DoD's $72M Army Aviation Reset contract awarded to PAE Applied Technologies for aircraft manufacturing
Contract Overview
Contract Amount: $72,279,943 ($72.3M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2009-04-08
End Date: 2011-08-31
Contract Duration: 875 days
Daily Burn Rate: $82.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARMY AVIATION RESET AT VARIOUS LOCATIONS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76116
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $72.3 million to PAE APPLIED TECHNOLOGIES LLC for work described as: ARMY AVIATION RESET AT VARIOUS LOCATIONS Key points: 1. Contract value of $72.3 million for aviation reset services. 2. Awarded under full and open competition, indicating broad market engagement. 3. Firm Fixed Price contract type suggests defined scope and cost control. 4. Duration of 875 days implies a substantial, multi-year project. 5. The contract falls under Aircraft Manufacturing (NAICS 336411). 6. Awarded by the Department of the Air Force, supporting Army aviation needs. 7. The contractor, PAE Applied Technologies LLC, has a significant presence in government contracting.
Value Assessment
Rating: good
The contract value of $72.3 million for aviation reset services appears reasonable given the scope and duration. Without specific benchmarks for 'aviation reset' services, a direct comparison is challenging. However, the firm fixed-price structure suggests that the government has negotiated a definitive price for the defined work, which is a positive indicator for value. The number of bids received (7) also suggests a competitive environment that likely contributed to a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Seven bids were received, indicating a healthy level of interest and competition for this requirement. This broad competition is generally expected to drive down prices and ensure the government receives the best value proposition.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure competitive pricing for essential aviation maintenance and reset services.
Public Impact
Benefits the U.S. Army by ensuring the readiness and operational capability of its aviation assets. Delivers critical aircraft manufacturing and reset services, extending the lifespan and performance of helicopters and other aircraft. Geographic impact is localized to various Army aviation bases where the reset activities take place. Supports a skilled workforce in aircraft manufacturing and maintenance, contributing to specialized technical employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise during the reset process, despite the firm-fixed-price structure.
- Dependence on a single contractor for a critical function like aviation reset could pose risks if performance issues emerge.
- The long duration of the contract could lead to scope creep or changes in requirements that may not be fully captured in the initial pricing.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Full and open competition suggests a robust selection process and potentially competitive pricing.
- Award to an established contractor like PAE Applied Technologies indicates a level of confidence in their capabilities.
- The contract addresses a critical need for Army aviation readiness.
Sector Analysis
The aviation manufacturing and maintenance sector is a significant part of the defense industrial base. Contracts for aircraft reset are crucial for maintaining the operational readiness of military fleets. Spending in this area is often substantial, driven by the high cost of advanced aircraft and the need for continuous upkeep. This contract fits within the broader category of defense logistics and sustainment services, where competition can vary depending on the specificity and technical requirements of the services.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is PAE Applied Technologies LLC, there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if small businesses are participating in the supply chain for this contract.
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, overseeing the Army's aviation assets. Performance would be monitored against the firm-fixed-price terms and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not publicly detailed.
Related Government Programs
- Army Aviation Sustainment
- Aircraft Maintenance and Repair
- Defense Logistics Services
- Military Aircraft Manufacturing
- Aerospace Defense Contracts
Risk Flags
- Potential for cost growth if scope changes are required.
- Dependence on contractor performance for critical aviation readiness.
- Long contract duration may introduce risks related to evolving requirements.
Tags
defense, army-aviation, aircraft-manufacturing, full-and-open-competition, firm-fixed-price, department-of-the-air-force, pae-applied-technologies-llc, sustainment, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.3 million to PAE APPLIED TECHNOLOGIES LLC. ARMY AVIATION RESET AT VARIOUS LOCATIONS
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 $72.3 million.
What is the period of performance?
Start: 2009-04-08. End: 2011-08-31.
What is the historical spending pattern for Army Aviation Reset services by the Department of Defense?
Historical spending on Army Aviation Reset services by the Department of Defense is substantial and fluctuates based on operational tempo, aircraft fleet age, and modernization programs. While specific aggregate data for 'aviation reset' is not readily available as a distinct category, related spending on aircraft maintenance, repair, and overhaul (MRO) runs into billions of dollars annually. For instance, the Army's aviation budget consistently allocates significant funds towards sustainment, which includes reset activities. Analyzing past contracts for similar services awarded to PAE Applied Technologies LLC or other major defense contractors can provide insights into typical contract values, durations, and competition levels. Trends often show increased spending during periods of high operational deployment and subsequent needs for extensive refurbishment upon return.
How does the performance of PAE Applied Technologies LLC on similar contracts compare to industry benchmarks?
Assessing the performance of PAE Applied Technologies LLC requires a detailed review of their past contract performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, which is often not publicly accessible in full detail. However, PAE is a large, established government contractor with a broad portfolio across defense, aerospace, and government services. Their track record generally indicates experience in managing complex programs. For aviation reset services, benchmarks would typically involve on-time delivery rates, adherence to quality standards, cost control within fixed-price agreements, and responsiveness to government needs. Without specific CPARS data or direct comparisons to other 'aviation reset' contracts, a definitive benchmark is difficult. However, their continued success in securing large contracts suggests a generally positive performance history.
What are the primary risks associated with this specific aviation reset contract?
The primary risks associated with this Army Aviation Reset contract include technical complexity and potential for unforeseen issues during the reset process, which could impact timelines and costs, even under a firm-fixed-price (FFP) contract if scope changes are necessary. Contractor performance is a key risk; any degradation in PAE Applied Technologies LLC's ability to meet quality or schedule requirements could affect Army aviation readiness. Dependence on a single contractor for a critical function also poses a risk if performance falters. Furthermore, the long duration (875 days) increases the risk of requirement changes or evolving technological needs that may not be fully addressed by the original contract scope. Finally, ensuring effective government oversight throughout the contract lifecycle is crucial to mitigate these risks.
What is the estimated value of the services provided per year over the contract's duration?
The total contract value is $72,279,943.08, and the contract duration is 875 days. To estimate the annual value, we first convert the duration to years: 875 days / 365.25 days/year ≈ 2.40 years. Then, we divide the total contract value by the duration in years: $72,279,943.08 / 2.40 years ≈ $30,116,643 per year. This calculation provides an average annual spending rate for the services rendered under this contract. It's important to note that actual spending may vary year-to-year based on the phasing of the reset activities and specific milestones achieved.
How does the number of bidders (7) influence the pricing and value for the government in this contract?
Receiving seven bids for this contract, awarded under full and open competition, is a strong positive signal regarding price discovery and value for the government. A higher number of bidders generally intensifies competition, pressuring contractors to offer more competitive pricing to win the award. This suggests that the government likely secured a fair market price for the aviation reset services. The competition also increases the likelihood that the winning proposal represents the best overall value, considering not just price but also technical approach and past performance. A limited number of bidders, conversely, could indicate potential market concentration or barriers to entry, which might lead to higher prices.
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, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $72,279,943
Exercised Options: $72,279,943
Current Obligation: $72,279,943
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810809D0002
IDV Type: IDC
Timeline
Start Date: 2009-04-08
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2014-07-02
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