DLA Aviation awards $5.2M 8(a) sole-source contract to Onyx Strategic Solutions for delinquency support

Contract Overview

Contract Amount: $5,243,248 ($5.2M)

Contractor: Onyx Strategic Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-15

End Date: 2026-01-14

Contract Duration: 364 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AVIATION DELINQUENCY SUPPORT SERVICES THIS CONTRACT IS A DIRECT 8(A) AWARD TO ONYX STRATEGIC SOLUTIONS, LLC TO PROVIDE CONTRACTOR TO PROVIDE SUPPORT SERVICES FOR DLA AVIATION'S CONTRACT DELINQUENCY EFFORTS. SBA REQUIREMENT NUMBER IS PX1734019989T.

Place of Performance

Location: ARRINGTON, WILLIAMSON County, TENNESSEE, 37014

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $5.2 million to ONYX STRATEGIC SOLUTIONS, LLC for work described as: AVIATION DELINQUENCY SUPPORT SERVICES THIS CONTRACT IS A DIRECT 8(A) AWARD TO ONYX STRATEGIC SOLUTIONS, LLC TO PROVIDE CONTRACTOR TO PROVIDE SUPPORT SERVICES FOR DLA AVIATION'S CONTRACT DELINQUENCY EFFORTS. SBA REQUIREMENT NUMBER IS PX1734019989T. Key points: 1. Contract awarded via 8(a) sole-source to Onyx Strategic Solutions, LLC. 2. Focuses on supporting DLA Aviation's contract delinquency efforts. 3. Firm Fixed Price contract valued at $5.24M over 364 days. 4. Services fall under Administrative Management and General Management Consulting.

Value Assessment

Rating: questionable

The contract is a sole-source 8(a) award, limiting direct price comparison to similar competitive contracts. Without a competitive process, it's difficult to ascertain if the $5.24M price represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded directly to Onyx Strategic Solutions, LLC under the 8(a) program, meaning it was not competed. This approach bypasses the typical price discovery mechanisms of a competitive solicitation, potentially leading to higher costs.

Taxpayer Impact: Taxpayer funds are used for this sole-source award, with limited transparency on whether the price achieved is optimal due to the lack of competition.

Public Impact

Ensures continuity in DLA Aviation's contract delinquency management. Supports small business development through the 8(a) program. Potential for increased costs due to sole-source nature. Limited public visibility into the necessity and pricing of these specific support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price scrutiny.
Lack of clear justification for sole-source beyond 8(a) designation.
Potential for cost inefficiencies without competitive bidding.

Positive Signals

Supports a small business via the 8(a) program.
Addresses a specific need for contract delinquency support.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. Spending in this area can vary widely, but sole-source awards often raise questions about efficiency compared to competitively bid contracts.

Small Business Impact

The contract is a direct 8(a) award, specifically designed to support small disadvantaged businesses. This mechanism provides Onyx Strategic Solutions, LLC with a direct opportunity to secure federal contracts and grow.

Oversight & Accountability

As a sole-source 8(a) award, oversight should focus on the justification for the sole-source nature and the contractor's performance against contract requirements. The SBA's role in approving 8(a) awards provides a layer of oversight.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Lack of competitive justification
Potential for inflated pricing
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.2 million to ONYX STRATEGIC SOLUTIONS, LLC. AVIATION DELINQUENCY SUPPORT SERVICES THIS CONTRACT IS A DIRECT 8(A) AWARD TO ONYX STRATEGIC SOLUTIONS, LLC TO PROVIDE CONTRACTOR TO PROVIDE SUPPORT SERVICES FOR DLA AVIATION'S CONTRACT DELINQUENCY EFFORTS. SBA REQUIREMENT NUMBER IS PX1734019989T.

Who is the contractor on this award?

The obligated recipient is ONYX STRATEGIC SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2025-01-15. End: 2026-01-14.

What is the specific value proposition of Onyx Strategic Solutions' delinquency support services compared to what could be achieved through a competitive process?

The specific value proposition is not clearly defined in the provided data, especially in the absence of a competitive bidding process. While the 8(a) program aims to foster small business growth, it doesn't inherently guarantee the most cost-effective solution. A competitive process would typically reveal multiple service offerings and pricing structures, allowing DLA Aviation to select the best value based on defined criteria, which is absent here.

What are the primary risks associated with awarding this contract as a sole-source 8(a) to Onyx Strategic Solutions?

The primary risks include potential overpayment due to the lack of competitive pricing, limited assurance of best value, and the possibility that alternative, more innovative, or cost-effective solutions might exist but were not explored. There's also a risk that the specific expertise required might be more broadly available than implied by the sole-source designation.

How effectively will this contract address DLA Aviation's contract delinquency efforts, and what metrics will be used to measure success?

The effectiveness will depend on Onyx Strategic Solutions' performance and DLA Aviation's contract management. Without competitive benchmarks, measuring 'effectiveness' against industry standards is challenging. Success metrics should be clearly defined in the contract, focusing on quantifiable improvements in delinquency rates, resolution times, and cost savings achieved through their support, rather than just task completion.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SP470324Q0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4750 WOODROW PL, ARRINGTON, TN, 37014

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,243,248

Exercised Options: $5,243,248

Current Obligation: $5,243,248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline