Department of Defense awarded $18.9M for aerial delivery services to Trailboss Enterprises, Inc

Contract Overview

Contract Amount: $18,944,067 ($18.9M)

Contractor: Trailboss Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-31

End Date: 2013-05-31

Contract Duration: 2,039 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AERIAL DELIVERY SERVICES TAS::57 3400::TAS

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to TRAILBOSS ENTERPRISES, INC. for work described as: AERIAL DELIVERY SERVICES TAS::57 3400::TAS Key points: 1. Contract value represents a significant investment in specialized logistics capabilities. 2. The firm fixed-price structure aims to control costs for the government. 3. A single award suggests potential concentration of expertise or limited market availability. 4. Contract duration of over 2000 days indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 488119 points to airport operations, suggesting integration with airfields. 6. The contract was awarded under full and open competition, implying a broad search for qualified vendors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and market rates for aerial delivery. However, the total award of $18.9 million over approximately 5.7 years suggests an average annual spend of roughly $3.3 million. This figure needs to be compared against the scope and complexity of the services provided. The firm fixed-price contract type generally offers good cost control for the government, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that the Department of Defense sought proposals from all responsible sources. The presence of 3 bidders suggests a moderate level of competition for this specialized service. While more than one bidder is positive, a higher number typically leads to more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to vie for the contract, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are likely military units requiring specialized aerial delivery capabilities for personnel, equipment, or supplies. Services delivered are related to aerial delivery, crucial for logistical support in various operational environments. The geographic impact is not specified but likely relates to military bases or operational areas where aerial delivery is required. Workforce implications could include employment for pilots, logistics personnel, and support staff within Trailboss Enterprises, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Aerial delivery services fall within the broader aerospace and defense logistics sector. This sector is characterized by high technological requirements, stringent regulatory oversight, and significant government spending. The market size for specialized logistics, including aerial delivery, is substantial, driven by defense needs and global operational requirements. This contract fits within the government's need for reliable and efficient transport of goods and personnel, often in challenging environments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may choose to subcontract portions of the work to small businesses, which would be a positive development for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, aerial-delivery-services, trailboss-enterprises-inc, aviation-logistics, large-contract, long-term-contract, illinois

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to TRAILBOSS ENTERPRISES, INC.. AERIAL DELIVERY SERVICES TAS::57 3400::TAS

Who is the contractor on this award?

The obligated recipient is TRAILBOSS ENTERPRISES, 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 $18.9 million.

What is the period of performance?

Start: 2007-10-31. End: 2013-05-31.

What is the track record of Trailboss Enterprises, Inc. with federal contracts, particularly in aerial delivery?

Trailboss Enterprises, Inc. has a history of federal contracting, as evidenced by this significant award. To fully assess their track record, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing contract histories for on-time delivery, quality of service, and any past performance issues or disputes. Understanding their experience with the specific types of aerial delivery required under this contract, such as cargo types, delivery methods (e.g., parachute drops, air-land), and operational environments, is crucial for evaluating their capability and reliability.

How does the awarded price compare to market rates for similar aerial delivery services?

Determining the precise value for money requires a detailed comparison against market rates for comparable aerial delivery services. Factors such as the type of aircraft used, crew qualifications, operational tempo, geographic locations served, and the specific nature of the cargo or personnel being delivered all influence pricing. Without access to detailed service requirements and benchmark data for similar contracts within the Department of Defense or other federal agencies, it is difficult to definitively state whether $18.9 million represents a competitive price. The firm fixed-price nature of the contract suggests an attempt to lock in costs, but the initial negotiation price is key.

What are the primary risks associated with this contract for the Department of Defense?

Key risks for the Department of Defense include potential performance failures by the contractor, such as missed deliveries, equipment malfunctions, or safety incidents, which could disrupt military operations. There's also a risk of cost overruns if the scope of work expands beyond initial estimates, although the firm fixed-price contract aims to mitigate this. Another risk is the limited competition (3 bidders), which could indicate a lack of robust market options, potentially leading to less favorable terms or reduced innovation over the contract's life. Contractor viability and financial stability over the long duration of the contract are also considerations.

How effective has the Air Force been in managing similar aerial delivery contracts in the past?

Assessing the effectiveness of the Air Force in managing similar aerial delivery contracts would require an analysis of historical contract performance data, including on-time delivery rates, incident reports, and any contract modifications or disputes. The Air Force, as a major component of the Department of Defense, has extensive experience in aviation and logistics. However, the success of any specific contract depends on factors like clear requirement definition, diligent oversight, effective communication with the contractor, and the contractor's own capabilities. Without specific data on past performance for this type of service, a general assessment of the Air Force's effectiveness is speculative.

What has been the historical spending pattern for aerial delivery services by the Department of Defense?

Historical spending on aerial delivery services by the Department of Defense can fluctuate significantly based on operational tempo, global deployments, and evolving logistical needs. Analyzing past spending patterns would involve examining annual expenditures on similar contracts over several fiscal years. This contract's $18.9 million award over approximately 5.7 years represents an average annual spend of around $3.3 million. Understanding whether this level of spending is consistent with, higher than, or lower than previous periods would provide context on the sustained or changing demand for these services.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther Airport Operations

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONOTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA445207R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2627 C ST #200, ANCHORAGE, AK, 99503

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,944,067

Exercised Options: $18,944,067

Current Obligation: $18,944,067

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-10-31

Current End Date: 2013-05-31

Potential End Date: 2013-05-31 00:00:00

Last Modified: 2016-10-17

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