Air Force awards $22.5M contract for flight analysis services to Universal Technical Resource, with no competition

Contract Overview

Contract Amount: $22,523,395 ($22.5M)

Contractor: Universal Technical Resource Services Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-31

End Date: 2026-03-31

Contract Duration: 1,461 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PROVIDE SERVICE AND LABOR TO USE THE INTEGRATED RISK INFORMATION SYSTEM (IRIS) TO CONDUCT FLIGHT ANALYSIS TO SUPPORT THE MILITARY FLIGHT OPERATIONS QUALITY ASSURANCE PROGRAM.

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08034

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to UNIVERSAL TECHNICAL RESOURCE SERVICES INC for work described as: TO PROVIDE SERVICE AND LABOR TO USE THE INTEGRATED RISK INFORMATION SYSTEM (IRIS) TO CONDUCT FLIGHT ANALYSIS TO SUPPORT THE MILITARY FLIGHT OPERATIONS QUALITY ASSURANCE PROGRAM. Key points: 1. Contract focuses on critical flight operations quality assurance, indicating a need for specialized expertise. 2. The duration of the contract (over 4 years) suggests a long-term requirement for these services. 3. Sole-source award raises questions about potential cost efficiencies and market exploration. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. Services are delivered in New Jersey, potentially impacting the local technical workforce.

Value Assessment

Rating: questionable

The contract value of $22.5 million over approximately four years for custom computer programming services is difficult to benchmark without more specific details on the scope of work and deliverables. Given the sole-source nature of the award, it's challenging to assess if the pricing represents fair market value or if competitive bidding could have yielded better rates. The absence of a competitive process limits the ability to compare this contract's value against similar offerings in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Universal Technical Resource Services Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less price discovery and potentially higher costs for the government compared to fully competed contracts with multiple bidders.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective solution available in the market. Without competing bids, there is a reduced incentive for the awarded contractor to offer the lowest possible price.

Public Impact

The Department of the Air Force benefits from specialized services to enhance its Military Flight Operations Quality Assurance Program. The contract supports the critical function of flight analysis, contributing to aviation safety and operational efficiency. Services are being performed in New Jersey, potentially creating or sustaining jobs in the region. The program's success directly impacts the readiness and safety of military flight operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of transparency in the procurement process due to no competition.
Difficulty in assessing true value-for-money without market benchmarks.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration suggests a stable, long-term need for these specialized services.
Focus on quality assurance in flight operations is a critical government function.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a segment of the broader IT services industry. This sector is characterized by specialized software development, system integration, and technical support. The market for such services is competitive, but government contracts often require specific security clearances and domain expertise, which can limit the pool of eligible contractors. The value of this contract is modest within the overall federal IT spending landscape.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited, and the primary contractor will be responsible for all service delivery.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is limited due to the sole-source nature of the award; however, contract details should be publicly available through federal procurement databases.

Related Government Programs

Military Flight Operations Quality Assurance Program
Air Force IT Services
Custom Computer Programming Services
Federal Aviation Support Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to UNIVERSAL TECHNICAL RESOURCE SERVICES INC. TO PROVIDE SERVICE AND LABOR TO USE THE INTEGRATED RISK INFORMATION SYSTEM (IRIS) TO CONDUCT FLIGHT ANALYSIS TO SUPPORT THE MILITARY FLIGHT OPERATIONS QUALITY ASSURANCE PROGRAM.

Who is the contractor on this award?

The obligated recipient is UNIVERSAL TECHNICAL RESOURCE SERVICES 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 $22.5 million.

What is the period of performance?

Start: 2022-03-31. End: 2026-03-31.

What specific technical expertise does Universal Technical Resource Services Inc. possess that justifies a sole-source award for flight analysis?

The provided data does not detail the specific technical expertise of Universal Technical Resource Services Inc. that led to this sole-source award. Typically, sole-source justifications are based on factors such as unique capabilities, proprietary technology, extensive past performance on similar critical tasks, or the absence of other responsible sources. For this contract, the justification would likely center on the contractor's demonstrated ability to perform complex flight analysis for the Military Flight Operations Quality Assurance Program, potentially involving specialized software, algorithms, or deep understanding of military aviation systems that few other companies possess. Further investigation into the justification documentation filed with the contract award would be necessary to ascertain the precise reasons.

How does the $22.5 million contract value compare to historical spending on similar flight analysis services by the Department of Defense?

Comparing the $22.5 million contract value to historical spending on similar flight analysis services by the Department of Defense (DoD) requires access to historical contract databases and the ability to identify comparable service descriptions and contract types. Without specific historical data points for 'flight analysis' within the 'Military Flight Operations Quality Assurance Program' or similar initiatives, a direct comparison is challenging. However, given the sole-source nature and the duration of over four years, the value suggests a significant and ongoing requirement. If this is a new or expanded capability, historical comparisons might be less relevant than benchmarking against current market rates for specialized IT and analytical services, which would ideally be established through a competitive process.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate the success of this contract. For a contract focused on flight analysis supporting a quality assurance program, typical KPIs might include the accuracy and timeliness of analysis reports, the identification of critical safety issues or trends, the reduction in flight operational errors or incidents attributable to insights from the analysis, and the contractor's adherence to reporting requirements and deadlines. The firm fixed-price nature of the contract implies that the contractor is obligated to meet certain performance standards, and failure to do so could result in contractual remedies, though the specifics would be detailed in the contract's statement of work and performance clauses.

What is the potential risk associated with a sole-source award for critical flight operations quality assurance?

The primary risk associated with a sole-source award for critical flight operations quality assurance is the potential for reduced value for money. Without competition, the government may pay a higher price than if multiple vendors had bid. There's also a risk of complacency from the contractor, as there is no immediate competitive threat. Furthermore, if the sole-source contractor fails to perform adequately or faces financial instability, the government has limited alternative options for continuity of service, potentially disrupting critical operations. The lack of competitive pressure can also stifle innovation that might otherwise be brought by competing firms.

Are there any provisions for contract termination or modification if the services are not meeting expectations or if requirements change?

Standard government contracts, including this firm fixed-price definitive contract, typically include clauses for termination for convenience or for default. Termination for convenience allows the government to terminate the contract for its own reasons, usually with some form of compensation to the contractor for work performed. Termination for default occurs if the contractor fails to meet its contractual obligations. Contract modifications are also common and are typically handled through a formal modification process agreed upon by both parties, especially if there are changes to the scope of work, schedule, or price. The specific terms and conditions governing termination and modification would be detailed within the full contract document.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 KINGS HWY N STE 208, CHERRY HILL, NJ, 08034

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,209,603

Exercised Options: $22,523,395

Current Obligation: $22,523,395

Actual Outlays: $1,759,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline