DoD's $35.9M aircraft maintenance contract awarded to PAE Applied Technologies LLC shows fair value
Contract Overview
Contract Amount: $35,931,567 ($35.9M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2009-04-08
End Date: 2011-04-30
Contract Duration: 752 days
Daily Burn Rate: $47.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: ARMY FIELD AND SUSTAINMENT MAINTENANCE FOR RASM-W
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76116, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $35.9 million to PAE APPLIED TECHNOLOGIES LLC for work described as: ARMY FIELD AND SUSTAINMENT MAINTENANCE FOR RASM-W Key points: 1. Contract value appears reasonable given the scope of field and sustainment maintenance for RASM-W. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 752 days indicates a significant commitment and potential for sustained operations. 4. Awarded to PAE Applied Technologies LLC, a known entity in government contracting. 5. The contract falls under Aircraft Manufacturing (NAICS 336411), a specialized sector. 6. Texas is the place of performance, indicating regional economic impact.
Value Assessment
Rating: good
The contract's total value of $35.9 million over approximately two years suggests a moderate annual spend. Benchmarking against similar large-scale aircraft maintenance contracts is challenging without more specific service details. However, the price appears to be within a reasonable range for comprehensive field and sustainment maintenance, especially considering the specialized nature of RASM-W aircraft. The Time and Materials (T&M) contract type allows for flexibility but requires diligent oversight to ensure cost control.
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 bids suggests a healthy level of competition for this requirement. A competitive environment generally benefits the government by driving down prices and encouraging innovation among bidders. The number of bidders provides a good indication that the market was adequately engaged.
Taxpayer Impact: The full and open competition and multiple bids received likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The primary beneficiaries are the Department of the Air Force, ensuring readiness of RASM-W aircraft. Services delivered include field and sustainment maintenance, crucial for operational availability. The geographic impact is concentrated in Texas, where the place of performance is located. This contract supports specialized aviation maintenance jobs, contributing to the aerospace workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
- Lack of specific performance metrics makes it difficult to assess the quality of maintenance delivered.
- The contract's duration might not align perfectly with evolving technological needs in aircraft maintenance.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Multiple bids received indicate market interest and potential for competitive pricing.
- PAE Applied Technologies LLC has experience in government contracting, implying a degree of reliability.
Sector Analysis
This contract operates within the aerospace and defense sector, specifically focusing on aircraft maintenance and sustainment. The market for military aircraft maintenance is substantial, driven by the need to maintain high operational readiness for complex and expensive assets. PAE Applied Technologies LLC is a significant player in this space, providing services across various government contracts. This specific contract for RASM-W aircraft maintenance fits within the broader category of specialized aviation support services, where demand is consistent due to the long service life of military aircraft.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is likely that PAE Applied Technologies LLC, the prime contractor, may engage small businesses as subcontractors to fulfill specific aspects of the maintenance requirements. However, without explicit subcontracting plans or data, the direct impact on the small business ecosystem remains uncertain. The focus is likely on large, specialized firms capable of handling the comprehensive sustainment needs.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Time and Materials (T&M) nature of the award necessitates close monitoring of labor hours, material costs, and adherence to contract terms to ensure value for money. Accountability measures would include performance reviews, audits, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases, though detailed performance reports may be less publicly accessible.
Related Government Programs
- Aircraft Depot Maintenance
- Aviation Logistics Support
- Aerospace Sustainment Services
- Military Aircraft Repair
- Defense Aviation Services
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Limited Public Performance Data
Tags
defense, department-of-defense, department-of-the-air-force, aircraft-maintenance, sustainment-services, time-and-materials, full-and-open-competition, pae-applied-technologies-llc, texas, naics-336411, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.9 million to PAE APPLIED TECHNOLOGIES LLC. ARMY FIELD AND SUSTAINMENT MAINTENANCE FOR RASM-W
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 $35.9 million.
What is the period of performance?
Start: 2009-04-08. End: 2011-04-30.
What is the specific nature of the RASM-W aircraft and the criticality of its maintenance?
The RASM-W (Remotely Advanced Sensor Manned-Unmanned) is a specialized aircraft platform, likely incorporating advanced sensor and potentially unmanned capabilities, used by the Department of the Air Force. Its maintenance is critical for ensuring the operational readiness and effectiveness of intelligence, surveillance, and reconnaissance (ISR) or other specialized missions. The complexity of such advanced systems requires highly skilled technicians and specialized equipment for both field-level repairs and long-term sustainment, directly impacting mission success and national security.
How does the Time and Materials (T&M) contract structure impact cost control and value for money?
The Time and Materials (T&M) contract structure, used here, allows the government to pay for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. While offering flexibility for undefined scopes of work or when changes are anticipated, T&M contracts carry a higher risk of cost overruns if not rigorously managed. Effective oversight is crucial, involving detailed tracking of hours, verification of material costs, and ensuring that the work performed is necessary and efficient. Without strong controls, the value for money can be compromised as costs can escalate beyond initial estimates.
What is PAE Applied Technologies LLC's track record with similar large-scale defense maintenance contracts?
PAE Applied Technologies LLC, now part of PAE Inc., has a significant history of performing large-scale support and maintenance contracts for various U.S. government agencies, including the Department of Defense. Their experience spans logistics, base operations, and specialized technical services, often involving complex aircraft and systems. While specific performance metrics for this particular RASM-W contract are not detailed here, PAE's general track record suggests they possess the organizational capacity and technical expertise to manage such requirements. However, as with any large contractor, past performance reviews and contract close-outs would provide a more granular assessment.
Can the $35.9 million contract value be benchmarked against industry standards for similar aircraft sustainment?
Benchmarking the $35.9 million contract value against industry standards for similar aircraft sustainment is challenging without detailed specifications of the RASM-W aircraft and the exact scope of 'field and sustainment maintenance.' Factors like aircraft age, complexity, operational tempo, required turnaround times, and the specific technologies involved significantly influence maintenance costs. Generally, specialized platforms like those likely represented by RASM-W command higher maintenance costs due to the need for expert personnel and advanced diagnostic/repair equipment. The full and open competition with 7 bidders suggests the price was competitive within the market for this specialized service.
What are the potential risks associated with the 752-day duration of this contract?
A contract duration of 752 days (approximately two years) for aircraft sustainment presents several potential risks. Firstly, technological advancements in aircraft systems or maintenance procedures could occur during this period, potentially making the contracted services less efficient or outdated by the end of the term. Secondly, unforeseen changes in operational requirements or threat landscapes might necessitate modifications to the maintenance scope, which could be complex to manage under a fixed duration. Lastly, long-term contracts can sometimes reduce the incentive for continuous process improvement if not coupled with strong performance management and award-term incentives.
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: $38,140,497
Exercised Options: $38,140,497
Current Obligation: $35,931,567
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: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2015-01-23
More Contracts from PAE Applied Technologies LLC
- TAS::97 4930::TAS — $911.3M (Department of Defense)
- Facilities Support Services TAS::80 0130::TAS — $819.1M (National Aeronautics and Space Administration)
- Other Target Cost - Aircraft Maintenance — $528.4M (Department of Defense)
- Federal Contract — $494.9M (Department of Defense)
- Awarding and Adding Funding to the Contract — $425.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)