DoD awards $42.2M for NSS Training System Products to BGI-ASI JV, LLC

Contract Overview

Contract Amount: $42,243,769 ($42.2M)

Contractor: Bgi-Asi JV, LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-28

End Date: 2028-06-14

Contract Duration: 1,539 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NSS TRAINING SYSTEM PRODUCTS

Place of Performance

Location: MOUNT PLEASANT, CHARLESTON County, SOUTH CAROLINA, 29464

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to BGI-ASI JV, LLC for work described as: NSS TRAINING SYSTEM PRODUCTS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. Fixed-price contract type aims to control costs for the government. 4. Performance period spans over four years, indicating a long-term need. 5. The awardee, BGI-ASI JV, LLC, is a joint venture. 6. The contract falls under the Commercial and Service Industry Machinery Manufacturing NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the parent contract and the specific training system products procured. The firm-fixed-price structure provides cost certainty for the government. However, without comparable delivery orders for similar training systems, it's difficult to definitively assess if the pricing represents excellent value for money. Further analysis would require understanding the unit costs and the specific capabilities delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the best value offer.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The Department of the Navy benefits from the acquisition of essential training system products. These products are likely crucial for enhancing the operational readiness and effectiveness of naval personnel. The contract supports the defense sector's technological advancement in training methodologies. Geographic impact is primarily within South Carolina, where the contract is managed or where services may be performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the training system products procured makes it difficult to assess the true value and necessity.
The joint venture structure of the awardee might introduce complexities in accountability or performance management.
The long performance period could lead to potential cost overruns if not managed effectively.
Limited information on the competitive landscape beyond 'full and open' makes it hard to gauge the intensity of competition.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports critical training needs for the Department of Defense.
The delivery order structure implies it's part of a pre-established, potentially pre-vetted, contract vehicle.

Sector Analysis

The defense sector, particularly within the Department of the Navy, relies heavily on advanced training systems to maintain operational readiness. This contract falls under the broader category of defense manufacturing and services, which is a significant segment of the U.S. economy. Spending in this area is driven by evolving threats and the need for sophisticated simulation and training technologies. Comparable spending benchmarks would typically involve other contracts for similar training equipment or simulation services within the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary awardee is a joint venture, which may or may not involve small business participation within its structure, but this is not explicitly detailed in the provided data.

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 contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is facilitated by the contract award notice, but further details on performance metrics and oversight activities would require access to internal DoD reporting or Inspector General reports, if any.

Related Government Programs

Naval Training Systems
Defense Simulation and Training
Military Equipment Manufacturing
Commercial and Service Industry Machinery

Risk Flags

Potential for technological obsolescence due to long performance period.
Limited public information on specific product details.
Joint venture structure may require additional scrutiny for performance and accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to BGI-ASI JV, LLC. NSS TRAINING SYSTEM PRODUCTS

Who is the contractor on this award?

The obligated recipient is BGI-ASI JV, 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 $42.2 million.

What is the period of performance?

Start: 2024-03-28. End: 2028-06-14.

What specific types of 'NSS Training System Products' are being procured under this contract?

The provided data does not specify the exact nature of the 'NSS Training System Products.' 'NSS' could potentially refer to a specific system or program within the Navy. These products could range from simulation hardware and software to virtual reality training modules, or even physical training equipment. Understanding the precise nature of these products is crucial for assessing their necessity, technological relevance, and potential for obsolescence. Without this detail, it is difficult to benchmark their value or compare them to similar procurements.

How does the $42.2 million award compare to historical spending on similar training systems by the Department of the Navy?

Comparing this $42.2 million award to historical spending requires access to historical contract data for similar training systems procured by the Department of the Navy. Without specific historical data points for comparable systems (e.g., by function, technology, or user group), it's challenging to determine if this award represents an increase, decrease, or stable level of investment. However, the duration of the contract (over four years) suggests a significant, ongoing requirement for these training capabilities, which may align with broader trends in defense modernization and training technology investments.

What is the track record of BGI-ASI JV, LLC in delivering complex training systems to the government?

Information regarding the specific track record of BGI-ASI JV, LLC in delivering complex training systems is not detailed in the provided data. As a joint venture, its performance would depend on the capabilities and experience of its constituent members. A thorough assessment would involve reviewing past performance evaluations, any prior contracts for similar systems, and any reported issues or successes. The fact that they were awarded this contract suggests they met the government's criteria for capability and responsibility, but further due diligence on their specific experience with training systems would be prudent.

What are the key performance indicators (KPIs) and metrics used to evaluate the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for training system contracts, KPIs might include system reliability, uptime, user satisfaction, training effectiveness (measured by trainee performance improvements), adherence to delivery schedules, and compliance with technical specifications. The firm-fixed-price nature of the contract implies that meeting the defined scope and specifications is paramount. The Department of the Navy would likely have internal quality assurance procedures and performance monitoring in place.

What is the potential risk associated with the long performance period (over 4 years) for this contract?

A long performance period, such as the 1539 days (over 4 years) for this contract, introduces several potential risks. These include the risk of technological obsolescence if the training systems become outdated before the contract ends, potential for cost increases if inflation or unforeseen market changes occur (though mitigated by fixed-price), and the risk of contractor performance degradation over time. Effective risk mitigation would involve robust contract management, regular performance reviews, and potentially incorporating clauses for technology refresh or adaptation. The government must ensure continuous oversight to maintain contractor engagement and product relevance.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134022R0036

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1141 BOWMAN RD STE 101, MT PLEASANT, SC, 29464

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $42,243,769

Exercised Options: $42,243,769

Current Obligation: $42,243,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134024D0008

IDV Type: IDC

Timeline