DoD's $23.6M parachute training contract awarded to Complete Parachute Solutions, Inc. in 2009

Contract Overview

Contract Amount: $23,604,107 ($23.6M)

Contractor: Complete Parachute Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-17

End Date: 2014-03-12

Contract Duration: 1,849 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRAINING FY 09

Place of Performance

Location: COOLIDGE, PINAL County, ARIZONA, 85128

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to COMPLETE PARACHUTE SOLUTIONS, INC. for work described as: TRAINING FY 09 Key points: 1. Value for money is difficult to assess without detailed performance metrics and cost breakdowns. 2. The contract was sole-sourced, limiting competitive dynamics and potentially impacting price discovery. 3. Risk indicators include the lack of competition and the long duration of the contract. 4. Performance context is limited, as specific training outcomes and effectiveness are not detailed. 5. This contract falls within the Defense sector, specifically focusing on specialized training services. 6. The contract's fixed-price nature aims to control costs, but the absence of competition raises concerns about the initial pricing.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable sole-source training contracts. The fixed-price structure suggests an attempt to control costs, but without competitive bidding, it's difficult to ascertain if the negotiated price represents fair market value. The duration of the contract (over five years) also warrants scrutiny regarding potential cost escalations or the need for re-evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the Department of Defense likely determined that only Complete Parachute Solutions, Inc. could provide the specialized parachute training required. The absence of multiple bidders means there was no competitive pressure to drive down prices or encourage innovation.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium compared to what might have been achieved through a competitive bidding process. This also limits transparency in pricing.

Public Impact

Military personnel requiring specialized parachute training are the primary beneficiaries. The contract delivers essential skills for airborne operations, enhancing warfighter readiness. Training services were likely delivered in Arizona, the contractor's stated location. The contract supports specialized instructional roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Long contract duration may not reflect current market conditions.
Lack of performance metrics makes value assessment difficult.

Positive Signals

Fixed-price contract type helps control costs.
Contractor is specialized in parachute training.
Long-term award provides stability for training continuity.

Sector Analysis

This contract falls within the broader Defense sector, specifically addressing specialized training services. The market for such niche training is often limited, potentially justifying sole-source awards in certain circumstances. However, without more information on the specific training requirements and the availability of alternative providers, it's difficult to benchmark this spending against comparable industry activities. The total value of $23.6 million over five years represents a significant investment in personnel readiness.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award suggests a direct relationship with the prime contractor, Complete Parachute Solutions, Inc., and does not appear to have been structured to promote small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms of the firm-fixed-price contract, requiring delivery of specified training services. Transparency is limited due to the sole-source nature and the absence of detailed public performance reporting.

Related Government Programs

Department of Defense Training Contracts
Specialized Military Instruction
Aviation Training Services
Parachute Operations Training

Risk Flags

Sole-source award
Lack of competition
Limited performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to COMPLETE PARACHUTE SOLUTIONS, INC.. TRAINING FY 09

Who is the contractor on this award?

The obligated recipient is COMPLETE PARACHUTE SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2009-02-17. End: 2014-03-12.

What specific parachute training services were provided under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code 611699, which covers 'All Other Miscellaneous Schools and Instruction.' This broad category suggests the training likely encompassed various aspects of parachute operations, potentially including academic instruction on parachute systems, deployment techniques, emergency procedures, and physical conditioning. However, the specific curriculum, number of personnel trained, and the exact nature of the training (e.g., static line, freefall, combat personnel) are not detailed in the provided data. Further investigation into contract line item numbers (CLINs) or performance work statements would be necessary to ascertain the precise services delivered.

How does the contract's value compare to similar parachute training services?

Direct comparison of this $23.6 million contract value is difficult without access to data on similar sole-source or competed contracts for specialized parachute training. The absence of competition inherently limits the ability to benchmark pricing against market rates. Factors such as the duration of the training, the number of personnel to be trained, the complexity of the skills imparted, and the specific qualifications of the instructor cadre would all influence cost. Given the sole-source nature, it is plausible that the price may be higher than if the contract had been competitively bid, but without comparative data, this remains speculative.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government has less leverage to negotiate the most favorable terms and prices. Another risk is the potential for reduced innovation, as the contractor may have less incentive to develop more efficient or effective training methods. Furthermore, the long duration of the contract (over five years) increases the risk that the training methods or equipment may become outdated, or that market conditions could change significantly, making the original pricing less relevant.

What was the justification for awarding this contract on a sole-source basis?

The provided data simply states 'NOT COMPETED' and lists the contract type as 'DEFINITIVE CONTRACT.' A definitive contract is a standard award type. The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). Common reasons include the existence of only one responsible source capable of providing the required service, urgent and compelling needs, or specific national security requirements. Without the official justification documentation (e.g., a Justification and Approval document), the precise reason for the sole-source award remains unknown, but it implies a determination that competitive procedures were not feasible or appropriate.

What is the track record of Complete Parachute Solutions, Inc. in providing defense training?

The data indicates that Complete Parachute Solutions, Inc. was awarded this $23.6 million contract by the Department of the Navy. This suggests the company possesses the necessary qualifications and capabilities to provide specialized training services to a major defense agency. However, the provided data does not offer details on the company's performance history, client satisfaction, or the success rates of its training programs. A comprehensive assessment of their track record would require reviewing past performance evaluations, any contract modifications, and potentially seeking feedback from the contracting agency or other government entities that may have utilized their services.

How does this contract fit into the broader landscape of defense training spending?

This contract represents a specific investment within the vast defense training budget, focusing on a niche area of parachute operations. Defense agencies allocate significant resources to training across numerous disciplines, from aviation and cybersecurity to combat skills and leadership development. Contracts like this, even if sole-sourced, fulfill critical operational requirements. While $23.6 million is a substantial sum for a single contract, it is a fraction of the overall defense training expenditure, which can run into billions of dollars annually. Its significance lies in ensuring the proficiency of personnel in specialized airborne roles.

Industry Classification

NAICS: Educational Services › Other Schools and Instruction › All Other Miscellaneous Schools and Instruction

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785409R9007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1320 E INTERNATIONAL SPEEDWAY STE 1, DELAND, FL, 32724

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $23,604,107

Exercised Options: $23,604,107

Current Obligation: $23,604,107

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline