DoD's $9.2M contract for MOKKITS operations support awarded to Bering Sea Environmental LLC

Contract Overview

Contract Amount: $9,212,890 ($9.2M)

Contractor: Bering SEA Environmental LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISAWA/OSAN/KUNSAN/KADENA INSTRUMENTATION TRAINING SYSTEM (MOKKITS) OPERATIONS SUPPORT

Place of Performance

Location: JBPHH, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $9.2 million to BERING SEA ENVIRONMENTAL LLC for work described as: MISAWA/OSAN/KUNSAN/KADENA INSTRUMENTATION TRAINING SYSTEM (MOKKITS) OPERATIONS SUPPORT Key points: 1. Contract value represents a significant investment in specialized training infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance risk may be moderate given the specialized nature of instrumentation training. 4. This contract supports critical Air Force readiness and operational capabilities. 5. The award falls within the broader category of air transportation support services. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of approximately $9.2 million over five years for instrumentation training system operations support appears reasonable when benchmarked against similar specialized support services for military aviation. The firm-fixed-price (FFP) award type suggests a focus on cost certainty for the government. While specific per-unit cost data is not provided, the overall value seems aligned with the complexity and duration of maintaining sophisticated training systems. Further analysis would require comparison with historical spending on similar systems or services within the Air Force or other branches.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level suggests a moderate degree of market interest. While more bidders could potentially drive prices lower, two offers are sufficient to provide a basis for price comparison and ensure the government receives a fair and reasonable price. The open competition framework is generally favorable for price discovery.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which typically leads to more cost-effective solutions and prevents potential price gouging.

Public Impact

Personnel at Air Force installations utilizing the MOKKITS will benefit from reliable and effective training system operations. The services delivered ensure the continued functionality and readiness of critical aviation training infrastructure. The geographic impact is primarily focused on Air Force bases in Hawaii, where the contract is administered. Workforce implications include the potential for skilled technicians and support staff employed by the contractor to maintain and operate the systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting training schedules.
Reliance on a single contractor for critical training system operations.
Scope creep could lead to cost overruns if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Contract duration allows for stable operations and planning.
Award to a single entity can streamline management and accountability.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically supporting aviation training and simulation technologies. The market for such specialized support services is often characterized by a limited number of highly qualified contractors due to the technical expertise required. Comparable spending benchmarks would involve analyzing other contracts for the operation and maintenance of complex military training systems, which can range from millions to tens of millions of dollars annually depending on system sophistication and scale.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Bering Sea Environmental LLC, is not identified as a small business in this context. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific prime contract appears limited, though the contractor's own supply chain may involve small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Air Force program management office. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Training Systems Support
Military Aviation Instrumentation
Simulation and Training Technology
Defense Readiness Support
Aerospace Operations Support

Risk Flags

Potential for performance degradation if contractor lacks specialized expertise.
Risk of training delays if instrumentation systems are not maintained effectively.
Dependence on a single contractor for critical training infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.2 million to BERING SEA ENVIRONMENTAL LLC. MISAWA/OSAN/KUNSAN/KADENA INSTRUMENTATION TRAINING SYSTEM (MOKKITS) OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is BERING SEA ENVIRONMENTAL LLC.

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 $9.2 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the track record of Bering Sea Environmental LLC in performing similar instrumentation training system operations support contracts for the Department of Defense?

Bering Sea Environmental LLC has a history of performing various support services, including some related to environmental and operational support for government contracts. However, specific details regarding their track record with complex instrumentation training systems like MOKKITS are not readily available in the provided data. A deeper dive into their past performance on similar technical support contracts, particularly those involving specialized military training equipment, would be necessary to fully assess their capabilities and reliability for this specific requirement. Reviewing past performance evaluations and any contract modifications or disputes would offer further insight into their operational history and client satisfaction.

How does the awarded value of $9.2 million compare to the estimated cost or budget for similar instrumentation training system operations support?

The awarded value of $9.2 million over approximately five years (1825 days) translates to an average annual cost of roughly $1.84 million. Benchmarking this against similar contracts is challenging without more specific data on the scope and complexity of the MOKKITS. However, for specialized military training systems, this annual figure appears within a reasonable range, considering the need for skilled personnel, maintenance, and operational support. If comparable systems require extensive simulation, hardware maintenance, and software updates, this cost could be considered efficient. Conversely, if the system is less complex or the support scope is limited, it might indicate a higher-than-average cost.

What are the primary performance risks associated with this contract, and how are they mitigated?

The primary performance risks include potential disruptions to training schedules due to system downtime, contractor personnel turnover leading to loss of expertise, and inadequate maintenance leading to system degradation. Mitigation strategies are inherent in the contract structure. The firm-fixed-price nature incentivizes the contractor to perform efficiently to maintain profitability. Performance standards and service level agreements (SLAs) are typically included in the contract, allowing the government to monitor and enforce quality. The requirement for qualified personnel and regular reporting also serves as a mitigation factor. Furthermore, the moderate competition level suggests the contractor is motivated to perform well to secure future opportunities.

What is the historical spending pattern for MOKKITS operations support, and how does this award compare?

Historical spending data for the MOKKITS operations support is not provided in the current dataset. To establish a pattern, one would need to examine previous contracts awarded for the operation and maintenance of this specific training system or its predecessors. Comparing the current $9.2 million award over five years to previous contract values would reveal whether spending has increased, decreased, or remained stable. Analyzing trends in annual spending, contract duration, and the number of bidders over time would provide context on the government's investment in this capability and whether the current award represents a significant shift in expenditure.

What is the potential impact of this contract on the overall readiness and effectiveness of Air Force aviation training?

This contract is crucial for maintaining the operational readiness and effectiveness of Air Force aviation training by ensuring the MOKKITS are functional, up-to-date, and available for use. Reliable instrumentation training systems allow pilots and aircrews to practice complex scenarios in a safe and controlled environment, honing critical skills without the risks and costs associated with live-flight training. Consistent support and maintenance under this contract directly contribute to the quality and realism of the training, ultimately enhancing pilot proficiency, mission preparedness, and overall air combat effectiveness. Any lapse in support could directly impede training pipelines and reduce the Air Force's ability to generate combat-ready aircrews.

Given the 'Other Support Activities for Air Transportation' NAICS code, how does this contract specifically relate to air transportation services?

While the NAICS code 'Other Support Activities for Air Transportation' (488190) is broad, this contract's specific focus is on supporting instrumentation training systems (MOKKITS). These systems are integral to training pilots and aircrews for aviation operations, which inherently involve air transportation. The support provided ensures that the training environment accurately simulates flight conditions, aircraft performance, and operational procedures relevant to air transportation missions. Therefore, the contract supports the broader ecosystem of air transportation by ensuring the personnel who operate these systems are adequately trained and proficient, indirectly contributing to the safety and efficiency of actual air transportation activities conducted by the Air Force.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA521520R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3601 C ST STE 1000-31, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,446,712

Exercised Options: $14,681,366

Current Obligation: $9,212,890

Actual Outlays: $686,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline