PAE Applied Technologies LLC contract for Aircraft Manufacturing services valued at over $69.7 million by the Department of the Air Force

Contract Overview

Contract Amount: $69,761,352 ($69.8M)

Contractor: PAE Applied Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2009-01-26

End Date: 2011-01-28

Contract Duration: 732 days

Daily Burn Rate: $95.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TIME AND MATERIAL LABOR

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223, UNITED STATES OF AMERICA

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $69.8 million to PAE APPLIED TECHNOLOGIES LLC for work described as: TIME AND MATERIAL LABOR Key points: 1. Contract awarded under full and open competition, suggesting a robust market for these services. 2. The contract duration of 732 days indicates a significant, medium-term requirement. 3. The award type 'DO' suggests a priority rating, potentially impacting delivery timelines and resource allocation. 4. The contract's focus on Aircraft Manufacturing (NAICS 336411) aligns with core defense industry needs. 5. The fixed price contract type aims to control costs, though the Time and Material labor component warrants scrutiny. 6. The presence of 7 bids indicates a competitive landscape, which can lead to better pricing.

Value Assessment

Rating: fair

The contract's total value of over $69.7 million for a two-year period is substantial. While the specific services rendered are not detailed, the Time and Material labor component suggests potential for cost overruns if not managed closely. Benchmarking against similar aircraft manufacturing support contracts would be necessary to fully assess value for money. The fixed price nature of the contract is a positive indicator for cost control, but the labor hours and rates within that structure are critical for a complete value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that 7 bids were received suggests a healthy level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition scenario. It ensures that the Department of the Air Force received the best possible value through a market-driven process.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving aircraft manufacturing support services. The contract supports the operational readiness and maintenance of Air Force aircraft. The geographic impact is likely concentrated around the Air Force facilities where the services are performed, potentially in Kentucky (ST: KY). Workforce implications include employment opportunities for skilled labor in aircraft manufacturing and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Material labor component introduces a risk of cost escalation if not meticulously monitored and controlled.
Lack of specific details on the 'DO' award type makes it difficult to assess potential impacts on priority and resource allocation.
The broad NAICS code 'Aircraft Manufacturing' could encompass a wide range of activities, making it hard to pinpoint specific performance risks without further detail.

Positive Signals

Awarded under full and open competition with 7 bidders, indicating a competitive market and potential for good value.
The contract utilizes a Firm Fixed Price structure, which is generally favorable for cost control.
The contract is for a defined period (732 days), providing a clear scope and timeline for performance.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, a critical component of the U.S. industrial base. The NAICS code 336411 specifically targets aircraft manufacturing. Spending in this sector is often characterized by long-term, high-value contracts driven by national security requirements. Comparable spending benchmarks would typically involve analyzing other large-scale aircraft support and manufacturing contracts awarded by the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false) and does not explicitly mention subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless PAE Applied Technologies LLC actively engages small businesses as subcontractors. Further investigation into subcontracting reports would be needed to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are often internal. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Defense Contracts
Defense Manufacturing Services
Air Force Procurement
Time and Material Contracts
Fixed Price Contracts

Risk Flags

Time and Material Labor Component
Potential for Cost Overruns
Lack of Specific Service Details
Unknown Subcontracting Plans

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.8 million to PAE APPLIED TECHNOLOGIES LLC. TIME AND MATERIAL LABOR

Who is the contractor on this award?

The obligated recipient is PAE APPLIED TECHNOLOGIES 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 $69.8 million.

What is the period of performance?

Start: 2009-01-26. End: 2011-01-28.

What is the specific nature of the 'Aircraft Manufacturing' services provided under this contract?

The provided data identifies the NAICS code as 336411, 'Aircraft Manufacturing.' However, this code can encompass a broad range of activities, including the production of complete aircraft, aircraft parts, and related components, as well as repair and overhaul services. Without more specific contract line item numbers (CLINs) or a detailed statement of work (SOW), it is difficult to ascertain the precise services rendered. Given the awarding agency (Department of the Air Force) and the contract type (Time and Material Labor with a Fixed Price component), it is plausible that the contract covers specialized manufacturing, assembly, modification, or repair of aircraft or their components, potentially involving complex technical processes and requiring skilled labor.

How does the Time and Material labor component compare to industry standards for similar aircraft manufacturing contracts?

Time and Material (T&M) labor contracts are often used when the scope of work is not clearly defined at the outset or when unforeseen circumstances may arise, making a fixed price impractical. For aircraft manufacturing, T&M can be applied to tasks like research and development, prototyping, or complex repair and modification where the exact labor hours are uncertain. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts. Industry standards generally favor fixed-price contracts for well-defined manufacturing tasks to ensure cost certainty. When T&M is used, robust oversight, detailed tracking of labor hours and rates, and clear ceiling limitations are crucial. Benchmarking would require comparing the negotiated labor rates and the total T&M expenditure against similar T&M contracts for aircraft manufacturing or against the estimated costs if the work had been performed under a fixed-price structure.

What does the 'DO' award type signify in the context of this contract?

The 'DO' award type typically indicates a priority rating assigned by the U.S. government under the Defense Priorities and Allocations System (DPAS). A DO rating means that the contractor is authorized to receive preferential treatment in obtaining necessary materials, equipment, and services to fulfill the contract. This rating is usually assigned to contracts supporting national defense or critical homeland security programs. For this specific contract with the Department of the Air Force, a DO rating suggests that the aircraft manufacturing services are considered essential for national defense. It implies that suppliers must accept and prioritize orders bearing this rating, potentially impacting the availability and delivery schedules of resources for other, non-rated contracts.

What is the historical spending pattern for PAE Applied Technologies LLC with the Department of the Air Force for similar services?

To assess historical spending patterns for PAE Applied Technologies LLC with the Department of the Air Force for similar services, one would need to analyze contract award data over several fiscal years. This would involve searching databases for contracts awarded to PAE Applied Technologies LLC under NAICS code 336411 or related codes (e.g., aircraft engine manufacturing, aircraft parts manufacturing) and specifically those issued by the Department of the Air Force. Key metrics to examine would include the total dollar value of contracts, the duration of these contracts, the type of services rendered, and the competition levels. Understanding past performance, including contract modifications, cost overruns, or successful completions, provides valuable context for evaluating the current contract's risk and value. Without access to comprehensive historical data, it's challenging to establish a definitive spending pattern.

How does the number of bidders (7) influence the potential value for money achieved in this contract?

A total of 7 bidders for this contract, awarded under full and open competition, generally indicates a healthy competitive environment. More bidders typically lead to increased price pressure, encouraging each company to offer its best pricing and most competitive technical solutions to win the contract. This heightened competition increases the likelihood that the government will secure services at a fair and reasonable price, thereby enhancing value for money. Conversely, a low number of bidders might suggest market limitations, specialized requirements, or potential barriers to entry, which could result in higher prices. Therefore, having 7 bidders is a positive signal suggesting that the Department of the Air Force likely achieved good value through this procurement process.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 6500 WEST FREEWAY STE 600, FORT WORTH, TX, 76116

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $174,439,141

Exercised Options: $94,032,320

Current Obligation: $69,761,352

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0002

IDV Type: IDC

Timeline