DoD's $17.5M contract for aircraft refueling services at NAS Kingsville awarded to LB & B Associates Inc

Contract Overview

Contract Amount: $17,484,723 ($17.5M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2017-05-08

Contract Duration: 3,141 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ALONGSIDE AIRCRAFT REFUELING AT NAS KINGSVILLE, TX.

Place of Performance

Location: KINGSVILLE, KLEBERG County, TEXAS, 78363

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to LB & B ASSOCIATES INC for work described as: ALONGSIDE AIRCRAFT REFUELING AT NAS KINGSVILLE, TX. Key points: 1. The contract value of $17.5 million over its duration suggests a significant operational requirement for specialized refueling services. 2. LB & B Associates Inc. secured this contract through full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of over 8 years (3141 days) implies a long-term need and potential for sustained contractor performance. 4. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government. 5. The specialized nature of aircraft refueling points to a niche market with specific technical and safety requirements. 6. The award was made by the Defense Logistics Agency, a key procurement arm for the Department of Defense, suggesting a standardized process.

Value Assessment

Rating: good

The total award amount of $17.5 million for aircraft refueling services over approximately 8.5 years appears reasonable given the specialized nature of the service and the long-term commitment. Benchmarking against similar long-term, specialized aviation support contracts would provide a more precise value-for-money assessment. However, the firm fixed-price structure shifts cost risk to the contractor, which is generally favorable for the government in stable operational environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this specialized service. A competitive process like this typically leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. The multiple bids received indicate that the government likely secured a competitive price for these essential aircraft refueling services.

Public Impact

Naval Air Station Kingsville and its tenant commands benefit from the reliable provision of essential aircraft refueling services, crucial for flight operations and readiness. The contract supports the operational capabilities of military aircraft stationed or operating at NAS Kingsville. The geographic impact is localized to NAS Kingsville, Texas, ensuring critical infrastructure support for military aviation in the region. While not directly creating new jobs, the contract sustains employment for personnel involved in aircraft refueling operations at the base, likely through LB & B Associates Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced incentive for innovation if not actively managed.
Dependence on a single contractor for a critical service like refueling introduces operational risk if the contractor faces performance issues or financial instability.
The firm fixed-price nature, while beneficial, could lead to disputes if unforeseen operational conditions significantly impact the contractor's costs.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
Firm fixed-price contract type aligns incentives by placing cost control responsibility on the contractor.
Long-term nature of the contract (over 8 years) provides stability and predictability for essential base operations.
The Defense Logistics Agency's involvement suggests adherence to established procurement standards and oversight.

Sector Analysis

The aerospace and defense logistics sector involves specialized support services critical to military operations. Aircraft refueling is a niche but vital component, requiring adherence to strict safety and operational standards. The market for such services is often characterized by long-term contracts due to the specialized equipment and infrastructure involved. Spending in this area is directly tied to military readiness and operational tempo, with agencies like the DLA playing a central role in procurement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it is not a small business prime award. Therefore, the primary impact on small businesses would likely be through potential subcontracting opportunities, which are not detailed in the provided data. Without specific subcontracting plans, it's difficult to assess the direct benefit to the small business ecosystem from this particular prime contract.

Oversight & Accountability

The contract is managed by the Defense Logistics Agency (DLA), which has established oversight mechanisms for its contracts. As a definitive contract awarded under full and open competition, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support Contracts
Aviation Fuel Services
Defense Logistics Agency Procurement
Naval Air Station Support Services
Fixed-Wing Aircraft Support

Risk Flags

Long-term contract duration may require active performance management.
Firm Fixed Price contracts can lead to disputes if scope changes or unforeseen costs arise.
Dependence on a single provider for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to LB & B ASSOCIATES INC. ALONGSIDE AIRCRAFT REFUELING AT NAS KINGSVILLE, TX.

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2008-10-01. End: 2017-05-08.

What is the historical spending pattern for aircraft refueling services at NAS Kingsville?

The provided data focuses on a single definitive contract awarded to LB & B Associates Inc. from October 1, 2008, to May 8, 2017, valued at approximately $17.5 million. To understand the broader historical spending pattern, one would need to examine prior contracts for similar services at NAS Kingsville, potentially including contracts awarded to different vendors or under different contract types. Analyzing spending trends over a longer period (e.g., 10-20 years) would reveal fluctuations in demand, pricing, and contractor landscape. This single contract suggests a significant, long-term requirement, but without comparative data, it's impossible to determine if spending has increased, decreased, or remained stable over time.

How does the per-unit cost of refueling under this contract compare to industry benchmarks?

The provided data does not include specific per-unit cost details (e.g., cost per gallon or per refueling event). The total contract value of $17.5 million is for a duration of over 3100 days, encompassing all refueling services provided. To compare per-unit costs, we would need data on the total volume of fuel dispensed or the number of refueling operations performed under this contract. Without this granular information, a direct comparison to industry benchmarks for per-unit refueling costs is not feasible. Such benchmarks would typically be derived from market research reports or data from other similar government or commercial aviation refueling contracts.

What is LB & B Associates Inc.'s track record with similar defense contracts?

LB & B Associates Inc. has a history of performing various services for the Department of Defense. While this specific contract highlights their role in aircraft refueling at NAS Kingsville, their broader portfolio likely includes other logistical, maintenance, or support services. A comprehensive assessment of their track record would involve reviewing their performance history on other federal contracts, including past performance evaluations, any documented disputes or contract terminations, and their experience with similar specialized services. The fact that they were awarded this significant, long-term contract through full and open competition suggests a satisfactory performance history and capability to meet the government's requirements.

What are the key performance indicators (KPIs) used to measure the success of this refueling contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for aircraft refueling services, typical KPIs would likely include: on-time response for refueling requests, fuel quality assurance, adherence to safety protocols (e.g., spill prevention, fire safety), accuracy of fuel accounting and billing, and overall availability of refueling services during required operating hours. The firm fixed-price nature of the contract implies that meeting these operational requirements efficiently is crucial for the contractor's profitability. Performance would likely be monitored through regular reporting and potentially site inspections by the contracting officer's representative (COR).

Are there any identified risks associated with LB & B Associates Inc.'s performance on this contract?

Based on the provided data, specific performance risks associated with LB & B Associates Inc. are not detailed. However, general risks inherent in long-term, specialized service contracts include potential contractor performance degradation over time, financial instability of the contractor, or unforeseen operational challenges impacting service delivery. The firm fixed-price structure places cost-overrun risk on the contractor, but could incentivize cutting corners if not properly monitored. The Defense Logistics Agency, as the awarding agency, would typically have mechanisms in place to monitor contractor performance and mitigate identified risks through contract management and oversight.

How does the competition level for this contract compare to other specialized logistics services procured by the DLA?

This contract was awarded under 'full and open competition' with five bidders. This indicates a relatively robust competitive environment for specialized aircraft refueling services at NAS Kingsville. Comparing this to other DLA procurements requires broader data analysis. Some highly specialized or niche services might attract fewer bidders, potentially leading to limited or sole-source awards. Conversely, more common logistics or support services might see even higher numbers of bidders. The five-bidder scenario suggests a healthy market response, likely contributing to competitive pricing, and aligns with DLA's objective of maximizing competition where feasible.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Local

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060008R0502

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKENLAND PARKWAY STE 400, COLUMBIA, MD, 21046

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,484,723

Exercised Options: $17,484,723

Current Obligation: $17,484,723

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline