DoD Spends $22M on AN-32 Aircraft for Afghanistan via Sole-Source International Agreement

Contract Overview

Contract Amount: $22,012,000 ($22.0M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2007-12-05

End Date: 2011-01-30

Contract Duration: 1,152 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF AN-32 AIRCRAFT TO SATISFY AN FMS CASE FOR THE AFGHANISTAN AIR MINISTRY. FOREING VENDOR AND SERVICES ARE BEING PERFORMED OUTSIDE OF THE US. INTERNATIONAL AGREEMENT IDENTIFIED THE SOLE SOURCE.

Plain-Language Summary

Department of Defense obligated $22.0 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: PROCUREMENT OF AN-32 AIRCRAFT TO SATISFY AN FMS CASE FOR THE AFGHANISTAN AIR MINISTRY. FOREING VENDOR AND SERVICES ARE BEING PERFORMED OUTSIDE OF THE US. INTERNATIONAL AGREEMENT IDENTIFIED THE SOLE SOURCE. Key points: 1. Spending is for aircraft procurement under a Foreign Military Sales (FMS) case. 2. Services are performed outside the US by an undisclosed foreign vendor. 3. The international agreement identified the procurement as sole-source, limiting competition. 4. This contract does not appear to involve small businesses.

Value Assessment

Rating: questionable

The contract value is $22.012 million. Without comparable US-based contracts or detailed cost breakdowns, assessing value for money is difficult. The sole-source nature and international performance add complexity to pricing evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was identified as sole-source due to an international agreement. This significantly limits competition, potentially leading to higher prices and reduced opportunities for US vendors. Price discovery mechanisms are likely constrained.

Taxpayer Impact: Taxpayer funds are used for an international procurement with limited transparency and competition, raising concerns about cost-effectiveness.

Public Impact

US taxpayer funds are supporting foreign military capabilities through an FMS case. The procurement involves services performed entirely outside the United States. Lack of competition raises questions about the best use of funds. Transparency is limited due to undisclosed foreign vendors and international agreements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
International performance
Lack of small business participation
Undisclosed foreign vendor

Positive Signals

Supports FMS case requirements
Procurement of specific aircraft type

Sector Analysis

This contract falls under Aircraft Manufacturing (NAICS 336411). Spending in this sector can vary widely based on aircraft type, complexity, and geopolitical factors. International procurements often have unique cost structures.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). The procurement was awarded to foreign entities, excluding domestic small business participation.

Oversight & Accountability

Oversight is managed by the Department of the Navy for the Department of Defense. However, the international and sole-source nature of the contract may present challenges for standard oversight and accountability mechanisms.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source justification unclear
Foreign vendor and performance
Lack of competition
No small business participation
Limited transparency on pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to FOREIGN AWARDEES (UNDISCLOSED). PROCUREMENT OF AN-32 AIRCRAFT TO SATISFY AN FMS CASE FOR THE AFGHANISTAN AIR MINISTRY. FOREING VENDOR AND SERVICES ARE BEING PERFORMED OUTSIDE OF THE US. INTERNATIONAL AGREEMENT IDENTIFIED THE SOLE SOURCE.

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2007-12-05. End: 2011-01-30.

What specific justification was provided within the international agreement to designate this procurement as sole-source, and how was the vendor selected?

The provided data states an international agreement identified the sole source. Further details on the specific justification (e.g., unique capabilities, existing infrastructure, security concerns) and the vendor selection process are not available. Understanding this rationale is crucial for assessing the necessity of sole-sourcing and potential alternatives that might have been explored.

How does the cost of these AN-32 aircraft and associated services compare to similar aircraft procured through competitive means, either domestically or internationally?

A direct cost comparison is challenging due to the sole-source nature and international performance. Without access to the undisclosed vendor's pricing structure and the specific terms of the international agreement, it's difficult to benchmark against competitive procurements. This lack of transparency hinders a robust value-for-money assessment.

What are the long-term implications for US defense readiness and industrial base if significant portions of aircraft procurement and services are conducted internationally on a sole-source basis?

Sole-source international procurements can potentially reduce the capacity and competitiveness of the US defense industrial base over time. It may also lead to dependencies on foreign suppliers for critical assets. While supporting allies is important, a consistent reliance on non-competitive international contracts could impact US technological leadership and long-term strategic autonomy.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001908R0023

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $22,012,000

Exercised Options: $22,012,000

Current Obligation: $22,012,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline