DoD's $21.6M contract for turbine engines awarded to miscellaneous foreign entities, raising questions about value and competition

Contract Overview

Contract Amount: $21,573,068 ($21.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-02-20

End Date: 2008-06-24

Contract Duration: 490 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GXY07C0008} BAIJI TURBINE ENGINES

Plain-Language Summary

Department of Defense obligated $21.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY07C0008} BAIJI TURBINE ENGINES Key points: 1. The contract's value of $21.6 million for administrative and management consulting services appears high for the stated purpose. 2. Awarded to 'Miscellaneous Foreign Awardees,' the competition dynamics are unclear and potentially limited. 3. The contract duration of 490 days with a firm fixed price suggests a defined scope, but performance risks are not detailed. 4. This spending falls under administrative management and general management consulting services, a broad category. 5. The lack of specific contractor information and the 'miscellaneous foreign awardees' designation warrants further scrutiny. 6. The contract was awarded under full and open competition, but the nature of the awardees complicates assessment.

Value Assessment

Rating: questionable

The total award amount of $21.6 million for administrative management and general management consulting services is substantial. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The designation 'Miscellaneous Foreign Awardees' prevents a direct comparison to known domestic contractors or industry benchmarks for similar services. The firm fixed-price nature suggests a defined scope, but the overall cost-effectiveness remains uncertain due to the lack of transparency regarding the services rendered and the specific entities involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. However, the specific details of how this competition was conducted and the number of bidders are not provided. The award to 'Miscellaneous Foreign Awardees' suggests a broad outreach, but the lack of specific contractor identification raises concerns about the depth and effectiveness of the competition in driving competitive pricing.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the vagueness of the awardees makes it difficult to ascertain if true price discovery was achieved. Taxpayers may not have received the best possible value if the competition was not robustly managed or if the awardees were not thoroughly vetted.

Public Impact

The primary beneficiaries appear to be foreign entities providing administrative and management consulting services to the Department of Defense. The services delivered are broadly categorized as administrative management and general management consulting, with specific details not publicly available. The geographic impact is likely international, given the award to foreign entities, but the specific locations are not disclosed. Workforce implications are unclear, but it suggests potential engagement of foreign labor for consulting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific foreign entities awarded the contract.
Unclear definition of services provided under administrative management and general management consulting.
Potential for reduced oversight and accountability due to foreign awardee status.
Difficulty in benchmarking costs and ensuring value for money with vague awardee descriptions.

Positive Signals

Awarded under 'Full and Open Competition,' theoretically allowing broad participation.
Firm Fixed Price contract type can provide cost certainty if scope is well-defined.
Contract duration is specified, indicating a defined period of performance.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of service providers, from large multinational corporations to specialized small businesses. The market size for such services is substantial, with government agencies being significant clients. Benchmarking this specific contract is challenging due to the broad service category and the unusual awardee designation.

Small Business Impact

The contract data indicates that small business set-asides were not utilized ('ss': false, 'sb': false). There is no information provided regarding subcontracting plans or implications for the small business ecosystem. Given the award to 'Miscellaneous Foreign Awardees,' it is unlikely that U.S. small businesses were significantly involved in this specific contract.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. The 'Miscellaneous Foreign Awardees' designation raises potential challenges for standard U.S. government oversight and accountability measures. Transparency is limited due to the lack of specific contractor identification. Inspector General jurisdiction might be complex depending on the nature of the foreign entities and the services performed.

Related Government Programs

Department of Defense Administrative Support Contracts
Foreign Military Sales Support Services
Management Consulting Services for Government Agencies
Professional Services Contracts

Risk Flags

Lack of Specific Contractor Identification
Vague Service Description
Potential for Limited Competition Effectiveness
Uncertainty in Value for Money Assessment
Oversight and Accountability Challenges with Foreign Awardees

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY07C0008} BAIJI TURBINE ENGINES

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2007-02-20. End: 2008-06-24.

What specific administrative and management consulting services were provided under this contract?

The provided data classifies the contract under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' However, it does not specify the exact nature of these services. This could range from strategic planning and organizational analysis to operational efficiency improvements or policy development. The lack of detailed service descriptions makes it difficult to assess the contract's purpose and effectiveness. Further investigation into the contract's statement of work or performance reports would be necessary to understand the specific deliverables and outcomes.

Who are the 'Miscellaneous Foreign Awardees,' and what is their track record?

The designation 'Miscellaneous Foreign Awardees' is highly unusual and lacks specificity. It prevents a direct assessment of the contractors' track records, past performance, or experience with U.S. government contracts. This broad categorization raises concerns about due diligence and vetting processes. Without knowing the specific entities, it is impossible to evaluate their qualifications, reliability, or history of successful contract completion. This ambiguity significantly hinders a comprehensive risk assessment.

How does the $21.6 million award compare to similar contracts for administrative and management consulting services?

Direct comparison of the $21.6 million award is challenging due to the vague nature of the awardees and the lack of specific service details. Generally, administrative and management consulting contracts can vary widely in cost depending on scope, duration, and complexity. However, for a single contract of this magnitude, one would expect a clearly defined set of high-impact services or a long-term engagement with a well-established contractor. The 'Miscellaneous Foreign Awardees' designation makes it difficult to find comparable benchmarks within the U.S. federal contracting landscape.

What are the potential risks associated with awarding a contract of this size to 'Miscellaneous Foreign Awardees'?

Awarding a $21.6 million contract to 'Miscellaneous Foreign Awardees' presents several potential risks. These include challenges in oversight and accountability, difficulties in verifying contractor performance and quality, potential for currency fluctuations impacting cost, and geopolitical considerations. Ensuring compliance with U.S. regulations and ethical standards can also be more complex. Furthermore, the lack of transparency surrounding the awardees makes it harder to identify and mitigate risks related to financial stability, security clearances (if applicable), or potential conflicts of interest.

What is the historical spending pattern for administrative management and general management consulting services by the Department of the Army?

Historical spending data for administrative management and general management consulting services by the Department of the Army (DoA) would typically show a significant allocation to this category, as such services are crucial for organizational efficiency and strategic planning. However, the specific pattern for contracts awarded to foreign entities under broad categories like 'Miscellaneous Foreign Awardees' is not readily available and likely represents a small fraction of the DoA's overall consulting expenditures. Analyzing broader spending trends would require access to historical contract databases and filtering by NAICS code and agency, but the unique nature of this award makes direct historical parallels difficult.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,573,068

Exercised Options: $21,573,068

Current Obligation: $21,573,068

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline