Air Force awards $60M contract for aircrew instructor support services to OBXtek Inc

Contract Overview

Contract Amount: $59,999,584 ($60.0M)

Contractor: Obxtek Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-30

End Date: 2024-10-20

Contract Duration: 1,055 days

Daily Burn Rate: $56.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: E014042 AIR FORCE SPECIAL OPERATIONS COMMAND AIRCREW INSTRUCTOR SUPPORT SERVICES

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $60.0 million to OBXTEK INC for work described as: E014042 AIR FORCE SPECIAL OPERATIONS COMMAND AIRCREW INSTRUCTOR SUPPORT SERVICES Key points: 1. Contract provides essential training support for Air Force Special Operations Command. 2. The award was made under full and open competition after exclusion of sources, indicating a competitive process. 3. The contract duration spans over 1000 days, suggesting a significant, long-term need. 4. The firm fixed-price contract type helps manage cost certainty for the government. 5. The geographic focus is Florida, aligning with specific operational training requirements.

Value Assessment

Rating: good

The contract value of approximately $60 million over its period of performance appears reasonable for specialized aircrew instructor support services. Benchmarking against similar contracts for highly skilled instructional roles within defense contexts suggests this pricing is within expected ranges. The firm fixed-price structure provides a degree of cost control, though the ultimate value depends on the effective delivery of services and the specific tasks performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be open, certain sources may have been excluded based on specific criteria or prior performance, or perhaps a limited number of qualified bidders responded. The presence of four bids indicates some level of competition, but the 'exclusion of sources' aspect warrants further examination to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, could potentially limit the most competitive pricing. However, the fact that multiple bids were received suggests that taxpayers likely benefited from some level of price negotiation and comparison.

Public Impact

Provides critical training and support for aircrew members within the Air Force Special Operations Command. Enhances the readiness and effectiveness of special operations forces through specialized instruction. The services are primarily delivered in Florida, supporting key training installations. Supports a cadre of skilled instructors, contributing to the specialized aviation workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure maximum taxpayer value.
The specific nature of 'aircrew instructor support' may involve highly specialized and potentially costly personnel.

Positive Signals

The contract is firm fixed-price, which helps in budget predictability.
Multiple bids were received, indicating a degree of market interest and competition.
The contract supports a critical mission for Air Force Special Operations Command.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related training and operational readiness. The market for specialized defense training and support services is robust, driven by continuous modernization and the need for highly skilled personnel. Comparable spending in this niche often involves significant investment in human capital and specialized equipment, reflecting the high stakes of military aviation training.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in this summary. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant Air Force contracting and program management offices. The firm fixed-price nature provides some inherent cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Training Services
Special Operations Forces Support
Aviation Instruction Contracts
Defense Contractor Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of personnel attrition impacting service continuity.
Need to ensure ongoing relevance of training to evolving operational needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.0 million to OBXTEK INC. E014042 AIR FORCE SPECIAL OPERATIONS COMMAND AIRCREW INSTRUCTOR SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is OBXTEK INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $60.0 million.

What is the period of performance?

Start: 2021-11-30. End: 2024-10-20.

What is the specific nature of the 'aircrew instructor support services' provided under this contract?

The 'aircrew instructor support services' likely encompass a range of specialized instructional duties essential for training pilots, navigators, and other aircrew members within the Air Force Special Operations Command (AFSOC). This could include curriculum development, simulator instruction, flight instruction in specialized aircraft, performance evaluation, and potentially administrative support related to training programs. Given the context of AFSOC, these services are critical for preparing personnel for complex and high-risk missions, requiring instructors with extensive operational experience and specific technical expertise.

How does the pricing of this $60 million contract compare to similar aircrew instructor support contracts within the DoD?

Benchmarking the $60 million contract value requires detailed comparison with contracts for similar services, considering factors like the number of personnel, duration, specific aircraft types, and required qualifications. However, generally, specialized instructor roles within defense, especially those requiring extensive experience and security clearances for special operations, command premium rates. The firm fixed-price structure suggests an effort to cap costs, but the per-instructor cost or cost-per-training-hour would be the key metrics for a precise value-for-money assessment against market rates or historical DoD spending patterns.

What are the potential risks associated with a contract of this duration (over 1000 days) for specialized instructor services?

A significant risk with long-duration contracts for specialized services is the potential for cost escalation if not managed tightly, despite the firm fixed-price structure. Key personnel attrition is another risk; if highly experienced instructors leave the contractor, it could impact service quality and continuity. Furthermore, changes in technology or AFSOC operational requirements could necessitate contract modifications, potentially leading to scope creep or increased costs. Ensuring the contractor maintains high standards of instruction and adapts to evolving needs throughout the contract period is crucial.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply for this contract's competitiveness and potential value?

This procurement method suggests that the initial solicitation was intended to be open to all responsible sources. However, 'exclusion of sources' implies that either specific sources were disqualified based on predefined criteria (e.g., past performance, capability, or specific regulatory requirements) or that only a limited number of sources were deemed capable of meeting the stringent requirements. While four bids were received, indicating some competition, this method might have narrowed the field compared to a truly unrestricted full and open competition, potentially impacting the ultimate price competitiveness and the range of innovative solutions considered.

What is OBXtek Inc.'s track record with similar government contracts, particularly within the defense sector?

Assessing OBXtek Inc.'s track record requires reviewing their past performance on similar government contracts, especially those involving specialized technical services, training, or support for defense agencies. Information on their performance ratings, any past disputes or contract terminations, and their history of delivering on time and within budget would be crucial. A positive track record with comparable contracts would increase confidence in their ability to successfully execute this Air Force Special Operations Command requirement, while any negative history would raise concerns about potential risks.

How does the geographic concentration in Florida impact the overall cost and effectiveness of these aircrew instructor services?

Concentrating these services in Florida likely leverages existing infrastructure and training facilities within AFSOC's operational footprint, potentially reducing logistical costs and improving response times. However, it also means that the contract's value is heavily tied to the cost of labor and operations in that specific region. If Florida has a high cost of living or a competitive market for specialized instructors, it could drive up the per-unit cost. Conversely, proximity to key bases and personnel might enhance operational efficiency and the effectiveness of the training delivery.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 CORPORATE RDG STE 400, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $71,977,997

Exercised Options: $71,977,997

Current Obligation: $59,999,584

Actual Outlays: $27,212,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS131

IDV Type: IDC

Timeline