DoD's $2.4M aviation logistics support contract awarded to ASR International Corp. for process consulting

Contract Overview

Contract Amount: $2,428,251 ($2.4M)

Contractor: ASR International Corp.

Awarding Agency: Department of Defense

Start Date: 2024-01-12

End Date: 2026-01-31

Contract Duration: 750 days

Daily Burn Rate: $3.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AVIATION LOGISTICS SUPPORT SERVICES

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to ASR INTERNATIONAL CORP. for work described as: AVIATION LOGISTICS SUPPORT SERVICES Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract type is Firm Fixed Price (FFP), which shifts cost risk to the contractor. 3. The duration of 750 days indicates a medium-term need for these specialized services. 4. The North American Industry Classification System (NAICS) code 541614 points to a focus on logistics consulting. 5. The award was made by the Department of the Navy, a major component of the Department of Defense. 6. The contractor, ASR International Corp., is receiving this award for services related to aviation logistics. 7. The contract value of $2,428,251 is within the typical range for specialized consulting services under SAP. 8. The contract was competed, indicating multiple bids were likely considered.

Value Assessment

Rating: good

The contract value of approximately $2.4 million for aviation logistics support services appears reasonable given the scope and duration. As a firm-fixed-price contract awarded under Simplified Acquisition Procedures, it suggests a competitive process likely yielded a fair price. Benchmarking against similar logistics consulting contracts within the Department of Defense would provide further insight, but the fixed-price nature generally indicates good value for money by capping potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically involves a competitive process among eligible vendors. While the exact number of bidders is not specified, SAP is designed to encourage competition for procurements below certain thresholds. The fact that it was competed suggests that the Navy sought multiple proposals to ensure a fair and reasonable price and to identify the best value offeror for these specialized aviation logistics support services.

Taxpayer Impact: Competition under SAP generally benefits taxpayers by driving down prices through multiple bids, ensuring that the government is not overpaying for necessary services. This process helps to allocate taxpayer funds more efficiently.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring aviation logistics support. The services delivered will focus on process, physical distribution, and logistics consulting, aiming to improve efficiency and effectiveness in aviation support operations. The geographic impact is likely centered around naval aviation facilities and operations, though the consulting services themselves may be performed remotely or at various locations. The contract supports specialized expertise in logistics, potentially enhancing the operational readiness and capabilities of naval aviation units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the consulting engagement expands beyond initial defined objectives.
Reliance on contractor expertise could lead to knowledge gaps within the government if not managed effectively.
Ensuring the 'process, physical distribution, and logistics consulting services' directly translate into measurable operational improvements requires robust performance monitoring.

Positive Signals

Firm Fixed Price contract structure aligns incentives for contractor efficiency and cost control.
Competition under SAP suggests a market-driven price discovery process.
The contract duration allows for in-depth analysis and implementation of recommendations.
Specialized nature of the services addresses a critical need within naval aviation logistics.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. The market for such services is robust, with numerous firms offering specialized expertise to government and commercial clients. The Department of Defense is a significant consumer of these services, often seeking to optimize complex supply chains and operational support. Spending benchmarks for similar logistics consulting contracts within the DoD can vary widely based on scope, but contracts in the low millions are common for specialized support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As it was competed under Simplified Acquisition Procedures (SAP), there may have been opportunities for small businesses to participate, depending on the specific solicitation requirements and the number of eligible bidders. However, without explicit set-aside language, the primary focus of competition would be on best value, regardless of business size. Subcontracting opportunities for small businesses could arise if the prime contractor, ASR International Corp., chooses to engage them for specific tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of the Navy. Performance monitoring will be crucial to ensure the contractor delivers the agreed-upon process, physical distribution, and logistics consulting services effectively. Transparency is generally maintained through contract reporting mechanisms, and while specific Inspector General (IG) jurisdiction isn't detailed here, the DoD IG oversees all DoD contracts for fraud, waste, and abuse.

Related Government Programs

Department of Defense Logistics Support Services
Naval Aviation Readiness Programs
Supply Chain Management Consulting
Government Process Improvement Contracts
Defense Logistics Agency Contracts

Risk Flags

Contract awarded under Simplified Acquisition Procedures (SAP) may limit the breadth of competition compared to larger contract vehicles.
Performance metrics and success criteria for consulting services need to be clearly defined and monitored to ensure tangible benefits.
Potential for knowledge transfer gaps if government personnel are not actively involved in the consulting process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to ASR INTERNATIONAL CORP.. AVIATION LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ASR INTERNATIONAL CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-01-12. End: 2026-01-31.

What is the track record of ASR International Corp. in performing similar aviation logistics support contracts for the Department of Defense?

Assessing ASR International Corp.'s track record requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without specific data on past performance, it's difficult to definitively gauge their capability. However, their selection for this $2.4 million contract suggests they met the Navy's requirements during the competitive process. Further investigation into their history with process, physical distribution, and logistics consulting, particularly within aviation or defense contexts, would provide a clearer picture of their expertise and reliability.

How does the $2.4 million contract value compare to similar aviation logistics consulting services procured by the Department of the Navy?

The $2.4 million contract value for aviation logistics support services, awarded over approximately 750 days (about 2 years), appears to be within a reasonable range for specialized consulting engagements within the Department of Defense. Contracts under Simplified Acquisition Procedures (SAP) are typically for amounts below the full and open competition threshold, often ranging from tens of thousands to a few million dollars. Benchmarking against specific, comparable contracts would require access to detailed procurement data, including the scope of work, duration, and specific deliverables. However, the firm-fixed-price nature suggests a defined scope, and the value seems proportionate for expert consulting aimed at optimizing logistics processes.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the consulting engagement might expand beyond initial objectives, leading to cost overruns (though mitigated by FFP). Another risk is the contractor's ability to deliver measurable improvements in aviation logistics, requiring robust government oversight and performance metrics. Ensuring the recommendations are practical and implementable within the Navy's operational environment is also critical. Mitigation strategies likely involve clear contract deliverables, regular progress reviews, and performance-based metrics tied to the firm-fixed-price structure. The government's active management and clear communication with ASR International Corp. are essential to address these risks.

How effective is the 'COMPETED UNDER SAP' approach for ensuring optimal value for taxpayer money in this specific contract?

Competing under Simplified Acquisition Procedures (SAP) is generally effective for ensuring value on contracts of this size (under $250,000, though thresholds can vary). SAP mandates competition, typically involving multiple quotes or proposals, which drives price discovery and encourages competitive pricing. For a $2.4 million contract, this approach suggests that the Navy sought multiple bids, likely leading to a more favorable price than a sole-source award. The effectiveness is further enhanced by the Firm Fixed Price (FFP) contract type, which places the cost risk on the contractor. However, the depth of competition (number of bidders) and the rigor of the evaluation process under SAP can vary, impacting the ultimate value realized.

What are the potential long-term implications of this contract on the Navy's aviation logistics capabilities?

This contract has the potential to significantly enhance the Navy's aviation logistics capabilities by leveraging external expertise to identify inefficiencies and implement best practices. If ASR International Corp. provides effective consulting, the Navy could see improvements in areas such as supply chain management, inventory control, maintenance support, and overall operational readiness. The recommendations could lead to cost savings, reduced turnaround times for aircraft, and better resource allocation. The long-term impact depends on the successful implementation of the consultant's findings and the Navy's commitment to adopting the proposed changes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: M6700124Q0002

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 580 OLD WILLETS PATH, HAUPPAUGE, NY, 11788

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,893,795

Exercised Options: $2,618,251

Current Obligation: $2,428,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline