DoD's $957M Balad Air Base Support Contract with Sallyport Global Holdings Inc. Raises Oversight Concerns

Contract Overview

Contract Amount: $956,738,923 ($956.7M)

Contractor: Sallyport Global Holdings Inc

Awarding Agency: Department of Defense

Start Date: 2014-01-31

End Date: 2020-10-31

Contract Duration: 2,465 days

Daily Burn Rate: $388.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BASE OPERATIONS SUPPORT, BASE LIFE SUPPORT, AND SECURITY SERVICES AT BALAD AIR BASE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $956.7 million to SALLYPORT GLOBAL HOLDINGS INC for work described as: IGF::OT::IGF BASE OPERATIONS SUPPORT, BASE LIFE SUPPORT, AND SECURITY SERVICES AT BALAD AIR BASE Key points: 1. The contract awarded to Sallyport Global Holdings Inc. for base operations support at Balad Air Base represents a significant expenditure of $957 million. 2. The 'NOT AVAILABLE FOR COMPETITION' status indicates a lack of competitive bidding, potentially impacting price discovery and value for taxpayer money. 3. The contract duration of 2465 days (over 6 years) suggests a long-term commitment, requiring ongoing scrutiny for performance and cost-effectiveness. 4. The absence of small business participation (ss: false, sb: false) means opportunities for smaller enterprises were not leveraged in this large contract. 5. The 'VA' (Virginia) state designation for the contractor is noted, but the primary focus remains on the federal spending and contract execution.

Value Assessment

Rating: questionable

Pricing for this contract is difficult to assess without competitive benchmarks. The firm fixed-price structure aims for cost certainty, but the lack of competition means there's no market validation to confirm if the price is reasonable compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits the government's ability to leverage market forces to achieve the best possible price and terms, potentially leading to higher costs.

Taxpayer Impact: The lack of competition in this nearly billion-dollar contract means taxpayers may not be receiving the best value, as competitive pressures that typically drive down costs were absent.

Public Impact

Taxpayers are funding extensive base operations and security services at a significant cost. The absence of competition raises questions about the efficiency and cost-effectiveness of the awarded services. The long-term nature of the contract impacts sustained federal spending and resource allocation. Lack of small business involvement means missed opportunities for economic inclusion and potentially innovative solutions from smaller firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Small Business Participation
Long Contract Duration

Positive Signals

Firm Fixed Price contract type can provide cost certainty if managed well.

Sector Analysis

This contract falls under 'All Other Support Services' (NAICS 561990), a broad category encompassing various operational support functions. Benchmarking is challenging due to the specificity of base support services, but large-scale contracts in this sector often require rigorous oversight to ensure value.

Small Business Impact

The contract explicitly states no small business participation (ss: false, sb: false). This indicates that opportunities for small businesses to contribute to or benefit from this significant federal expenditure were not pursued or were deemed unsuitable for this specific requirement.

Oversight & Accountability

The 'VA' status and the sole-source nature of this large contract warrant close oversight. Ensuring performance standards are met and costs are justified, especially without competitive pressure, is crucial for accountability.

Related Government Programs

All Other Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits price competition.
Potential for cost overruns without competitive pressure.
No documented small business participation.
Requires strong government oversight to ensure value.
Contract duration is substantial, necessitating long-term scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $956.7 million to SALLYPORT GLOBAL HOLDINGS INC. IGF::OT::IGF BASE OPERATIONS SUPPORT, BASE LIFE SUPPORT, AND SECURITY SERVICES AT BALAD AIR BASE

Who is the contractor on this award?

The obligated recipient is SALLYPORT GLOBAL HOLDINGS 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 $956.7 million.

What is the period of performance?

Start: 2014-01-31. End: 2020-10-31.

What specific factors necessitated a sole-source award for base operations support at Balad Air Base, and were alternatives thoroughly explored?

The data provided states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Without further details, it's unclear if this was due to unique capabilities, urgent needs, or other factors. A thorough review would examine the documented rationale for excluding competition and confirm that no viable alternatives were overlooked, ensuring the government acted in the best interest of the taxpayer.

How is the performance of Sallyport Global Holdings Inc. being monitored to ensure the $957 million is delivering effective base operations and security services?

Given the significant value and sole-source nature of this contract, robust performance monitoring is critical. The Department of the Air Force should have established clear performance metrics and regular evaluations. Oversight should focus on service delivery, cost control, and adherence to contract terms to mitigate risks associated with a lack of competitive pressure and ensure taxpayer funds are used effectively.

What is the long-term strategy for base support services at Balad Air Base, and will future requirements be competed to ensure better value?

The contract's end date is October 31, 2020, suggesting this was a completed or near-completed contract. Understanding the long-term strategy involves assessing if similar services are still required and if future procurements will incorporate competition. Planning for future requirements should prioritize competitive strategies to leverage market dynamics and achieve better value for the government and taxpayers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

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

Parent Company: Michael Baker International, LLC (UEI: 079171269)

Address: 1600 TYSONS BLVD STE. 1400, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,084,698,860

Exercised Options: $1,084,698,860

Current Obligation: $956,738,923

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline