DoD's $37.6M contract for Saudi Arabia training services awarded to AITC-FIVE DOMAINS JOINT VENTURE, LLC

Contract Overview

Contract Amount: $37,636,497 ($37.6M)

Contractor: Aitc-Five Domains Joint Venture,LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2024-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $29.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KINGDOM OF SAUDI ARABIA (KSA) TRANSFORMATION PROGRAM FORCE DOCTRINE (FD) LINE OF EFFORT (LOE) TO PROVIDE TRAIN, ADVISE, ASSIST, AND MENTOR (TAAM) SERVICES.

Plain-Language Summary

Department of Defense obligated $37.6 million to AITC-FIVE DOMAINS JOINT VENTURE,LLC for work described as: KINGDOM OF SAUDI ARABIA (KSA) TRANSFORMATION PROGRAM FORCE DOCTRINE (FD) LINE OF EFFORT (LOE) TO PROVIDE TRAIN, ADVISE, ASSIST, AND MENTOR (TAAM) SERVICES. Key points: 1. The contract focuses on providing Train, Advise, Assist, and Mentor (TAAM) services for the Kingdom of Saudi Arabia's (KSA) Transformation Program Force Doctrine (FD) Line of Effort (LOE). 2. The award was made as a definitive contract with a firm fixed price, indicating a clear scope and payment structure. 3. The contract duration is 1278 days, spanning from April 1, 2021, to September 30, 2024. 4. The primary NAICS code is 541611 (Administrative Management and General Management Consulting Services), suggesting a focus on strategic and operational advisory. 5. The contract was not available for competition, raising questions about the procurement process and potential alternatives. 6. The total contract value is approximately $37.6 million, with specific task orders not detailed in the provided data. 7. The Department of the Army is the contracting agency, with the Department of Defense as the overarching department.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services rendered and comparable international engagements. The firm fixed-price structure suggests an attempt to control costs, but the lack of competition limits the ability to assess if the pricing is competitive. The total award amount of $37.6 million over approximately 3.5 years for specialized advisory services to a foreign military partner appears substantial. Further analysis would require understanding the scope of 'Train, Advise, Assist, and Mentor' services and comparing them to similar international security cooperation agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities, qualifications, or security clearances required for the specific service. The lack of competition means that the government did not solicit bids from other potential contractors, which can sometimes lead to higher prices than if a competitive process had been employed. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate and in the best interest of the government.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers as the absence of competition limits price negotiation leverage. It also bypasses opportunities to foster a broader base of contractors capable of performing such critical services.

Public Impact

The primary beneficiaries are the Kingdom of Saudi Arabia's armed forces, receiving enhanced training and advisory support. The services delivered aim to improve the operational effectiveness and doctrinal development of KSA's military forces. The geographic impact is concentrated in Saudi Arabia, supporting a key U.S. foreign policy and security cooperation objective. Workforce implications include the deployment of specialized personnel from AITC-FIVE DOMAINS JOINT VENTURE, LLC to support the mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing and reduced innovation.
Sole-source awards can limit opportunities for other qualified small or large businesses.
The long duration of the contract (over 3 years) requires sustained oversight to ensure performance remains aligned with objectives.
The nature of 'advise, assist, and mentor' services can be subjective and difficult to measure performance against objective metrics.
Geopolitical considerations in Saudi Arabia could introduce unforeseen risks and impact contract execution.

Positive Signals

The contract addresses a specific and stated need for military capacity building in a key partner nation.
The firm fixed-price contract type provides cost certainty for the government.
The contractor, AITC-FIVE DOMAINS JOINT VENTURE, LLC, is presumably selected for specialized expertise in this domain.
The contract duration allows for sustained engagement and potential for significant impact on the KSA's military doctrine.
The Department of Defense's involvement suggests strategic importance and alignment with national security interests.

Sector Analysis

This contract falls within the management and consulting services sector, specifically focusing on administrative and general management consulting. This sector is crucial for government operations, providing expertise in strategy, organization, and process improvement. The market for defense-related consulting services, particularly those involving international partnerships and security cooperation, is significant. This contract represents a specific instance of the U.S. government leveraging private sector expertise to support foreign military development, a common practice in defense diplomacy and security assistance. Comparable spending benchmarks would involve looking at other foreign military sales support contracts or international training and advisory service agreements.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration or set-aside for this specific contract award. This suggests that the contract was likely awarded to a large business or joint venture, and there is no explicit indication of subcontracting goals for small businesses within the data. Consequently, the direct impact on the small business ecosystem for this particular award appears minimal, as opportunities for small business subcontracting may not have been mandated or actively pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Army. Accountability measures would be tied to the performance metrics outlined in the contract, particularly concerning the 'Train, Advise, Assist, and Mentor' objectives. Transparency is limited due to the sole-source nature of the award and the focus on foreign military support, where details are often sensitive. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Foreign Military Sales (FMS)
Security Cooperation Programs
International Military Education and Training (IMET)
Defense Advisory and Assistance Programs
Management and Consulting Services Contracts

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Lack of transparency regarding specific performance metrics and deliverables.
Geopolitical risks associated with operating in Saudi Arabia.
Contract duration requires sustained oversight to ensure effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.6 million to AITC-FIVE DOMAINS JOINT VENTURE,LLC. KINGDOM OF SAUDI ARABIA (KSA) TRANSFORMATION PROGRAM FORCE DOCTRINE (FD) LINE OF EFFORT (LOE) TO PROVIDE TRAIN, ADVISE, ASSIST, AND MENTOR (TAAM) SERVICES.

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 $37.6 million.

What is the period of performance?

Start: 2021-04-01. End: 2024-09-30.

What is the specific nature of the 'Train, Advise, Assist, and Mentor' services provided under this contract, and how is performance measured?

The 'Train, Advise, Assist, and Mentor' (TAAM) services under this contract are designed to enhance the capabilities of the Kingdom of Saudi Arabia's (KSA) military forces, specifically focusing on their Force Doctrine (FD) and its Line of Effort (LOE). While the exact curriculum and methodologies are not detailed in the provided data, these services typically involve imparting knowledge, providing practical guidance, offering strategic counsel, and fostering leadership development within the KSA military structure. Performance measurement for such contracts often relies on a combination of qualitative assessments (e.g., feedback from KSA leadership, observed improvements in operational planning) and quantitative metrics (e.g., number of personnel trained, successful completion of training modules, implementation of advised doctrinal changes). The firm fixed-price nature suggests that specific deliverables or milestones may be tied to payment, requiring the contractor to demonstrate progress towards agreed-upon objectives. However, the subjective nature of advisory roles necessitates robust reporting and evaluation frameworks to ensure effectiveness and value.

What is the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for awarding this contract on a sole-source basis stems from the specific and potentially unique requirements of providing TAAM services to the KSA Transformation Program Force Doctrine LOE. Sole-source awards are typically made when only one responsible source is capable of satisfying the agency's needs. This could be due to highly specialized technical expertise, existing relationships, unique security clearances, or specific knowledge of the KSA's military structure and doctrine that only AITC-FIVE DOMAINS JOINT VENTURE, LLC possesses. Without access to the official justification documentation (e.g., a Justification and Approval - J&A), it is difficult to ascertain the precise reasons. However, the government is generally required to explore all reasonable avenues for competition. If a sole-source award was made, it implies that a thorough market research process concluded that no other contractors could meet the requirements, or that the cost or time required to compete the requirement would be prohibitive or not in the government's best interest.

How does the $37.6 million contract value compare to similar international advisory and training contracts awarded by the Department of Defense?

Comparing the $37.6 million contract value for TAAM services to the KSA requires context regarding the scope, duration, and complexity of similar international advisory and training contracts. The Department of Defense (DoD) engages in numerous security cooperation activities globally, with contract values varying widely. Contracts for large-scale military training and advisory missions in complex geopolitical regions can range from tens to hundreds of millions of dollars over several years. Factors influencing cost include the number of personnel deployed, the level of expertise required, the duration of the engagement, the specific military branches or units being supported, and the security environment. Without specific details on the deliverables and the number of personnel involved in this KSA contract, a direct comparison is difficult. However, $37.6 million over approximately 3.5 years for specialized advisory services to a key partner nation is within the expected range for significant security cooperation initiatives, though potentially on the lower end for very large, multi-faceted programs.

What are the potential risks associated with a sole-source contract for military advisory services in a foreign country?

Sole-source contracts for military advisory services in foreign countries carry several potential risks. Firstly, the lack of competition can lead to higher costs for the government, as there is less pressure on the contractor to offer the most competitive pricing. Secondly, it may limit the government's access to a broader range of innovative solutions or specialized expertise that other companies might offer. Thirdly, performance oversight becomes even more critical; without competitive benchmarks, ensuring the contractor is delivering effective and efficient services requires rigorous monitoring and evaluation. Fourthly, geopolitical factors in the host nation can introduce unforeseen challenges, and a sole-source provider might have less flexibility or incentive to adapt compared to a more competitively selected entity. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process, potentially impacting public perception and trust.

What is the track record of AITC-FIVE DOMAINS JOINT VENTURE, LLC in providing similar defense advisory and training services?

Information regarding the specific track record of AITC-FIVE DOMAINS JOINT VENTURE, LLC in providing defense advisory and training services, particularly to international partners like the Kingdom of Saudi Arabia, is not detailed in the provided data. As a joint venture, its capabilities would likely be derived from its parent companies or constituent members. To assess their track record, one would need to examine past performance on similar government contracts, including client satisfaction, successful delivery of services, adherence to budget and schedule, and any history of performance issues or disputes. Publicly available contract databases and contractor performance assessment reporting tools (CPARS) would be the primary sources for such information. Given the sole-source nature of this award, it is probable that the government conducted extensive due diligence on the contractor's past performance and unique qualifications before making the decision.

What are the historical spending patterns for similar defense advisory and training services provided to the Kingdom of Saudi Arabia or other Middle Eastern partners?

Historical spending patterns for defense advisory and training services provided to the Kingdom of Saudi Arabia (KSA) and other Middle Eastern partners by the U.S. Department of Defense (DoD) are substantial and varied. The U.S. has long-standing security cooperation relationships with many nations in the region, involving significant investments in training, equipment, and advisory support. Spending can fluctuate based on regional security dynamics, U.S. foreign policy objectives, and the specific needs of partner nations. Contracts in this category often encompass a wide range of services, from basic military training to highly specialized technical assistance and strategic advisory. While specific figures for 'Force Doctrine TAAM services' to KSA are not readily available without deeper research into specific program funding and contract awards, overall U.S. security assistance and defense trade with the Middle East represent billions of dollars annually. Analyzing historical spending would involve reviewing DoD budget allocations for security cooperation, Foreign Military Sales (FMS) data, and individual contract awards for similar services over the past decade.

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: W900KK21R0024

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: $37,636,497

Exercised Options: $37,636,497

Current Obligation: $37,636,497

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline