DoD's $6.65M Aircraft Oxygen System Contract Awarded to MIG GOV, LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $6,650,543 ($6.7M)

Contractor: MIG GOV, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-22

End Date: 2025-11-04

Contract Duration: 713 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: P1137U - AIRCRAFT LIQUID OXYGEN/NITROGEN SHOP

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to MIG GOV, LLC for work described as: P1137U - AIRCRAFT LIQUID OXYGEN/NITROGEN SHOP Key points: 1. Contract value of $6.65 million for aircraft liquid oxygen/nitrogen shop services. 2. Awarded to MIG GOV, LLC, a contractor with a track record in government services. 3. Competition was conducted under 'Full and Open Competition After Exclusion of Sources', indicating a broad but specific solicitation process. 4. The contract duration is 713 days, ending in November 2025. 5. The contract type is Firm Fixed Price, providing cost certainty for the government. 6. The North American Industry Classification System (NAICS) code 236220 points to Commercial and Institutional Building Construction, though the service is specialized. 7. The award falls under the Department of the Navy within the Department of Defense. 8. The contract was issued as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing agreement.

Value Assessment

Rating: good

The contract value of $6.65 million for aircraft liquid oxygen/nitrogen shop services appears reasonable given the specialized nature of the work and the duration of the contract (713 days). Benchmarking against similar specialized aerospace support contracts is challenging due to the niche requirements. However, the Firm Fixed Price (FFP) award structure suggests the government has secured predictable costs. Further analysis would require comparing the specific deliverables and service levels to other contracts for similar support functions within the DoD or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This procurement method allows all responsible sources to submit a bid, but specific sources may have been excluded based on pre-defined criteria, potentially related to security, capability, or prior performance. The presence of 6 bids indicates a competitive environment, which generally benefits price discovery and ensures the government receives offers from multiple qualified vendors. The specific exclusion criteria would need further investigation to fully understand the competitive landscape.

Taxpayer Impact: The competitive nature of this award suggests that taxpayers likely benefited from a more competitive pricing structure compared to a sole-source or limited competition scenario. The multiple bids received likely drove down the final price.

Public Impact

The primary beneficiaries are the Department of the Navy and the Department of Defense, ensuring operational readiness of aircraft. The contract delivers essential services for maintaining aircraft by providing liquid oxygen and nitrogen, critical for flight operations and maintenance. The geographic impact is likely concentrated at the naval facilities where the aircraft are stationed and serviced. Workforce implications include the direct employment of skilled technicians and support staff by MIG GOV, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 'Commercial and Institutional Building Construction' seems misaligned with the service description 'Aircraft Liquid Oxygen/Nitrogen Shop', potentially indicating a classification error or a broad interpretation of the code.
The specific criteria for 'Exclusion of Sources' in the full and open competition process are not detailed, making it difficult to assess if the exclusion was fully justified and did not unduly limit competition.
The contractor, MIG GOV, LLC, may have limited publicly available performance data for this specific type of specialized service, requiring careful monitoring.
The contract duration of 713 days is substantial, necessitating robust performance management to ensure continued quality and value.

Positive Signals

The award was made under a Firm Fixed Price contract, which provides cost certainty and reduces the risk of cost overruns for the government.
The contract was competed fully and openly (after exclusions), indicating that multiple vendors had the opportunity to bid, fostering a competitive environment.
The receipt of 6 bids suggests significant interest and a healthy level of competition for this specialized service.
The contract is managed by the Department of the Navy, a major component of the DoD with established procurement and oversight processes.
The contractor, MIG GOV, LLC, is a recipient of federal contracts, implying some level of established capability and experience with government requirements.

Sector Analysis

This contract falls within the aerospace and defense support services sector, specifically focusing on specialized ground support equipment and consumables for aircraft. The market for such services is driven by military readiness requirements and the operational tempo of aviation units. While the NAICS code suggests construction, the actual service is highly specialized maintenance and supply chain support for critical aircraft components. Comparable spending benchmarks would typically be found within broader aerospace maintenance, repair, and overhaul (MRO) categories, but the specific nature of liquid oxygen and nitrogen systems makes direct comparisons difficult.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. There is no explicit mention of small business subcontracting goals or achievements in the provided data. This suggests that the prime contractor, MIG GOV, LLC, is likely not a small business, and the contract was not specifically targeted to encourage small business prime participation. Further investigation into the subcontracting plan, if any, would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight from the DoD Inspector General's office, which investigates fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS-NG (Federal Procurement Data System - Next Generation), where basic award details are publicly available. The Firm Fixed Price nature of the contract simplifies some aspects of financial oversight by setting a clear ceiling.

Related Government Programs

Aircraft Maintenance Services
Aerospace Ground Support Equipment
Defense Logistics Support
Specialized Industrial Gas Supply
Naval Aviation Operations Support
Department of Defense Procurement

Risk Flags

Potential NAICS Code Misclassification
Unclear Exclusion Criteria in Competition
Limited Public Performance Data for Contractor
Risk of Contractor Cost Overruns in FFP Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to MIG GOV, LLC. P1137U - AIRCRAFT LIQUID OXYGEN/NITROGEN SHOP

Who is the contractor on this award?

The obligated recipient is MIG GOV, 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 $6.7 million.

What is the period of performance?

Start: 2023-11-22. End: 2025-11-04.

What is the specific nature of the 'Exclusion of Sources' in the 'Full and Open Competition After Exclusion of Sources' procurement method used for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, as defined by the Federal Acquisition Regulation (FAR), allows for full and open competition but permits the exclusion of specific sources based on certain criteria. These criteria typically relate to national security, export control regulations, or specific capabilities that only a limited number of entities possess. For this contract, the specific reasons for excluding certain sources are not detailed in the provided data. However, common justifications could include proprietary technology, unique manufacturing processes, or specific security clearances required for handling sensitive aircraft components or materials. Understanding these exclusions is crucial for assessing whether the competition was truly as broad as possible given the specialized nature of aircraft liquid oxygen/nitrogen systems.

How does the contractor, MIG GOV, LLC, compare to other providers of similar aircraft support services in terms of past performance and pricing?

Assessing MIG GOV, LLC's performance and pricing relative to competitors requires access to detailed historical contract data, past performance reviews, and potentially bid protest information. The provided data indicates MIG GOV, LLC has secured this $6.65 million contract, suggesting they met the government's requirements. However, without comparative data on their previous awards, contract values, and performance ratings for similar services, it's difficult to definitively benchmark their capabilities. A thorough analysis would involve examining their track record on other DoD or federal contracts, looking for any patterns of cost overruns, delays, or quality issues, as well as positive feedback on efficiency and reliability. Comparing their proposed pricing structure to the average awarded price for comparable services would also be essential.

What are the potential risks associated with a Firm Fixed Price (FFP) contract for specialized aircraft support services like this one?

While Firm Fixed Price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor, which may indirectly affect the government. For specialized services like aircraft liquid oxygen/nitrogen supply, unforeseen technical challenges or fluctuations in the cost of raw materials (if applicable) could impact the contractor's profitability. If the contractor experiences significant cost increases or operational difficulties not covered by contract contingencies, they might be incentivized to cut corners on quality or service delivery to maintain profit margins. This could lead to performance issues, delays, or safety concerns. Conversely, if the contractor significantly underestimates costs, they might struggle to fulfill the contract adequately. Robust government oversight and clear performance metrics are crucial to mitigate these risks.

What is the historical spending pattern for aircraft liquid oxygen/nitrogen shop services within the Department of the Navy or the broader Department of Defense?

Analyzing historical spending patterns for aircraft liquid oxygen/nitrogen shop services requires querying federal procurement databases over several fiscal years. This specific contract award of $6.65 million represents a single data point. To understand the broader trend, one would need to aggregate spending on similar services (identified by Product Service Codes (PSCs) or keywords) across the Department of the Navy and potentially other branches of the DoD. Key questions would include: Is spending on these services increasing, decreasing, or stable? How many contracts are typically awarded annually for such services? What is the average contract value? Are there specific periods of higher spending, perhaps linked to increased operational tempo or fleet modernization programs? Without this historical context, it's difficult to determine if the current award represents a typical, elevated, or reduced level of investment.

How does the NAICS code 236220 (Commercial and Institutional Building Construction) align with the service provided (Aircraft Liquid Oxygen/Nitrogen Shop)?

The assignment of NAICS code 236220, which pertains to Commercial and Institutional Building Construction, to a contract for 'Aircraft Liquid Oxygen/Nitrogen Shop' appears incongruous at first glance. Typically, construction codes relate to the erection of buildings. However, federal agencies sometimes use broader NAICS codes when a highly specific one doesn't exist or when the contract involves elements that could be interpreted as construction-related, such as the installation or modification of fixed infrastructure associated with the shop, or if the 'shop' itself involves significant structural work. It's also possible this code was selected due to the contractor's primary business classification or a legacy assignment. A more fitting NAICS code might fall under industrial machinery repair and maintenance, or specialized equipment services. Clarification from the awarding agency would be needed to fully understand the rationale behind this code selection.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008522R2627

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 545 S BIRDNECK RD, VIRGINIA BEACH, VA, 23451

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,650,543

Exercised Options: $6,650,543

Current Obligation: $6,650,543

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008523D0036

IDV Type: IDC

Timeline