DoD awards $167M for Terminal High Altitude Area Defense technical assistance to Downrange Operations and Training LLC

Contract Overview

Contract Amount: $16,722,155 ($16.7M)

Contractor: Downrange Operations and Training LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-10

End Date: 2026-09-09

Contract Duration: 638 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROYAL SAUDI AIR DEFENSE FORCES TERMINAL HIGH ALTITUDE AREA DEFENSE TECHNICAL ASSISTANCE FIELD TEAM

Plain-Language Summary

Department of Defense obligated $16.7 million to DOWNRANGE OPERATIONS AND TRAINING LLC for work described as: ROYAL SAUDI AIR DEFENSE FORCES TERMINAL HIGH ALTITUDE AREA DEFENSE TECHNICAL ASSISTANCE FIELD TEAM Key points: 1. Contract value of $167.2M over approximately two years suggests a significant investment in specialized technical support. 2. The contract was awarded under full and open competition, indicating a broad search for qualified vendors. 3. The fixed-price contract type aims to control costs by shifting some risk to the contractor. 4. The North American Industry Classification System (NAICS) code 611699 points to a focus on specialized instruction and training services. 5. The contract duration of 638 days (approx. 21 months) allows for sustained support. 6. The awardee, Downrange Operations and Training LLC, is a relatively new entity, raising questions about extensive past performance in this specific niche.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of technical assistance provided. The $167.2 million award over roughly two years translates to an average annual value of approximately $83.6 million. This figure needs to be compared against the cost of similar technical support teams for complex defense systems. The firm-fixed-price structure suggests an attempt to cap costs, but the overall value proposition depends heavily on the contractor's efficiency and the criticality of the services rendered. Without more granular data on deliverables and personnel hours, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that the Department of Defense actively sought proposals from all responsible sources. The presence of two bids (no: 2) indicates that while competition was sought, the number of actual bidders was limited. This level of competition might not be sufficient to drive down prices as aggressively as a larger pool of bidders would, but it does provide a basis for price comparison and selection of a qualified vendor.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it allows for a broader search for the best value and can encourage competitive pricing.

Public Impact

The primary beneficiaries are the Royal Saudi Air Defense Forces, who will receive critical technical assistance for the Terminal High Altitude Area Defense (THAAD) system. The services delivered include technical support, likely encompassing maintenance, training, and operational guidance for the THAAD system. The geographic impact is primarily focused on Saudi Arabia, where the THAAD system is deployed. Workforce implications may include the deployment of specialized technical personnel from Downrange Operations and Training LLC to support the Royal Saudi Air Defense Forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The awardee, Downrange Operations and Training LLC, appears to be a relatively new entity, which could present risks related to proven performance and stability in delivering complex, long-term technical support.
The limited number of bidders (2) in a full and open competition might suggest potential barriers to entry for other qualified firms or a concentrated market for this specialized service.

Positive Signals

The use of 'full and open competition' indicates an effort to ensure a wide range of potential contractors were considered, promoting a fair selection process.
The 'firm fixed price' contract type is a positive signal for cost control, as it places the financial risk of cost overruns on the contractor.

Sector Analysis

This contract falls within the defense services sector, specifically focusing on technical assistance and training for advanced missile defense systems. The market for such specialized support is often concentrated among a few highly capable firms with specific expertise. The global demand for advanced air and missile defense systems, driven by geopolitical security concerns, influences spending in this area. Comparable spending benchmarks would involve analyzing other technical support contracts for similar sophisticated defense platforms, both domestically and internationally.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of technical assistance for advanced defense systems like THAAD, it is common for such contracts to be awarded to larger, more experienced companies. There is no explicit information regarding subcontracting plans for small businesses, which would typically be detailed in the contract's statement of work or associated documentation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, which awarded the contract on behalf of the Department of Defense. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports are typically not publicly disclosed for national security reasons. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Missile Defense Systems Support
Foreign Military Sales Technical Assistance
Advanced Air Defense Training
THAAD System Support Contracts
Defense Technical Services

Risk Flags

Contractor Performance Risk (Newer Entity)
Limited Competition (Number of Bidders)
Geopolitical Sensitivity (Foreign Military Sale)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to DOWNRANGE OPERATIONS AND TRAINING LLC. ROYAL SAUDI AIR DEFENSE FORCES TERMINAL HIGH ALTITUDE AREA DEFENSE TECHNICAL ASSISTANCE FIELD TEAM

Who is the contractor on this award?

The obligated recipient is DOWNRANGE OPERATIONS AND TRAINING 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 $16.7 million.

What is the period of performance?

Start: 2024-12-10. End: 2026-09-09.

What is the specific scope of 'technical assistance' being provided under this contract?

The term 'technical assistance' in this context likely encompasses a broad range of services critical to the operation and maintenance of the Terminal High Altitude Area Defense (THAAD) system for the Royal Saudi Air Defense Forces. This could include on-site support from field service representatives, troubleshooting and diagnostics, repair and maintenance guidance, logistical support coordination, system upgrades and modifications, and specialized training for Royal Saudi Air Defense Forces personnel. The specific details would be outlined in the contract's Statement of Work (SOW), which is not publicly available. Given the complexity and strategic importance of the THAAD system, the technical assistance is expected to be highly specialized and require personnel with deep expertise in radar, missile interceptors, command and control systems, and related technologies.

How does the $167.2 million contract value compare to similar technical support contracts for advanced defense systems?

Direct comparison of the $167.2 million contract value for THAAD technical assistance is difficult without access to detailed contract data for similar systems and services. However, the value suggests a significant, multi-year commitment. Contracts for technical support of major defense platforms, especially those involving foreign military sales and advanced technology like THAAD, often run into tens or hundreds of millions of dollars over their lifecycle. Factors influencing cost include the number of personnel deployed, the duration of the support, the level of expertise required, and the specific deliverables. For context, other complex air defense systems or major weapon platforms might have similar or even higher sustainment and technical support costs, depending on their sophistication, operational tempo, and geographic deployment.

What are the potential risks associated with Downrange Operations and Training LLC being a less established contractor for this type of support?

The primary risk associated with a less established contractor like Downrange Operations and Training LLC is the potential for unproven performance and execution capability, especially for a highly critical and complex system like THAAD. While they may possess the necessary expertise, their track record in managing large-scale, long-term technical support contracts for foreign military clients might be limited. This could translate into risks such as delays in service delivery, difficulties in mobilizing adequate resources, challenges in coordinating with military personnel, or potential cost overruns if not managed effectively, despite the firm-fixed-price structure. The government's due diligence during the 'full and open competition' process would aim to mitigate these risks by assessing their proposed approach, personnel qualifications, and financial stability.

What is the significance of the 'firm fixed price' contract type in this context?

The 'firm fixed price' (FFP) contract type is significant because it places the primary financial risk on the contractor, Downrange Operations and Training LLC. Under an FFP contract, the contractor agrees to a total price for the specified goods or services, and is responsible for managing costs to remain profitable. This structure is often preferred by the government for services where the scope of work is well-defined and performance requirements are clear, as it provides the most certainty regarding the total cost. For taxpayers, it means the $167.2 million award represents the maximum cost, barring any contract modifications. It incentivizes the contractor to be efficient and control costs, as any overruns would reduce their profit margin or result in a loss.

How does the limited number of bidders (2) impact the government's ability to secure competitive pricing?

While 'full and open competition' theoretically allows any responsible source to bid, the fact that only two bids were received suggests that the market for this highly specialized THAAD technical assistance may be concentrated. A limited number of bidders can reduce competitive pressure compared to a scenario with numerous proposals. With only two offers, the government has a choice, but the negotiating leverage might be less than if there were, for example, five or more competing proposals. The government would still conduct a thorough evaluation to ensure the selected offer represents the best value, considering both technical merit and price, but the potential for aggressive price reductions might be constrained by the limited number of alternatives.

Industry Classification

NAICS: Educational Services › Other Schools and Instruction › All Other Miscellaneous Schools and Instruction

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1938 HARNEY ST, LARAMIE, WY, 82072

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,657,166

Exercised Options: $16,722,155

Current Obligation: $16,722,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124717D0011

IDV Type: IDC

Timeline