Army awards $17.6M contract for aerial drone services to JBW Group LLC, a sole-source procurement
Contract Overview
Contract Amount: $17,641,360 ($17.6M)
Contractor: JBW Group LLC
Awarding Agency: Department of Defense
Start Date: 2025-01-25
End Date: 2025-11-26
Contract Duration: 305 days
Daily Burn Rate: $57.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CLIN 0001 AERIAL DRONES SERVICES - 5 DRO
Place of Performance
Location: ARDEN, BUNCOMBE County, NORTH CAROLINA, 28704
Plain-Language Summary
Department of Defense obligated $17.6 million to JBW GROUP LLC for work described as: CLIN 0001 AERIAL DRONES SERVICES - 5 DRO Key points: 1. The contract is for aerial drone services, with a total value of $17.6 million. 2. JBW Group LLC is the sole awardee, indicating a lack of competition. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The North American Industry Classification System (NAICS) code is 541990, covering 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: questionable
The contract value of $17.6 million for 305 days of service is substantial. Without comparable contract data or a competitive bidding process, it's difficult to assess if this price is optimal or reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The specific nature of 'aerial drone services' could have specialized requirements, but transparency on why competition was limited is needed. The Department of Defense's reliance on sole-source contracts can impact overall budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Limited transparency on justification for sole-source
Positive Signals
- Firm Fixed Price contract shifts cost risk to contractor
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is broad. Spending benchmarks for specialized drone services are not readily available, making it hard to compare this contract's value against industry standards.
Small Business Impact
The awardee, JBW Group LLC, is not identified as a small business in the provided data. Further investigation would be needed to determine if small business participation was considered or mandated.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not pursuing competition and ensuring the price is reasonable despite the lack of bids.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bids.
- Limited transparency on the justification for sole-source procurement.
- High daily service cost requires thorough price validation.
Tags
all-other-professional-scientific-and-te, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to JBW GROUP LLC. CLIN 0001 AERIAL DRONES SERVICES - 5 DRO
Who is the contractor on this award?
The obligated recipient is JBW GROUP 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 $17.6 million.
What is the period of performance?
Start: 2025-01-25. End: 2025-11-26.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award is critical for ensuring taxpayer value. Agencies must document why full and open competition is not feasible, often citing unique capabilities or urgent needs. Robust price analysis, including benchmarking against similar services or historical data, is essential to validate the reasonableness of the price, even without competitive bids. This process helps mitigate the risk of overpayment inherent in non-competitive procurements.
How does the $17.6 million cost for 305 days of aerial drone services compare to industry benchmarks for similar professional, scientific, and technical services?
Without specific details on the drone services provided (e.g., type of drones, data collected, operational tempo), direct cost comparison is challenging. However, the average daily cost exceeds $57,000. This figure should be benchmarked against contracts for similar technical services, factoring in specialized equipment, personnel expertise, and operational complexity. A lack of competitive bids makes it harder to ascertain if this rate represents a fair market price or a premium.
What are the potential risks associated with a sole-source contract for aerial drone services, and how are they being mitigated?
The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competition. Other risks include vendor lock-in, limited innovation, and a lack of transparency. Mitigation strategies should include rigorous price negotiation, detailed performance metrics, and clear contract termination clauses. The agency should also explore opportunities for future competition or market research to encourage broader participation in subsequent procurements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3501 HORACE AVE, FORT WORTH, TX, 76244
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,970,784
Exercised Options: $17,641,360
Current Obligation: $17,641,360
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-01-25
Current End Date: 2025-11-26
Potential End Date: 2025-11-26 00:00:00
Last Modified: 2025-12-15
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