DoD Leases Aircraft for $25.7M via Full and Open Competition
Contract Overview
Contract Amount: $25,700,937 ($25.7M)
Contractor: Simplex Corporation
Awarding Agency: Department of Defense
Start Date: 2010-04-21
End Date: 2012-03-24
Contract Duration: 703 days
Daily Burn Rate: $36.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: AIRCRAFT LEASE
Plain-Language Summary
Department of Defense obligated $25.7 million to SIMPLEX CORPORATION for work described as: AIRCRAFT LEASE Key points: 1. Lease valued at $25.7 million for aircraft. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Contract awarded to SIMPLEX CORPORATION by U.S. Special Operations Command. 4. Duration of the lease is 703 days.
Value Assessment
Rating: fair
The total contract value is $25.7 million. Without specific per-unit cost data or benchmarks for similar aircraft leases, a precise value assessment is difficult. However, the duration of 703 days suggests a significant operational commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized 'Full and Open Competition After Exclusion of Sources'. This method implies that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery and the final negotiated price.
Taxpayer Impact: The lease represents a significant expenditure of taxpayer funds for specialized aircraft. The effectiveness of the competition method in securing the best value for the government is a key consideration for taxpayer impact.
Public Impact
Ensures operational readiness for U.S. Special Operations Command. Supports critical missions requiring specialized aircraft. Potential impact on commercial aviation leasing market if specialized assets are involved.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Competition method could limit optimal price discovery.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Procurement method aims for broad competition.
- Clear contract duration and awardee.
Sector Analysis
This contract falls under the Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing sector. Spending in this sector is crucial for logistical support and operational capabilities across various government agencies, particularly defense.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense's U.S. Special Operations Command. Oversight would typically involve contract management teams ensuring adherence to terms, performance standards, and financial accountability.
Related Government Programs
- Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for suboptimal price due to limited competition.
- Lack of transparency in cost breakdown.
- Need for detailed market analysis to confirm value.
- Unclear small business participation.
Tags
commercial-air-rail-and-water-transporta, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to SIMPLEX CORPORATION. AIRCRAFT LEASE
Who is the contractor on this award?
The obligated recipient is SIMPLEX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $25.7 million.
What is the period of performance?
Start: 2010-04-21. End: 2012-03-24.
What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and did this exclusion impact the final price?
The rationale for excluding sources typically relates to specific technical requirements, security clearances, or unique capabilities not met by all potential bidders. Without further documentation, it's impossible to definitively state if this exclusion impacted the final price. However, limiting the pool of competitors can sometimes lead to higher prices if the remaining bidders face less pressure to offer the most competitive rates.
How does the lease cost compare to market rates for similar aircraft leases, considering the duration and specific capabilities required?
A comprehensive comparison requires detailed market data on aircraft leasing rates, factoring in aircraft type, age, operational hours, maintenance, and specific mission modifications. Without access to this granular data and benchmark studies, it is difficult to ascertain if $25.7 million for a 703-day lease represents a competitive market price. The 'fair' rating reflects this uncertainty.
What are the key performance indicators (KPIs) for this aircraft lease, and how is SIMPLEX CORPORATION's performance being measured against them?
Key performance indicators for an aircraft lease typically include aircraft availability, operational readiness, maintenance compliance, adherence to flight schedules, and safety records. The U.S. Special Operations Command would have established specific KPIs within the contract terms. Performance is likely monitored through regular reporting, inspections, and operational feedback to ensure the government receives the contracted services effectively.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: H9222210R0019
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1890 S OCEAN DR UNIT 2007E, HALLANDALE, FL, 25
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $33,800,937
Exercised Options: $26,240,937
Current Obligation: $25,700,937
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-21
Current End Date: 2012-03-24
Potential End Date: 2012-04-01 00:00:00
Last Modified: 2013-10-26
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