DoD awards $40M for survey and navigation systems to HoolaHoo Government Solutions, raising value-for-money questions

Contract Overview

Contract Amount: $40,084,781 ($40.1M)

Contractor: Hoolaulima Government Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-18

End Date: 2024-04-01

Contract Duration: 349 days

Daily Burn Rate: $114.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCURE 110 GENERAL PURPOSE SURVEY SETS, 78 GPS-SETS, 89 AISI SYSTEMS AND 130 AISI SYSTEMS.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.1 million to HOOLAULIMA GOVERNMENT SOLUTIONS, LLC for work described as: PROCURE 110 GENERAL PURPOSE SURVEY SETS, 78 GPS-SETS, 89 AISI SYSTEMS AND 130 AISI SYSTEMS. Key points: 1. The contract's value appears high relative to the quantity of items procured, suggesting potential overpricing or scope creep. 2. Limited competition for this significant award warrants scrutiny of the procurement process and potential impact on pricing. 3. The firm fixed-price contract type offers some cost certainty, but the lack of competition limits the government's ability to negotiate favorable terms. 4. Performance risk is moderate given the firm fixed-price nature, but the absence of competitive pressure could mask inefficiencies. 5. This procurement falls within the specialized 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. 6. The contract's duration of 349 days is relatively short for a procurement of this value, indicating a focused scope of work.

Value Assessment

Rating: questionable

The total award of $40,084,780.99 for 110 general purpose survey sets, 78 GPS-sets, and 219 AISI systems (130 + 89) appears high on a per-unit basis. Without specific details on the complexity and features of each set, it is difficult to benchmark against similar contracts. However, the lack of competitive bidding suggests that the government may not have secured the best possible pricing, potentially leading to a lower value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. The specific justification for this approach is not provided, but it means that only one vendor was solicited or considered. This significantly limits the government's ability to leverage market competition to drive down prices and ensure the most cost-effective solution.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government missed an opportunity to solicit multiple offers and potentially secure a lower price through a competitive process.

Public Impact

The Department of the Army benefits from the acquisition of essential survey and navigation equipment. The procured systems are critical for military operations, including search, detection, and navigation. The geographic impact is likely within the operational areas of the Department of the Army, primarily within Virginia where the contractor is located. The contract supports specialized manufacturing and technical roles within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
The justification for sole-source procurement needs further examination to ensure it was appropriate.
Without competitive benchmarking, it's difficult to assess if the awarded price reflects fair market value.
The specific technical requirements and capabilities of the systems are not detailed, making a precise value assessment challenging.

Positive Signals

The contract is firm fixed-price, providing cost certainty for the government once awarded.
The contractor, HoolaHoo Government Solutions, LLC, is awarded the contract, implying they meet the necessary qualifications.
The procurement addresses specific needs for survey and navigation systems within the Department of the Army.

Sector Analysis

This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry, classified under NAICS code 334511. This sector is characterized by highly specialized and technologically advanced equipment. The market size for such specialized defense systems can be substantial, driven by government procurement needs. Comparable spending benchmarks are difficult to establish without more detailed specifications of the systems procured, but large-scale procurements in this niche often involve significant investment.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a primary consideration or requirement for this specific contract. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting opportunities for small businesses mandated by this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures are inherent in the firm fixed-price structure, which places the cost risk on the contractor. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Procurement
Army Systems Acquisition
Navigation and Guidance Systems
Surveying Equipment Procurement
Sole-Source Contracts
Defense Industrial Base

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding technical specifications and pricing breakdown.
Contractor's specific experience with similar systems not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to HOOLAULIMA GOVERNMENT SOLUTIONS, LLC. PROCURE 110 GENERAL PURPOSE SURVEY SETS, 78 GPS-SETS, 89 AISI SYSTEMS AND 130 AISI SYSTEMS.

Who is the contractor on this award?

The obligated recipient is HOOLAULIMA GOVERNMENT SOLUTIONS, 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 $40.1 million.

What is the period of performance?

Start: 2023-04-18. End: 2024-04-01.

What is the specific technical capability and intended use of the '110 GENERAL PURPOSE SURVEY SETS, 78 GPS-SETS, AND 130 AISI SYSTEMS' procured under this contract?

The provided data indicates the procurement of '110 GENERAL PURPOSE SURVEY SETS, 78 GPS-SETS, AND 130 AISI SYSTEMS'. The NAICS code 334511 points to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing'. General purpose survey sets likely refer to equipment used for land surveying and mapping. GPS-sets are self-explanatory, providing global positioning capabilities. AISI systems, while not explicitly defined, in the context of navigation and guidance systems, could refer to advanced inertial navigation systems, airborne systems, or specialized sensor suites. Without further details from the contract's statement of work or technical specifications, the precise capabilities and intended military applications remain generalized. These systems are crucial for various defense operations, including troop movement, reconnaissance, target acquisition, and infrastructure development in diverse operational environments.

What is the justification for awarding this contract on a sole-source basis, and what was the process for determining fair and reasonable pricing?

The contract is explicitly marked as 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source or limited competition award. The specific justification for this sole-source determination is not provided in the data. Typically, sole-source awards require a formal justification, such as the unique capability of a single contractor, urgent and compelling needs that preclude competition, or a follow-on contract where only one source can provide the necessary services or supplies. The process for determining fair and reasonable pricing in a sole-source scenario often involves price analysis techniques, such as comparing proposed prices to historical prices paid for similar items, analyzing cost breakdowns provided by the contractor, or using independent government cost estimates. However, without competitive offers, the government's leverage to negotiate the best price is significantly diminished, making the determination of 'fair and reasonable' more challenging and potentially less advantageous for the taxpayer.

How does the unit cost of these survey and navigation systems compare to industry benchmarks or previous government procurements of similar equipment?

A precise unit cost comparison is challenging without detailed specifications of the 'GENERAL PURPOSE SURVEY SETS,' 'GPS-SETS,' and 'AISI SYSTEMS.' The total award is approximately $40.1 million for 110 + 78 + 130 + 89 = 407 items (assuming AISI systems are counted separately as 130 and 89). This averages to roughly $98,488 per item. However, the complexity and technological sophistication of these items can vary dramatically. For instance, a basic GPS receiver might cost a few hundred dollars, while an advanced airborne navigation system could cost hundreds of thousands or even millions. Given the sole-source nature of this award and the lack of detailed technical data, it is difficult to definitively state whether the unit costs are aligned with industry benchmarks or previous government procurements. The absence of competition inherently limits the ability to establish a competitive market price.

What is the track record of HoolaHoo Government Solutions, LLC in delivering similar defense systems, and have they previously received sole-source contracts?

Information regarding the specific track record of HoolaHoo Government Solutions, LLC in delivering similar defense systems or their history with sole-source contracts is not provided in the given data. To assess their reliability and past performance, one would typically need to consult contract databases (like FPDS or SAM.gov) for their award history, past performance reviews, and any reported issues or successes on previous government contracts. Without this external data, it is impossible to evaluate their experience in this specific domain or their propensity for receiving sole-source awards. A thorough review would involve examining the types of contracts they've held, their performance ratings, and any disputes or terminations.

What are the potential risks associated with a sole-source procurement of this magnitude, particularly concerning cost overruns and technological obsolescence?

Sole-source procurements of this magnitude carry inherent risks. The primary risk is financial: without competition, the contractor has less incentive to offer the lowest possible price, potentially leading to cost overruns or a lower value for money. The government may end up paying more than necessary. Technologically, relying on a single source can also pose risks. If the chosen technology is not the most advanced or if the contractor's development pace is slow, the procured systems could become obsolete faster than anticipated, especially in the rapidly evolving defense technology sector. Furthermore, a sole-source award can create a dependency on that specific contractor, limiting future flexibility and potentially hindering innovation if alternative solutions emerge.

What oversight mechanisms are in place to ensure the effective utilization of funds and the successful delivery of the specified survey and navigation systems?

Oversight for this contract would primarily be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. These individuals are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying delivery of goods and services. Given the firm fixed-price nature, financial oversight focuses on ensuring the contractor meets milestones and delivers the specified items within the agreed-upon price. Quality assurance surveillance plans (QASPs) would likely be implemented to monitor the technical quality and functionality of the delivered systems. While the data doesn't specify unique oversight measures, standard DoD procurement regulations and contract administration procedures would apply, including potential reviews by internal audit agencies or the Inspector General if performance issues or suspected improprieties arise.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W5J9CQ22R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20079 STONE OAK PKWY, SAN ANTONIO, TX, 78258

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,084,781

Exercised Options: $40,084,781

Current Obligation: $40,084,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W5J9CQ22D0001

IDV Type: IDC

Timeline