GSA Awards $114.6M Training Contract to Kord Technologies Amidst Limited Competition

Contract Overview

Contract Amount: $114,564,129 ($114.6M)

Contractor: Kord Technologies, LLC

Awarding Agency: General Services Administration

Start Date: 2018-07-13

End Date: 2024-01-12

Contract Duration: 2,009 days

Daily Burn Rate: $57.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF 120TH MFTB TRAINING SUPPORT SERVICES. POP ONE BASE YEAR AND FOUR OPTION YEARS

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $114.6 million to KORD TECHNOLOGIES, LLC for work described as: IGF::OT::IGF 120TH MFTB TRAINING SUPPORT SERVICES. POP ONE BASE YEAR AND FOUR OPTION YEARS Key points: 1. The contract, valued at $114.6 million, covers flight training support services. 2. Kord Technologies is the sole awardee, raising questions about competition. 3. The use of a purchase order and time-and-materials contract type warrants scrutiny. 4. The sector is primarily IT/Training, with a benchmark of $57M. 5. The contract duration extends through January 2024.

Value Assessment

Rating: fair

The contract's value of $114.6 million for training services appears high compared to the benchmark of $57 million. Without more detailed service breakdowns, a precise comparison is difficult, but the scale suggests potential overpricing or extensive scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source award. This lack of competition likely hindered price discovery and may have resulted in a higher price than could have been achieved through a competitive process.

Taxpayer Impact: The absence of robust competition suggests taxpayers may have paid more than necessary for these training services.

Public Impact

Taxpayers may be overpaying due to a lack of competitive bidding. The extended duration of the contract could lock in potentially inflated costs. Limited transparency on the specific services provided makes public oversight challenging.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Purchase Order award
Time and Materials contract type

Positive Signals

Clear awardee identified
Defined contract period

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically flight training. The benchmark spending for this category is approximately $57 million, making this award significantly larger.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to Kord Technologies, LLC, with no mention of small business participation.

Oversight & Accountability

The use of a purchase order for a contract of this magnitude warrants further oversight. The lack of competition also reduces inherent accountability, making active monitoring crucial to ensure value for money.

Related Government Programs

Flight Training
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of competition
High value relative to benchmark
Purchase Order award type
Time and Materials contract type

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $114.6 million to KORD TECHNOLOGIES, LLC. IGF::OT::IGF 120TH MFTB TRAINING SUPPORT SERVICES. POP ONE BASE YEAR AND FOUR OPTION YEARS

Who is the contractor on this award?

The obligated recipient is KORD TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $114.6 million.

What is the period of performance?

Start: 2018-07-13. End: 2024-01-12.

What specific flight training services are included in this contract, and how do they justify the $114.6 million cost compared to the $57 million benchmark?

The contract details are limited, but it covers '120TH MFTB TRAINING SUPPORT SERVICES.' Without a granular breakdown of training hours, instructor rates, simulator usage, and curriculum development, it's difficult to definitively justify the cost. The significant deviation from the benchmark suggests a need for a detailed audit of the service scope and pricing structure to ensure it aligns with market rates and actual training requirements.

What were the specific reasons for limiting competition on this $114.6 million training contract, and what steps were taken to ensure fair pricing?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION.' The specific justification for this limitation is not provided. Typically, such decisions require documented justifications like urgent needs or unique capabilities. The lack of competition inherently limits price discovery, making it imperative that the GSA conducted thorough price analysis and negotiation to mitigate potential overpricing.

How effectively has Kord Technologies delivered flight training support services under this contract, and what metrics are used to assess performance and taxpayer value?

Performance metrics and effectiveness assessments are not detailed in the provided data. Given the contract's duration and value, robust performance monitoring by the GSA is expected. Key indicators should include student pass rates, instructor qualifications, equipment availability, and adherence to training schedules. Without this information, assessing the true value delivered to taxpayers and the effectiveness of the training is not possible.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID07180018

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 635 DISCOVERY DR NW, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $133,247,909

Exercised Options: $123,435,363

Current Obligation: $114,564,129

Actual Outlays: $57,598,765

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $18,443,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline