DOD's $34.4M JRTC Bridge Contract Awarded to Valiant Global Defense Services Inc. with No Competition

Contract Overview

Contract Amount: $34,391,828 ($34.4M)

Contractor: Valiant Global Defense Services Inc.

Awarding Agency: Department of Defense

Start Date: 2017-12-25

End Date: 2018-06-27

Contract Duration: 184 days

Daily Burn Rate: $186.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: JRTC BRIDGE CONTRACT - GAO PROTEST

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to VALIANT GLOBAL DEFENSE SERVICES INC. for work described as: JRTC BRIDGE CONTRACT - GAO PROTEST Key points: 1. The contract value of $34.4M is significant for specialized training support. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The 'All Other Miscellaneous Schools and Instruction' NAICS code suggests a niche service area. 4. The 'Cost Plus Fixed Fee' contract type can incentivize cost overruns if not closely monitored.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from similar sole-source contracts, it's hard to determine if the $34.4M represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $34.4M contract likely resulted in higher costs than if it had been competitively bid, impacting taxpayer funds.

Public Impact

Taxpayers may have paid more due to the absence of competitive bidding. The specific training services provided are crucial for military readiness at the JRTC. The duration of the contract (184 days) suggests a focused, short-term need. The protest filed with the GAO indicates potential issues with the award process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Department of Defense frequently contracts for specialized training and support services. Spending in this sector can vary widely based on mission requirements and geopolitical factors. Benchmarks are difficult without specific service details.

Small Business Impact

The awardee, Valiant Global Defense Services Inc., is not identified as a small business. This contract did not appear to involve small business participation.

Oversight & Accountability

The GAO protest highlights a potential area for oversight regarding the justification for a sole-source award. Further review of the agency's procurement process is warranted.

Related Government Programs

Risk Flags

Tags

all-other-miscellaneous-schools-and-inst, department-of-defense, la, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to VALIANT GLOBAL DEFENSE SERVICES INC.. JRTC BRIDGE CONTRACT - GAO PROTEST

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 Army).

What is the total obligated amount?

The obligated amount is $34.4 million.

What is the period of performance?

Start: 2017-12-25. End: 2018-06-27.

What specific services did Valiant Global Defense Services Inc. provide under this contract, and how do they align with the 'All Other Miscellaneous Schools and Instruction' NAICS code?

The provided data does not detail the specific services rendered. The NAICS code 611699, 'All Other Miscellaneous Schools and Instruction,' is broad and could encompass a range of specialized training, tutoring, or educational programs not elsewhere classified. Understanding the precise nature of the instruction is key to assessing its necessity and value.

What were the grounds for the GAO protest, and what was the outcome regarding the justification for a sole-source award?

The data indicates a GAO protest was filed, suggesting a challenge to the contract award. Typically, protests focus on perceived improprieties in the solicitation or award process, such as an inadequate justification for a sole-source award or a flawed evaluation. The outcome of the protest would determine if the Army's decision to not compete the contract was upheld or if corrective actions were required.

How does the 'Cost Plus Fixed Fee' structure potentially impact cost control and taxpayer value in this specific context?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility, it can incentivize contractors to incur higher costs to increase the base for the fixed fee, especially if oversight is lax. For taxpayers, this structure carries a risk of inflated costs if the fixed fee is not carefully negotiated and costs are not rigorously monitored.

Industry Classification

NAICS: Educational ServicesOther Schools and InstructionAll Other Miscellaneous Schools and Instruction

Product/Service Code: EDUCATION AND TRAININGEDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC

Address: 3940 RUFFIN RD STE C, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $36,465,279

Exercised Options: $36,465,279

Current Obligation: $34,391,828

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,192,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2017-12-25

Current End Date: 2018-06-27

Potential End Date: 2018-06-27 00:00:00

Last Modified: 2023-01-26

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