DoD's $36M Contract for Saudi Arabia TAAM Services Lacks Competition, Raises Oversight Concerns

Contract Overview

Contract Amount: $36,000,546 ($36.0M)

Contractor: Aitc-Five Domains Joint Venture,LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2024-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $24.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REQUIREMENT FOR THE KINGDOM OF SAUDI ARABIA (KSA) INTELLIGENCE LINE OF EFFORT TO PROVIDE TRAIN, ADVISE, ASSIST, & MENTOR (TAAM) SERVICES THROUGH THE EXECUTION OF 17 INITIATIVES IN SUPPORT OF THE KSA'S VISION 2030 TRANSFORMATION EFFORTS.

Plain-Language Summary

Department of Defense obligated $36.0 million to AITC-FIVE DOMAINS JOINT VENTURE,LLC for work described as: REQUIREMENT FOR THE KINGDOM OF SAUDI ARABIA (KSA) INTELLIGENCE LINE OF EFFORT TO PROVIDE TRAIN, ADVISE, ASSIST, & MENTOR (TAAM) SERVICES THROUGH THE EXECUTION OF 17 INITIATIVES IN SUPPORT OF THE KSA'S VISION 2030 TRANSFORMATION EFFORTS. Key points: 1. The contract aims to support Saudi Arabia's Vision 2030 through administrative and management consulting services. 2. AITC-FIVE DOMAINS JOINT VENTURE, LLC is the sole awardee, indicating a lack of competitive bidding. 3. The firm fixed-price contract structure may offer some cost control, but the absence of competition is a risk. 4. The services provided fall under Administrative Management and General Management Consulting, a broad category.

Value Assessment

Rating: questionable

The contract value of $36 million over four years for consulting services is substantial. Without competitive benchmarks, it's difficult to definitively assess if this pricing is optimal. The firm fixed-price structure provides some predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as sole-source, meaning it was not open to competition. This significantly limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a $36 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayer funds are being used to support a foreign government's transformation efforts, raising questions about U.S. priorities. The absence of a competitive process for a large contract could set a precedent for future sole-source awards. Oversight of how these consulting services are delivered and their actual impact on Saudi Arabia's Vision 2030 is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns due to lack of competitive pressure.
Limited visibility into the effectiveness of TAAM services.

Positive Signals

Contract supports a significant foreign policy initiative (Vision 2030).
Firm fixed-price contract provides some cost certainty.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this sector can vary widely, but large sole-source contracts warrant scrutiny due to the potential for inflated costs.

Small Business Impact

The contract data indicates that small business participation was not a stated objective (sb: false). This suggests that opportunities for small businesses to participate in this significant contract are likely limited.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure accountability and effective service delivery. The Department of the Army must actively monitor performance and expenditures to justify the lack of competition.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated costs
Limited transparency in award justification
Difficulty in measuring program effectiveness
Questionable taxpayer value for supporting foreign government initiatives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.0 million to AITC-FIVE DOMAINS JOINT VENTURE,LLC. REQUIREMENT FOR THE KINGDOM OF SAUDI ARABIA (KSA) INTELLIGENCE LINE OF EFFORT TO PROVIDE TRAIN, ADVISE, ASSIST, & MENTOR (TAAM) SERVICES THROUGH THE EXECUTION OF 17 INITIATIVES IN SUPPORT OF THE KSA'S VISION 2030 TRANSFORMATION EFFORTS.

Who is the contractor on this award?

The obligated recipient is AITC-FIVE DOMAINS JOINT VENTURE,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 $36.0 million.

What is the period of performance?

Start: 2020-12-01. End: 2024-11-30.

What specific justification was provided for awarding this $36 million contract on a sole-source basis, and how does it align with federal procurement regulations for non-competitive awards?

The provided data does not include the specific justification for the sole-source award. Federal regulations (e.g., FAR Part 6) typically require agencies to document and justify why full and open competition is not feasible or not in the government's interest. This justification is critical for ensuring proper use of taxpayer funds and should be publicly accessible.

How will the effectiveness and impact of the TAAM services on Saudi Arabia's Vision 2030 transformation efforts be measured and reported, especially given the lack of competitive benchmarks?

Measuring the effectiveness of TAAM services requires clearly defined performance metrics and regular reporting. The Department of Defense should establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for each of the 17 initiatives. Independent evaluations or third-party assessments could provide objective insights into the program's success.

What is the potential long-term financial risk to the U.S. if this sole-source contract leads to inflated costs or if the services provided do not yield the intended strategic benefits for U.S. foreig

The primary financial risk is overpayment due to the absence of competitive pricing, potentially diverting funds from other critical areas. Strategically, if the TAAM services are ineffective or misaligned with U.S. interests, it could undermine diplomatic goals and represent a poor return on investment for taxpayer dollars. Continuous monitoring and performance evaluation are key to mitigating these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK21R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1351 SUNDIAL PT, WINTER SPRINGS, FL, 32708

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $36,000,546

Exercised Options: $36,000,546

Current Obligation: $36,000,546

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline