DoD's $9.4M contract for Saudi National Guard modernization support awarded to Three Lines Spare Parts Company
Contract Overview
Contract Amount: $9,413,550 ($9.4M)
Contractor: Three Lines Spare Parts Company
Awarding Agency: Department of Defense
Start Date: 2024-12-20
End Date: 2026-12-31
Contract Duration: 741 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THE GOVERNMENT OF SAUDI ARABIA HAS REQUESTED THE CONTINUATION OF THE UNITED STATES SUPPORTED EFFORT TO MODERNIZE THE SAUDI ARABIAN NATIONAL GUARD, CONSISTING OF THE OPM-SANG OPERATIONS TO SUPPORT SANG PERSONNEL ATTENDING CONUS MILITARY SCHOOLS.
Plain-Language Summary
Department of Defense obligated $9.4 million to THREE LINES SPARE PARTS COMPANY for work described as: THE GOVERNMENT OF SAUDI ARABIA HAS REQUESTED THE CONTINUATION OF THE UNITED STATES SUPPORTED EFFORT TO MODERNIZE THE SAUDI ARABIAN NATIONAL GUARD, CONSISTING OF THE OPM-SANG OPERATIONS TO SUPPORT SANG PERSONNEL ATTENDING CONUS MILITARY SCHOOLS. Key points: 1. Contract supports modernization of Saudi Arabian National Guard through personnel training. 2. Focus on administrative management and consulting services for military schools. 3. Long-term contract duration of over 6 years indicates sustained support needs. 4. Awarded via full and open competition, suggesting a robust bidding process. 5. Cost Plus Fixed Fee contract type may incentivize cost overruns if not managed closely. 6. No specific small business set-aside noted, potentially limiting small business participation.
Value Assessment
Rating: fair
The contract value of $9.4 million over approximately 6 years for administrative and management consulting services for foreign military training appears moderate. Benchmarking against similar contracts for foreign military assistance or training support is challenging without more specific details on the scope of services. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure value for money, as it can lead to higher costs if the contractor's expenses exceed initial estimates. The absence of a specific dollar amount for the fixed fee makes a precise value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a reasonable level of competition for this specific requirement. While the number of bidders is not exceptionally high, it does provide a basis for price comparison and selection of the most advantageous offer for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality.
Public Impact
The primary beneficiary is the Saudi Arabian National Guard, receiving support for modernizing its capabilities through training. Services delivered include administrative management and general management consulting. The geographic impact is primarily in Saudi Arabia, with personnel training occurring in CONUS (Continental United States) military schools. Workforce implications include the potential for U.S. personnel to be involved in training and support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost escalations if not rigorously managed.
- Limited transparency on the specific breakdown of the fixed fee makes precise value assessment difficult.
- Dependence on a single spare parts company for critical support functions could pose a risk if not diversified.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Long contract duration suggests a stable and ongoing requirement, potentially leading to efficiencies.
- The contract supports a significant foreign military modernization effort, aligning with U.S. foreign policy objectives.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The market for such services supporting foreign military modernization is specialized, often involving government-to-government agreements or specific security cooperation initiatives. Comparable spending benchmarks are difficult to establish without knowing the precise nature and scale of the modernization effort and the specific training provided.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award was made to a larger entity or that the nature of the requirement did not lend itself to a small business set-aside. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army, which awarded it on behalf of the Department of Defense. Accountability measures would be embedded in the contract's performance clauses and reporting requirements. Transparency is generally limited for contracts supporting foreign military sales or assistance, but the award itself is publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Foreign Military Sales Program
- Security Cooperation Programs
- Defense Security Cooperation Agency Contracts
- Military Training and Education Services
- International Logistics Support
Risk Flags
- Contractor name mismatch with service type.
- Potential for cost overruns due to CPFF contract type.
- Limited transparency on specific service deliverables and fixed fee.
Tags
defense, department-of-defense, department-of-the-army, foreign-military-sales, administrative-management-consulting, cost-plus-fixed-fee, full-and-open-competition, saudi-arabia, national-guard, training-support, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.4 million to THREE LINES SPARE PARTS COMPANY. THE GOVERNMENT OF SAUDI ARABIA HAS REQUESTED THE CONTINUATION OF THE UNITED STATES SUPPORTED EFFORT TO MODERNIZE THE SAUDI ARABIAN NATIONAL GUARD, CONSISTING OF THE OPM-SANG OPERATIONS TO SUPPORT SANG PERSONNEL ATTENDING CONUS MILITARY SCHOOLS.
Who is the contractor on this award?
The obligated recipient is THREE LINES SPARE PARTS COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.4 million.
What is the period of performance?
Start: 2024-12-20. End: 2026-12-31.
What is the specific nature of the 'Administrative Management and General Management Consulting Services' provided under this contract?
The contract description indicates that the services support the 'OPM-SANG Operations to Support SANG Personnel Attending CONUS Military Schools.' This suggests the services are focused on the logistical, administrative, and management aspects of facilitating Saudi Arabian National Guard (SANG) personnel training within U.S. military educational institutions. This could encompass tasks such as coordinating training schedules, managing student records, providing logistical support for trainees, facilitating communication between SANG and U.S. training commands, and offering general management consulting to optimize the training program's effectiveness. The specific details would be elaborated in the contract's Statement of Work (SOW).
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other award types for similar foreign military support contracts?
Cost Plus Fixed Fee (CPFF) contracts are common in complex, long-term projects where the scope may evolve or where precise cost estimation is difficult upfront, such as in foreign military modernization or training support. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to changing requirements, but it shifts more cost risk to the government. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. For foreign military support, the choice of contract type often depends on the level of definition of requirements, the perceived risk, and the desire for flexibility versus cost certainty. CPFF is generally seen as a middle ground, providing some cost control through the fixed fee while allowing for cost reimbursement.
What are the potential risks associated with the long duration (741 days/approx. 2 years) and the specific contractor, 'THREE LINES SPARE PARTS COMPANY'?
A long contract duration, while potentially indicating stability, also carries risks such as potential cost increases due to inflation, evolving technological needs that may not be met by the current contract structure, and contractor performance degradation over time. The specific contractor, 'THREE LINES SPARE PARTS COMPANY,' raises a flag because its name suggests a focus on physical parts rather than administrative and management consulting services, which are the stated nature of this contract. This discrepancy warrants further investigation into the contractor's actual capabilities and past performance in providing such services. There's a risk that the contractor may lack the specialized expertise required, leading to suboptimal service delivery or reliance on subcontractors.
What is the historical spending pattern for similar administrative and management consulting services for foreign military modernization efforts by the U.S. Department of Defense?
Historical spending on administrative and management consulting services for foreign military modernization efforts by the DoD can vary significantly based on the specific country, the scope of modernization, and the geopolitical context. These contracts often fall under broader Security Cooperation or Foreign Military Sales (FMS) programs. While specific aggregate data for 'administrative management and general management consulting services' solely for foreign military modernization is not readily available in public databases, spending in related categories like 'Professional, Scientific, and Technical Services' for international affairs and defense cooperation can run into billions of dollars annually. Contracts supporting major allies or strategic partners often involve substantial, multi-year commitments for training, advisory, and logistical support services.
How does the number of bidders (5) impact the perceived value for money in this 'full and open competition' award?
Having five bidders in a full and open competition generally suggests a healthy level of market interest and a reasonable degree of competition. This number provides a basis for the government to compare proposals and pricing, increasing the likelihood of achieving a competitive price. While more bidders could potentially drive prices lower, five is often considered a sufficient number to prevent a lack of viable options. The ultimate value for money depends not only on the number of bidders but also on the quality of the proposals received, the thoroughness of the evaluation process, and the specific terms negotiated within the chosen contract type (CPFF in this case).
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W519TC24R2005
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3172, RIYADH, 13217-106088, RIYADH
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,708,842
Exercised Options: $9,783,685
Current Obligation: $9,413,550
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-12-20
Current End Date: 2026-12-31
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2026-01-07
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