DoD's F-16 Support Contract Awarded to KT Consulting for $70.6M Amidst Full and Open Competition

Contract Overview

Contract Amount: $70,579,611 ($70.6M)

Contractor: KT Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2024-06-30

Contract Duration: 1,917 days

Daily Burn Rate: $36.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: WEAPONS SYSTEM SUPPORT CONTRACT (WSSC) F-16 INSTRUCTOR/SUBJECT MATTER EXPERT

Place of Performance

Location: GLENDALE, MARICOPA County, ARIZONA, 85311

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $70.6 million to KT CONSULTING, INC. for work described as: WEAPONS SYSTEM SUPPORT CONTRACT (WSSC) F-16 INSTRUCTOR/SUBJECT MATTER EXPERT Key points: 1. The contract value of $70.6 million for F-16 instructor/SME support is significant, reflecting the complexity and importance of maintaining advanced aircraft capabilities. 2. KT Consulting, Inc. secured this award through full and open competition after exclusion of sources, indicating a competitive bidding process. 3. The primary risk lies in potential performance gaps if subject matter expertise is not consistently maintained at the highest level. 4. This spending falls within the Engineering Services sector, specifically supporting defense readiness and technological sustainment.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty for the Air Force. Benchmarking against similar specialized aviation support contracts is difficult due to unique SME requirements, but the value appears reasonable for a five-year duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'full and open competition after exclusion of sources' method suggests a broad initial solicitation followed by a focused evaluation. This approach aims to maximize competition while ensuring specialized capabilities are met, likely leading to competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure specialized expertise at a fair price for critical defense operations.

Public Impact

Ensures continued operational readiness and training for the F-16 fighter fleet. Supports the Air Force's ability to maintain and advance its combat capabilities. Provides specialized knowledge crucial for complex weapons system sustainment and development. Contributes to the overall national security posture by maintaining air superiority.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for knowledge drain if key personnel depart.
Dependence on a single contractor for critical SME roles.
Risk of cost overruns if contract scope expands unexpectedly.

Positive Signals

Competitive award process.
Long-term contract duration allows for stable support.
Firm fixed price contract provides budget predictability.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector vital for defense, particularly in specialized areas like aerospace and weapons systems. Spending benchmarks for such niche support services are often project-specific due to unique expertise requirements.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While this specific award may not directly benefit SMBs, the overall defense contracting ecosystem often includes subcontracting opportunities for smaller firms.

Oversight & Accountability

The Department of the Air Force is the contracting agency. Oversight would focus on performance metrics, adherence to the Statement of Work, and ensuring KT Consulting maintains the required subject matter expertise throughout the contract period.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract duration is long (5 years).
Sole point of contact for critical expertise.
Potential for key personnel turnover.
Limited visibility into subcontractor performance if applicable.
Dependence on contractor's internal quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.6 million to KT CONSULTING, INC.. WEAPONS SYSTEM SUPPORT CONTRACT (WSSC) F-16 INSTRUCTOR/SUBJECT MATTER EXPERT

Who is the contractor on this award?

The obligated recipient is KT CONSULTING, 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 $70.6 million.

What is the period of performance?

Start: 2019-04-01. End: 2024-06-30.

How does the cost of this F-16 support contract compare to similar specialized aviation support contracts for other fighter platforms?

Direct comparison is challenging due to the unique nature of F-16 specific expertise and the 'instructor/SME' role. However, the $70.6 million value over five years suggests an average annual cost of $14.1 million. This figure needs to be evaluated against the complexity of the F-16 systems and the criticality of the support provided, considering factors like the number of personnel, required certifications, and the scope of training and technical assistance.

What are the primary risks associated with relying on a single contractor for F-16 instructor and SME services?

The primary risks include potential knowledge loss if key personnel leave KT Consulting, Inc., leading to a gap in critical expertise. There's also a risk of vendor lock-in, making it difficult to switch providers if performance issues arise. Furthermore, the government's negotiating power could be diminished in future contract renewals if alternative sources are not actively cultivated or maintained.

How effectively does this contract ensure the long-term sustainment and modernization of the F-16 fleet?

This contract directly addresses the sustainment and operational effectiveness of the F-16 fleet by ensuring highly skilled instructors and SMEs are available. Its effectiveness hinges on KT Consulting's ability to retain top talent and adapt to evolving F-16 system requirements and potential upgrades. The firm fixed-price nature incentivizes efficient service delivery, but ongoing monitoring is crucial to confirm that the support translates into sustained fleet readiness and capability.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4435 E CHANDLER BLVD STE 130, PHOENIX, AZ, 85048

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

Financial Breakdown

Contract Ceiling: $73,605,316

Exercised Options: $72,793,242

Current Obligation: $70,579,611

Actual Outlays: $41,597,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS123

IDV Type: IDC

Timeline