DOE's $81.7M Contract with ROSS AVIATION INC for DCA Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $81,749,637 ($81.7M)
Contractor: Ross Aviation Inc
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2006-08-31
Contract Duration: 2,512 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87119
Plain-Language Summary
Department of Energy obligated $81.7 million to ROSS AVIATION INC for work described as: Key points: 1. The contract value is substantial at $81.7 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but may lead to higher costs. 4. The sector appears to be related to aviation support services, likely within the energy sector's operational needs.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure allows for cost reimbursement plus an award fee based on performance. While this can drive efficiency, it lacks the cost certainty of fixed-price contracts and requires robust oversight to manage award fee payouts effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price and performance through market forces.
Public Impact
Taxpayers benefit from a competitive bidding process for aviation support services. The long duration of the contract (1999-2006) suggests a stable, ongoing need for these services. The CPAF contract type requires careful monitoring to ensure performance justifies award fees and costs remain controlled.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF contract type can lead to cost overruns if not managed properly.
- Long contract duration may not reflect current market efficiencies.
- Lack of specific service details makes it hard to assess true value.
- Small business participation is not indicated.
Positive Signals
- Awarded under full and open competition.
- Contract has a clear agency and award type.
- Specific start and end dates provided.
Sector Analysis
This contract falls within the broader energy sector, likely supporting the Department of Energy's operational logistics, potentially involving aviation assets or facilities. Benchmarking is difficult without specific service details, but aviation support services can be a significant operational expense.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong oversight from the Department of Energy to ensure that performance targets are met and that award fees are justified. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee (CPAF) structure.
- Long contract duration (7 years).
- Lack of specific service details.
- No indication of small business participation.
- Potential for cost overruns.
Tags
department-of-energy, nm, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $81.7 million to ROSS AVIATION INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ROSS AVIATION INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $81.7 million.
What is the period of performance?
Start: 1999-10-15. End: 2006-08-31.
How effectively did the award fee structure incentivize performance and control costs for ROSS AVIATION INC?
The effectiveness of the award fee structure hinges on the clarity and measurability of performance metrics defined in the contract. Without access to these metrics and the actual award fee payouts, it's difficult to definitively assess cost control. However, CPAF contracts inherently carry a risk of higher overall costs compared to fixed-price agreements if not rigorously managed and if award criteria are too easily met.
What were the primary risks associated with this long-term, cost-reimbursable contract for the Department of Energy?
The primary risks included potential cost overruns due to the cost-reimbursable nature, especially given the CPAF structure which allows for additional award fees. Scope creep over the long duration (1999-2006) was also a risk, as needs could evolve. Ensuring continued fair market value and preventing contractor complacency over an extended period required diligent oversight.
Considering the $81.7M value and full and open competition, was this contract an effective use of taxpayer funds?
The use of full and open competition suggests an effort to achieve value. However, the CPAF structure introduces uncertainty in the final cost. Without detailed performance data and comparison to alternative service providers or contract types, it's challenging to definitively state it was the most effective use of funds. The long duration implies a sustained need, but market conditions may have changed.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 2129 OSUNA RD NE STE 209, ALBUQUERQUE
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $124,380,083
Exercised Options: $124,380,083
Current Obligation: $81,749,637
Timeline
Start Date: 1999-10-15
Current End Date: 2006-08-31
Potential End Date: 2006-08-31 00:00:00
Last Modified: 2012-06-28
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