Navy's $21.5M parachute course contract awarded to Complete Parachute Solutions, Inc. with no competition
Contract Overview
Contract Amount: $21,529,271 ($21.5M)
Contractor: Complete Parachute Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-05-19
End Date: 2018-05-18
Contract Duration: 1,460 days
Daily Burn Rate: $14.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE MULTI-MISSION PARACHUTE COURSE
Place of Performance
Location: COOLIDGE, PINAL County, ARIZONA, 85128
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to COMPLETE PARACHUTE SOLUTIONS, INC. for work described as: BASE MULTI-MISSION PARACHUTE COURSE Key points: 1. The contract awarded to Complete Parachute Solutions, Inc. for parachute courses represents a significant investment in specialized training. 2. Lack of competition raises questions about potential overpayment and the availability of alternative training providers. 3. The firm fixed-price contract type suggests a defined scope, but the absence of bidding limits price discovery. 4. Performance duration of 1460 days indicates a long-term need for these specialized skills. 5. The contract's value, while substantial, needs benchmarking against similar training programs to assess value for money. 6. The sole awardee suggests a potential concentration risk if the contractor faces performance issues.
Value Assessment
Rating: questionable
The contract's value of $21.5 million for a parachute course is substantial. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar government contracts. The firm fixed-price structure provides cost certainty for the government, but the lack of competition prevents an assessment of whether the price reflects the best possible value. Further analysis would require comparing the scope and duration of this training to other parachute courses or specialized military training programs.
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 the Navy identified Complete Parachute Solutions, Inc. as the only capable provider or that circumstances did not allow for a competitive solicitation. The absence of multiple bidders means there was no opportunity for price negotiation or comparison among different vendors, potentially leading to a higher price than if competition had been present.
Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without a bidding process, there is no assurance that the price paid is the lowest achievable for the required parachute training services.
Public Impact
Naval personnel requiring specialized parachute training will benefit from this contract. The services delivered include instruction for a BASE MULTI-MISSION PARACHUTE COURSE. The contract is geographically focused in Arizona (AZ), indicating a specific training location. This contract supports the readiness and operational capabilities of the U.S. Navy by ensuring skilled personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have led to a higher price than a competed contract.
- Sole-source award limits transparency in pricing and vendor selection.
- Long contract duration without competition could mask inefficiencies.
- No small business set-aside or subcontracting requirements noted, potentially limiting small business participation.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Award to a single vendor simplifies contract administration.
- Contract duration suggests a sustained need for the specialized training.
Sector Analysis
This contract falls within the broader education and training sector, specifically focusing on specialized military instruction. The market for such niche training can be limited, often dominated by a few experienced providers. The value of $21.5 million is significant for a single training course, suggesting a high degree of specialization or a large number of personnel requiring the training. Benchmarking would involve looking at other government contracts for similar specialized military skills training.
Small Business Impact
This contract does not appear to have been set aside for small businesses, nor is there an indication of subcontracting requirements. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. This suggests that the primary contractor, Complete Parachute Solutions, Inc., is likely a larger entity or that the specific requirements were not conducive to small business participation.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of the Navy. Oversight would typically be managed by the contracting officer and relevant program managers within the Navy. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Training Services
- Specialized Skill Development
- Department of Defense Education and Training
- Naval Aviation Support
Risk Flags
- Sole-source award
- Lack of competition
- No small business participation noted
Tags
defense, department-of-defense, department-of-the-navy, parachute-training, specialized-instruction, sole-source, firm-fixed-price, arizona, large-contract, education-and-training
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to COMPLETE PARACHUTE SOLUTIONS, INC.. BASE MULTI-MISSION PARACHUTE COURSE
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 $21.5 million.
What is the period of performance?
Start: 2014-05-19. End: 2018-05-18.
What is the track record of Complete Parachute Solutions, Inc. with the federal government?
Information on the track record of Complete Parachute Solutions, Inc. with the federal government is not detailed in the provided data. However, the award of a $21.5 million contract suggests a prior relationship or demonstrated capability. Further investigation into their contract history, past performance reviews, and any prior awards would be necessary to fully assess their track record. Without this additional data, it's difficult to determine if they have a history of successful contract completion, adherence to schedules, and quality delivery for government entities.
How does the cost of this parachute course compare to similar contracts or market rates?
The provided data does not include specific per-unit costs or detailed breakdowns that would allow for a direct comparison to similar contracts or market rates. The total award is $21.5 million over 1460 days. Given that this was a sole-source award, it is challenging to ascertain if the pricing is competitive. To perform a robust value-for-money assessment, one would need to identify comparable parachute training courses awarded competitively, analyze their pricing structures, and consider the specific curriculum, duration, and number of personnel trained under this contract. Without such comparative data, the cost-effectiveness remains uncertain.
What are the primary risks associated with a sole-source award of this magnitude?
The primary risks associated with a sole-source award of this magnitude include a lack of price competition, which can lead to inflated costs for the government. There is also a risk of reduced innovation and service quality, as the contractor faces less pressure to perform exceptionally compared to a competitive environment. Furthermore, reliance on a single provider creates a concentration risk; if Complete Parachute Solutions, Inc. experiences financial difficulties, operational issues, or fails to meet performance standards, the government may have limited recourse or alternative options for obtaining the critical parachute training services, potentially impacting military readiness.
How effective is the BASE MULTI-MISSION PARACHUTE COURSE in meeting the Navy's training objectives?
The provided data does not contain information regarding the effectiveness of the BASE MULTI-MISSION PARACHUTE COURSE. Effectiveness would typically be measured through post-training performance assessments of service members, mission success rates attributed to the skills learned, and feedback from instructors and trainees. To assess effectiveness, one would need to review training completion rates, proficiency evaluations, and potentially survey data from the Navy personnel who have undergone the training. Without these metrics, it is impossible to determine how well the course meets its intended objectives.
What are the historical spending patterns for parachute training by the Department of the Navy?
The provided data only details a single contract for a BASE MULTI-MISSION PARACHUTE COURSE awarded to Complete Parachute Solutions, Inc. It does not offer historical spending patterns for parachute training by the Department of the Navy. To understand historical spending, one would need access to a broader dataset encompassing all parachute training contracts over several fiscal years, including details on the number of contracts, awardees, total amounts obligated, and the types of parachute training provided. This would allow for an analysis of trends, fluctuations in spending, and the typical procurement methods used.
What is the significance of the contract being a Firm Fixed Price (FFP) type?
A Firm Fixed Price (FFP) contract type signifies that the contractor, Complete Parachute Solutions, Inc., bears the primary risk for cost overruns. The agreed-upon price is fixed regardless of the contractor's actual costs incurred in performing the work. This provides the Department of the Navy with cost certainty, as the total expenditure is known upfront, assuming the scope of work does not change. While beneficial for budget predictability, the fixed price might be higher than other contract types to compensate the contractor for the cost risk they are assuming, especially in the absence of competition.
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: M6785414R1000
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1326 E INTERNATIONAL SPEEDWAY BLVD STE 7, DELAND, FL, 32724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,529,271
Exercised Options: $21,529,271
Current Obligation: $21,529,271
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-05-19
Current End Date: 2018-05-18
Potential End Date: 2018-05-18 00:00:00
Last Modified: 2017-11-21
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