DoD's $275M Saudi Arabia military strategy support contract awarded to AITC-FIVE DOMAINS JOINT VENTURE, LLC

Contract Overview

Contract Amount: $27,493,945 ($27.5M)

Contractor: Aitc-Five Domains Joint Venture,LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2024-10-31

Contract Duration: 1,279 days

Daily Burn Rate: $21.5K/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 MILITARY STRATEGY LINE OF EFFORT (LOE) TO PROVIDE TRAIN, ADVISE, ASSIST, AND MENTOR (TAAM)SERVICES

Plain-Language Summary

Department of Defense obligated $27.5 million to AITC-FIVE DOMAINS JOINT VENTURE,LLC for work described as: KINGDOM OF SAUDI ARABIA (KSA) TRANSFORMATION PROGRAM MILITARY STRATEGY LINE OF EFFORT (LOE) TO PROVIDE TRAIN, ADVISE, ASSIST, AND MENTOR (TAAM)SERVICES Key points: 1. Contract provides critical train, advise, assist, and mentor (TAAM) services for Saudi Arabia's military strategy. 2. The firm-fixed-price contract structure aims to control costs for the duration of the engagement. 3. Awarded as 'Not Available for Competition,' raising questions about potential alternatives. 4. The contract duration of 1279 days indicates a significant, long-term commitment to the program. 5. This TAAM effort aligns with broader U.S. foreign military assistance and strategic partnership goals. 6. The administrative management and general management consulting services NAICS code suggests a focus on strategic planning and operational support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its unique nature and the specific geopolitical context. The total award amount of approximately $275 million over roughly 3.5 years suggests a substantial investment in advisory services. Without comparable TAAM contracts for similar-scale military transformations in the region, a direct value-for-money assessment is difficult. The firm-fixed-price contract type provides cost certainty for the government, but the absence of detailed performance metrics or cost breakdowns makes it hard to evaluate efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' designation, indicating that the Department of Defense did not solicit bids from multiple sources. This typically occurs when a specific contractor possesses unique capabilities, or when national security interests necessitate a sole-source award. The lack of a competitive bidding process means that the government did not benefit from price discovery through market competition, potentially leading to a higher price than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms was limited without alternative offers.

Public Impact

The primary beneficiaries are the Kingdom of Saudi Arabia's military forces, receiving advanced training and strategic guidance. The contract delivers essential advisory and mentorship services to support the modernization and effectiveness of KSA's military strategy. Geographic impact is concentrated in Saudi Arabia, supporting a key U.S. strategic partner in the Middle East. Workforce implications include the deployment of specialized personnel from AITC-FIVE DOMAINS JOINT VENTURE, LLC to provide the TAAM services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price negotiation and potential cost savings for taxpayers.
The 'Not Available for Competition' status requires strong justification to ensure necessity and prevent potential misuse of sole-source authority.
Assessing the true value and effectiveness of TAAM services without clear performance benchmarks is difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for sustained support and relationship building with the partner nation.
Focus on TAAM services directly supports U.S. foreign policy objectives and strategic partnerships.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. The market for defense advisory and training services is substantial, driven by global security needs and military modernization efforts. Comparable spending often involves large, multi-year contracts for strategic support, equipment provision, and training programs. The U.S. government frequently engages in such contracts to bolster alliances and project stability.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting requirements in the provided data. The sole-source nature of the award further suggests that opportunities for small businesses to participate in this specific contract are unlikely. This means the direct economic impact on the small business ecosystem from this particular award is minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including reporting requirements and performance standards. Transparency may be limited due to the sensitive nature of military strategy and foreign partnerships, but contract awards and basic details are generally made public through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Sales (FMS)
Security Cooperation Programs
International Military Education and Training (IMET)
Defense Security Cooperation Agency (DSCA) initiatives

Risk Flags

Lack of Competition
Limited Transparency
Difficulty in Performance Measurement
Potential for Cost Overruns (inherent in long-term advisory roles)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to AITC-FIVE DOMAINS JOINT VENTURE,LLC. KINGDOM OF SAUDI ARABIA (KSA) TRANSFORMATION PROGRAM MILITARY STRATEGY 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 $27.5 million.

What is the period of performance?

Start: 2021-05-01. End: 2024-10-31.

What is the specific nature of the 'train, advise, assist, and mentor' (TAAM) services being provided to the Kingdom of Saudi Arabia?

The TAAM services are designed to enhance the military capabilities and strategic planning of the Kingdom of Saudi Arabia (KSA). This likely involves providing expert advice on military doctrine, operational planning, force modernization, and institutional development. The 'train' component suggests direct instruction for KSA personnel, while 'advise,' 'assist,' and 'mentor' imply ongoing guidance and support to improve their decision-making processes and operational effectiveness. The specific focus is on KSA's military strategy, indicating a high-level, strategic engagement rather than tactical or equipment-specific training.

Why was this contract awarded on a sole-source basis, and what are the implications for cost-effectiveness?

The contract was designated 'Not Available for Competition,' implying that the Department of Defense determined that only AITC-FIVE DOMAINS JOINT VENTURE, LLC could provide the required services. This could be due to unique expertise, proprietary technology, or critical national security considerations. However, the lack of a competitive bidding process means the government did not leverage market forces to achieve the lowest possible price. Consequently, taxpayers may have paid a premium, as there was no direct comparison of offers from multiple qualified vendors to drive down costs through negotiation.

How does this contract align with broader U.S. foreign policy and defense objectives in the Middle East?

This contract directly supports U.S. foreign policy objectives by strengthening a key regional partner's military capabilities and strategic alignment. By providing TAAM services, the U.S. aims to enhance Saudi Arabia's ability to address regional security challenges independently and in coordination with U.S. interests. This aligns with broader defense strategies focused on maintaining stability, countering threats, and fostering interoperability with allied forces in the Middle East. The investment signifies a commitment to the long-term security relationship between the U.S. and Saudi Arabia.

What are the potential risks associated with a long-term, sole-source contract for military advisory services?

Potential risks include vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting future flexibility or access to alternative solutions. There's also a risk of complacency or reduced innovation from the contractor due to the lack of competitive pressure. Furthermore, assessing the true impact and return on investment for advisory services can be inherently difficult, making it challenging to ensure the program's effectiveness and prevent potential waste or inefficiencies over its extended duration.

What is the typical cost range for similar large-scale military strategy advisory contracts, and how does this award compare?

Large-scale military strategy advisory contracts, especially those involving foreign military partnerships and long durations, can range from tens of millions to hundreds of millions of dollars. Contracts providing comprehensive TAAM services for a nation's strategic transformation are typically substantial investments. The $275 million award for this 1279-day (approx. 3.5 year) contract appears to be within the expected range for such a significant undertaking, particularly given the firm-fixed-price structure which often includes contingencies. However, without direct comparisons of scope and deliverables for similar sole-source awards, a precise benchmark is difficult.

What oversight mechanisms are in place to ensure the effective delivery and accountability of these TAAM services?

Oversight is managed by the Department of Defense, likely through program managers and contracting officers responsible for monitoring contractor performance against contract requirements. Accountability is established through contractual clauses, reporting obligations, and performance metrics, though the specifics are not detailed here. Regular reviews, progress reports, and potentially on-site government representatives would ensure adherence to the agreed-upon services and strategic objectives. Any deviations or failures to meet standards would trigger contractual remedies or corrective actions.

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: W900KK21R0025

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: $27,493,945

Exercised Options: $27,493,945

Current Obligation: $27,493,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline