DoD awards $13.6M task order for Army aviation logistics support to ELEIT TECHNOLOGY, INC

Contract Overview

Contract Amount: $13,556,961 ($13.6M)

Contractor: Eleit Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-01

End Date: 2026-02-28

Contract Duration: 2,403 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXPRESS TASK ORDER AWARD FOR LOGISTICS SERVICES FOR SUPPORT OF U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM)LOGISTICS CENTER (ALC) PUBLICATIONS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to ELEIT TECHNOLOGY, INC. for work described as: EXPRESS TASK ORDER AWARD FOR LOGISTICS SERVICES FOR SUPPORT OF U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM)LOGISTICS CENTER (ALC) PUBLICATIONS. Key points: 1. Task order awarded under a broader contract vehicle, indicating potential for follow-on work. 2. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The contract duration is over 6 years, suggesting a long-term need for these services. 4. Awarded by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract was awarded through full and open competition, suggesting a competitive process.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more granular data on the scope of logistics services provided. The total award amount of $13.6 million over approximately 6.7 years averages to about $2 million per year. This figure needs to be compared against similar logistics support contracts for Army aviation to determine if it represents a fair price. The firm fixed-price nature of the contract is a positive indicator for cost control, but the overall value proposition depends heavily on the efficiency and effectiveness of the services delivered by ELEIT TECHNOLOGY, INC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 6 bids received. A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards. The number of bidders suggests a reasonable level of interest in this contract.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The presence of multiple bids indicates that the government likely received competitive pricing for these essential logistics services.

Public Impact

The U.S. Army Aviation and Missile Command (AMCOM) Logistics Center (ALC) is the primary beneficiary, receiving essential publications and logistics support. Services provided are critical for the operational readiness and maintenance of Army aviation assets. The contract is geographically focused on Alabama, where the ALC is located. This contract supports jobs within the administrative management and general management consulting services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'logistics services' is not tightly managed.
Reliance on a single contractor for an extended period could lead to vendor lock-in.
Effectiveness of the 'publications' aspect of the task order needs monitoring to ensure it meets AMCOM's needs.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency.
Full and open competition suggests a robust selection process.
Long contract duration indicates a stable, ongoing requirement, allowing for specialized expertise development.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The market for logistics support services for military branches is substantial, driven by the need for efficient supply chain management and operational readiness. Comparable spending benchmarks would involve analyzing other contracts for similar logistics and administrative support within the Department of Defense, particularly those supporting aviation commands.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is none. However, the prime contractor, ELEIT TECHNOLOGY, INC., may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and the relevant program management office within the AMCOM Logistics Center. Accountability measures are inherent in the firm fixed-price contract type, which requires the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS-NG, although detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

AMCOM Logistics Support Services
Army Aviation Readiness Programs
DoD Logistics and Supply Chain Management
Management and Consulting Services Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or service degradation if not managed proactively.
Potential for contractor to reduce service quality to maintain profit margins under FFP.
Need for clear performance metrics to ensure effectiveness of logistics and publications support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to ELEIT TECHNOLOGY, INC.. EXPRESS TASK ORDER AWARD FOR LOGISTICS SERVICES FOR SUPPORT OF U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM)LOGISTICS CENTER (ALC) PUBLICATIONS.

Who is the contractor on this award?

The obligated recipient is ELEIT TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2019-08-01. End: 2026-02-28.

What is the specific nature of the 'logistics services' and 'publications' being provided under this task order?

The task order is for 'EXPRESS TASK ORDER AWARD FOR LOGISTICS SERVICES FOR SUPPORT OF U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) LOGISTICS CENTER (ALC) PUBLICATIONS.' While the data specifies the awardee (ELEIT TECHNOLOGY, INC.), the total amount ($13.6M), and the duration (approx. 6.7 years), it does not detail the precise logistics services or the nature of the publications support. These could range from inventory management, warehousing, and distribution of physical or digital publications, to technical manual updates, document control, and dissemination of critical information for Army aviation and missile systems. A deeper dive into the contract's Statement of Work (SOW) would be required to ascertain the granular details of these services and their criticality to AMCOM's mission.

How does the average annual cost of this contract compare to similar logistics support contracts for Army aviation units?

This task order has an average annual cost of approximately $2.03 million ($13,556,960.86 / 6.7 years). To benchmark this value, one would need to compare it against contracts for similar logistics and publications support services awarded to other entities supporting Army aviation commands. Factors such as the scope of services, geographic location, contract type (firm fixed-price is generally preferred for cost predictability), and the specific requirements of the supported units would need to be considered. Without access to a database of comparable contracts with detailed service descriptions and pricing, a definitive value-for-money assessment is difficult. However, the presence of 6 bidders in a full and open competition suggests that the pricing was likely competitive within the market for these services.

What is ELEIT TECHNOLOGY, INC.'s track record with similar government contracts, particularly within the Department of Defense?

Assessing ELEIT TECHNOLOGY, INC.'s track record requires examining their past performance on government contracts. This includes reviewing contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Information available through public databases like the Federal Procurement Data System (FPDS) can provide insights into the types and values of contracts they have held. A positive performance history on similar logistics, aviation support, or administrative management contracts would indicate a lower risk associated with this current award. Conversely, a history of poor performance or unresolved issues would raise concerns about their capability to successfully execute this task order.

What are the potential risks associated with a firm fixed-price contract of this duration for logistics services?

While a firm fixed-price (FFP) contract is generally advantageous for the government by capping costs, it carries risks, especially for long-duration contracts like this one (over 6 years). The primary risk is that the contractor, ELEIT TECHNOLOGY, INC., may face unforeseen cost increases (e.g., labor, fuel, materials) over the contract period that erode their profit margin. This could incentivize them to cut corners on service quality or personnel to maintain profitability, potentially impacting the effectiveness of the logistics support. Another risk is that the government might be locked into a price that becomes uncompetitive if market rates decrease significantly over the contract's life. Robust performance monitoring and clear contract terms are crucial to mitigate these risks.

How has spending on AMCOM logistics and publications support evolved over the past five years?

To analyze historical spending patterns, one would need to query procurement databases for all contracts awarded to support the AMCOM Logistics Center (ALC) for logistics services and publications over the last five fiscal years. This analysis should include the total dollar value of contracts, the number of awards, the types of services procured, and the primary contractors involved. Understanding historical spending trends can reveal whether the current $13.6 million task order represents an increase, decrease, or stable level of investment in these support functions. It can also highlight any shifts in the types of services being contracted or the consolidation/diversification of the contractor base.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2225 DRAKE AVE SUITE 7, HUNTSVILLE, AL, 35805

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,730,008

Exercised Options: $13,556,961

Current Obligation: $13,556,961

Actual Outlays: $199,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0310P

IDV Type: FSS

Timeline