Department of Defense awards $19.8M contract for air terminal and ground handling services in Bahrain

Contract Overview

Contract Amount: $19,812,898 ($19.8M)

Contractor: Bahrain Airport Services Company (BAS) B.S.C Closed

Awarding Agency: Department of Defense

Start Date: 2019-07-22

End Date: 2024-12-31

Contract Duration: 1,989 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIR TERMINAL AND GROUND HANDLING SERVICE

Plain-Language Summary

Department of Defense obligated $19.8 million to BAHRAIN AIRPORT SERVICES COMPANY (BAS) B.S.C CLOSED for work described as: AIR TERMINAL AND GROUND HANDLING SERVICE Key points: 1. Contract awarded to Bahrain Airport Services Company (BAS) for essential airport operations. 2. Services include ground handling, passenger services, and aircraft support. 3. Long-term contract duration suggests a need for stable, ongoing support. 4. The firm-fixed-price structure aims to control costs for the government. 5. Lack of competition raises questions about potential overpayment and value. 6. Geographic focus on Bahrain indicates support for U.S. military presence in the region.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable data for air terminal and ground handling services in Bahrain. The contract's value of approximately $19.8 million over its duration suggests a significant investment. Without competitive bidding, it's difficult to ascertain if the pricing reflects fair market value or if there were opportunities for cost savings through a more open procurement process. The firm-fixed-price type provides cost certainty but doesn't inherently guarantee optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The absence of competition means that the government did not explore alternative providers or leverage market dynamics to potentially secure better pricing or service terms. The rationale for a sole-source award would need to be justified by specific circumstances, such as unique capabilities or urgent requirements.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing, potentially leading to higher costs than might be achieved in an open market. It also reduces transparency in the procurement process.

Public Impact

U.S. military personnel and operations in Bahrain benefit from reliable air terminal and ground handling services. Ensures smooth logistical support for aircraft, including passenger and cargo movement. Supports the U.S. military's presence and operational readiness in the Middle East. Facilitates the movement of personnel and equipment, contributing to mission effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award limits transparency and potential cost savings.
Contract duration could lock in potentially inflated costs over time.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long-term award indicates a stable and predictable service.
Services are critical for military operational readiness.

Sector Analysis

The air terminal and ground handling services sector is crucial for aviation logistics, supporting both commercial and military operations. This contract falls within the broader 'Other Airport Operations' category. While specific market size data for military-focused ground handling in Bahrain is not readily available, the global aviation services market is substantial. This contract represents a specific, localized expenditure within the defense sector's logistical support framework, ensuring the efficient functioning of air operations critical to U.S. interests in the region.

Small Business Impact

There is no indication that this contract included small business set-asides. The award to a single, likely established, entity suggests that subcontracting opportunities for small businesses may be limited unless specifically mandated by the prime contractor. Further analysis would be needed to determine if any small business participation was incorporated into the contract's execution.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Transportation Services
Logistics and Support Services
Base Operations Support
Defense Logistics Agency Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency in procurement process.
Potential for cost inefficiencies due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to BAHRAIN AIRPORT SERVICES COMPANY (BAS) B.S.C CLOSED. AIR TERMINAL AND GROUND HANDLING SERVICE

Who is the contractor on this award?

The obligated recipient is BAHRAIN AIRPORT SERVICES COMPANY (BAS) B.S.C CLOSED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2019-07-22. End: 2024-12-31.

What specific ground handling services are included under this contract?

The contract specifies 'AIR TERMINAL AND GROUND HANDLING SERVICE.' While detailed line items are not provided in the summary data, this typically encompasses a range of essential services required for aircraft operations at an air terminal. These services often include baggage handling, cargo loading and unloading, passenger boarding and deplaning, aircraft towing, marshaling, and potentially aircraft cleaning and lavatory servicing. The contract's objective is to ensure the efficient and safe turnaround of military aircraft operating in Bahrain, supporting personnel and equipment movement critical to U.S. defense operations in the region.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED,' classifying it as sole-source. Specific justifications for sole-source awards are typically documented by the procuring agency and can include reasons such as urgent and compelling needs, the unavailability of other sources with the required capabilities, or if only one responsible source exists. For services like air terminal and ground handling at a specific foreign location, it's possible that Bahrain Airport Services Company (BAS) was deemed the only entity capable of providing the necessary services due to existing infrastructure, local agreements, or unique operational requirements that made competition impractical or impossible within the given timeframe and circumstances.

How does the firm-fixed-price (FFP) structure benefit the government in this contract?

A Firm-Fixed-Price (FFP) contract structure is generally advantageous for the government as it shifts the majority of the risk to the contractor. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty and predictability, making budgeting more straightforward. For the Department of Defense in Bahrain, this means they know the exact cost for the air terminal and ground handling services over the contract period. While it doesn't guarantee the lowest possible price (especially in a sole-source scenario), it protects the government from cost overruns that could occur if the contractor's expenses increase unexpectedly.

What is the significance of the contract duration (2019-2024)?

The contract spans from July 22, 2019, to December 31, 2024, representing a duration of over five years. This extended period suggests that the services provided are critical and require a stable, long-term arrangement rather than short-term or ad-hoc support. For air terminal and ground handling, a longer contract duration allows the contractor (BAS) to make necessary investments in equipment, personnel, and infrastructure, potentially leading to more reliable and efficient service delivery. It also reduces the administrative burden and cost associated with frequent re-procurement processes for the Department of the Navy.

Are there any comparable contracts or spending benchmarks for similar services in the region?

Publicly available data on comparable contracts for military air terminal and ground handling services in the specific region of Bahrain is limited, especially for sole-source awards. Benchmarking is difficult without access to detailed pricing structures of other contracts or market surveys. However, general industry knowledge suggests that ground handling costs can vary significantly based on the scope of services, type of aircraft, and local operating conditions. The absence of competitive bids makes it harder to establish a precise market rate. The contract's total value of approximately $19.8 million over its term, averaging around $3.3 million per year, provides a reference point, but its true value proposition remains unclear without comparative data.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N4033919RS012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BLOCK 224 ROAD 2403, MUHARRAQ

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Sole Proprietorship, Special Designations

Financial Breakdown

Contract Ceiling: $19,933,177

Exercised Options: $19,881,977

Current Obligation: $19,812,898

Actual Outlays: $9,964,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline