DoD awards $144M+ to Longbow LLC for HELLFIRE/LONGBOW Engineering Services, a sole-source contract

Contract Overview

Contract Amount: $144,474,563 ($144.5M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2010-07-22

End Date: 2017-04-30

Contract Duration: 2,474 days

Daily Burn Rate: $58.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HELLFIRE/LONGBOW ENGINEERING SERVICES

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $144.5 million to LONGBOW LLC for work described as: HELLFIRE/LONGBOW ENGINEERING SERVICES Key points: 1. Contract awarded to Longbow LLC for engineering services related to HELLFIRE/LONGBOW systems. 2. The contract value is over $144 million. 3. Awarded as a sole-source, definitive contract by the Department of the Army. 4. The contract duration was 2474 days, ending in April 2017. 5. The NAICS code indicates Engineering Services.

Value Assessment

Rating: questionable

The contract was Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $144M+ price was optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The specific engineering services provided are critical for defense systems. The long duration of the contract suggests a sustained need for these services. The sole-source nature warrants scrutiny of the justification for not competing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition justification
Significant contract value

Positive Signals

Services likely critical to national defense
Long-term engagement suggests stable requirement

Sector Analysis

The Department of Defense frequently procures engineering services for complex weapon systems. Spending benchmarks for such specialized services can vary widely, but sole-source awards for large contracts often attract scrutiny.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to Longbow LLC, a specific entity.

Oversight & Accountability

The sole-source nature of this large contract suggests a need for robust oversight to ensure the necessity of the sole-source justification and the reasonableness of costs incurred under the cost-plus fixed fee structure.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competition.
Cost-plus contract type can incentivize higher spending.
No indication of small business participation.
Significant contract value raises concerns about potential overpayment without competition.
Long contract duration without clear competition justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.5 million to LONGBOW LLC. HELLFIRE/LONGBOW ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is LONGBOW LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $144.5 million.

What is the period of performance?

Start: 2010-07-22. End: 2017-04-30.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the justification for the sole-source award. Typically, such justifications are required for non-competitive procurements and must demonstrate why only one source can fulfill the requirement. Without this documentation, it's impossible to assess the validity of the sole-source decision and its impact on value for money.

How does the cost-plus fixed fee structure for this $144M+ contract compare to industry standards for similar engineering services, and what was the final profit margin?

The data indicates a Cost Plus Fixed Fee (CPFF) contract type. CPFF contracts aim to control costs while providing a fixed profit to the contractor. However, without detailed cost breakdowns and profit analysis, it's challenging to benchmark against industry standards. The final profit margin is not provided, making a direct assessment of value difficult.

What specific HELLFIRE/LONGBOW engineering services were procured, and how critical are they to current defense operations?

The data identifies the contract as being for 'HELLFIRE/LONGBOW ENGINEERING SERVICES' under NAICS code 541330 (Engineering Services). While the specific tasks are not detailed, these systems are integral to U.S. military aviation and ground platforms, suggesting high criticality for operational readiness and effectiveness.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q09R0316

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5600 W SAND LAKE RD, ORLANDO, FL, 32819

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

Financial Breakdown

Contract Ceiling: $180,675,952

Exercised Options: $165,083,024

Current Obligation: $144,474,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline