DoD Awards $3.1M for Airgard Maintenance, Raising Questions on Competition and Value
Contract Overview
Contract Amount: $3,112,718 ($3.1M)
Contractor: KD Analytical Consulting LLC
Awarding Agency: Department of Defense
Start Date: 2022-01-13
End Date: 2027-01-12
Contract Duration: 1,825 days
Daily Burn Rate: $1.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE YR - AIRGARD MAINTENANCE SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $3.1 million to KD ANALYTICAL CONSULTING LLC for work described as: BASE YR - AIRGARD MAINTENANCE SUPPORT Key points: 1. Contract awarded to KD ANALYTICAL CONSULTING LLC for Airgard maintenance. 2. Spending is concentrated in the Other Electronic and Precision Equipment Repair and Maintenance sector. 3. The contract duration is 5 years, with a total value of $3.1M. 4. Concerns exist regarding the limited competition and potential overpricing given the lack of benchmarks.
Value Assessment
Rating: questionable
The contract's fixed price of $3.1M over five years lacks clear justification without comparable contract data. The absence of a specific benchmark for 'Airgard Maintenance Support' makes it difficult to assess if the pricing is competitive or represents fair value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting limited competition. While SAP aims for efficiency, it can restrict the pool of potential bidders, potentially impacting price discovery and leading to less competitive pricing.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these maintenance services.
Public Impact
Taxpayers may be overpaying for essential equipment maintenance due to limited competition. The long-term nature of the contract could lock in potentially inflated costs. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear value assessment
- Potential for overpricing
Positive Signals
- Contract awarded for essential maintenance
- Firm fixed price contract type
Sector Analysis
This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' sector, a niche area within the broader defense industrial base. Spending benchmarks for this specific service are not readily available, making direct comparison difficult.
Small Business Impact
The data indicates the awardee is KD ANALYTICAL CONSULTING LLC. Further analysis is needed to determine if this is a small business and if the procurement process adequately considered small business participation.
Oversight & Accountability
The use of Simplified Acquisition Procedures (SAP) for a 5-year contract warrants scrutiny to ensure adequate oversight and accountability were maintained throughout the procurement and execution phases.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Lack of pricing benchmarks
- Potential for cost overruns
- Long contract duration without clear performance metrics
Tags
other-electronic-and-precision-equipment, department-of-defense, dc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.1 million to KD ANALYTICAL CONSULTING LLC. BASE YR - AIRGARD MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is KD ANALYTICAL CONSULTING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $3.1 million.
What is the period of performance?
Start: 2022-01-13. End: 2027-01-12.
What is the specific nature of 'Airgard Maintenance Support' and why is it critical for the Department of the Navy?
Airgard Maintenance Support likely refers to the upkeep and repair of specialized air defense or environmental control systems critical for naval operations. Its criticality stems from ensuring the operational readiness and safety of naval assets, potentially impacting mission success and personnel well-being. Without specific system details, the exact function remains generalized.
How does the limited competition under SAP impact the risk of inflated pricing for this contract?
Limited competition under SAP increases the risk of inflated pricing because fewer bidders mean less pressure to offer the most competitive rates. The agency may not receive the full benefit of market forces, potentially leading to higher costs than if a broader competition had been conducted. This necessitates robust internal price analysis.
What are the potential long-term effectiveness implications of awarding a 5-year maintenance contract with limited competition?
A 5-year contract with limited competition risks locking the government into potentially suboptimal service quality or escalating costs if the contractor's performance or pricing becomes less competitive over time. It could also stifle innovation from other potential providers who are excluded from the outset, impacting long-term system effectiveness.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: N0017422Q0001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Federal Resources Supply Company LLC
Address: 5751 BRIAR HILL RD BLDG 28, LEXINGTON, KY, 40516
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,112,718
Exercised Options: $3,112,718
Current Obligation: $3,112,718
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2022-01-13
Current End Date: 2027-01-12
Potential End Date: 2027-01-12 00:00:00
Last Modified: 2026-01-08
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