DoD's $38.1M Non-Fee Bearing Parts Contract Awarded to PAE Aviation, Full Competition Used
Contract Overview
Contract Amount: $38,100,889 ($38.1M)
Contractor: PAE Aviation and Technical Services LLC
Awarding Agency: Department of Defense
Start Date: 2016-08-01
End Date: 2017-07-31
Contract Duration: 364 days
Daily Burn Rate: $104.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF DIRECT PARTS/MATERIALS (NON-FEE BEARING)
Place of Performance
Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $38.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: IGF::OT::IGF DIRECT PARTS/MATERIALS (NON-FEE BEARING) Key points: 1. The contract, valued at $38.1 million, focuses on direct parts and materials. 2. PAE Aviation and Technical Services LLC secured the award under full and open competition. 3. The spending is categorized under Other Support Activities for Air Transportation. 4. This award represents a significant investment in aviation support services for the Navy.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar contracts for aviation parts and materials would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: Taxpayer funds are utilized efficiently through a competitive bidding process, aiming for the best value in supporting critical air transportation activities.
Public Impact
Supports critical air transportation operations for the Department of the Navy. Ensures availability of essential parts and materials for aircraft maintenance. Contributes to the readiness and operational capability of naval aviation assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep if contract terms are not strictly managed.
- Dependence on a single contractor for critical parts could pose supply chain risks.
Positive Signals
- Awarded through full and open competition, promoting market efficiency.
- Firm fixed price contract provides cost certainty.
- Supports essential defense logistics and operations.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on support activities for air transportation. Spending benchmarks in this area often relate to maintenance, repair, and overhaul (MRO) services and the procurement of specialized parts.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. While PAE Aviation and Technical Services LLC may utilize small businesses in its subcontracting, the primary award was not directed towards them.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. Oversight would focus on the execution of this specific order and adherence to its terms.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for sole-source dependency if follow-on contracts are not competitively bid.
- Risk of obsolescence for specialized parts over the contract lifecycle.
- Geographic concentration of the contractor (NJ) could pose logistical challenges.
- Lack of explicit small business participation in the primary award.
Tags
other-support-activities-for-air-transpo, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC. IGF::OT::IGF DIRECT PARTS/MATERIALS (NON-FEE BEARING)
Who is the contractor on this award?
The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $38.1 million.
What is the period of performance?
Start: 2016-08-01. End: 2017-07-31.
What is the specific nature of the 'non-fee bearing' parts and materials, and how do they differ from fee-bearing services?
Non-fee bearing parts and materials typically refer to the physical components required for maintenance, repair, or operations that are directly procured and accounted for as material costs. Fee-bearing services, conversely, would encompass labor, overhead, profit, and other charges associated with the provision of expertise or services. Understanding this distinction is crucial for accurately assessing the total cost of ownership and operational support.
How does the firm fixed price structure mitigate risks associated with fluctuating material costs in the aerospace sector?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. In the aerospace sector, where material costs can be volatile due to supply chain issues or market demand, an FFP contract provides budget certainty for the government. The contractor is obligated to deliver the specified parts and materials at the agreed-upon price, absorbing any increases in their own input costs.
What is the potential impact of this contract on the overall operational readiness of the Department of the Navy's air assets?
This contract directly supports the operational readiness of the Department of the Navy's air assets by ensuring the timely availability of essential parts and materials. Consistent access to these components is critical for maintaining aircraft in operational condition, minimizing downtime, and ensuring that naval aviation units can effectively execute their missions. The $38.1 million value suggests a substantial commitment to sustaining these capabilities.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001913R0092
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Holding Corporation (UEI: 968071493)
Address: 1320 N COURTHOUSE RD STE 800, ARLINGTON, VA, 22201
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,100,889
Exercised Options: $38,100,889
Current Obligation: $38,100,889
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042115D0007
IDV Type: IDC
Timeline
Start Date: 2016-08-01
Current End Date: 2017-07-31
Potential End Date: 2017-07-31 00:00:00
Last Modified: 2018-08-10
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