DoD awards $28.5M for ST2 Production travel, with Global Air Logistics and Training, Inc. securing the sole-source contract

Contract Overview

Contract Amount: $28,511,079 ($28.5M)

Contractor: Global AIR Logistics and Training, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2027-04-01

Contract Duration: 548 days

Daily Burn Rate: $52.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COST ONLY CLIN FOR TRAVEL FOR ST2 PRODUCTION

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to GLOBAL AIR LOGISTICS AND TRAINING, INC. for work described as: COST ONLY CLIN FOR TRAVEL FOR ST2 PRODUCTION Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant duration of 548 days suggests a long-term need for travel services. 3. The contract is for travel costs related to ST2 production, indicating support for a specific defense program. 4. Fixed-price contract type aims to control costs, but the lack of competition may inflate the unit price. 5. The contract falls under Aircraft Manufacturing (NAICS 336411), suggesting a connection to aviation-related production. 6. Awarded by the Department of the Navy, part of the broader Department of Defense. 7. The contract value of $28.5M warrants scrutiny for value for money given the sole-source nature.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific focus on travel for ST2 production. Without competitive bids, it's difficult to ascertain if the $28.5 million represents a fair market price. The fixed-price structure provides some cost certainty, but the absence of competition raises concerns about potential overpayment compared to what might have been achieved in an open market. Further analysis would require understanding the specific travel requirements and comparing them to industry standards for similar defense production support.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in situations where competition is deemed not to be in the government's best interest. The lack of competition means there were no other bidders, and therefore no direct price comparison from a competitive bidding process. This can limit the government's ability to secure the lowest possible price.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of multiple offers could lead to a higher overall cost for the travel services required for ST2 production.

Public Impact

The primary beneficiaries are Global Air Logistics and Training, Inc., who will receive the contract funding. The services delivered are travel arrangements and support essential for the ST2 production program. The geographic impact is likely concentrated around the ST2 production facilities and associated travel destinations, primarily within California. Workforce implications include potential employment opportunities within Global Air Logistics and Training, Inc. to support these travel services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings for taxpayers.
Lack of competition may indicate a lack of market availability or a strategic decision to use a specific provider, which warrants further justification.
The significant contract value for travel services necessitates careful monitoring to ensure funds are used efficiently and effectively.

Positive Signals

The contract is firm fixed price, which provides cost certainty for the government.
The award is to a specific company, Global Air Logistics and Training, Inc., suggesting they possess the necessary capabilities for this specialized travel support.
The contract duration is clearly defined, allowing for long-term planning of travel support for ST2 production.

Sector Analysis

The defense industry, particularly within aircraft manufacturing, relies heavily on specialized support services, including logistics and travel. This contract fits within the broader ecosystem of defense production, where efficient and reliable travel is crucial for program execution, personnel deployment, and supply chain management. Comparable spending benchmarks for travel support in large-scale defense manufacturing programs can vary widely based on the specific project's scope, duration, and geographic reach. The $28.5 million allocated here suggests a substantial travel requirement tied to the ST2 production.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting opportunities for small businesses within the provided data. The focus is on a large sole-source award to Global Air Logistics and Training, Inc.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency regarding the justification for the sole-source award and the detailed breakdown of travel costs would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Travel Services
Aircraft Manufacturing Support Contracts
Defense Logistics Support
ST2 Production Program

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns without competitive pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to GLOBAL AIR LOGISTICS AND TRAINING, INC.. COST ONLY CLIN FOR TRAVEL FOR ST2 PRODUCTION

Who is the contractor on this award?

The obligated recipient is GLOBAL AIR LOGISTICS AND TRAINING, 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 $28.5 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-04-01.

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

The provided data indicates the contract was 'NOT COMPETED' and is 'sole-source'. A detailed justification for this sole-source award would typically be documented by the contracting agency (Department of the Navy). Common reasons for sole-source contracts include situations where only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without the agency's justification document, it is impossible to determine the specific rationale. This lack of competition means that the government did not explore potential cost savings that could arise from a competitive bidding process, making it crucial to ensure the sole-source justification is robust and well-documented to protect taxpayer interests.

How does the $28.5 million cost compare to similar travel support contracts for defense production programs?

Direct comparison of the $28.5 million cost to similar travel support contracts is difficult without more specific data on the scope and duration of those comparable contracts. Travel costs are highly variable, depending on factors such as the number of personnel traveling, destinations, duration of trips, class of travel, and specific logistical needs. Given this contract is for travel related to ST2 production and has a duration of 548 days, the cost reflects the anticipated travel expenses over that period. However, the sole-source nature of this award means that a competitive benchmark is absent, making it harder to definitively assess if this amount represents optimal value for money. Further analysis would require access to the contract's detailed cost breakdown and comparison with other sole-source or competed travel contracts for similar defense manufacturing support.

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

The primary risks associated with a sole-source contract of this magnitude ($28.5 million) include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not receive the best possible value for their money. There's also a risk that the government may become overly reliant on a single contractor, potentially limiting future flexibility. Ensuring robust oversight, detailed performance metrics, and a clear understanding of the justification for the sole-source award are critical to mitigating these risks.

What is the expected performance period and what does it imply for the ST2 production program?

The contract has a performance period from April 1, 2027, to September 30, 2025, with a duration of 548 days. This indicates a significant and extended need for travel services supporting the ST2 production program. The duration suggests that the ST2 production is a long-term initiative requiring sustained logistical support. The extended timeline allows for comprehensive planning and execution of travel requirements, but also necessitates continuous monitoring to ensure the contractor maintains performance standards and cost-effectiveness throughout the contract's life.

What is the track record of Global Air Logistics and Training, Inc. in supporting defense production travel?

Information regarding the specific track record of Global Air Logistics and Training, Inc. in supporting defense production travel is not detailed in the provided data. To assess their capabilities and past performance, one would need to review their contract history, past performance evaluations, and any relevant certifications or awards. A thorough review would help determine their experience with similar programs, their ability to manage complex travel logistics, and their history of meeting cost, schedule, and performance requirements for defense clients. This information is crucial for validating the decision to award them this significant sole-source contract.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001925R0012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3860 CALLE FORTUNADA STE 100, SAN DIEGO, CA, 92123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,511,079

Exercised Options: $28,511,079

Current Obligation: $28,511,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001925D1117

IDV Type: IDC

Timeline