DoD's $11.6M Artillery and Chemical Training Support Contract Awarded to AHTNA Support & Training Services LLC

Contract Overview

Contract Amount: $11,591,072 ($11.6M)

Contractor: Ahtna Support & Training Services LLC

Awarding Agency: Department of Defense

Start Date: 2017-02-01

End Date: 2022-03-31

Contract Duration: 1,884 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF PERFORMANCE BASED SERVICE CONTRACT FOR ARTILLERY AND CHEMICAL TRAINING LIFE CYCLE SUPPORT SERVICES.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to AHTNA SUPPORT & TRAINING SERVICES LLC for work described as: IGF::OT::IGF PERFORMANCE BASED SERVICE CONTRACT FOR ARTILLERY AND CHEMICAL TRAINING LIFE CYCLE SUPPORT SERVICES. Key points: 1. Contract provides life cycle support for artillery and chemical training, indicating a focus on specialized military readiness. 2. The contract was awarded using full and open competition after exclusion of sources, suggesting a deliberate but potentially limited competitive process. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was utilized, which can incentivize contractors to manage costs while ensuring a defined profit margin. 4. The contract duration of 1884 days (approximately 5 years) suggests a long-term need for these specialized training services. 5. The contract's performance period spans from February 2017 to March 2022, providing a historical data point for future analysis. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, aligning with the technical nature of training support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The CPFF structure, while common, can sometimes lead to cost overruns if not closely monitored. The total award amount of $11.6 million over five years averages to approximately $2.3 million annually, which appears reasonable for specialized military training support, but a detailed cost breakdown and comparison to similar services would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The number of offers received (5) suggests some level of interest, but the exclusion clause warrants further investigation into why specific sources were not considered.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader, unrestricted full and open competition had been conducted.

Public Impact

Service members undergoing artillery and chemical warfare training benefit from enhanced life cycle support services. The contract supports the Department of the Army's readiness and training objectives. The contract is geographically located in Florida (ST: FL, SN: FLORIDA), indicating a specific training facility or operational area. The specialized nature of the services likely requires a skilled workforce, potentially impacting the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type raises concerns about potential limitations on competitive pricing and innovation.
Cost Plus Fixed Fee contracts require robust oversight to prevent cost escalation and ensure value for money.
Lack of detailed performance metrics in the provided data makes it difficult to assess the true effectiveness and efficiency of the services delivered.

Positive Signals

The contract was awarded through a competitive process, even with exclusions, indicating an effort to secure multiple bids.
The long duration of the contract suggests a stable and ongoing requirement for these critical training support services.
The contract specifies a definitive contract type, implying a clear scope of work and terms.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting defense-related training. The market for defense training and simulation services is substantial, driven by the need for continuous military readiness and the adoption of advanced technologies. Comparable spending benchmarks would involve analyzing other contracts for specialized military training, simulation, and logistical support services across different branches of the armed forces.

Small Business Impact

The provided data indicates that small business set-aside (ss) and subcontracting (sb) were not utilized for this contract (both are false). This suggests that the primary award was not specifically targeted towards small businesses, and there is no explicit information on subcontracting opportunities for small businesses within this contract's structure.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to monitor expenditures and ensure the contractor operates within the agreed-upon cost ceiling and fixed fee. Transparency would be enhanced through regular performance reviews and audits, potentially involving the Department of Defense's Inspector General if performance or financial irregularities were suspected.

Related Government Programs

Department of Defense Training Support Services
Army Combat Training Programs
Chemical Warfare Defense Training
Artillery Systems Support
Engineering Services for Military Applications

Risk Flags

Potential for limited competition due to source exclusion.
Cost control risks inherent in CPFF contracts.
Need for robust performance monitoring.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to AHTNA SUPPORT & TRAINING SERVICES LLC. IGF::OT::IGF PERFORMANCE BASED SERVICE CONTRACT FOR ARTILLERY AND CHEMICAL TRAINING LIFE CYCLE SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is AHTNA SUPPORT & TRAINING SERVICES 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 $11.6 million.

What is the period of performance?

Start: 2017-02-01. End: 2022-03-31.

What is the track record of AHTNA Support & Training Services LLC with Department of Defense contracts?

A review of publicly available data indicates that AHTNA Support & Training Services LLC has a history of securing contracts with the Department of Defense, often in areas related to support, training, and logistics. The specific contract referenced here, for artillery and chemical training life cycle support, aligns with their demonstrated capabilities. Analyzing past performance on similar contracts, including any reported issues, awards for excellence, or contract modifications, would provide a more comprehensive understanding of their reliability and effectiveness as a contractor. Without access to detailed performance reports or contract histories beyond the basic award data, a full assessment of their track record is limited.

How does the $11.6 million award compare to similar artillery and chemical training support contracts?

Directly comparing this $11.6 million contract to similar artillery and chemical training support contracts is difficult without access to a broader database of comparable awards. Factors such as the scope of services (life cycle support vs. specific training events), duration, geographic location, and the specific technologies or systems involved can significantly influence contract value. However, an annual average of approximately $2.3 million for specialized, long-term military training support services appears within a plausible range for the defense sector. A more robust comparison would require identifying contracts with similar NAICS codes (541330), service descriptions, and agency (Department of the Army) over a comparable timeframe.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risks associated with a CPFF contract structure for artillery and chemical training support services revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with a defined profit, the 'cost plus' element means the government reimburses allowable costs. If the government's oversight is insufficient, the contractor may have less incentive to control costs rigorously, potentially leading to expenditures exceeding initial estimates. Conversely, if the scope of work is not clearly defined or changes frequently, managing costs and ensuring fair compensation for the contractor can become complex. Effective risk mitigation requires detailed cost monitoring, clear scope definition, and proactive change management.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring value for taxpayers is mixed and depends heavily on the justification for the exclusion. If the exclusion is based on legitimate technical requirements, security clearances, or unique capabilities that only a limited number of firms possess, it might be a necessary approach. However, if the exclusion is arbitrary or overly restrictive, it can limit the competitive pool, potentially leading to higher prices and reduced innovation. For taxpayers, this method is less ideal than unrestricted full and open competition, as it inherently restricts the number of potential bidders. The value proposition hinges on whether the excluded sources truly could not meet the requirements or if their exclusion artificially constrained the market.

What are the implications of the contract's geographic location in Florida for training operations?

The contract's specific location in Florida (ST: FL, SN: FLORIDA) suggests that the artillery and chemical training life cycle support services are being provided at or in close proximity to a specific military installation or training range within the state. Florida hosts several significant Army installations, such as Fort Jackson (though primarily Army Training Center, it has training functions) and various National Guard training sites. This geographic focus implies that the services are tailored to the operational needs and infrastructure present in that region. For taxpayers, a localized contract can sometimes lead to reduced logistical costs compared to a nationwide support effort, assuming the chosen location is operationally efficient for the required training.

What is the historical spending trend for artillery and chemical training support by the Department of the Army?

Analyzing the historical spending trend for artillery and chemical training support by the Department of the Army requires access to comprehensive budget and contract databases beyond the scope of this single award. This $11.6 million contract represents a specific investment over a five-year period. To understand broader trends, one would need to examine aggregate spending on similar services across multiple fiscal years, identify key contract vehicles, and note any significant increases or decreases in demand or funding. Factors such as geopolitical events, changes in military doctrine, and technological advancements in training methodologies would influence these historical spending patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK16R0069

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 110 W 38TH AVE STE 200D, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,352,074

Exercised Options: $12,352,074

Current Obligation: $11,591,072

Actual Outlays: $0

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline