DoD Awards $25.6M for Qatar AH-64E Other Direct Costs, Resicum International LLC Secures Contract

Contract Overview

Contract Amount: $25,631,241 ($25.6M)

Contractor: Resicum International LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-18

End Date: 2022-10-03

Contract Duration: 1,385 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Defense

Official Description: QATAR AH-64E OTHER DIRECT COSTS FFP

Plain-Language Summary

Department of Defense obligated $25.6 million to RESICUM INTERNATIONAL LLC for work described as: QATAR AH-64E OTHER DIRECT COSTS FFP Key points: 1. Contract value of $25.6M for AH-64E helicopter training. 2. Resicum International LLC is the contractor. 3. Full and open competition was utilized. 4. The contract is for flight training services.

Value Assessment

Rating: fair

The contract's 'COST NO FEE' pricing structure makes direct value assessment difficult without further cost breakdowns. Benchmarking against similar flight training contracts for advanced military aircraft is challenging due to unique program specifics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'COST NO FEE' structure may limit price discovery and incentivize cost control by the contractor.

Taxpayer Impact: Taxpayer funds are utilized for essential flight training for allied forces, contributing to regional security and interoperability, though cost efficiency is not directly optimized by the pricing model.

Public Impact

Enhances operational readiness for Qatar's AH-64E helicopter fleet. Supports international military cooperation and training initiatives. Contributes to the sustainment of advanced aviation capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost control uncertainty due to 'COST NO FEE' structure.
Limited visibility into contractor's cost efficiency.

Positive Signals

Ensures critical training for allied forces.
Leverages competitive bidding process.

Sector Analysis

This contract falls within the Defense sector, specifically related to aviation training and support services. Spending benchmarks for similar specialized flight training can vary significantly based on aircraft type, duration, and required expertise.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract award. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded via a delivery order under a larger agreement, suggesting existing oversight mechanisms. However, the 'COST NO FEE' structure warrants scrutiny to ensure efficient use of funds.

Related Government Programs

Flight Training
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost control concerns due to 'COST NO FEE' pricing.
Limited transparency on contractor's actual expenditures.
Potential for higher overall costs if contractor lacks efficiency.
Difficulty in direct cost benchmarking against other contract types.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to RESICUM INTERNATIONAL LLC. QATAR AH-64E OTHER DIRECT COSTS FFP

Who is the contractor on this award?

The obligated recipient is RESICUM INTERNATIONAL 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 $25.6 million.

What is the period of performance?

Start: 2018-12-18. End: 2022-10-03.

What is the cost-effectiveness of the 'COST NO FEE' pricing model for this flight training contract?

The 'COST NO FEE' model presents challenges in assessing cost-effectiveness as it shifts the financial risk and incentive for efficiency entirely to the contractor. While it can simplify initial pricing, it may lead to higher overall costs if the contractor does not aggressively manage expenses, as there's no direct profit motive tied to cost savings for the government.

What are the primary risks associated with the 'COST NO FEE' structure in this contract?

The primary risks include potential cost overruns that are ultimately borne by the government, lack of transparency in contractor's actual costs, and reduced incentive for the contractor to seek cost-saving measures. This structure can also make it difficult to benchmark against other contracts with different pricing models, potentially leading to suboptimal value for taxpayer money.

How does this contract contribute to the overall effectiveness of Qatar's AH-64E operations?

This contract is crucial for ensuring the operational effectiveness of Qatar's AH-64E fleet by providing essential flight training. Well-trained pilots and crew are vital for mission success, safety, and maximizing the capabilities of advanced military hardware, thereby enhancing Qatar's defense posture and interoperability with allies.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 18157 LEE HIGHWAY, AMISSVILLE, VA, 20106

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,631,241

Exercised Options: $25,631,241

Current Obligation: $25,631,241

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124717D0002

IDV Type: IDC

Timeline