DoD's $16.7M Contract for Bahrain Airport Services Lacked Competition, Raising Cost Concerns
Contract Overview
Contract Amount: $16,739,696 ($16.7M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2008-06-01
End Date: 2013-09-30
Contract Duration: 1,947 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AIR TERMINAL SERVICES AT BAHRAIN INTERNATIONLA AIRPORT
Plain-Language Summary
Department of Defense obligated $16.7 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: AIR TERMINAL SERVICES AT BAHRAIN INTERNATIONLA AIRPORT Key points: 1. The contract awarded to "MISCELLANEOUS FOREIGN AWARDEES" for air terminal services at Bahrain International Airport totaled $16.7 million. 2. The contract was not competed, raising questions about price discovery and potential overspending. 3. The duration of the contract was 1947 days, spanning from June 2008 to September 2013. 4. The specific services provided fall under "Other General Government Support," indicating a broad category. 5. The absence of competition is a significant risk factor for taxpayer value.
Value Assessment
Rating: questionable
Without competitive bidding, it's difficult to assess if the $16.7 million price was reasonable. Benchmarking against similar international airport service contracts would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was "NOT COMPETED," indicating a limited competition approach. This likely hindered price discovery and may have led to higher costs for the government.
Taxpayer Impact: The lack of competition means taxpayers may have paid more than necessary for these essential airport services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding for critical airport services. The long duration of the contract (over 5 years) amplifies the potential financial impact of non-competition. Lack of transparency in the award process makes it difficult for the public to assess value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration without re-evaluation
Positive Signals
- Contract was awarded and services were presumably delivered.
Sector Analysis
This contract falls under general government support services, specifically related to airport operations. Benchmarking is difficult without knowing the exact services, but government contracts for foreign services often carry premiums due to logistical complexities and limited vendor pools.
Small Business Impact
The awardee is listed as "MISCELLANEOUS FOREIGN AWARDEES," and the data indicates small business participation was not a factor (ss: false, sb: false). This suggests the contract was not aimed at supporting small businesses.
Oversight & Accountability
The "NOT COMPETED" status raises concerns about the oversight applied during the contract's award and management. Further review would be needed to understand why competition was bypassed and if adequate justification existed.
Related Government Programs
- Other General Government Support
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition raises significant value concerns.
- Potential for inflated pricing due to non-competitive award.
- Long contract duration without clear performance reviews or re-competition.
- Ambiguity in awardee identity ('MISCELLANEOUS FOREIGN AWARDEES').
Tags
other-general-government-support, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to MISCELLANEOUS FOREIGN AWARDEES. AIR TERMINAL SERVICES AT BAHRAIN INTERNATIONLA AIRPORT
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2008-06-01. End: 2013-09-30.
What specific services were included under "AIR TERMINAL SERVICES" to justify the $16.7 million price tag without competition?
The provided data does not detail the specific services rendered under "AIR TERMINAL SERVICES." These could range from baggage handling and passenger services to air traffic control support and maintenance. Without this granular information, it's challenging to ascertain the necessity of the $16.7 million expenditure or to benchmark it effectively against similar contracts, especially given the lack of competitive bidding.
What were the documented reasons for not competing this contract, and were alternative sourcing strategies considered?
The data explicitly states the contract was "NOT COMPETED," but does not provide the justification. Typically, non-competitive awards require specific justifications, such as urgent need, sole-source provider, or national security concerns. Without these documented reasons, it's impossible to assess the validity of bypassing competition and whether alternative, more competitive sourcing methods were explored or deemed impractical.
How was the "FIRM FIXED PRICE" determined without competitive bids to ensure fair market value for the taxpayer?
Determining a "FIRM FIXED PRICE" without competition is inherently challenging for ensuring fair market value. The government likely relied on historical data, cost-plus-incentive-fee estimates, or sole-source negotiation techniques. However, the absence of competing offers means there was no market validation of the price, increasing the risk that the fixed price was not the most economical option available to the taxpayer.
Industry Classification
NAICS: Public Administration › Executive, Legislative, and Other General Government Support › Other General Government Support
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: N6817108R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,773,408
Exercised Options: $16,739,696
Current Obligation: $16,739,696
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2018-09-26
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