DoD awards $423M contract to IAP Worldwide Services for air transportation support, raising value-for-money questions

Contract Overview

Contract Amount: $422,908,494 ($422.9M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-08-20

End Date: 2022-01-31

Contract Duration: 2,356 days

Daily Burn Rate: $179.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF AWARD A CLS CONTRACT.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $422.9 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF AWARD A CLS CONTRACT. Key points: 1. The contract's significant value suggests a need for robust performance metrics and cost controls. 2. Competition dynamics for this type of specialized support are crucial for ensuring fair pricing. 3. Contract duration and firm fixed-price structure indicate a defined scope but potential for cost overruns if not managed. 4. Performance history and on-time delivery metrics are key indicators of contractor reliability. 5. The award falls within the broader defense logistics and support sector, characterized by large-scale, long-term contracts. 6. Oversight by the Defense Contract Management Agency is essential for ensuring compliance and value.

Value Assessment

Rating: fair

Benchmarking this $423 million contract against similar Department of Defense contracts for air transportation support is challenging without more granular data on the specific services rendered. The firm fixed-price structure suggests an attempt to control costs, but the sheer scale of the award warrants close scrutiny of performance and any potential for cost creep. Comparing the per-unit cost of services, if available, to industry standards would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders, as suggested by the 'no' field, points to a reasonable level of competition for this requirement. This competitive process should theoretically lead to more favorable pricing and terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging better service offerings from contractors.

Public Impact

The primary beneficiaries are the Department of Defense units relying on air transportation services. Services delivered likely include ground support, aircraft maintenance coordination, and logistical planning for air operations. The geographic impact is potentially widespread, supporting military operations globally. Workforce implications include direct employment by IAP Worldwide Services and indirect support roles within the defense logistics ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns within a large, long-term firm fixed-price contract.
Ensuring consistent service quality across all deployed locations.
Monitoring contractor performance against stringent military operational requirements.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type aims to provide cost certainty.
Long-term duration allows for stable planning and execution of services.

Sector Analysis

This contract operates within the defense logistics and support sector, a significant segment of federal spending. This market is characterized by complex requirements, long procurement cycles, and the need for specialized expertise. Companies like IAP Worldwide Services often compete for large, multi-year contracts that provide essential operational support to military branches. Benchmarking against similar large-scale support contracts within the DoD is key to assessing value.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While IAP Worldwide Services is likely a large business, the contract's value suggests potential opportunities for small business subcontracting. The government should ensure robust subcontracting plans are in place to foster small business participation and economic impact.

Oversight & Accountability

Oversight is primarily managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of cost control, but ongoing monitoring of deliverables, quality, and adherence to contract terms is crucial. Transparency regarding performance metrics and any modifications to the contract would further enhance accountability.

Related Government Programs

Department of Defense Logistics Support Contracts
Air Transportation Services Contracts
Global Support Services
Military Base Operations Support

Risk Flags

Large contract value requires diligent oversight.
Long contract duration may present adaptability challenges.
Firm fixed-price contracts can mask underlying cost issues if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $422.9 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF AWARD A CLS CONTRACT.

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $422.9 million.

What is the period of performance?

Start: 2015-08-20. End: 2022-01-31.

What is the specific breakdown of services provided under this $423 million contract?

The provided data indicates the contract is for 'Other Support Activities for Air Transportation' (NAICS code 488190). While the exact services are not detailed, this typically encompasses a range of activities essential for air operations. These can include ground handling, aircraft refueling, baggage handling, passenger services, ramp operations, and potentially air traffic control support or coordination. The firm fixed-price nature suggests a defined scope of these services, but the broad category allows for significant variation in the specific tasks performed across different locations or over the contract's duration. Further details would likely be found in the contract's statement of work.

How does the $423 million award compare to historical spending on similar air transportation support contracts by the DoD?

Comparing this $423 million award requires analyzing historical spending trends for similar 'Other Support Activities for Air Transportation' contracts within the Department of Defense. Without access to a comprehensive database of past awards and their specific scopes, a direct comparison is difficult. However, the magnitude of this single award suggests it represents a significant investment in sustaining air mobility capabilities. It's plausible that such large contracts are awarded periodically to consolidate support services, reflecting either increased operational tempo, consolidation of requirements, or a shift towards larger, more comprehensive support packages. Analyzing trends in contract values for this NAICS code over the past decade would reveal if this award is an outlier or part of a pattern.

What are the key performance indicators (KPIs) used to evaluate IAP Worldwide Services under this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for 'Other Support Activities for Air Transportation,' typical KPIs would likely include metrics related to on-time performance for ground handling, aircraft turnaround times, fuel delivery efficiency, safety incident rates, and customer satisfaction (from military personnel utilizing the services). Given the firm fixed-price nature, the government would closely monitor adherence to service level agreements (SLAs) outlined in the contract. Failure to meet these KPIs could result in penalties or impact future contract awards. The Defense Contract Management Agency (DCMA) would be responsible for tracking and reporting on these performance metrics.

What is the track record of IAP Worldwide Services in fulfilling large-scale defense support contracts?

IAP Worldwide Services has a significant track record in providing global mission support services, including logistics, facilities management, and aviation support, to government and commercial clients. They have historically been awarded large, complex contracts, often in challenging environments. Their experience includes supporting military operations, contingency responses, and base sustainment. While specific performance details for every contract are not publicly available, their continued success in winning substantial government contracts suggests a generally positive performance history. However, as with any large contractor, scrutiny of specific contract performance, especially concerning cost control and adherence to schedules, is always warranted.

Are there any identified risks associated with this contract, such as contractor performance issues or cost overruns?

The primary risks associated with a contract of this magnitude and duration, particularly a firm fixed-price one, include potential cost overruns if the scope of work expands or unforeseen operational challenges arise. Contractor performance is always a risk; ensuring IAP Worldwide Services consistently meets the demanding requirements of air transportation support across potentially diverse locations is critical. Delays in service delivery could impact military readiness. Furthermore, the long duration (August 2015 - January 2022) means that changes in operational needs or technological advancements could render aspects of the contracted services less efficient over time. Robust oversight by the DCMA is essential to mitigate these risks.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001914R1007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7315, NORTH ATLANTIC AVENUE, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $424,538,330

Exercised Options: $424,538,325

Current Obligation: $422,908,494

Actual Outlays: $35,879,184

Subaward Activity

Number of Subawards: 287

Total Subaward Amount: $59,028,065

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline