DoD awards $35.8M to S & K Aerospace for F-15 logistics, raising competition concerns
Contract Overview
Contract Amount: $35,790,797 ($35.8M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-01
End Date: 2016-12-31
Contract Duration: 1,857 days
Daily Burn Rate: $19.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RSAF F-15 THRID PARTY LOGISTICS MANAGEMENT SERVICES FOR REPAIR AND RETURN
Place of Performance
Location: SAINT IGNATIUS, LAKE County, MONTANA, 59865, UNITED STATES OF AMERICA
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $35.8 million to S & K AEROSPACE, LLC for work described as: RSAF F-15 THRID PARTY LOGISTICS MANAGEMENT SERVICES FOR REPAIR AND RETURN Key points: 1. Significant contract value for specialized aerospace logistics services. 2. Sole-source award to S & K Aerospace limits competitive pricing. 3. Potential risk of inflated costs due to lack of competition. 4. Focus on IT and administrative services within the defense sector.
Value Assessment
Rating: questionable
The contract value of $35.8 million for third-party logistics management services is substantial. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar specialized aerospace support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning S & K Aerospace was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible value for these critical logistics services.
Public Impact
Taxpayers may be overpaying for essential F-15 repair and return logistics. Limited transparency into the justification for a sole-source award. Potential for reduced service innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Specialized logistics expertise
- Long-term support for critical aircraft
Sector Analysis
This contract falls within the defense sector, specifically supporting the F-15 aircraft fleet. Spending on aerospace logistics and maintenance is a significant component of the defense budget, often involving specialized contractors.
Small Business Impact
The data indicates this contract was awarded to S & K Aerospace, LLC, and does not specify any subcontracting with small businesses. Further investigation is needed to determine if small business participation was considered or mandated.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring the price paid is fair and reasonable.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to limited market pressure.
- Insufficient transparency on justification for sole-source.
- No clear indication of small business participation.
Tags
office-administrative-services, department-of-defense, mt, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.8 million to S & K AEROSPACE, LLC. RSAF F-15 THRID PARTY LOGISTICS MANAGEMENT SERVICES FOR REPAIR AND RETURN
Who is the contractor on this award?
The obligated recipient is S & K AEROSPACE, 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 $35.8 million.
What is the period of performance?
Start: 2011-12-01. End: 2016-12-31.
What was the specific justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. For this RSAF F-15 logistics contract, the Department of the Air Force would need to provide documentation detailing why S & K Aerospace was the only viable option and why competition was not feasible or beneficial.
How does the $35.8 million contract value compare to industry benchmarks for similar third-party logistics management services for fighter aircraft?
Benchmarking this contract's value requires detailed analysis of the specific services provided, the scope of work, and the duration. Without access to S & K Aerospace's detailed cost breakdown and comparison with other DoD contracts for similar F-15 support or other advanced fighter logistics, a precise benchmark is difficult. However, the lack of competition raises concerns about potential overpricing relative to market rates.
What mechanisms are in place to ensure the effectiveness and efficiency of S & K Aerospace's logistics services throughout the contract period?
Effectiveness and efficiency are typically ensured through performance metrics, service level agreements (SLAs), and regular performance reviews outlined in the contract. The Department of the Air Force should be actively monitoring S & K Aerospace's performance against these established criteria to ensure the F-15s receive timely and quality repair and return services, and to identify any areas needing improvement or corrective action.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 63066 OLD HIGHWAY 93, SAINT IGNATIUS, MT, 59865
Business Categories: 8(a) Program Participant, Category Business, Labor Surplus Area Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,013,838
Exercised Options: $36,013,838
Current Obligation: $35,790,797
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA850512D0002
IDV Type: IDC
Timeline
Start Date: 2011-12-01
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2015-06-30
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