DoD's $26M Aircrew Support Contract Awarded to Alpha-Omega Change Engineering
Contract Overview
Contract Amount: $25,986,848 ($26.0M)
Contractor: Alpha-Omega Change Engineering, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-25
End Date: 2018-09-24
Contract Duration: 729 days
Daily Burn Rate: $35.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CT::IGF ACAT III BIG SAFARI GOCO III YEAR 2 AIRCREW
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to ALPHA-OMEGA CHANGE ENGINEERING, INC. for work described as: IGF::CT::IGF ACAT III BIG SAFARI GOCO III YEAR 2 AIRCREW Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant cost-plus-fixed-fee structure may incentivize higher spending. 3. Lack of competition suggests potential for inflated pricing. 4. Support services sector often has specialized needs, but transparency is key.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks or competitive bids, it's hard to determine if the $26M price is reasonable for the aircrew support services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to achieve the best price.
Taxpayer Impact: The lack of competition on this $26M contract means taxpayers may have paid more than necessary for these aircrew support services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific nature of aircrew support could justify specialized vendors, but transparency is needed. Long contract duration (729 days) increases the potential financial impact of any inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of transparency in pricing
Positive Signals
- Essential support services for aircrew operations
Sector Analysis
This contract falls under 'All Other Support Services' within the Department of Defense. Spending in this broad category can vary widely, but competitive bidding is generally expected to ensure value for money.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the contractor is delivering services efficiently and that costs are reasonable, given the lack of competitive pressure.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Cost-plus-fixed-fee structure may lack cost control incentives.
- Limited transparency on specific services and pricing justification.
- No apparent small business participation.
Tags
all-other-support-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to ALPHA-OMEGA CHANGE ENGINEERING, INC.. IGF::CT::IGF ACAT III BIG SAFARI GOCO III YEAR 2 AIRCREW
Who is the contractor on this award?
The obligated recipient is ALPHA-OMEGA CHANGE ENGINEERING, 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 $26.0 million.
What is the period of performance?
Start: 2016-09-25. End: 2018-09-24.
What specific aircrew support services are being provided under this contract, and how were they defined to justify a sole-source award?
The contract details are limited, but 'All Other Support Services' suggests a broad range of support functions. A sole-source justification typically requires demonstrating that only one vendor possesses the unique capabilities, technology, or security clearances necessary for the specific requirements, which would need to be thoroughly documented by the agency.
What mechanisms are in place to control costs and ensure efficiency in a cost-plus-fixed-fee, sole-source contract?
Cost-plus-fixed-fee contracts inherently have less incentive for cost control compared to fixed-price contracts. Oversight should focus on rigorous monitoring of incurred costs, performance metrics, and contractor efficiency. The agency must actively manage the contract to prevent cost overruns and ensure value is achieved.
How does the Department of the Air Force ensure fair and reasonable pricing when awarding non-competed contracts of this magnitude?
For non-competed contracts, agencies must conduct thorough price analyses using various methods, such as comparing proposed prices to historical prices for similar items, using independent government cost estimates, or analyzing the contractor's cost data. The justification for the sole-source award should include evidence of such analysis to demonstrate fair and reasonable pricing.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CAE Inc (UEI: 202131454)
Address: 460 MCLAWS CIR STE 220, WILLIAMSBURG, VA, 23185
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $25,986,848
Exercised Options: $25,986,848
Current Obligation: $25,986,848
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-25
Current End Date: 2018-09-24
Potential End Date: 2018-09-24 00:00:00
Last Modified: 2021-09-14
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