Army Aviation Maintenance Contract Awarded to PAE Applied Technologies for $39M
Contract Overview
Contract Amount: $39,039,289 ($39.0M)
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: $44.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: TO PROVIDE US ARMY AVIATION FIELD AND SUSTAINMENT LEVEL MAINTENANCE
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31401, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to PAE APPLIED TECHNOLOGIES LLC for work described as: TO PROVIDE US ARMY AVIATION FIELD AND SUSTAINMENT LEVEL MAINTENANCE Key points: 1. Contract provides essential field and sustainment level maintenance for Army aviation assets. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of 875 days indicates a significant, ongoing need for services. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a specialized sector. 6. The award was made by the Department of the Air Force, acting on behalf of the Army. 7. The contract value of approximately $39 million reflects the scale of aviation maintenance required.
Value Assessment
Rating: fair
The contract value of $39 million over approximately 875 days suggests a daily expenditure of roughly $44,600. Without specific performance metrics or detailed breakdowns of labor and material costs, it is difficult to definitively benchmark the value for money. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses the contractor for actual labor hours and material expenses. Comparison to similar aviation maintenance contracts would be necessary for a more robust assessment of pricing and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a reasonably competitive environment for this specialized service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.
Public Impact
The U.S. Army Aviation branch benefits directly from the sustained operational readiness of its aircraft fleet. Services delivered include critical field and sustainment level maintenance, ensuring aircraft airworthiness and performance. The geographic impact is likely concentrated around Army aviation bases where maintenance is performed, potentially within Georgia (SN: GEORGIA). Workforce implications include employment for skilled aviation mechanics, technicians, and support staff employed by PAE Applied Technologies and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed diligently.
- Lack of specific performance metrics makes it difficult to assess efficiency and value.
- Reliance on a single contractor for a significant period (875 days) could reduce flexibility.
- Specialized nature of aviation maintenance requires continuous monitoring of technical expertise and quality.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Multiple bidders (7) suggest a competitive market for these services.
- Contract supports critical military aviation readiness, a high-priority government function.
- The contractor, PAE Applied Technologies, likely possesses specialized expertise in aviation maintenance.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for military aviation maintenance is specialized, requiring certified technicians and adherence to stringent safety and operational standards. Comparable spending benchmarks would involve analyzing other contracts for similar aviation maintenance services across different branches of the military or government agencies. The NAICS code 336411, Aircraft Manufacturing, suggests a close relationship to the production side of the industry, implying the maintenance services are highly technical and integrated with aircraft lifecycles.
Small Business Impact
The data indicates that small business participation (SB: false) was not a primary set-aside consideration for this contract. While the contract was awarded under full and open competition, there is no explicit information regarding small business subcontracting goals or achievements. The impact on the small business ecosystem would depend on whether PAE Applied Technologies actively seeks small business partners for specialized maintenance tasks or material procurement, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer (ACO) within the Department of the Air Force, overseeing the contract on behalf of the Army. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, but detailed operational oversight and Inspector General (IG) jurisdiction would depend on specific contract clauses and any identified performance issues or fraud concerns.
Related Government Programs
- Army Aviation Readiness Programs
- Air Force Logistics and Maintenance Contracts
- Department of Defense Aviation Sustainment
- Aircraft Component Repair Services
- Military Aircraft Field Support
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Lack of detailed performance metrics in the provided data.
- Dependence on contractor for specialized technical expertise.
- Potential for scope creep without strict management.
Tags
defense, aviation-maintenance, department-of-the-air-force, u.s.-army, time-and-materials, full-and-open-competition, large-contract, specialized-services, logistics-support, aircraft-services, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to PAE APPLIED TECHNOLOGIES LLC. TO PROVIDE US ARMY AVIATION FIELD AND SUSTAINMENT LEVEL MAINTENANCE
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 $39.0 million.
What is the period of performance?
Start: 2009-04-08. End: 2011-08-31.
What is the historical spending pattern for aviation field and sustainment level maintenance by the U.S. Army?
Analyzing historical spending for Army aviation maintenance requires accessing detailed budget and contract databases over multiple fiscal years. Typically, such spending fluctuates based on operational tempo, aircraft fleet age, modernization programs, and available appropriations. For instance, periods of increased deployment or the introduction of new aircraft types often correlate with higher maintenance expenditures. Without specific historical data for this contract or similar ones, it's challenging to provide precise figures. However, it's reasonable to assume that sustainment and field-level maintenance represent a significant and consistent portion of the Army Aviation budget, often running into hundreds of millions or even billions of dollars annually across all its aviation assets, including helicopters and fixed-wing aircraft.
How does the per-unit cost of this contract compare to industry benchmarks for similar aviation maintenance services?
Benchmarking the per-unit cost for this contract is challenging without more granular data. The contract is a Time and Materials (T&M) award valued at approximately $39 million over 875 days, averaging about $44,600 per day. This daily rate encompasses labor, materials, and overhead. To compare effectively, we would need to know the specific types of aircraft being maintained, the complexity of the maintenance tasks (e.g., routine inspections vs. major overhauls), and the labor mix (e.g., number of technicians, skill levels). Industry benchmarks for aviation maintenance vary widely. For example, depot-level maintenance for a large helicopter can cost hundreds of thousands to millions of dollars per aircraft, while field-level repairs might range from thousands to tens of thousands. Without a breakdown of services rendered and resources consumed, a precise per-unit cost comparison is not feasible.
What are the key performance indicators (KPIs) used to evaluate the performance of PAE Applied Technologies under this contract?
Key Performance Indicators (KPIs) for aviation maintenance contracts typically focus on ensuring aircraft readiness, safety, and cost-effectiveness. Common KPIs include aircraft availability rates (percentage of time aircraft are mission-capable), turnaround time for maintenance tasks (how quickly repairs are completed), quality of work (measured by defect rates or repeat repairs), adherence to schedules, and compliance with safety regulations. For this specific contract, the Department of the Air Force, acting on behalf of the Army, would likely have established specific metrics within the contract's Performance Work Statement (PWS). These KPIs would guide the evaluation of PAE Applied Technologies' performance, ensuring that the aviation assets are maintained to operational standards while managing costs effectively.
What is the track record of PAE Applied Technologies in performing similar aviation maintenance contracts for the U.S. military?
PAE Applied Technologies, and its parent company PAE, have a substantial track record in providing a wide range of services to the U.S. military and government agencies, including logistics, maintenance, and operational support. They have historically held numerous contracts involving aircraft maintenance, base operations, and technical support across various military branches. While specific details on their performance for aviation field and sustainment level maintenance would require a deep dive into past contract awards, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any associated disputes or awards, their general presence in the defense contracting space suggests experience in managing complex technical services. Their ability to win and perform on large-scale contracts indicates a capacity to meet military requirements.
What are the potential risks associated with a Time and Materials (T&M) contract for aviation maintenance?
Time and Materials (T&M) contracts, like the one awarded to PAE Applied Technologies, carry inherent risks for the government, primarily concerning cost control. In a T&M arrangement, the contractor is reimbursed for the actual hours worked by their personnel and the cost of materials used, plus a fixed fee or labor rate. This structure can lead to cost overruns if the scope of work expands unexpectedly, if labor hours are not efficiently managed, or if material costs escalate. Unlike fixed-price contracts, T&M offers less certainty regarding the total project cost. For aviation maintenance, this means the government is exposed to potential increases in labor rates, the need for unforeseen parts, or extended repair times, all of which can drive up the final expenditure beyond initial estimates. Robust oversight and clear task definitions are crucial to mitigate these risks.
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: 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: $54,477,355
Exercised Options: $54,477,355
Current Obligation: $39,039,289
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: 2015-09-29
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