DoD's Marine Aviation Training System contract awarded to Valiant Global Defense Services Inc. for over $91.7M

Contract Overview

Contract Amount: $91,706,841 ($91.7M)

Contractor: Valiant Global Defense Services Inc.

Awarding Agency: Department of Defense

Start Date: 2016-07-01

End Date: 2021-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $50.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MARINE AVIATION TRAINING SYSTEM (ATS)IGF::OT::IGF

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $91.7 million to VALIANT GLOBAL DEFENSE SERVICES INC. for work described as: MARINE AVIATION TRAINING SYSTEM (ATS)IGF::OT::IGF Key points: 1. Contract value exceeds $91.7 million over its five-year duration. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract is for engineering services, supporting critical aviation training. 4. The fixed-price contract type aims to control costs for the government. 5. The contract duration of five years suggests a long-term need for these services. 6. The primary contractor, Valiant Global Defense Services Inc., has secured this significant award.

Value Assessment

Rating: good

The contract's total value of over $91.7 million for five years of engineering services for the Marine Aviation Training System appears reasonable given the scope. While specific per-unit cost benchmarks are not provided, the firm-fixed-price structure suggests an effort to manage costs effectively. Benchmarking against similar large-scale defense training support contracts would provide further insight into the value for money, but the overall scale and duration indicate a substantial investment in critical capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a competitive environment, which typically leads to better pricing and innovation for the government. The level of competition is a positive indicator for price discovery and ensures the government receives proposals from a range of qualified vendors.

Taxpayer Impact: The full and open competition for this significant contract is beneficial for taxpayers as it likely drove down costs through competitive bidding and ensured the government secured services from the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the U.S. Marines, who will receive enhanced aviation training capabilities. The contract delivers essential engineering services to support and improve aviation training systems. The contract is geographically located in California, impacting the local workforce and economy. This contract supports specialized engineering roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single contractor for critical training system engineering.
Risk of contractor performance issues impacting training readiness.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type helps control government spending.
Long-term contract duration indicates a stable need and potential for contractor expertise development.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industry. The defense engineering services market is substantial, with significant government spending allocated to maintaining and upgrading complex military systems. This contract for aviation training systems fits within the Navy's strategic objective of ensuring pilot proficiency and operational readiness, aligning with broader defense spending trends in advanced training solutions.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not detailed, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics are not detailed here.

Related Government Programs

Marine Corps Aviation Modernization Programs
Naval Air Systems Command (NAVAIR) Contracts
Defense Training and Simulation Contracts
Engineering Services for Military Readiness

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.7 million to VALIANT GLOBAL DEFENSE SERVICES INC.. MARINE AVIATION TRAINING SYSTEM (ATS)IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $91.7 million.

What is the period of performance?

Start: 2016-07-01. End: 2021-06-30.

What is the track record of Valiant Global Defense Services Inc. in performing similar defense engineering contracts?

Valiant Global Defense Services Inc. has a history of securing and performing on various defense contracts. While specific details on past performance for aviation training systems are not immediately available from this data alone, their ability to win a contract of this magnitude suggests they have demonstrated capabilities and a track record deemed acceptable by the Department of the Navy. A deeper dive into their contract history, past performance reviews, and any reported issues would be necessary for a comprehensive assessment of their reliability and expertise in this specific domain.

How does the awarded amount compare to similar aviation training system contracts within the DoD?

The awarded amount of over $91.7 million for five years of engineering services for the Marine Aviation Training System is a significant sum, indicative of a large-scale, long-term requirement. To benchmark this effectively, one would need to compare it against other contracts for similar aviation training systems, simulators, or related engineering support services awarded by the Navy or other branches of the DoD. Factors such as the complexity of the systems, the scope of engineering services (e.g., design, maintenance, upgrades), and the duration of the contract would need to be normalized for a fair comparison. Without access to a database of comparable contracts, it's difficult to definitively state if this represents a high, low, or average value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the scope of work expands beyond initial estimates, despite the firm-fixed-price structure. Performance risks, where the contractor may not deliver services to the required standard, impacting training readiness, are also present. Furthermore, there's a dependency risk on Valiant Global Defense Services Inc. for critical engineering functions. Mitigation strategies likely involve robust contract oversight by the Navy, clear performance metrics and deliverables, and potentially phased payments tied to milestones. The competitive award process itself helps mitigate risks by selecting a contractor deemed capable.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For engineering services related to an established training system, FFP incentivizes the contractor to control costs and improve efficiency to maximize profit. This shifts the risk of cost overruns to the contractor. However, if unforeseen technical challenges arise or the government requires changes, the FFP structure can sometimes lead to costly change orders or disputes. The success of FFP here depends on the clarity of the initial SOW and the contractor's ability to manage technical execution efficiently.

What is the historical spending trend for Marine Aviation Training System support services?

Analyzing historical spending trends for Marine Aviation Training System support services would require access to historical contract data for this specific system or similar aviation training initiatives over multiple fiscal years. This data would reveal whether spending has been consistent, increasing, or decreasing, and could indicate shifts in program priorities, technological advancements, or changes in operational tempo. Without that historical data, it's impossible to provide context on spending patterns. This $91.7M award represents a significant investment over a five-year period, suggesting a sustained need.

What are the implications of awarding this contract through 'full and open competition' versus other methods?

Awarding this contract through 'full and open competition' implies that the Department of the Navy sought proposals from all responsible sources, maximizing the pool of potential offerors. This method is generally preferred as it fosters the greatest degree of competition, which typically leads to better pricing, higher quality services, and greater innovation. It ensures that the government is not unduly restricting the market and has the opportunity to select the best value solution. Other methods, like sole-source or limited competition, are used in specific circumstances and can result in higher costs or less optimal solutions if not justified.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6133909R0016

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC (UEI: 080132771)

Address: 3940 RUFFIN RD STE C, SAN DIEGO, CA, 92123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,149,392

Exercised Options: $92,089,816

Current Obligation: $91,706,841

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134011D1003

IDV Type: IDC

Timeline