Department of the Navy awards $8.7M contract for air terminal and ground handling services in Bahrain

Contract Overview

Contract Amount: $8,739,408 ($8.7M)

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

Awarding Agency: Department of Defense

Start Date: 2024-12-30

End Date: 2026-12-31

Contract Duration: 731 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIR TERMINAL AND GROUND HANDLING SERVICE

Plain-Language Summary

Department of Defense obligated $8.7 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 on a non-competitive basis, raising questions about potential cost efficiencies. 2. The firm-fixed-price structure aims to control costs, but the lack of competition limits price discovery. 3. Service duration of 731 days suggests a need for sustained operational support. 4. The contract falls under 'Other Airport Operations,' a broad category that may obscure specific service details. 5. Limited public information on contractor performance or benchmarks makes a value-for-money assessment challenging. 6. The geographic focus on Bahrain indicates a specific operational requirement in that region.

Value Assessment

Rating: questionable

The contract value of $8.7 million over two years for air terminal and ground handling services in Bahrain is difficult to benchmark without comparable solicitations or detailed service breakdowns. Given the sole-source nature, it's challenging to assess if the pricing reflects competitive market rates. The firm-fixed-price contract type provides some cost certainty, but the absence of competition means there's no direct market pressure to ensure optimal value for the taxpayer.

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. The data indicates 'NOT COMPETED' and 'sole-source' as the contract type. This approach is typically used when only one vendor can provide the required services, or in situations deemed urgent or essential. The lack of competition means potential bidders were not solicited, and the government did not benefit from a bidding process that could drive down prices.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiaries are the Department of the Navy personnel and operations requiring air terminal and ground handling support in Bahrain. Services include essential functions for aircraft and passenger movement within the air terminal environment. The geographic impact is concentrated at the Bahrain airport, supporting U.S. military presence in the region. Workforce implications are likely related to the contractor's personnel providing these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency on service delivery metrics and performance.
Potential for vendor lock-in due to sole-source award.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration suggests a stable, ongoing need for services.
Award to a local entity (BAS) may foster regional partnerships.

Sector Analysis

The defense sector relies heavily on specialized logistical support services, including air terminal and ground handling, particularly in overseas locations. This contract for services in Bahrain fits within the broader category of defense logistics and base support. The market for such services is often characterized by a mix of large defense contractors and specialized regional providers. Benchmarking this specific contract's value is difficult without access to similar solicitations in the Middle East region or detailed cost breakdowns.

Small Business Impact

The contract was awarded to 'BAHRAIN AIRPORT SERVICES COMPANY (BAS) B.S.C CLOSED,' which appears to be a foreign entity. There is no indication of a small business set-aside or subcontracting requirements for U.S. small businesses. This contract does not appear to directly benefit the U.S. small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are established through the contract terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature and the lack of public performance reports. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Logistics and Transportation Services
Foreign Military Sales Support
Airfield Operations and Maintenance

Risk Flags

Sole-source award lacks competitive pricing.
Limited public data on contractor performance.
Potential for cost overruns without competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.7 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 $8.7 million.

What is the period of performance?

Start: 2024-12-30. End: 2026-12-31.

What is the track record of Bahrain Airport Services Company (BAS) in providing similar air terminal and ground handling services to the U.S. military or other government agencies?

Information regarding Bahrain Airport Services Company (BAS) B.S.C CLOSED's specific track record with the U.S. military or other government agencies is not readily available in the provided data. As a sole-source award, the justification for selecting BAS likely included an assessment of their capabilities and past performance, but this information is not publicly detailed. Further investigation would be required to ascertain their experience, particularly in meeting U.S. defense contracting standards and requirements. Without this context, it is difficult to fully evaluate the contractor's suitability and reliability for this critical role.

How does the $8.7 million contract value compare to similar air terminal and ground handling service contracts awarded by the Department of Defense in other overseas locations?

Direct comparison of the $8.7 million contract value for air terminal and ground handling services in Bahrain is challenging due to the lack of specific service scope and the sole-source nature of this award. Defense contracts for similar services can vary significantly based on location, volume of operations, specific services required (e.g., passenger handling, cargo, aircraft maintenance support), and duration. Overseas contracts often incur higher costs due to logistical complexities, security requirements, and local labor rates. Without comparable solicitations or detailed cost breakdowns for this contract, it's difficult to definitively state whether $8.7 million represents a competitive or inflated price point relative to other DoD contracts.

What are the primary risks associated with awarding a sole-source contract for essential air terminal and ground handling services?

The primary risks associated with awarding a sole-source contract for essential services like air terminal and ground handling include a lack of price competition, which can lead to higher costs for the government and taxpayers. There's also a reduced incentive for the contractor to innovate or improve efficiency, as they face no direct market pressure from competitors. Furthermore, sole-source awards can create vendor lock-in, making it difficult to switch providers in the future even if performance issues arise or better options become available. Dependence on a single provider also increases vulnerability if that provider experiences financial difficulties, operational disruptions, or fails to meet contractual obligations.

What specific performance metrics or key performance indicators (KPIs) are likely included in this contract to ensure service quality and effectiveness?

While the specific performance metrics and KPIs are not detailed in the provided data, typical contracts for air terminal and ground handling services include metrics related to aircraft turnaround times, passenger processing efficiency, baggage handling accuracy, safety compliance (e.g., incident rates), and adherence to schedules. For a firm-fixed-price contract, the government would likely define clear standards for these services, and the contractor's payment could be tied to meeting or exceeding these standards. The effectiveness of these KPIs in ensuring quality would depend on their specificity, measurability, and the rigor of the government's oversight and enforcement mechanisms.

What is the historical spending pattern for air terminal and ground handling services by the Department of the Navy in the Bahrain region?

The provided data does not include historical spending patterns for air terminal and ground handling services by the Department of the Navy in the Bahrain region. This specific contract, valued at $8.7 million over two years, represents a single data point. To understand historical spending, one would need to analyze previous contracts awarded for similar services in the same geographic area, noting their values, durations, and whether they were competed or sole-sourced. This analysis would reveal trends in demand, pricing, and procurement strategies over time.

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: N4033924RS016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BUILDING 150, ROAD 2403, BLOCK 224, MUHARRAQ

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,888,000

Exercised Options: $8,817,339

Current Obligation: $8,739,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline