DoD's $10.8M aircraft refueling contract with LB & B Associates Inc. awarded under full and open competition

Contract Overview

Contract Amount: $10,823,556 ($10.8M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2004-09-01

End Date: 2008-12-31

Contract Duration: 1,582 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALONGSIDE AIRCRAFT REFUELING

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to LB & B ASSOCIATES INC for work described as: ALONGSIDE AIRCRAFT REFUELING Key points: 1. Contract value appears reasonable given the duration and specialized nature of aircraft refueling services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over four years indicates a stable, long-term requirement for these services. 4. Performance context is limited without specific delivery metrics, but the firm fixed-price structure incentivizes contractor efficiency. 5. This contract falls within the specialized freight trucking sector, supporting critical defense logistics operations. 6. The absence of small business set-asides means opportunities for smaller firms may be limited in this specific award.

Value Assessment

Rating: good

The contract value of approximately $10.8 million over 4 years (1582 days) for specialized aircraft refueling services appears to be within a reasonable range. Without specific details on the volume of services or the exact nature of the refueling operations, a direct comparison to similar contracts is challenging. However, the firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if performance is met.

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 bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally allows for price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down costs and ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its air assets requiring refueling services. Services delivered include specialized freight trucking for aircraft refueling, crucial for operational readiness. The geographic impact is localized to California, where the contract was performed. Workforce implications include employment for individuals skilled in specialized logistics and refueling operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to under-deliver on service quality if cost-cutting measures are prioritized due to firm fixed-price structure.
Limited visibility into the specific performance metrics and quality assurance processes employed.
Dependence on a single contractor for a critical logistical function in a specific region.

Positive Signals

Firm fixed-price contract incentivizes cost control and efficiency from the contractor.
Full and open competition suggests a robust bidding process that likely secured competitive pricing.
Contract duration of over four years provides stability and predictability for defense refueling operations.

Sector Analysis

This contract falls within the Specialized Freight (except Used Goods) Trucking, Local (NAICS 484220) sector. This sector is vital for supporting various industries, including defense, by ensuring the timely and efficient movement of goods and services. The market for specialized logistics, particularly for defense applications, is often characterized by stringent requirements, high barriers to entry, and significant government spending. Benchmarking this contract's value against broader transportation contracts is difficult due to its specialized nature.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no indication of subcontracting requirements for small businesses. This means that larger, established companies were likely the primary participants in the bidding process, potentially limiting direct opportunities for small businesses to engage in this specific contract, although they might be suppliers to the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) and the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which places the financial risk on the contractor. Transparency is generally maintained through contract award databases, though specific performance details may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Contracts
Aircraft Support Services
Specialized Freight Transportation
Firm Fixed Price Contracts
Department of Defense Logistics

Risk Flags

Potential for cost overruns impacting contractor profitability and performance.
Risk of service quality degradation if contractor prioritizes cost savings.
Dependence on a single contractor for critical refueling operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to LB & B ASSOCIATES INC. ALONGSIDE AIRCRAFT REFUELING

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2004-09-01. End: 2008-12-31.

What was the historical spending pattern for aircraft refueling services by the Defense Logistics Agency in California prior to this contract?

Analyzing historical spending patterns for aircraft refueling services by the Defense Logistics Agency (DLA) in California prior to this specific contract (awarded September 1, 2004) would require access to detailed DLA procurement data. Generally, DLA manages a vast array of logistics and supply chain contracts to support military operations. Spending in this area is often driven by operational tempo, aircraft fleet size, and base infrastructure. Without specific historical data, it's difficult to provide precise figures. However, it's reasonable to assume that DLA has consistently allocated significant resources to ensure the continuous availability of fuel for aircraft, especially in a key state like California, which hosts numerous military installations. The nature of refueling services suggests a recurring need, implying a steady or potentially increasing budget allocation over time, subject to defense spending priorities and strategic shifts.

How does the per-unit cost of refueling services under this contract compare to industry benchmarks or other government contracts?

Determining the precise per-unit cost for aircraft refueling under this contract is challenging without knowing the volume of fuel delivered or the specific services rendered per unit. The contract value of $10.8 million over approximately 1582 days (roughly 4.3 years) provides a total expenditure figure. To establish a per-unit cost, we would need data on the number of refueling operations or the total gallons of fuel provided. Industry benchmarks for aircraft refueling can vary significantly based on aircraft type (commercial vs. military, jet fuel vs. avgas), location, and the specific services included (e.g., ground handling, de-icing). Government contracts often aim for competitive pricing, but specialized military requirements can sometimes lead to different cost structures than civilian markets. Without more granular data on service volume, a direct comparison to industry or other government benchmarks is not feasible.

What are the key performance indicators (KPIs) used to evaluate LB & B Associates Inc.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate LB & B Associates Inc.'s performance on this aircraft refueling contract. However, for a contract of this nature, typical KPIs would likely include metrics related to timeliness of service delivery (e.g., response time to refueling requests), fuel quality and accuracy, safety compliance (adherence to all safety protocols during refueling operations), and operational availability (ensuring refueling services are consistently available as needed). Given the firm fixed-price nature of the contract, meeting these KPIs would be crucial for the contractor to achieve profitability. The Department of Defense and the Defense Logistics Agency would have established procedures for monitoring these aspects, potentially through contract officers, quality assurance representatives, and performance reports submitted by the contractor.

What is the track record of LB & B Associates Inc. in performing similar defense logistics or refueling contracts?

Information regarding LB & B Associates Inc.'s specific track record in performing similar defense logistics or aircraft refueling contracts is not detailed in the provided data. To assess their performance history, one would typically need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems often contain past performance evaluations, including ratings on quality, timeliness, cost control, and management. A review of their contract history would reveal the types and scale of previous government contracts they have held, their performance ratings on those contracts, and any instances of contract disputes or terminations. Without this specific historical performance data, it is difficult to definitively assess their suitability and reliability for this particular aircraft refueling requirement.

What is the potential risk associated with the firm fixed-price contract type for this specialized service?

The primary risk associated with a firm fixed-price (FFP) contract type for specialized services like aircraft refueling is the potential for the contractor to cut corners on quality or safety to maintain profitability if their cost estimates were inaccurate or if unforeseen circumstances increase their expenses. While FFP incentivizes cost efficiency for the government, it places the financial risk squarely on the contractor. If LB & B Associates Inc. underestimated the costs associated with labor, fuel, equipment maintenance, or regulatory compliance in California, they might face financial strain. Conversely, if their cost estimates were overly conservative, the government might have overpaid. Effective oversight by the Defense Logistics Agency is crucial to mitigate the risk of substandard performance or safety lapses while ensuring the contractor remains financially viable to complete the contract.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Local

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060003R0096

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKENLAND PARKWAY STE 400, COLUMBIA, MD, 03

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,823,556

Exercised Options: $10,823,556

Current Obligation: $10,823,556

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060004D5415

IDV Type: IDC

Timeline