DoD's $24.2M aviation maintenance contract awarded to PAE Applied Technologies LLC shows fair value
Contract Overview
Contract Amount: $24,240,705 ($24.2M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2009-04-10
End Date: 2011-07-31
Contract Duration: 842 days
Daily Burn Rate: $28.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: ARMY AVIATION FIELD AND SUSTAINMENT LEVEL MAINTENANCE FOR RASM-W
Place of Performance
Location: SAN ANGELO, TOM GREEN County, TEXAS, 76901
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to PAE APPLIED TECHNOLOGIES LLC for work described as: ARMY AVIATION FIELD AND SUSTAINMENT LEVEL MAINTENANCE FOR RASM-W Key points: 1. Contract value of $24.2M over 842 days indicates a moderate annual spend. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Time and Materials contract type may pose cost control challenges if not managed closely. 4. The contract supports aviation field and sustainment level maintenance for RASM-W. 5. Geographic location in Texas (TX) may influence local economic impact. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.
Value Assessment
Rating: good
The contract's total value of approximately $24.2 million over 842 days suggests an average annual spend of around $10.3 million. Benchmarking this against similar aviation maintenance contracts is difficult without more specific service details. However, the Time and Materials pricing structure, while common, requires diligent oversight to ensure cost-effectiveness and prevent scope creep. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award process offers some assurance of reasonable pricing.
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 a bid. The data shows 7 bidders participated in this competition. A robust number of bidders generally suggests a healthy competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition implies confidence in the market's ability to provide qualified contractors.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it fosters a competitive environment that typically drives down costs and encourages innovation, leading to better value for public funds.
Public Impact
The primary beneficiaries are the Department of Defense and its aviation units, receiving essential maintenance services. Services delivered include field and sustainment level maintenance for RASM-W aircraft. The contract's geographic impact is centered in Texas (TX), potentially supporting local jobs and businesses. Workforce implications may include skilled aviation mechanics and support personnel in the Texas region.
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 for labor hours and material costs.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality and efficiency of services rendered.
- The contract duration of 842 days (approx. 2.3 years) is substantial, requiring ongoing vigilance to ensure continued value.
- No small business subcontracting goals are explicitly mentioned, which could limit opportunities for smaller firms in the aviation support ecosystem.
Positive Signals
- Awarded through full and open competition with 7 bidders, indicating a competitive marketplace and potential for fair pricing.
- The contract supports critical aviation maintenance for the Department of Defense, ensuring operational readiness.
- The contractor, PAE Applied Technologies LLC, likely possesses specialized expertise in aviation maintenance.
- The contract is geographically located in Texas, potentially benefiting the local economy through job creation and business activity.
Sector Analysis
The aviation maintenance sector is a critical component of the aerospace and defense industry, characterized by specialized technical skills and stringent quality requirements. This contract falls within the broader Aircraft Manufacturing and Maintenance industry (NAICS 336411). The market for military aviation maintenance is substantial, driven by the need to keep complex aircraft operational. Spending benchmarks for similar sustainment contracts can vary widely based on aircraft type, age, and required service levels. This contract represents a specific instance of federal spending within this specialized niche.
Small Business Impact
This contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. This suggests that the primary focus was on securing specialized capabilities from established providers. While there's no explicit mention of subcontracting requirements for small businesses, it is common practice for large prime contractors in the defense sector to engage small businesses for specific components or services. The impact on the small business ecosystem would depend on whether PAE Applied Technologies LLC actively seeks out and utilizes small business subcontractors for this particular contract.
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. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment clauses. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.
Related Government Programs
- Aircraft Maintenance Services
- Aviation Support Contracts
- Defense Logistics and Sustainment
- Aerospace Maintenance, Repair, and Overhaul (MRO)
- Military Aircraft Field Support
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Need for robust government oversight to ensure performance and value.
- Dependence on contractor's technical expertise and supply chain for parts.
- Limited visibility into specific performance metrics and quality assurance.
Tags
defense, department-of-defense, department-of-the-air-force, aviation-maintenance, full-and-open-competition, time-and-materials, texas, aircraft-manufacturing, sustainment-services, prime-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to PAE APPLIED TECHNOLOGIES LLC. ARMY AVIATION FIELD AND SUSTAINMENT LEVEL 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 $24.2 million.
What is the period of performance?
Start: 2009-04-10. End: 2011-07-31.
What is the track record of PAE Applied Technologies LLC in performing similar aviation maintenance contracts for the Department of Defense?
PAE Applied Technologies LLC has a significant history of performing various support services for the Department of Defense, including aviation maintenance, logistics, and base operations. Their experience often spans complex, large-scale contracts requiring specialized technical expertise and adherence to strict military standards. While specific details for this RASM-W contract are limited, PAE's general profile suggests they are a capable provider for such services. A deeper dive into their past performance on similar contracts, including any past performance evaluations or awards, would provide a more comprehensive understanding of their reliability and effectiveness in aviation sustainment.
How does the awarded price compare to market rates for similar aviation field and sustainment level maintenance services?
Determining precise market rates for specialized aviation maintenance is complex due to variations in aircraft types, required services (field vs. sustainment), labor costs, and geographic locations. The total contract value of $24.2 million over 842 days (approximately 2.3 years) translates to an average annual value of roughly $10.3 million. Without access to detailed service scopes and labor hour breakdowns, a direct comparison to commercial market rates is challenging. However, the fact that the contract was awarded under full and open competition with seven bidders suggests that the pricing was deemed competitive within the government procurement context. Further analysis would require benchmarking against other government contracts for similar aircraft sustainment.
What are the primary risks associated with a Time and Materials (T&M) contract for aviation maintenance, and how are they mitigated?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for actual labor hours and material costs incurred by the contractor. This structure can incentivize longer task durations or higher material costs if not managed diligently. Mitigation strategies employed by the government typically include establishing ceiling prices, requiring detailed record-keeping and invoicing, implementing robust oversight by contracting officers and technical representatives, and defining clear work requirements. For this contract, the Department of the Air Force would need to actively monitor labor hours, material expenditures, and task completion to ensure efficiency and prevent unnecessary costs, especially given the contract's duration.
What is the expected effectiveness of this contract in ensuring the operational readiness of RASM-W aircraft?
The effectiveness of this contract in ensuring the operational readiness of RASM-W aircraft hinges on the contractor's ability to deliver timely and high-quality field and sustainment level maintenance. Field-level maintenance typically addresses immediate operational needs and minor repairs, while sustainment-level maintenance involves more in-depth servicing and overhauls to ensure long-term airworthiness. The contract's success will depend on the contractor's technical proficiency, adherence to maintenance schedules, availability of parts, and responsiveness to emergent issues. The competitive award process and the contractor's presumed expertise suggest a strong likelihood of achieving the intended operational readiness goals, provided diligent government oversight is maintained.
How has federal spending on aviation maintenance, specifically for the RASM-W platform, trended over the past five years?
Historical spending data for aviation maintenance, particularly for specific platforms like the RASM-W, is often aggregated within broader categories such as aircraft maintenance, repair, and overhaul (MRO) services. Without specific contract identifiers or detailed platform breakdowns in public databases, tracing precise year-over-year spending trends for the RASM-W platform alone is difficult. However, overall federal spending on defense aviation sustainment has remained substantial, driven by the need to maintain a modern and capable fleet. Factors influencing these trends include aircraft modernization programs, operational tempo, and budget allocations. This $24.2 million contract represents a portion of that broader spending landscape.
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: $24,609,011
Exercised Options: $24,574,674
Current Obligation: $24,240,705
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810809D0002
IDV Type: IDC
Timeline
Start Date: 2009-04-10
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2014-02-14
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