DoD's $47.4M Army Aviation Reset contract awarded to PAE Applied Technologies for aircraft manufacturing
Contract Overview
Contract Amount: $47,443,624 ($47.4M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2009-04-08
End Date: 2011-07-31
Contract Duration: 844 days
Daily Burn Rate: $56.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: ARMY AVIATION RESET AT FT. HOOD, TX
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76116
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $47.4 million to PAE APPLIED TECHNOLOGIES LLC for work described as: ARMY AVIATION RESET AT FT. HOOD, TX Key points: 1. Contract value of $47.4M for aircraft manufacturing services. 2. Awarded under full and open competition, indicating a broad market search. 3. Contract duration of 844 days, spanning over two years. 4. Primarily focused on aircraft manufacturing, a critical defense capability. 5. Awarded by the Department of the Air Force, supporting Army aviation needs. 6. The contract type is Time and Materials, which can pose cost control challenges. 7. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without detailed scope of work and market data for aircraft reset services. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed closely, as it reimburses the contractor for direct labor and materials plus a fee. Comparing it to similar aviation maintenance or manufacturing contracts would require access to detailed pricing structures and performance metrics. The contract's value of approximately $47.4 million over its duration suggests a significant undertaking, but its value-for-money assessment hinges on the quality of work performed and the efficiency of the T&M structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit offers. The presence of 7 bidders indicates a competitive environment for this requirement. 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, such as the evaluation criteria and the number of proposals received, would provide further insight into the effectiveness of the competition.
Taxpayer Impact: The full and open competition likely resulted in a more competitive pricing structure, benefiting taxpayers by ensuring the government received offers from multiple capable vendors, potentially driving down the overall cost of the aviation reset services.
Public Impact
Benefits Army aviation units by ensuring aircraft readiness and operational capability. Delivers essential maintenance, repair, and overhaul services for critical aircraft. Supports military operations by maintaining a fleet of airworthy aircraft. Impacts the defense industrial base by providing work for specialized aviation technicians and support staff. Geographic impact is centered around Fort Hood, Texas, a major Army installation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type may lead to cost overruns if not closely monitored.
- Lack of specific performance metrics in the provided data makes assessing efficiency difficult.
- The contract's focus on 'reset' implies addressing wear and tear, requiring thorough quality control.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Multiple bidders (7) indicate a healthy competitive landscape for this service.
- The contract addresses a critical need for Army aviation readiness.
Sector Analysis
The defense aviation sector involves the manufacturing, maintenance, and upgrade of aircraft for military purposes. This contract falls within the broader Aircraft Manufacturing (NAICS 336411) industry. The market for defense aviation services is substantial, driven by the continuous need to maintain and modernize military fleets. Comparable spending benchmarks would typically involve analyzing other contracts for aircraft depot-level maintenance, repair, and overhaul (MRO) services, as well as specialized manufacturing or modification programs within the Department of Defense.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not explicitly detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force, responsible for ensuring performance and compliance. Accountability measures would be embedded in the contract terms, including delivery schedules, quality standards, and payment terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Army Aviation Maintenance Contracts
- Aircraft Depot Maintenance
- Defense Manufacturing Services
- Aircraft Component Repair
- Military Aircraft Overhaul
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Need for robust government oversight to manage T&M expenditures.
- Complexity of aircraft reset requiring specialized skills and quality control.
Tags
defense, aviation, aircraft-manufacturing, army, department-of-defense, department-of-the-air-force, full-and-open-competition, time-and-materials, texas, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.4 million to PAE APPLIED TECHNOLOGIES LLC. ARMY AVIATION RESET AT FT. HOOD, TX
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 $47.4 million.
What is the period of performance?
Start: 2009-04-08. End: 2011-07-31.
What was the specific scope of work for the Army Aviation Reset at Fort Hood, TX under this contract?
The provided data indicates the contract was for 'ARMY AVIATION RESET AT FT. HOOD, TX' and falls under NAICS code 336411 (Aircraft Manufacturing). While 'reset' typically implies bringing aircraft back to a specified operational condition, the exact scope would encompass detailed tasks such as inspection, repair, overhaul, modification, and testing of specific Army aviation platforms. This could include everything from component-level repairs to full airframe refurbishment, ensuring the aircraft meet stringent military readiness standards. The Time and Materials (T&M) pricing structure suggests that the government paid for the labor hours and materials consumed by the contractor to perform these reset activities, rather than a fixed price for a defined outcome.
How does the $47.4M contract value compare to similar aviation reset contracts awarded by the DoD?
Direct comparison of the $47.4 million value is difficult without knowing the specific aircraft types, the extent of the 'reset' required (e.g., minor repairs vs. major overhauls), and the contract duration. However, major aviation reset and maintenance contracts for the DoD can range from tens of millions to hundreds of millions of dollars, depending on the fleet size and complexity. For instance, large-scale depot maintenance contracts for helicopters or fixed-wing aircraft often exceed this value. The fact that this contract was competed fully and openly with seven bidders suggests it was a significant requirement, but its relative size within the broader DoD aviation maintenance landscape would require a deeper analysis of comparable contract awards over similar periods.
What are the primary risks associated with a Time and Materials (T&M) contract for aircraft manufacturing and reset services?
The primary risk with a Time and Materials (T&M) contract, like the one awarded to PAE Applied Technologies, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for actual labor hours and material costs incurred, plus a fee or profit margin. If the contractor's labor efficiency is low, or if material costs escalate unexpectedly, the total cost to the government can exceed initial estimates. Effective oversight is crucial to mitigate this risk, requiring diligent monitoring of labor hours, validation of material costs, and ensuring that the work performed is necessary and efficient. Without strong government oversight, T&M contracts can become more expensive than initially anticipated.
What is the track record of PAE Applied Technologies in performing similar defense aviation contracts?
PAE Applied Technologies (now part of Amentum following a merger) has a significant history of performing complex logistics, maintenance, and technical support services for the U.S. military, including aviation-related contracts. Their portfolio often includes base operations support, aircraft maintenance, and specialized technical services across various global locations. While specific performance details for this particular $47.4 million 'reset' contract are not detailed in the provided data, PAE's general track record suggests experience in managing large-scale, technically demanding defense support programs. Assessing their specific performance on this contract would require reviewing past performance evaluations and contract close-out data.
How does the competition level (7 bidders) impact the government's ability to achieve value for money on this contract?
A competition level with seven bidders is generally considered robust and is likely to have a positive impact on achieving value for money. A higher number of bidders typically intensifies competition, encouraging each offeror to submit their most competitive pricing and technically sound proposals to win the contract. This scenario increases the likelihood that the government will receive a fair market price for the required aircraft reset services. Furthermore, a competitive process allows the government to select the offer that provides the best overall value, considering both price and technical merit, rather than simply the lowest price.
What are the implications of awarding this contract to a large business rather than a small business?
Awarding a contract of this magnitude ($47.4 million) to a large business like PAE Applied Technologies is common for complex aviation reset requirements that demand extensive resources, specialized facilities, and a large skilled workforce. While large businesses can often handle such large-scale projects efficiently, it means that opportunities for small businesses to directly compete for the prime contract are limited. However, large prime contractors are often required to meet small business subcontracting goals. The impact on the small business ecosystem depends on whether PAE actively seeks out and utilizes qualified small businesses for subcontracting roles in areas like component repair, specialized manufacturing, or support services.
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, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $103,729,394
Exercised Options: $103,729,394
Current Obligation: $47,443,624
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: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2014-04-30
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