DoD's $15.6M contract for retail services and aircraft refueling at CCAFS awarded to LB & B Associates Inc

Contract Overview

Contract Amount: $15,640,559 ($15.6M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2013-10-01

End Date: 2026-11-30

Contract Duration: 4,808 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COCO FACILITIES AND SERVICES, OPERATION OF GOCO RETAIL SERVICES, AND ALONGSIDE AIRCRAFT REFUELING SERVICES AT CCAFS

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to LB & B ASSOCIATES INC for work described as: COCO FACILITIES AND SERVICES, OPERATION OF GOCO RETAIL SERVICES, AND ALONGSIDE AIRCRAFT REFUELING SERVICES AT CCAFS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, providing cost certainty. 3. The contract duration is substantial, spanning over 4,000 days, indicating a long-term service requirement. 4. The North American Industry Classification System (NAICS) code 424710 points to petroleum bulk stations and terminals, aligning with refueling services. 5. The contract is managed by the Defense Logistics Agency, a key procurement arm for the DoD. 6. The contract is not set aside for small businesses, implying larger firms were likely participants. 7. The contract is located in Maryland, a state with a significant federal contracting presence.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The firm fixed-price structure suggests an attempt to control costs, but the total value over its extended duration needs to be assessed against actual service delivery and market rates for similar operations. The absence of readily available cost breakdowns or performance data makes a definitive value-for-money assessment difficult.

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. The presence of 5 bids suggests a moderate level of competition for this requirement. While competition is generally positive for price discovery, the specific number of bidders (5) in relation to the complexity and duration of the contract would need further analysis to determine if it led to optimal pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally drives down prices through a wider pool of potential bidders. A moderate number of bids suggests that the government likely received competitive offers, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the personnel and operations at Cape Canaveral Air Force Station (CCAFS), who will receive essential retail services and aircraft refueling. The contract ensures the continuous operation of retail services, likely including convenience stores or commissaries, and critical aircraft refueling capabilities. The geographic impact is localized to CCAFS in Florida, supporting military readiness and personnel welfare at this specific installation. Workforce implications include the direct employment by LB & B Associates Inc. and potentially its subcontractors to perform these services, contributing to local employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (4808 days) could lead to potential cost overruns if market conditions change significantly or if performance issues arise late in the contract.
Firm Fixed Price contracts can sometimes lead to contractors cutting corners on quality if not adequately monitored, especially over a long period.
Reliance on a single contractor for both retail services and aircraft refueling might create dependencies and limit flexibility in service provision.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract provides cost predictability for the government.
The Defense Logistics Agency's involvement suggests established procurement and oversight processes.
The contract addresses essential operational needs for a critical military installation.

Sector Analysis

This contract falls within the broader defense logistics and support services sector. The petroleum bulk stations and terminals NAICS code highlights the critical nature of fuel supply chain management for military aviation. The market for such services is often characterized by specialized requirements, long-term relationships, and significant barriers to entry due to infrastructure and regulatory compliance. Comparable spending benchmarks would typically involve other large-scale fuel and base support contracts at military installations.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the requirement was likely too large or complex for small business set-aside programs to be applied effectively, or that the competition was open to all responsible sources regardless of size. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be a missed opportunity for small business participation.

Oversight & Accountability

The Defense Logistics Agency (DLA) is responsible for the oversight of this contract, leveraging its extensive experience in managing complex logistics and service contracts. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Fuel Contracts
Base Operations Support Contracts
Aircraft Refueling Services
Military Retail Operations
Petroleum Supply Chain Management

Risk Flags

Long contract duration may increase exposure to market fluctuations.
Performance monitoring over extended period requires consistent oversight.
Potential for scope creep or requirement changes over the contract life.
Dependence on a single contractor for critical base support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to LB & B ASSOCIATES INC. COCO FACILITIES AND SERVICES, OPERATION OF GOCO RETAIL SERVICES, AND ALONGSIDE AIRCRAFT REFUELING SERVICES AT CCAFS

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 $15.6 million.

What is the period of performance?

Start: 2013-10-01. End: 2026-11-30.

What is the historical spending pattern for similar retail services and aircraft refueling contracts at CCAFS or comparable installations?

Analyzing historical spending for similar contracts at CCAFS or comparable military installations is crucial for contextualizing the $15.6 million award. Without specific historical data for this exact scope at CCAFS, we can infer trends from broader DLA or DoD contracts. Typically, base support services, including retail and fuel, represent a significant portion of installation operating budgets. Long-term contracts like this one, spanning over a decade, often see annual costs fluctuating based on fuel prices, service level adjustments, and inflation. Comparing this contract's total value to the average annual operating cost of similar-sized air bases or logistics hubs could reveal if the pricing is within expected ranges. For instance, if similar installations spend $1-3 million annually on comparable combined services, this contract's average annual value of approximately $1.95 million ($15.6M / 8 years) appears to be within a reasonable benchmark, assuming comparable scope and service levels.

How does the per-unit cost of aircraft refueling under this contract compare to industry benchmarks or other government contracts?

Determining the precise per-unit cost of aircraft refueling is challenging with the provided data, as it lacks specific metrics like gallons refueled or number of refueling operations. However, we can make an estimation. The contract value is $15,640,558.59 over approximately 4808 days (roughly 13.17 years). If we assume a significant portion of this value is allocated to refueling services, and estimate an average annual value for refueling, we could then compare it to market rates. Industry benchmarks for military aircraft refueling can vary widely based on location, type of fuel, and service level agreements. Government contracts often aim for competitive pricing, but specialized military requirements can influence costs. Without specific volume data, a direct per-gallon comparison is impossible. However, if we consider the total contract value and the duration, and assume refueling is a major component, the implied annual cost for refueling services would need to be benchmarked against DLA's historical pricing data or publicly available rates for similar DoD refueling contracts to assess value.

What is the track record of LB & B Associates Inc. in managing large-scale government contracts, particularly in defense logistics and base support?

LB & B Associates Inc. has a history of performing government contracts, including those related to logistics and base support. A thorough review of their contract performance history, including past performance evaluations (e.g., CPARS reports), would be necessary to fully assess their track record. Key indicators would include on-time delivery, adherence to budget, quality of services, and responsiveness to government needs. For a contract of this magnitude and duration, their experience with firm-fixed-price agreements and managing complex operations like retail services and fuel supply is critical. Examining any past disputes, contract modifications, or performance issues would provide a more comprehensive understanding of their reliability and capability in fulfilling the requirements of this definitive contract.

What are the potential risks associated with the long duration (4808 days) of this contract, and what mitigation strategies are in place?

The extended duration of this contract presents several potential risks. Firstly, market volatility, particularly in fuel prices, could lead to cost escalations if not adequately managed within the firm-fixed-price structure, potentially impacting contractor profitability or leading to requests for equitable adjustments. Secondly, the long timeframe increases the risk of contractor performance degradation over time, requiring robust monitoring and quality assurance processes. Thirdly, technological advancements in refueling or retail services might render current methods or offerings obsolete, necessitating contract modifications or potentially leaving the government with outdated capabilities. Mitigation strategies typically include incorporating economic price adjustment clauses (if applicable and structured carefully), stringent performance metrics and regular reviews, and clear contract modification procedures to adapt to changing requirements or technologies. The Defense Logistics Agency's oversight is key to identifying and addressing these risks proactively.

How does the 'definitive contract' type influence flexibility and potential for contract modifications compared to other contract types?

A definitive contract, in this context, likely refers to a contract that clearly defines the terms, conditions, and scope of work. While the provided data specifies 'DEFINITIVE CONTRACT' as the award type, it's often used broadly. If this refers to a type of contract that establishes definitive terms for a specific period, it implies a commitment to the defined scope and pricing. Compared to indefinite-delivery/indefinite-quantity (IDIQ) contracts, definitive contracts generally offer less flexibility for significant scope changes without formal modifications. However, the firm-fixed-price (FFP) nature means that any changes to scope, quantity, or specifications would require a formal contract modification, often involving negotiation of price and schedule adjustments. This structure provides cost certainty but can make adapting to unforeseen circumstances more cumbersome than with more flexible contract types like cost-plus or time-and-materials, where scope adjustments might be handled more fluidly, albeit with less upfront price certainty.

What is the significance of the NAICS code 424710 (Petroleum Bulk Stations and Terminals) in understanding the scope of services provided?

The North American Industry Classification System (NAICS) code 424710, 'Petroleum Bulk Stations and Terminals,' is highly significant as it precisely defines a core component of the services contracted: the storage and distribution of petroleum products. This code indicates that LB & B Associates Inc. is responsible for managing facilities that handle large quantities of fuel, likely including storage tanks, loading/unloading infrastructure, and associated logistical operations. For an air base like CCAFS, this directly relates to the critical function of ensuring a reliable supply of aviation fuel. It implies responsibilities beyond simple refueling, potentially encompassing fuel inventory management, quality control, transportation coordination, and adherence to stringent safety and environmental regulations associated with bulk fuel handling.

Industry Classification

NAICS: Wholesale Trade › Petroleum and Petroleum Products Merchant Wholesalers › Petroleum Bulk Stations and Terminals

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: SP060010R0528

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $25,485,781

Exercised Options: $15,640,559

Current Obligation: $15,640,559

Actual Outlays: $3,002,110

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline