DoD's $111M Contract for CONUS Schools Aviation and Ground Services Awarded to Vinnell Arabia, LLC

Contract Overview

Contract Amount: $11,102,306 ($11.1M)

Contractor: Vinnell Arabia, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-01

End Date: 2024-12-31

Contract Duration: 549 days

Daily Burn Rate: $20.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONUS SCHOOLS - AVIATION AND GROUND

Plain-Language Summary

Department of Defense obligated $11.1 million to VINNELL ARABIA, LLC for work described as: CONUS SCHOOLS - AVIATION AND GROUND Key points: 1. The contract value is substantial at $111,023,060. 2. Competition is limited, with the contract type noted as 'NOT AVAILABLE FOR COMPETITION'. 3. Potential risks include lack of competitive pricing and reliance on a single source. 4. The sector appears to be administrative services within the defense industry.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is explicitly stated as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition scenario. This significantly impacts price discovery, as there is no market pressure to drive down costs.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may be paying a premium for these services.

Public Impact

Impacts educational support services for CONUS schools. Potential for increased costs to taxpayers due to limited competition. Ensures continuity of aviation and ground services for military educational facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of Competition
  • Cost-Plus Contract Type
  • Limited Transparency

Positive Signals

  • Essential Service Provision
  • Defined Contract Duration

Sector Analysis

This contract falls under administrative services, specifically supporting educational facilities within CONUS. Benchmarks for similar contracts are difficult to ascertain due to the limited competition noted.

Small Business Impact

The data indicates that small business participation is not a factor in this award (ss: false, sb: false).

Oversight & Accountability

Oversight will be crucial to ensure Vinnell Arabia, LLC meets the terms of the Cost Plus Fixed Fee contract and that costs remain within reasonable bounds, especially given the lack of competition.

Related Government Programs

  • Office Administrative Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for inflated costs due to lack of competition.
  • Risk of contractor not performing optimally without competitive pressure.
  • Limited transparency in cost breakdown for a CPFF contract.
  • Dependency on a single contractor for critical services.

Tags

office-administrative-services, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to VINNELL ARABIA, LLC. CONUS SCHOOLS - AVIATION AND GROUND

Who is the contractor on this award?

The obligated recipient is VINNELL ARABIA, 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 $11.1 million.

What is the period of performance?

Start: 2023-07-01. End: 2024-12-31.

What specific aviation and ground services are included in this contract, and how were they defined to justify limited competition?

The contract details 'CONUS SCHOOLS - AVIATION AND GROUND' services. Without further clarification on the specific nature of these services, it's challenging to definitively assess why they were deemed unavailable for full and open competition. Typically, justifications for limited competition involve unique capabilities, urgent needs, or specific security requirements that only one vendor can meet.

What is the projected total cost and profit margin for Vinnell Arabia, LLC under this Cost Plus Fixed Fee contract?

As a Cost Plus Fixed Fee (CPFF) contract, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. While the total contract value is $111M, the exact breakdown between costs and the fixed fee is not provided. Effective oversight is needed to ensure the 'costs' are reasonable and the 'fixed fee' is fair, preventing excessive profit.

How will the Department of the Army ensure effective service delivery and cost control without competitive pressure?

The Department of the Army must implement robust contract management and oversight. This includes detailed performance metrics, regular progress reviews, and strict auditing of contractor expenses to ensure compliance with the contract terms. Proactive communication and clear performance expectations are vital to mitigate risks associated with a non-competitive award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOffice Administrative ServicesOffice Administrative Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W519TC23R2050

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8884 KING KHALID INT'L AIPORT UNIT NO. 47, RIYADH

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

Financial Breakdown

Contract Ceiling: $11,102,306

Exercised Options: $11,102,306

Current Obligation: $11,102,306

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-07-01

Current End Date: 2024-12-31

Potential End Date: 2024-12-31 00:00:00

Last Modified: 2025-09-02

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