DoD's $55.7M contract for aviation services awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $55,738,560 ($55.7M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2009-01-26

End Date: 2011-07-28

Contract Duration: 913 days

Daily Burn Rate: $61.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: FT. DRUM AVIATION REQUIREMENT

Place of Performance

Location: FORT DRUM, JEFFERSON County, NEW YORK, 13602

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $55.7 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: FT. DRUM AVIATION REQUIREMENT Key points: 1. The contract value of $55.7M over its duration suggests a significant investment in aviation support. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The Time and Materials pricing structure may present cost control challenges if not closely monitored. 4. The duration of the contract (913 days) indicates a long-term need for these aviation services. 5. The North American Industry Classification System (NAICS) code 336411 points to a focus on aircraft manufacturing or related support services. 6. The contract was awarded by the Department of the Air Force, indicating a specific military aviation requirement.

Value Assessment

Rating: fair

Benchmarking the value of this $55.7M contract is challenging without specific performance metrics or comparable service contracts. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed diligently. Compared to fixed-price contracts for similar aviation services, T&M can sometimes result in higher overall costs for the government due to the lack of upfront cost certainty. The number of bids (7) suggests a moderate level of interest, but the ultimate value for money depends heavily on the execution and efficiency of the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit bids. Seven bids were received, indicating a reasonable level of competition for this requirement. A competitive process like this generally helps to ensure that the government receives fair market prices and that the most capable contractor is selected. The presence of multiple bidders allows for price discovery and encourages contractors to offer their best terms.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions. This process helps prevent price gouging and ensures that government funds are used efficiently.

Public Impact

The primary beneficiaries are likely the personnel and operations of the Department of the Air Force requiring specialized aviation support. The services delivered are related to aircraft manufacturing or maintenance, crucial for maintaining military readiness. The geographic impact is centered around the Air Force installations where these aviation services are performed, potentially within New York. Workforce implications include the employment of skilled technicians, engineers, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty and potential overruns if not rigorously managed.
The specific nature of 'FT. DRUM AVIATION REQUIREMENT' is not detailed, making it difficult to assess the full scope and potential risks.
Lack of detailed performance metrics makes it hard to evaluate the contractor's efficiency and effectiveness beyond contract completion.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Seven bids were received, indicating a healthy level of market interest and potential for competitive pricing.
The contract duration suggests a stable, long-term need, allowing for contractor investment in capabilities and personnel.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically related to aircraft manufacturing and support services (NAICS 336411). The market for such services is substantial, driven by government procurement needs for military aviation. Comparable spending benchmarks would typically involve analyzing other contracts for similar aviation maintenance, repair, and overhaul (MRO) services or specialized aircraft component manufacturing awarded by the Department of Defense or other federal agencies. The size of this contract ($55.7M) places it as a significant, but not exceptionally large, procurement within this specialized niche.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contract was not awarded to a small business prime contractor. This suggests that the primary focus was on securing the most capable large business to fulfill the requirement. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this defense aviation requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Department of Defense Aviation Support Contracts
Air Force Aircraft Maintenance and Repair
Federal Aviation Services Procurement
Defense Logistics Agency Aviation Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific performance metrics makes value assessment difficult.
Scope of 'FT. DRUM AVIATION REQUIREMENT' is not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.7 million to PAE AVIATION AND TECHNICAL SERVICES LLC. FT. DRUM AVIATION REQUIREMENT

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 Air Force).

What is the total obligated amount?

The obligated amount is $55.7 million.

What is the period of performance?

Start: 2009-01-26. End: 2011-07-28.

What specific aviation services were provided under this contract?

The provided data indicates the contract is for 'FT. DRUM AVIATION REQUIREMENT' and falls under NAICS code 336411 (Aircraft Manufacturing). However, the specific services are not detailed. Given the context of military aviation and the NAICS code, these services could range from aircraft manufacturing and assembly to specialized maintenance, repair, overhaul (MRO), modification, or technical support for aircraft and related systems operating at or supporting Fort Drum. The Time and Materials (T&M) pricing structure suggests that the exact scope or effort might have been variable or difficult to define precisely at the outset, necessitating flexibility in billing for labor hours and material costs incurred.

How does the $55.7M contract value compare to similar aviation support contracts awarded by the Air Force?

Comparing the $55.7 million value requires context on the specific services rendered. For instance, a contract for depot-level maintenance on a fleet of aircraft would likely be significantly higher than a contract for specialized component repair or technical support for a smaller number of aircraft. The duration of 913 days (approximately 2.5 years) means the average annual value is around $22.3 million. This figure needs to be benchmarked against other T&M or cost-plus contracts for similar aviation support functions awarded by the Air Force or other branches of the DoD. Without more granular data on the scope of work and contract type, a precise comparison is difficult, but $22.3 million annually for specialized aviation services is a substantial commitment.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a T&M contract of this $55.7 million magnitude is cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and material costs incurred, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This structure provides flexibility but lacks upfront cost certainty. If the contractor's labor hours are inefficient, or if material costs are higher than anticipated, the total cost to the government can significantly exceed initial estimates. Effective oversight, detailed tracking of hours and materials, and robust negotiation of labor rates are critical to mitigate these risks and ensure value for money. The government must actively manage the contractor's performance and resource utilization.

What does the fact that 7 bids were received imply about the contractor's track record and market competition?

Receiving 7 bids for this $55.7 million contract suggests a healthy level of competition within the market for these specific aviation services. A higher number of bidders generally indicates that the requirement is well-understood, the market is accessible, and multiple companies possess the capability and interest to pursue the work. For the winning contractor, PAE Aviation and Technical Services LLC, it implies they were competitive enough to win against six other firms. For the government, it signifies that the full and open competition process was effective in attracting a diverse pool of potential providers, increasing the likelihood of selecting a capable contractor at a reasonable price. It also suggests that the market is not overly concentrated among a few dominant players for this type of requirement.

How has historical spending on similar aviation requirements by the Department of the Air Force trended?

Historical spending trends for similar aviation requirements by the Department of the Air Force are generally characterized by significant and consistent investment. The Air Force relies heavily on specialized aviation support, encompassing everything from aircraft acquisition and modification to extensive maintenance, repair, and overhaul (MRO) services. Spending in this category often fluctuates based on modernization programs, operational tempo, and the lifecycle of existing aircraft fleets. Contracts can range from small, specialized component repairs to multi-billion dollar sustainment programs. Analyzing past spending patterns for NAICS code 336411 and related service codes would reveal whether this $55.7 million contract represents a typical investment, an increase, or a decrease in spending for similar requirements over time. Factors like geopolitical events and defense budget allocations heavily influence these trends.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 12000 HORIZON WAY STE 400, MOUNT LAUREL, NJ, 03

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

Financial Breakdown

Contract Ceiling: $73,195,581

Exercised Options: $73,195,581

Current Obligation: $55,738,560

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0003

IDV Type: IDC

Timeline