DoD's $32.4M STOL/LCLA Aerial Resupply Contract for Afghanistan Lacked Competition

Contract Overview

Contract Amount: $32,429,598 ($32.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-08-27

End Date: 2014-04-24

Contract Duration: 971 days

Daily Burn Rate: $33.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SHORT TAKE-OFF AND LANDING (STOL) AND LOW COST LOW ALTITUDE (LCLA) AERIAL RESUPPLY SERVICES - AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $32.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: SHORT TAKE-OFF AND LANDING (STOL) AND LOW COST LOW ALTITUDE (LCLA) AERIAL RESUPPLY SERVICES - AFGHANISTAN Key points: 1. The contract awarded was for $32.4 million, indicating significant investment in aerial resupply. 2. Lack of competition suggests potential for higher costs and reduced innovation. 3. The contract duration of 971 days highlights a long-term need for these services. 4. The specific sector is air transportation, crucial for logistical support in challenging environments.

Value Assessment

Rating: questionable

The total award of $32.4 million for aerial resupply services over nearly three years warrants scrutiny. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for specialized air transport.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher prices and limiting opportunities for other qualified vendors to offer their services and potentially lower costs.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may have paid more than necessary for these critical resupply services.

Public Impact

Essential logistical support for military operations in Afghanistan was provided. Taxpayers funded a significant contract for specialized air transportation. The absence of competition limits transparency and potential cost savings for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited vendor pool

Positive Signals

Provided critical resupply services
Long-term contract duration suggests sustained need

Sector Analysis

This contract falls under the 'Other Nonscheduled Air Transportation' category, specifically for Short Take-Off and Landing (STOL) and Low Cost Low Altitude (LCLA) capabilities. Such services are vital for military logistics in austere environments like Afghanistan, often commanding premium pricing due to specialized aircraft and operational requirements.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests that the prime contractor was likely a larger entity, and opportunities for small businesses to participate in subcontracting may have been limited or non-existent.

Oversight & Accountability

The 'NOT COMPETED' status raises questions about the oversight processes that led to a sole-source award. Further investigation into the justification for not competing this contract would be necessary to assess accountability.

Related Government Programs

Other Nonscheduled Air Transportation
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Sole-source award
Potential for inflated costs
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to DOMESTIC AWARDEES (UNDISCLOSED). SHORT TAKE-OFF AND LANDING (STOL) AND LOW COST LOW ALTITUDE (LCLA) AERIAL RESUPPLY SERVICES - AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2011-08-27. End: 2014-04-24.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. Without further documentation, the specific justification remains undisclosed. Typically, sole-source awards require a compelling reason, such as a unique capability, urgent need, or lack of market availability. The absence of competition here suggests these factors may have been cited, but a thorough review would be needed to validate the necessity and explore if any form of limited competition was feasible.

How does the per-unit cost of this resupply service compare to industry benchmarks for similar operations in comparable theaters?

Benchmarking the per-unit cost is challenging without specific details on the volume of goods transported, distance, and frequency of flights. However, the total award of $32.4 million over 971 days for 'Other Nonscheduled Air Transportation' suggests a substantial cost per day or per mission. Given the lack of competition, it is highly probable that the per-unit cost is higher than what could have been achieved through a competitive bidding process.

What was the impact of this sole-source award on the overall effectiveness and efficiency of resupply operations in Afghanistan?

The effectiveness of resupply operations is difficult to gauge solely from contract data. While the service was provided, the lack of competition raises concerns about potential inefficiencies and suboptimal resource allocation. A competitive environment often drives innovation and efficiency improvements, which may have been missed opportunities in this case. The long duration suggests the service met a persistent need, but its cost-effectiveness remains questionable.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Other Nonscheduled Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,429,598

Exercised Options: $32,429,598

Current Obligation: $32,429,598

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline