DoD Awards $3.4M Contract for Israel Air Terminal Services to R.S. Logistical Solutions
Contract Overview
Contract Amount: $3,406,993 ($3.4M)
Contractor: R.S. Logistical Solutions Ltd
Awarding Agency: Department of Defense
Start Date: 2023-08-01
End Date: 2026-06-30
Contract Duration: 1,064 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ISRAEL AIR TERMINAL AND GROUND HANDLING SERVICES
Plain-Language Summary
Department of Defense obligated $3.4 million to R.S. LOGISTICAL SOLUTIONS LTD for work described as: ISRAEL AIR TERMINAL AND GROUND HANDLING SERVICES Key points: 1. Contract awarded to R.S. Logistical Solutions Ltd for air terminal and ground handling services. 2. The contract has a total value of $3,406,992.51 and runs from August 1, 2023, to June 30, 2026. 3. Awarded under Full and Open Competition, indicating a competitive bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: good
The contract value of $3.4M over approximately 3 years appears reasonable for specialized airport ground handling services. Benchmarking against similar international airport support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through Full and Open Competition, suggesting that multiple vendors had the opportunity to bid. This method typically promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential logistical support.
Public Impact
Ensures continued operational support for military air transport in Israel. Supports logistical readiness and deployment capabilities for U.S. forces. Provides essential ground handling services, including baggage, cargo, and passenger support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if contract terms are not strictly managed.
- Dependence on a single contractor for critical airport operations.
Positive Signals
- Firm Fixed Price contract limits cost overruns.
- Full and Open Competition suggests competitive pricing.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls under airport operations and logistical support, a critical component of defense and transportation infrastructure. Spending in this sector is driven by operational tempo and global presence requirements.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is managed by USTRANSCOM, a component of the Department of Defense responsible for global transportation and logistics. Oversight would focus on performance, adherence to contract terms, and financial accountability.
Related Government Programs
- Other Airport Operations
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Contract duration is significant (approx. 3 years).
- Geographic location presents potential geopolitical risks.
- Dependence on a single contractor for critical services.
- Firm Fixed Price contract requires clear scope definition to avoid disputes.
Tags
other-airport-operations, department-of-defense, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.4 million to R.S. LOGISTICAL SOLUTIONS LTD. ISRAEL AIR TERMINAL AND GROUND HANDLING SERVICES
Who is the contractor on this award?
The obligated recipient is R.S. LOGISTICAL SOLUTIONS LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $3.4 million.
What is the period of performance?
Start: 2023-08-01. End: 2026-06-30.
What specific ground handling services are included in this contract?
The contract specifies 'Air Terminal and Ground Handling Services.' While not detailed in the provided data, this typically encompasses a range of activities such as aircraft parking and towing, baggage and cargo handling, passenger services, ramp services, and potentially aircraft de-icing or refueling coordination.
What are the primary risks associated with this contract for the DoD?
Key risks include potential service disruptions due to contractor performance issues, geopolitical instability affecting operations in Israel, and the possibility of cost escalation if the Firm Fixed Price contract has poorly defined scope or change order provisions. Ensuring robust performance monitoring is crucial.
How does this contract contribute to the overall effectiveness of U.S. military operations in the region?
This contract is vital for maintaining the operational readiness and logistical flow of U.S. military assets and personnel transiting through Israel. Reliable air terminal and ground handling services ensure efficient aircraft turnaround, timely cargo delivery, and seamless passenger movement, directly supporting mission objectives and force projection.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Airport Operations
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HTC71123RC001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5/13 HAMELACHA, ENTRANCE A, LOD
Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $5,808,708
Exercised Options: $3,551,486
Current Obligation: $3,406,993
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-01
Current End Date: 2026-06-30
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-01-05
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