DoD's $152.6M Logistics Consulting Contract with S & K Aerospace Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $152,569,959 ($152.6M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Defense
Start Date: 2012-03-15
End Date: 2022-03-14
Contract Duration: 3,651 days
Daily Burn Rate: $41.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF PROS IV FY 2015
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $152.6 million to S & K AEROSPACE, LLC for work described as: IGF::CL::IGF PROS IV FY 2015 Key points: 1. The contract's significant value raises questions about cost-effectiveness for logistics consulting services. 2. Full and open competition was utilized, but the award details and pricing require deeper analysis. 3. Potential risks include overspending and suboptimal service delivery if pricing is not benchmarked effectively. 4. The IT and professional services sector often sees high contract values, but justification is key.
Value Assessment
Rating: questionable
The contract value of $152.6 million over 10 years is substantial for logistics consulting. Without detailed breakdowns of services and deliverables, it's difficult to assess if this represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific award details and the number of bids received are crucial to understanding the competitive pressure on pricing.
Taxpayer Impact: The large contract value suggests significant taxpayer funds are allocated. Ensuring competitive pricing and efficient service delivery is paramount to maximizing taxpayer value.
Public Impact
Taxpayers may be footing a substantial bill for logistics consulting services over a decade. The Department of the Air Force's reliance on a single contractor for extensive logistics support warrants oversight. The long duration of the contract could limit opportunities for agencies to benefit from evolving best practices or new providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value without clear justification
- Long contract duration
- Potential for cost overruns
- Limited visibility into specific deliverables
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. Spending in this area can be high, but requires careful management to ensure value for money, especially for long-term engagements.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The significant value and long duration of this contract necessitate robust oversight from the Department of Defense and the Air Force to ensure accountability and prevent waste, fraud, and abuse.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value potentially exceeding market rates
- Long contract duration limiting flexibility
- Lack of detailed service breakdown for value assessment
- Potential for contractor lock-in
- Insufficient information on performance metrics
Tags
process-physical-distribution-and-logist, department-of-defense, ga, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.6 million to S & K AEROSPACE, LLC. IGF::CL::IGF PROS IV FY 2015
Who is the contractor on this award?
The obligated recipient is S & K AEROSPACE, 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 $152.6 million.
What is the period of performance?
Start: 2012-03-15. End: 2022-03-14.
What specific logistics consulting services are being provided under this contract, and how do they align with the Air Force's strategic needs?
The contract is for Process, Physical Distribution, and Logistics Consulting Services (NAICS 541614). A detailed breakdown of the specific tasks, deliverables, and expected outcomes is necessary to understand how these services directly support the Air Force's operational requirements and strategic objectives.
How was the $152.6 million contract value determined, and what benchmarks were used to ensure it represents a fair price for the services rendered?
Assessing the fairness of the $152.6 million price requires examining the basis of estimate, including labor rates, hours, and overhead. Benchmarking against similar contracts for comparable logistics consulting services, considering the contract duration and scope, is crucial for validating the value.
What mechanisms are in place to measure the effectiveness and efficiency of S & K Aerospace's consulting services throughout the contract's 10-year duration?
Effective oversight requires clear performance metrics, regular reviews, and feedback mechanisms. The Air Force should have established key performance indicators (KPIs) to track the contractor's performance, ensuring that the services provided are delivering tangible improvements in logistics processes and cost savings.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA863010R5018
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 63066 OLD HWY 93, SAINT IGNATIUS, MT, 59865
Business Categories: 8(a) Program Participant, Category Business, Labor Surplus Area Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,367,000,000
Exercised Options: $1,367,000,000
Current Obligation: $152,569,959
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA863012D5018
IDV Type: IDC
Timeline
Start Date: 2012-03-15
Current End Date: 2022-03-14
Potential End Date: 2022-03-14 00:00:00
Last Modified: 2016-03-23
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