DoD awards $31.4M contract for Afghan Air Force aviation enhancements, raising value-for-money questions

Contract Overview

Contract Amount: $31,410,338 ($31.4M)

Contractor: Omran Inc

Awarding Agency: Department of Defense

Start Date: 2019-03-26

End Date: 2023-01-30

Contract Duration: 1,406 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT AWARD FOR ANA 18-072 AFGHAN AIRFORCE (AAF) MES AVIATION ENHANCEMENTS, MAZAR-E-SHARIF, BALKH PROVINCE

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to OMRAN INC for work described as: CONTRACT AWARD FOR ANA 18-072 AFGHAN AIRFORCE (AAF) MES AVIATION ENHANCEMENTS, MAZAR-E-SHARIF, BALKH PROVINCE Key points: 1. The contract's value of $31.4 million for aviation enhancements appears high relative to the scope of services. 2. Limited public information on performance metrics makes it difficult to assess the contractor's value for money. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The duration of the contract (1406 days) indicates a long-term commitment to these aviation services. 5. The firm-fixed-price structure shifts risk to the contractor, but oversight is crucial for performance. 6. The absence of small business set-asides means opportunities for smaller firms were not prioritized.

Value Assessment

Rating: questionable

The $31.4 million award for aviation enhancements for the Afghan Air Force warrants scrutiny. Without detailed performance metrics or comparable contract data, it's challenging to benchmark the value for money. The firm-fixed-price nature suggests a defined cost, but the overall expenditure requires a thorough assessment against the delivered capabilities and long-term strategic benefit. The lack of readily available data on the specific services rendered makes a definitive value judgment 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 16 bids suggests a robust level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars compared to a sole-source award.

Public Impact

The primary beneficiaries are the Afghan Air Force personnel who receive enhanced aviation capabilities. Services delivered include aviation enhancements crucial for the operational readiness of the Afghan Air Force. The geographic impact is concentrated in Mazar-e-Sharif, Balkh Province, Afghanistan. Workforce implications include the potential for local employment in support roles, though details are scarce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding specific performance metrics and outcomes.
Potential for cost overruns if scope creep occurs despite fixed-price contract.
Geopolitical instability in Afghanistan could impact contract execution and long-term viability.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract structure provides cost certainty.
Contract duration suggests a sustained commitment to enhancing Afghan Air Force capabilities.

Sector Analysis

This contract falls within the broader defense and aerospace services sector, specifically focusing on aviation support and training. The market for such services is often characterized by specialized expertise and long-term government commitments. Comparable spending benchmarks are difficult to establish without more granular data on the specific enhancements provided, but defense aviation support contracts can range significantly in value depending on complexity and duration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award. The absence of explicit small business set-aside provisions means that opportunities for small businesses to directly compete or subcontract were not mandated. This could limit the direct involvement of small businesses in fulfilling this specific contract, although they may participate indirectly through the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is limited by the availability of public data on performance and detailed expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Afghan National Army Sustainment
Foreign Military Sales - Afghanistan
Defense Security Cooperation Agency Programs
Aviation Maintenance and Support Services

Risk Flags

Lack of detailed performance metrics.
Limited public information on specific services rendered.
Geopolitical instability in the operating region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to OMRAN INC. CONTRACT AWARD FOR ANA 18-072 AFGHAN AIRFORCE (AAF) MES AVIATION ENHANCEMENTS, MAZAR-E-SHARIF, BALKH PROVINCE

Who is the contractor on this award?

The obligated recipient is OMRAN 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 $31.4 million.

What is the period of performance?

Start: 2019-03-26. End: 2023-01-30.

What specific aviation enhancements were provided under this contract, and how do they align with the Afghan Air Force's strategic objectives?

The contract, ANA 18-072, focused on 'AAF MES Aviation Enhancements.' While the term 'MES' is not explicitly defined in the provided data, it likely refers to 'Mission Equipment Services' or a similar designation related to enhancing the operational capabilities of the Afghan Air Force's aircraft. These enhancements could encompass a range of services such as avionics upgrades, structural repairs, specialized equipment integration, or maintenance support critical for maintaining airworthiness and improving mission effectiveness. The alignment with strategic objectives would depend on the specific types of aircraft supported and the intended roles within the Afghan Air Force's operational framework, such as close air support, transport, or reconnaissance.

How does the per-unit cost or cost-effectiveness of these aviation enhancements compare to similar contracts awarded by the Department of Defense or allied nations?

Benchmarking the cost-effectiveness of this $31.4 million contract is challenging due to the lack of specific details on the 'aviation enhancements' provided and the unique operational context in Afghanistan. Standard per-unit cost metrics (e.g., cost per aircraft, cost per upgrade) are not calculable from the given data. Generally, defense aviation support contracts can vary widely in cost based on the complexity of the technology, the type of aircraft, the duration of support, and the geopolitical environment. Without comparable contract awards for similar enhancement packages on similar aircraft types, a direct comparison of value for money is speculative. The firm-fixed-price nature suggests a defined cost, but the underlying value proposition remains opaque without performance data.

What are the key performance indicators (KPIs) used to measure the success of this contract, and what has been the contractor's performance against these KPIs?

The provided data does not include specific Key Performance Indicators (KPIs) established for this contract or any performance reports from the contractor, Omran Inc. Typically, for aviation enhancement contracts, KPIs might include metrics such as aircraft availability rates, turnaround times for maintenance and upgrades, successful completion of enhancement installations, adherence to technical specifications, and operational readiness of the enhanced platforms. The firm-fixed-price contract structure implies that the contractor is obligated to deliver the specified enhancements, but the effectiveness and quality of these enhancements, and thus the ultimate success of the contract, would be measured against predefined performance standards that are not publicly detailed in this dataset.

What is the track record of Omran Inc. in executing similar large-scale defense aviation contracts, particularly in complex or high-risk environments?

Information regarding Omran Inc.'s specific track record in executing large-scale defense aviation contracts, especially in complex or high-risk environments like Afghanistan, is not detailed in the provided contract award data. To assess their capabilities, one would need to review past performance evaluations, contract histories, and any publicly available information on their previous projects. Companies operating in this sector often have specialized experience, but their success can be influenced by factors such as logistical challenges, security concerns, and the specific technical requirements of the aviation systems involved. A comprehensive assessment would require further research into Omran Inc.'s broader portfolio and client feedback.

How has spending on Afghan Air Force aviation support evolved over time, and does this contract represent a significant shift or continuation of previous spending patterns?

The provided data focuses on a single contract award (ANA 18-072) and does not offer historical spending trends for Afghan Air Force aviation support. To understand the evolution of spending, a broader analysis of historical contracts awarded by the Department of Defense and other relevant agencies for similar purposes in Afghanistan would be necessary. This would involve examining contract databases for previous years to identify patterns in contract values, types of services procured, and the number of contractors involved. Without this historical context, it is difficult to determine if this $31.4 million award represents a significant increase, decrease, or continuation of established spending patterns for enhancing the Afghan Air Force's aviation capabilities.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W5J9JE18R0014

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8229 BOONE BLVD STE 330, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $37,723,377

Exercised Options: $31,410,338

Current Obligation: $31,410,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline