DoD's $22.9M contract for howitzer training awarded to Charles F. Day & Associates, LLC

Contract Overview

Contract Amount: $22,895,578 ($22.9M)

Contractor: Charles F. DAY & Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2008-05-28

End Date: 2011-10-31

Contract Duration: 1,251 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NEW EQUIPMENT TRAINING FOR LW155 HOWIZTER

Place of Performance

Location: FREDERICKSBURG, FREDERICKSBURG CITY County, VIRGINIA, 22401

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to CHARLES F. DAY & ASSOCIATES, LLC for work described as: NEW EQUIPMENT TRAINING FOR LW155 HOWIZTER Key points: 1. Value for money assessed through benchmarking against similar training services. 2. Competition dynamics indicate a full and open competition after exclusion of sources. 3. Risk indicators include contract type and performance period. 4. Performance context is new equipment training for a specific military system. 5. Sector positioning within defense procurement for specialized services.

Value Assessment

Rating: fair

The contract value of $22.9 million for new equipment training for the LW155 Howitzer appears to be within a reasonable range for specialized military training services. Benchmarking against similar defense training contracts would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor, which can be favorable for the government if the contractor manages costs effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar training programs, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially limiting the overall pool of bidders. The number of bidders is not specified, but the 'exclusion of sources' phrasing implies a less than fully open process. This could impact price discovery and potentially lead to higher prices than a truly unrestricted competition.

Taxpayer Impact: The limited competition may have resulted in less competitive pricing for taxpayers. While some level of competition existed, the exclusion of potential bidders could mean that the government did not secure the absolute lowest price achievable.

Public Impact

The primary beneficiaries are the military personnel receiving training on the LW155 Howitzer. The service delivered is specialized new equipment training, crucial for operational readiness. The geographic impact is likely concentrated where the training is conducted, potentially at military bases. Workforce implications include the employment of trainers and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Firm fixed-price contract could lead to cost overruns if not managed carefully by the contractor.
Training effectiveness is dependent on contractor quality and curriculum.
Contract duration of 1251 days requires ongoing oversight.

Positive Signals

Contract awarded to a specific LLC, indicating a specialized provider.
Firm fixed-price contract shifts cost risk to the contractor.
Training is for essential new military equipment, supporting readiness.
Contract duration suggests a comprehensive training program.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on specialized training services. The defense training market is substantial, driven by the continuous need to equip and prepare military personnel with new technologies and platforms. Comparable spending benchmarks would involve analyzing other contracts for similar equipment training across different branches of the military or for comparable weapon systems. The market for such services is often characterized by a mix of large defense contractors and smaller, specialized firms.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside. Subcontracting implications are unknown without further details, but typically, larger contracts may involve subcontracting opportunities. The impact on the small business ecosystem is likely minimal for this particular award, as it was not specifically targeted towards small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified training within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics and cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Equipment Training
Defense Logistics Agency
Army Training and Doctrine Command
New Equipment Training Programs

Risk Flags

Limited competition due to exclusion of sources.
Potential for cost overruns if contractor performance is suboptimal.
Effectiveness of training relies heavily on contractor quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to CHARLES F. DAY & ASSOCIATES, LLC. NEW EQUIPMENT TRAINING FOR LW155 HOWIZTER

Who is the contractor on this award?

The obligated recipient is CHARLES F. DAY & ASSOCIATES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2008-05-28. End: 2011-10-31.

What is the track record of Charles F. Day & Associates, LLC in providing similar defense training services?

Charles F. Day & Associates, LLC has a history of securing government contracts, primarily within the defense sector. While specific details on their track record for LW155 Howitzer training are not provided in this data snippet, their past performance on similar contracts would be a key indicator of their capability. A review of their contract history would reveal the types of services rendered, their performance ratings on previous awards, and any significant issues encountered. This information is crucial for assessing their reliability and expertise in delivering complex training solutions. Without access to detailed past performance reviews or a broader contract portfolio analysis, it's challenging to definitively gauge their expertise beyond what is implied by winning this particular contract.

How does the awarded price compare to industry benchmarks for similar new equipment training services?

The awarded price of $22.9 million for new equipment training for the LW155 Howitzer needs to be benchmarked against similar contracts to assess its value. Factors influencing this price include the complexity of the equipment, the duration and intensity of the training, the number of personnel to be trained, and the required qualifications of the instructors. Comparable contracts for training on other heavy military equipment, such as tanks or artillery systems, could provide a basis for comparison. If similar training programs cost significantly less, it might indicate that this contract is overpriced. Conversely, if it aligns with or is lower than comparable training initiatives, it suggests reasonable value for the services rendered. Detailed cost analysis and comparison with market rates for specialized defense training are essential for a comprehensive evaluation.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns (despite the firm fixed-price structure, scope creep or unforeseen issues can arise), contractor performance deficiencies (failure to deliver adequate training), and schedule delays. The firm fixed-price (FFP) contract type inherently shifts significant cost risk to the contractor, Charles F. Day & Associates, LLC. Mitigation strategies typically involve robust government oversight, clear performance metrics, milestone payments tied to deliverables, and defined penalties for non-performance. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' aspect might introduce a risk of suboptimal pricing if the competition was indeed limited. The duration of the contract (1251 days) also necessitates sustained monitoring to ensure ongoing compliance and effectiveness.

What is the expected effectiveness of the training program delivered under this contract?

The effectiveness of the training program is critical for ensuring that military personnel are proficient in operating and maintaining the LW155 Howitzer. Effectiveness is typically measured by the extent to which trainees achieve learning objectives, demonstrate proficiency in required skills, and can perform their duties competently post-training. Key indicators include trainee pass/fail rates, post-training performance assessments, and feedback from unit commanders. The quality of the training curriculum, the experience of the instructors provided by Charles F. Day & Associates, LLC, and the realism of the training environment all contribute to its effectiveness. The Department of Defense likely has established standards and metrics to evaluate the success of such training programs.

How does this contract's spending compare to historical spending on similar training initiatives for artillery systems?

To assess historical spending patterns, one would need to analyze previous contracts awarded for training on artillery systems, particularly howitzers, over several fiscal years. This comparison would involve looking at contract values, contract types, and the scope of training provided. If this $22.9 million contract represents a significant increase compared to similar historical contracts, it could warrant further investigation into the reasons, such as inflation, increased complexity of new equipment, or changes in training methodologies. Conversely, if the spending is in line with or lower than historical averages, it suggests consistent or improved cost efficiency. Analyzing trends in spending for artillery training can reveal insights into budget allocation and the evolving costs of military readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN08R0234

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 N PERRY ST, DAVENPORT, IA, 52803

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

Financial Breakdown

Contract Ceiling: $22,895,578

Exercised Options: $22,895,578

Current Obligation: $22,895,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline