DoD awards $99M for F/A-18/EA-18G maintenance and training, with 4 bidders

Contract Overview

Contract Amount: $98,975,075 ($99.0M)

Contractor: Valiant Global Defense Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-01

End Date: 2026-04-30

Contract Duration: 1,702 days

Daily Burn Rate: $58.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F/A-18 AND EA-18G CONTRACTOR OPERATIONS AND MAINTENANCE SERVICES & CONTRACTOR INSTRUCTIONAL SERVICES AT NAVAL AIR STATION (NAS) OCEANA, MARINE CORPS AIR STATION (MCAS) BEAUFORT, NAS LEMOORE, MCAS MIRAMAR, NAS WHIDBEY ISLAND AND MCAS IWAKUNI, JAPAN.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $99.0 million to VALIANT GLOBAL DEFENSE SERVICES INC. for work described as: F/A-18 AND EA-18G CONTRACTOR OPERATIONS AND MAINTENANCE SERVICES & CONTRACTOR INSTRUCTIONAL SERVICES AT NAVAL AIR STATION (NAS) OCEANA, MARINE CORPS AIR STATION (MCAS) BEAUFORT, NAS LEMOORE, MCAS MIRAMAR, NAS WHIDBEY ISLAND AND MCAS IWAKUNI, JAPAN. Key points: 1. Contract provides essential operational and instructional support for critical naval aircraft. 2. Competition involved 4 bidders, suggesting a moderately competitive market for these specialized services. 3. Risk indicators include the long duration of the contract and potential for cost overruns in specialized maintenance. 4. Performance context is tied to maintaining the readiness of advanced fighter and electronic warfare aircraft. 5. Sector positioning is within defense services, specifically focusing on aviation maintenance and training. 6. The contract type is Firm Fixed Price, which aims to control costs but may limit flexibility.

Value Assessment

Rating: good

The contract value of $98.98 million over approximately 5.7 years (1702 days) for contractor operations and maintenance services for F/A-18 and EA-18G aircraft appears reasonable given the specialized nature of the work. Benchmarking against similar complex aviation support contracts is challenging due to unique platform requirements, but the firm fixed-price structure provides cost certainty. The number of bidders (4) suggests a healthy level of competition that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four distinct bidders vying for the opportunity. This level of competition is generally positive, indicating that multiple capable firms could meet the requirements. The presence of four bidders suggests that the market is not overly concentrated and that the government likely received competitive proposals, leading to a more efficient price discovery process.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, preventing potential price gouging and ensuring value for money.

Public Impact

Naval aviators and aircrews benefit from well-maintained aircraft and effective training, enhancing combat readiness. The contract supports critical operations for the F/A-18 Super Hornet and EA-18G Growler aircraft fleets. Geographic impact includes multiple Naval Air Stations and Marine Corps Air Stations across the US and Japan. Workforce implications include the employment of skilled technicians, instructors, and support personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in specialized maintenance tasks over the contract's long duration.
Reliance on a single contractor for critical operational support could pose risks if performance falters.
Firm Fixed Price contracts can sometimes lead to contractor reluctance to incorporate beneficial changes if not explicitly covered.

Positive Signals

Firm Fixed Price contract structure provides cost predictability for the government.
Full and open competition with multiple bidders generally leads to better pricing and value.
Contract supports essential readiness for key naval aviation platforms.

Sector Analysis

This contract falls within the Defense sector, specifically supporting aviation maintenance and training services. The market for such specialized support is dominated by a few large defense contractors with the necessary expertise and security clearances. Spending in this area is crucial for maintaining the operational readiness of advanced military aircraft, and contracts like this represent a significant portion of the defense budget allocated to sustainment and training.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor, Valiant Global Defense Services Inc., may be a large business, there is potential for subcontracting opportunities for small businesses within the scope of maintenance and support services. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, performance metrics, and delivery schedules. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F/A-18 Super Hornet Sustainment
EA-18G Growler Operations
Naval Aviation Training Services
Defense Contractor Logistics Support
Aircraft Maintenance Services

Risk Flags

Long contract duration increases risk of scope creep and performance degradation.
Reliance on specialized contractor support requires robust performance monitoring.
Firm Fixed Price may limit flexibility for necessary technical adaptations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.0 million to VALIANT GLOBAL DEFENSE SERVICES INC.. F/A-18 AND EA-18G CONTRACTOR OPERATIONS AND MAINTENANCE SERVICES & CONTRACTOR INSTRUCTIONAL SERVICES AT NAVAL AIR STATION (NAS) OCEANA, MARINE CORPS AIR STATION (MCAS) BEAUFORT, NAS LEMOORE, MCAS MIRAMAR, NAS WHIDBEY ISLAND AND MCAS IWAKUNI, JAPAN.

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $99.0 million.

What is the period of performance?

Start: 2021-09-01. End: 2026-04-30.

What is the track record of Valiant Global Defense Services Inc. with similar Department of Defense contracts?

Valiant Global Defense Services Inc. has a history of performing various support services for the Department of Defense, including logistics, training, and maintenance. Their experience often involves complex operational environments and specialized equipment. Analyzing their past performance on contracts of similar size and scope, particularly those involving aviation platforms like the F/A-18 and EA-18G, would provide insight into their capability to execute this current award. A review of past performance evaluations and any reported issues or successes on prior DoD contracts would be crucial for a comprehensive assessment of their reliability and effectiveness in fulfilling the requirements of this new agreement.

How does the awarded price compare to industry benchmarks for similar aviation maintenance and training services?

Determining precise industry benchmarks for F/A-18 and EA-18G contractor operations and maintenance services is complex due to the highly specialized nature of these platforms and the specific requirements outlined in the contract. However, the contract's firm fixed-price structure and the fact that it was awarded under full and open competition with four bidders suggest that the pricing is likely competitive. To conduct a thorough comparison, one would need access to detailed cost breakdowns, labor rates, and material costs, as well as data from comparable contracts for similar advanced military aircraft sustainment and training programs. Without such granular data, a definitive benchmark comparison is difficult, but the competitive award process provides a degree of assurance regarding value.

What are the primary risks associated with the long duration (1702 days) of this contract?

The extended duration of this contract presents several potential risks. Firstly, there is an increased likelihood of scope creep, where unforeseen requirements or changes in operational needs may lead to modifications and potential cost increases, even under a fixed-price structure. Secondly, over such a long period, the risk of contractor performance degradation or complacency increases. Maintaining consistent quality and responsiveness can be challenging. Thirdly, technological advancements in aviation or maintenance techniques might occur, potentially making the contracted services less efficient or outdated by the contract's end, requiring costly adaptations or future renegotiations. Finally, the longer the contract, the greater the exposure to economic fluctuations, such as inflation or changes in labor costs, which could impact the contractor's ability to maintain profitability without seeking adjustments.

How effective is the firm fixed-price (FFP) contract type in ensuring program effectiveness for specialized aviation services?

The Firm Fixed-Price (FFP) contract type aims to ensure program effectiveness by placing the primary cost risk on the contractor. This incentivizes the contractor to manage costs efficiently and deliver the specified services within the agreed-upon budget. For specialized aviation services like maintenance and training, FFP can be effective in driving performance and ensuring that the required operational readiness levels are met, as the contractor has a strong financial motivation to do so. However, FFP can sometimes stifle innovation or flexibility if the contractor becomes overly focused on cost containment at the expense of quality or necessary adjustments. Careful definition of requirements and performance standards is crucial to ensure that FFP effectively supports the program's overall goals without compromising essential operational capabilities.

What are the historical spending patterns for F/A-18 and EA-18G contractor support services within the Department of the Navy?

Historical spending on contractor support services for the F/A-18 and EA-18G fleets within the Department of the Navy has been substantial, reflecting the operational tempo and maintenance demands of these critical platforms. These costs typically encompass a range of activities, including depot-level maintenance, component repair, supply chain management, technical data support, and training services. Annual expenditures can fluctuate based on fleet readiness requirements, modernization programs, and the specific mix of organic (in-house) versus contracted support. Analyzing multi-year spending trends reveals a consistent need for significant investment in contractor support to maintain the high operational availability demanded by naval aviation operations, often running into hundreds of millions of dollars annually across various contracts.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134021R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2355 DULLES CORNER BLVD STE 200, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $104,669,845

Exercised Options: $104,669,845

Current Obligation: $98,975,075

Actual Outlays: $45,633,182

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $184,778

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134016D1003

IDV Type: IDC

Timeline