27.1 million contract value compare to historical spending on C-5 technical manual support?

The provided data does not include historical spending figures for C-5 technical manual support, making a direct comparison impossible. To assess this, one would need to access historical contract databases (like FPDS or USASpending) and search for similar contracts awarded to the same or different contractors for the C-5 technical manuals over previous years. Analyzing trends in spending, contract types, and competition levels over time would provide valuable context for the current $27.1 million award. Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, based on the description 'CONVERSION OF INTERACTIVE ELECTRONIC TECHNICAL MANUALS ON C-5,' the primary deliverable is the successful conversion of existing technical manuals into an interactive electronic format. Expected KPIs would likely relate to the accuracy and completeness of the converted manuals, adherence to specified technical standards, timely delivery of converted content, and potentially user feedback on the usability of the interactive format. A thorough review of the Statement of Work (SOW) within the full contract documentation would outline these specific requirements and metrics.

What is the track record of McCallie Associates, Inc. in performing similar technical documentation conversion services for the Department of Defense?

McCallie Associates, Inc. is listed as the contractor for this $27.1 million award. To assess their track record, one would need to examine their past performance on similar contracts. This involves searching contract databases for previous awards to McCallie Associates, particularly those involving technical manual conversion, electronic documentation, or support for aviation platforms like the C-5. Evaluating past performance reviews, any reported issues or successes, and the overall value and duration of their prior contracts would provide insight into their capability and reliability in delivering such services to the Department of Defense.

What are the potential risks associated with a long-duration contract (1937 days) for technical manual conversion?

A long contract duration of 1937 days (over 5 years) for technical manual conversion presents several potential risks. Firstly, the scope of work or the technology involved might evolve significantly over this period, potentially making the initial requirements outdated or necessitating costly modifications. Secondly, maintaining consistent quality and performance from the contractor over an extended period requires robust oversight and performance management. Thirdly, if the contract is fixed-price, unforeseen technical challenges or inflation could impact the contractor's profitability, potentially leading to requests for contract modifications or disputes. Finally, a sole-source award over such a long period limits the opportunity to re-evaluate market offerings or bring in new capabilities.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Book Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852520R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3906 RAYNOR PKWY STE 200, BELLEVUE, NE, 68123

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,101,236

Exercised Options: $27,101,236

Current Obligation: $27,101,236

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $11,079,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline