DoD's $18.6M aviation support contract with LOGMET LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $18,589,274 ($18.6M)

Contractor: Logmet LLC

Awarding Agency: Department of Defense

Start Date: 2013-03-29

End Date: 2019-02-28

Contract Duration: 2,162 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CL,CT::IGF AVIATION SUPPORT SERVICES

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85365

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to LOGMET LLC for work described as: IGF::CL,CT::IGF AVIATION SUPPORT SERVICES Key points: 1. Contract awarded to LOGMET LLC for aviation support services. 2. Performance period spanned over 5 years, indicating a stable, long-term need. 3. The contract utilized a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 4. A high number of bids (5) suggests a competitive market for these services. 5. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', a specific competitive procedure. 6. Geographic location of performance was Arizona. 7. The contract value of approximately $18.6 million over its duration. 8. The contract was not set aside for small businesses.

Value Assessment

Rating: good

The contract's value of approximately $18.6 million over five years for aviation support services appears reasonable, especially given the firm fixed-price structure which incentivizes contractor efficiency. While direct comparisons are difficult without more granular data on the specific services rendered, the number of bidders (5) suggests a healthy level of market interest. The pricing is likely benchmarked against similar support contracts within the Department of Defense, and the FFP award type generally leads to predictable costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This specific procurement method indicates that while the competition was intended to be open, certain sources were excluded for reasons not detailed in the provided data. The presence of 5 bidders suggests that despite the exclusion, a reasonable number of companies were able to participate, implying a degree of competition. However, the exclusion itself warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, may have limited the potential for the most competitive pricing. Taxpayers benefit from the competition that did occur, but the full extent of potential savings might not have been realized.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other branches of the Department of Defense requiring aviation support. Services delivered include essential support activities for air transportation, crucial for military operations and logistics. The contract's performance was concentrated in Arizona, impacting the local economy and workforce in that region. The contract likely supported jobs within the aviation support and logistics sectors in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific reason for 'Exclusion of Sources' is not detailed, potentially limiting the competitive landscape.
Lack of small business set-aside may reduce opportunities for smaller specialized firms in this sector.

Positive Signals

Firm Fixed Price contract type transfers cost overrun risk to the contractor.
A relatively high number of bidders (5) indicates market interest and potential for competitive pricing.
The contract duration of over 5 years suggests a stable and ongoing requirement, allowing for contractor investment and efficiency.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support. This sector is characterized by high technical requirements, stringent regulatory oversight, and significant government spending. The market size for aviation support services is substantial, driven by both military and commercial aviation needs. This contract represents a portion of the Department of Defense's overall spending on maintaining and operating its vast aviation fleet, fitting within the larger ecosystem of defense contractors providing specialized support.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract were likely limited to those who could compete directly with larger firms or were not explicitly sought through set-aside provisions. The impact on the broader small business ecosystem in this sector would depend on the overall contracting strategies of the agency and the availability of other avenues for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract databases like FPDS, although detailed performance metrics and specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Aviation Maintenance Contracts
Air Transportation Support Services
Logistics and Base Support Contracts
Federal Aviation Administration (FAA) Contracts
Military Airlift Command Contracts

Risk Flags

Limited Competition Due to Source Exclusion
Potential for Unforeseen Scope Creep
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to LOGMET LLC. IGF::CL,CT::IGF 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 $18.6 million.

What is the period of performance?

Start: 2013-03-29. End: 2019-02-28.

What specific aviation support services were provided under this contract?

The contract, identified by NAICS code 488190 (Other Support Activities for Air Transportation), indicates that LOGMET LLC provided services related to the operation and maintenance of air transportation. While the exact scope is not detailed, these services typically encompass a range of activities such as aircraft maintenance and repair, ground support operations, air traffic control support, aerial port services, and potentially specialized logistical support for aviation assets. The firm fixed-price nature suggests a defined set of deliverables or performance standards that the contractor was obligated to meet within the agreed-upon budget.

How does the contract value compare to similar aviation support contracts awarded by the DoD?

Comparing the $18.6 million contract value requires access to a broader dataset of similar contracts. However, considering it spans over five years (2162 days), the annual value is approximately $3.7 million. This figure is moderate for a DoD aviation support contract, which can range from a few hundred thousand to tens of millions annually depending on the scale and complexity of services. The fact that five bidders participated suggests that the value was sufficient to attract multiple interested parties, indicating it was likely within a competitive range for the services procured.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract are related to contractor performance and potential cost overruns if the scope of work expands beyond the initial agreement, despite the FFP structure. Although the FFP shifts cost risk to the contractor, inadequate service delivery or quality issues could necessitate corrective actions or contract modifications, leading to delays and potential disputes. The 'Exclusion of Sources' clause also presents a risk, as it might have limited the government's ability to secure the absolute best value or innovative solutions from a wider pool of potential offerors. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the track record of LOGMET LLC in performing government contracts?

Information on LOGMET LLC's specific track record is not fully detailed in the provided data snippet. However, the award of this definitive contract valued at $18.6 million suggests a level of capability and past performance that met the Department of the Army's requirements. To fully assess their track record, one would need to examine their contract history, including past performance evaluations, any contract disputes or terminations, and their success in delivering on previous government obligations across various agencies and contract types.

What does the competition level of 5 bidders signify for taxpayer value?

A competition level of 5 bidders is generally considered healthy and indicates a reasonable degree of market interest for the aviation support services procured. This level of competition typically exerts downward pressure on pricing, as contractors vie for the award. For taxpayers, this means that the government likely received a competitive price, as LOGMET LLC would have had to offer a compelling bid to win against four other interested parties. While not the highest level of competition possible, it suggests that the price achieved was likely fair and reflective of market conditions, rather than being inflated due to a lack of alternatives.

How does the contract's duration (2162 days) impact its overall value and risk?

The contract duration of 2162 days (approximately 5.9 years) provides stability for both the government and the contractor. For the government, it ensures continuity of essential aviation support services without the need for frequent re-procurement, which can be costly and time-consuming. For the contractor, the extended period allows for better resource planning, investment in specialized equipment or personnel, and potentially greater efficiency through economies of scale. This long-term commitment can lead to better value for taxpayers if the contractor can optimize operations over time. However, it also ties the government to a single provider for an extended period, increasing the risk if performance issues arise or if market conditions change significantly.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9600 GREAT HILLS TRAIL STE 150 W, AUSTIN, TX, 78759

Business Categories: 8(a) Program Participant, 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: $18,769,962

Exercised Options: $18,769,962

Current Obligation: $18,589,274

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline