Army awards $19.8M for apron and fuselage trainers, highlighting firm fixed-price contract

Contract Overview

Contract Amount: $19,876,399 ($19.9M)

Contractor: Okland Geneva Joint Venture

Awarding Agency: Department of Defense

Start Date: 2014-05-22

End Date: 2015-11-22

Contract Duration: 549 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF FY13 APRON&FUSELAGE TRAINER

Place of Performance

Location: CANNON AFB, CURRY County, NEW MEXICO, 88103

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to OKLAND GENEVA JOINT VENTURE for work described as: IGF::OT::IGF FY13 APRON&FUSELAGE TRAINER Key points: 1. The contract utilized a firm fixed-price structure, aiming to control costs for the government. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 549 days indicates a medium-term project. 4. The award was made to Okland Geneva Joint Venture, a significant player in construction. 5. The project is located in New Mexico, potentially impacting the local economy and workforce. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $19.8 million for apron and fuselage trainers appears reasonable given the scope of specialized training equipment. Benchmarking against similar defense training system procurements would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that cost overruns are primarily the responsibility of the contractor, which is a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally expected to drive down prices and encourage innovation from the participating firms.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Pilots and maintenance personnel will benefit from enhanced training capabilities. The contract delivers specialized training equipment, improving readiness and skill development. The geographic impact is centered in New Mexico, potentially creating local jobs and economic activity. The project may involve a skilled workforce in construction and specialized manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals could limit opportunities for smaller firms.
The firm fixed-price contract, while good for cost control, could incentivize the contractor to cut corners on quality if not adequately monitored.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
The contractor, Okland Geneva Joint Venture, is likely experienced in large-scale construction projects.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on training and simulation equipment. The market for defense training systems is substantial, driven by the need for realistic and cost-effective preparation for military operations. This procurement aligns with the Department of the Army's ongoing efforts to modernize its training infrastructure and ensure personnel are proficient in operating and maintaining complex aircraft.

Small Business Impact

The contract does not indicate any specific small business set-aside. While awarded under full and open competition, it is crucial to assess if the prime contractor, Okland Geneva Joint Venture, has plans for subcontracting with small businesses. The absence of explicit set-asides means that opportunities for small businesses will depend on the prime contractor's procurement strategy and the availability of qualified small business subcontractors in the relevant trades.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. The firm fixed-price nature of the contract implies that performance and quality will be key oversight areas. The contract's duration and the nature of the equipment suggest regular progress reviews and inspections would be part of the oversight process to ensure compliance with specifications and delivery schedules.

Related Government Programs

Defense Training Systems
Military Aircraft Simulators
Construction Services for Government Facilities
Department of Defense Procurement

Risk Flags

Potential for quality compromise in fixed-price contracts if not monitored.
Need to assess small business subcontracting opportunities.
Dependence on contractor's past performance for risk mitigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to OKLAND GENEVA JOINT VENTURE. IGF::OT::IGF FY13 APRON&FUSELAGE TRAINER

Who is the contractor on this award?

The obligated recipient is OKLAND GENEVA JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2014-05-22. End: 2015-11-22.

What is the track record of Okland Geneva Joint Venture with Department of Defense contracts?

A review of Okland Geneva Joint Venture's contract history with the Department of Defense would be necessary to assess their performance on similar projects. Key indicators would include past performance evaluations, any history of contract disputes or terminations, and their experience with delivering complex training systems or construction projects on time and within budget. Understanding their prior success rates and any identified risks associated with their performance would provide valuable context for this current award.

How does the $19.8 million award compare to similar apron and fuselage trainer procurements?

To benchmark the value of this $19.8 million contract, it's essential to compare it with recent procurements of similar apron and fuselage trainers by the Department of Defense or other military branches. Factors such as the specific capabilities of the trainers, the number of units procured, the complexity of the systems, and the contract type (e.g., firm fixed-price vs. cost-plus) should be considered. If comparable contracts are significantly lower or higher in price for similar scope, it would indicate whether this award represents excellent, fair, or questionable value for money.

What are the primary risks associated with this firm fixed-price contract?

The primary risk with a firm fixed-price contract, while beneficial for cost certainty, is the potential for the contractor to reduce quality or scope to maximize profit if not adequately monitored. For this specific contract involving specialized training equipment, risks could include delays in delivery, performance issues with the trainers, or the contractor encountering unforeseen technical challenges that strain their ability to meet the fixed price without compromising quality. Robust government oversight focusing on performance milestones and quality assurance is critical to mitigate these risks.

How effective are apron and fuselage trainers in improving pilot and maintenance readiness?

Apron and fuselage trainers are critical components of modern military aviation training. They provide a safe, cost-effective, and repeatable environment for pilots to practice complex maneuvers, emergency procedures, and mission scenarios without the risks and expenses associated with actual flight. For maintenance personnel, these trainers allow for hands-on practice with aircraft systems, troubleshooting, and repair procedures. Their effectiveness lies in their ability to simulate real-world conditions, thereby enhancing proficiency, reducing training time, and ultimately improving overall operational readiness and safety.

What has been the historical spending trend for defense training systems by the Department of the Army?

Analyzing the historical spending trends for defense training systems by the Department of the Army would reveal patterns in investment in simulation and training technologies. This includes understanding the evolution of training needs, the adoption of new technologies, and the overall budget allocation towards training infrastructure. Such analysis can highlight whether spending has been consistent, increasing, or decreasing, and identify any major shifts in procurement strategies or technology focus over time, providing context for the current $19.8 million award.

What is the potential economic impact of this contract in New Mexico?

The $19.8 million contract awarded to Okland Geneva Joint Venture for apron and fuselage trainers has the potential for a positive economic impact in New Mexico. This includes the creation of jobs in construction and potentially in the manufacturing or assembly of the training equipment. Furthermore, the presence of such a significant federal contract can stimulate local economies through increased demand for materials, services, and workforce participation. The duration of the contract also suggests a sustained period of economic activity.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PP13R0016

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1978 S W TEMPLE, SALT LAKE CITY, UT, 84115

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,876,399

Exercised Options: $19,876,399

Current Obligation: $19,876,399

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline