DoD's $16.3M contract for logistics support awarded to Ultra Electronics raises questions on competition and value

Contract Overview

Contract Amount: $16,337,458 ($16.3M)

Contractor: Ultra Electronics Advanced Tactical Systems Inc

Awarding Agency: Department of Defense

Start Date: 2007-05-14

End Date: 2013-03-31

Contract Duration: 2,148 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSROM LOGISTICS SUPPORT

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to ULTRA ELECTRONICS ADVANCED TACTICAL SYSTEMS INC for work described as: ASSROM LOGISTICS SUPPORT Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. Long contract duration of over 6 years suggests a need for sustained support, but also a missed opportunity for re-competition. 3. The 'Other Scientific and Technical Consulting Services' NAICS code is broad, making direct cost comparisons challenging. 4. Fixed-price contract type offers some cost certainty but may not fully incentivize efficiency if the initial price was not well-benchmarked. 5. Awarded by the Department of the Air Force, indicating a focus on military operational support. 6. The contract's value, while significant, needs to be assessed against the specific deliverables and performance outcomes.

Value Assessment

Rating: questionable

Benchmarking the value of this $16.3 million contract is difficult without specific performance metrics and deliverables. The lack of competition suggests that the government may not have secured the best possible price. Comparing it to similar logistics support contracts for military operations would be necessary to determine if the pricing is reasonable. The fixed-price nature provides some cost control, but the absence of competitive pressure could lead to suboptimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' (sole-source) justification. This means that only one vendor, Ultra Electronics Advanced Tactical Systems Inc., was solicited. The lack of open competition limits the government's ability to explore alternative solutions and potentially negotiate lower prices. It raises concerns about whether the full range of market capabilities was considered.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, there's less assurance that the price reflects the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, receiving essential logistics support for its operations. The services delivered are categorized under 'Other Scientific and Technical Consulting Services,' implying a range of support functions. The contract was awarded to a vendor located in West Virginia, potentially impacting the local economy and workforce there. The duration of the contract suggests a long-term need for these logistics services within the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially leads to higher costs for taxpayers.
Lack of transparency in the sole-source justification makes it difficult to assess the necessity of awarding to a single vendor.
Broad NAICS code makes it challenging to ascertain the specific services rendered and benchmark their value.
Long contract duration without re-competition could indicate a lack of market research or a failure to foster competition.

Positive Signals

Fixed-price contract type offers some level of cost certainty for the government.
Award to an established company like Ultra Electronics may indicate a reliance on specialized expertise.
The contract supports the Department of Defense, indicating its role in critical national security functions.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector is broad, encompassing a wide array of support functions for government agencies. Within the defense sector, such contracts often relate to program management, technical analysis, and operational support. The market for these services is competitive, but specific niche capabilities can lead to sole-source awards. Benchmarking requires detailed understanding of the specific services provided, which is limited by the broad NAICS code.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no information provided regarding subcontracting plans for small businesses. This suggests that the primary contractor, Ultra Electronics, is expected to perform the majority of the work, with limited direct benefit or opportunity for the small business ecosystem through this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Support Contracts
Air Force Operational Support Services
Scientific and Technical Consulting Services for Government

Risk Flags

Sole-source award raises concerns about fair pricing and market competition.
Lack of detailed service description hinders value-for-money assessment.
Long contract duration without re-competition may indicate missed opportunities for cost savings.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to ULTRA ELECTRONICS ADVANCED TACTICAL SYSTEMS INC. ASSROM LOGISTICS SUPPORT

Who is the contractor on this award?

The obligated recipient is ULTRA ELECTRONICS ADVANCED TACTICAL SYSTEMS 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 $16.3 million.

What is the period of performance?

Start: 2007-05-14. End: 2013-03-31.

What specific logistics support services were provided under this contract, and how were they critical to Air Force operations?

The contract, identified under NAICS code 541690 ('Other Scientific and Technical Consulting Services'), likely encompassed a range of support functions crucial for Air Force operations. While the specific deliverables are not detailed in the provided data, such contracts often include services like supply chain management, maintenance planning, technical data management, operational analysis, and strategic planning support. The criticality would stem from ensuring the readiness and efficiency of Air Force assets and personnel by optimizing logistical processes. Without more granular information on the statement of work, it's difficult to pinpoint the exact nature of the support, but its duration and value suggest a significant role in sustaining Air Force capabilities.

How does the $16.3 million contract value compare to similar logistics support contracts awarded by the Department of Defense in recent years?

Direct comparison of the $16.3 million contract value to similar logistics support contracts is challenging without knowing the precise scope of services and performance period. However, for a contract spanning over six years (May 2007 to March 2013), this annual average value of approximately $2.7 million is within a reasonable range for specialized technical consulting and logistics support within the defense sector. Larger, more comprehensive logistics contracts can run into hundreds of millions or billions of dollars. The key factor for value assessment would be the complexity and criticality of the support provided relative to the cost. Given the sole-source nature, it's harder to ascertain if this represents a competitive market rate.

What were the primary justifications for awarding this contract on a sole-source basis, and were alternatives considered?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source justification. Common reasons for sole-source awards include the existence of only one responsible source capable of meeting the government's needs, urgent and compelling requirements where competition is not feasible, or specific proprietary technology or expertise held by a single entity. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to know the exact rationale. However, the government is generally required to explore alternatives and document why competition cannot be achieved. The lack of competition here suggests that either Ultra Electronics possessed unique capabilities or there were specific circumstances that precluded a competitive process.

What is Ultra Electronics' track record with the Department of Defense, particularly in providing logistics support services?

Ultra Electronics is a known defense contractor with a history of providing various advanced technological solutions and services to military branches. While the provided data focuses on this specific $16.3 million contract, a broader review of their contract history with the DoD would reveal their performance across numerous awards. Their track record typically involves complex systems, electronic warfare, and communication technologies. For logistics support, their involvement likely centers on specialized technical consulting related to the sustainment and operational effectiveness of the systems they provide or support. Assessing their overall track record would involve examining past performance evaluations, any past disputes, and their success in delivering on similar contracts.

How has spending on 'Other Scientific and Technical Consulting Services' by the Department of the Air Force evolved over the period this contract was active (2007-2013)?

Spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) by the Department of the Air Force during the 2007-2013 period likely saw fluctuations influenced by evolving military needs, technological advancements, and budget allocations. This era encompassed significant military operations and a growing reliance on specialized technical expertise for complex systems. While this specific $16.3 million contract represents a portion of that spending, overall trends would reflect broader defense priorities. It's plausible that spending in this category increased as the Air Force sought external expertise for areas like cybersecurity, advanced materials, aerospace engineering, and operational analysis, especially during periods of heightened global security concerns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical 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: 4101 SMITH SCHOOL RD BLDG 4 STE 100, AUSTIN, TX, 78744

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

Financial Breakdown

Contract Ceiling: $16,787,336

Exercised Options: $16,337,458

Current Obligation: $16,337,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline