DoD's $20.6M AVM Base Year Contract with Taft Broadcasting Raises Questions on Value and Competition

Contract Overview

Contract Amount: $20,625,651 ($20.6M)

Contractor: Taft Broadcasting Company, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2010-08-01

End Date: 2016-01-31

Contract Duration: 2,009 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AVM BASE YEAR - BC

Place of Performance

Location: MARCH AIR RESERVE BASE, RIVERSIDE County, CALIFORNIA, 92518, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to TAFT BROADCASTING COMPANY, L.L.C. for work described as: AVM BASE YEAR - BC Key points: 1. The contract awarded to Taft Broadcasting Company, L.L.C. for communication equipment repair and maintenance totals $20.6 million. 2. Awarded under full and open competition, the contract's effectiveness and value require further scrutiny given its duration and cost structure. 3. The 'Cost Plus Fixed Fee' pricing structure may incentivize cost overruns, posing a risk to taxpayer funds. 4. The sector is Defense, specifically communication equipment repair, which is critical but can be prone to overspending if not managed tightly.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, while common, can lead to higher costs than fixed-price contracts if not closely monitored. Benchmarking against similar communication equipment repair contracts is needed to assess if the $20.6 million represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a broad search for qualified bidders. However, the pricing structure's impact on price discovery needs evaluation to ensure the government secured the best possible price.

Taxpayer Impact: The 'Cost Plus Fixed Fee' nature of the contract presents a potential risk of inflated costs, impacting taxpayer funds if not rigorously overseen.

Public Impact

Taxpayers may be exposed to higher costs due to the 'Cost Plus Fixed Fee' contract type. The Department of Defense relies on this equipment for critical communication functions, making its maintenance essential. The long duration of the contract (2010-2016) suggests a significant, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Potential for cost overruns
Lack of specific per-unit cost benchmark

Positive Signals

Awarded under full and open competition
Essential communication equipment maintenance

Sector Analysis

This contract falls within the Defense sector, specifically focusing on communication equipment repair and maintenance. Spending in this area is critical for national security, but often involves complex, high-value systems where cost control is paramount.

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 'Cost Plus Fixed Fee' structure necessitates robust oversight from the Department of Defense to ensure costs remain reasonable and the contractor meets performance expectations. Accountability is key to mitigating risks associated with this contract type.

Related Government Programs

Communication Equipment Repair and Maintenance
Department of Defense Contracting
Defense Media Activity Programs

Risk Flags

Cost Plus Fixed Fee pricing structure can lead to higher costs.
Potential for contractor to increase costs without proportional increase in fee.
Lack of detailed performance metrics or outcomes in provided data.
Long contract duration without clear indication of competitive re-evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to TAFT BROADCASTING COMPANY, L.L.C.. AVM BASE YEAR - BC

Who is the contractor on this award?

The obligated recipient is TAFT BROADCASTING COMPANY, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Media Activity).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2010-08-01. End: 2016-01-31.

What was the final cost of the contract, and how did it compare to the initial estimates given the 'Cost Plus Fixed Fee' structure?

The provided data shows the base year award amount was $20,625,651.26. Without data on the contract's final expenditure and comparison to initial estimates, it's difficult to fully assess cost efficiency. 'Cost Plus Fixed Fee' contracts allow for costs to exceed initial projections, with the fee remaining fixed, thus requiring diligent oversight to prevent unnecessary spending and ensure value for money.

How effectively was the 'full and open competition' process managed to ensure the best possible price and quality for communication equipment repair?

While 'full and open competition' suggests a broad solicitation, the effectiveness in achieving the best price and quality depends on the specific evaluation criteria and the competitive landscape. A thorough review of the bidding process, including the number of bids received and the justification for selecting Taft Broadcasting, is necessary to confirm the competitive rigor and its impact on the final negotiated price.

What specific communication equipment was maintained under this contract, and what was the impact of its repair and maintenance on DoD's operational readiness?

The data identifies the service as 'Communication Equipment Repair and Maintenance' under NAICS code 811213. However, details on the specific equipment are not provided. Understanding the criticality of this equipment to the Department of Defense's mission and operational readiness would be essential to fully evaluate the contract's effectiveness and justify its cost.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ002810R0005

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1118 HEIGHTS BLVD, HOUSTON, TX, 77008

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,007,907

Exercised Options: $21,007,907

Current Obligation: $20,625,651

Contract Characteristics

Cost or Pricing Data: NO

Timeline