DoD's $22.8M Aviation Support Contract with LOGMET LLC Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $22,859,089 ($22.9M)
Contractor: Logmet LLC
Awarding Agency: Department of Defense
Start Date: 2019-01-29
End Date: 2025-05-15
Contract Duration: 2,298 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AVIATION SUPPORT SERVICES
Place of Performance
Location: YUMA, YUMA County, ARIZONA, 85365
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to LOGMET LLC for work described as: AVIATION SUPPORT SERVICES Key points: 1. The contract's value of $22.8 million for aviation support services raises questions about cost-effectiveness. 2. Competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' warrants further investigation into its impact on pricing. 3. Potential risks include overpayment due to limited competition and the lack of small business participation. 4. The IT sector is not directly involved, but efficient logistics are crucial for defense operations.
Value Assessment
Rating: questionable
The contract's total value of $22.8 million for aviation support services lacks clear benchmarks for comparison. Without detailed cost breakdowns or comparisons to similar contracts, assessing the pricing's reasonableness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests that while competition was sought, certain sources were excluded. This limited competition may have impacted price discovery and potentially led to higher costs than a truly open competition.
Taxpayer Impact: The limited competition and lack of transparency in the exclusion of sources raise concerns about taxpayer money being spent efficiently. Further analysis is needed to ensure fair pricing.
Public Impact
Taxpayers may be overpaying for aviation support services due to restricted competition. The exclusion of certain sources raises questions about fairness and potential favoritism. Lack of small business involvement limits opportunities for smaller enterprises in defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of small business participation
- Unclear value for money
Positive Signals
- Contract awarded by Department of Defense
- Long-term contract duration (2019-2025)
Sector Analysis
This contract falls under general support services for aviation, crucial for military operations. Benchmarks for such services can vary widely based on specific requirements, location, and duration. The $22.8 million value over approximately 6 years suggests a significant but not extraordinary expenditure for specialized support.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This is a missed opportunity to engage smaller businesses in defense contracting, potentially limiting competition and innovation.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause requires careful oversight to ensure the exclusion criteria were justified and did not unduly restrict competition. Accountability for the pricing and performance rests with the Department of the Army.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for inflated pricing due to limited competition.
- Lack of transparency regarding source exclusion.
- No small business participation.
- Need for clear value-for-money assessment.
Tags
other-support-activities-for-air-transpo, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to LOGMET LLC. AVIATION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LOGMET 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 $22.9 million.
What is the period of performance?
Start: 2019-01-29. End: 2025-05-15.
What specific criteria were used to exclude sources in this 'full and open competition after exclusion of sources' contract, and were these criteria justified to ensure fair market competition?
The justification for excluding specific sources in a 'full and open competition after exclusion of sources' contract is critical. Agencies must document the rationale, often related to specialized capabilities, security requirements, or prior performance issues. Without this documentation, it's difficult to ascertain if the exclusion was necessary or if it artificially limited competition, potentially impacting the final price and overall value for taxpayers.
How does the per-unit cost or service rate for LOGMET LLC's aviation support compare to industry averages or other government contracts for similar services, considering the limited competition?
Assessing the value for money requires comparing LOGMET LLC's pricing against industry benchmarks or similar government contracts. Given the 'exclusion of sources,' a direct comparison might be challenging. However, analyzing the contract's specific deliverables and comparing them to publicly available data for comparable aviation support services, even with slight variations, can reveal potential overpricing or cost savings.
What mechanisms are in place to ensure effective performance and accountability from LOGMET LLC throughout the contract's duration, especially given the lack of robust competition?
Effective oversight mechanisms are crucial for contracts with limited competition. The Department of the Army should have performance metrics, regular reviews, and clear channels for addressing issues. Accountability is maintained through contract clauses that allow for remedies if performance standards are not met, ensuring that despite the competitive landscape, the government receives the required services effectively.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9115118R0098
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9600 GREAT HILLS TRAIL STE 150 W, AUSTIN, TX, 78759
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $22,914,394
Exercised Options: $22,914,394
Current Obligation: $22,859,089
Actual Outlays: $885,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-01-29
Current End Date: 2025-05-15
Potential End Date: 2025-05-15 00:00:00
Last Modified: 2025-08-22
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