DoD's $184.6M Logistics Consulting Contract with S & K Aerospace Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $184,628,056 ($184.6M)

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: $50.6K/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

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 $184.6 million to S & K AEROSPACE, LLC for work described as: IGF::CL::IGF PROS IV Key points: 1. The contract awarded to S & K Aerospace, LLC for logistics consulting services represents a significant investment by the Department of the Air Force. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. The long duration (10 years) and fixed-price nature of the contract warrant a closer look at ongoing value and cost control. 4. The absence of small business participation is noted, raising questions about broader economic impact.

Value Assessment

Rating: fair

The contract's fixed-price structure for a decade-long service could lead to price escalation if market conditions change significantly. Benchmarking against similar long-term, specialized consulting contracts is difficult without more granular data on deliverables and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can drive competitive pricing. However, the long duration might have influenced the number of bids or the pricing strategies of the participants.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the long-term commitment requires ongoing monitoring to ensure continued cost-effectiveness and value for money.

Public Impact

Taxpayers are funding a decade-long logistics consulting service for the Air Force. The contract's duration suggests a critical, long-term need for specialized expertise within the Department of Defense. The lack of small business involvement may limit opportunities for smaller, specialized firms in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years)
No small business participation
Potential for price creep over time

Positive Signals

Full and open competition
Firm fixed-price contract type

Sector Analysis

This contract falls under professional services, specifically logistics consulting, which is crucial for efficient military operations. Benchmarking requires comparison with similar long-term, high-value consulting contracts within the defense sector, which are often specialized and command significant investment.

Small Business Impact

The contract explicitly states that small business participation was not a factor (ss: false, sb: false). This indicates that the prime contractor, S & K Aerospace, LLC, is not a small business, and there is no indication of subcontracting goals for small businesses within this award.

Oversight & Accountability

The long duration of this contract necessitates robust oversight from the Department of the Air Force to ensure performance standards are met and that the services remain relevant and cost-effective throughout its term. Regular performance reviews and audits are critical.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long-term contract duration may reduce incentive for cost reduction.
Lack of small business participation.
Potential for scope creep or evolving needs not fully captured in initial pricing.
Difficulty in benchmarking specialized, long-term consulting services.
Over-reliance on a single contractor for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $184.6 million to S & K AEROSPACE, LLC. IGF::CL::IGF PROS IV

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 $184.6 million.

What is the period of performance?

Start: 2012-03-15. End: 2022-03-14.

What specific logistics challenges is the Air Force addressing with this decade-long contract, and how does the $184.6M allocation align with the expected outcomes and potential cost savings?

The contract addresses Process, Physical Distribution, and Logistics Consulting Services, indicating a need for sustained expertise in optimizing supply chains, transportation, and operational readiness. The $184.6M allocation over 10 years suggests a significant, ongoing requirement. Without detailed performance metrics and defined outcomes, it's challenging to definitively assess if this aligns with expected cost savings or efficiency gains. Further analysis would require understanding the specific objectives and deliverables tied to this funding.

Given the full and open competition, what factors might have led to a single awardee for such a substantial, long-term contract, and what are the potential risks associated with limited ongoing compet

Factors contributing to a single award could include highly specialized requirements, unique qualifications of S & K Aerospace, LLC, or a bidding process that favored long-term partnership over short-term solutions. The risk of limited ongoing competitive pressure over a decade is that the contractor may have less incentive to innovate or reduce costs aggressively. This necessitates strong government oversight to ensure continued value and performance.

How effectively has S & K Aerospace, LLC delivered on its logistics consulting services over the contract's lifespan, and are there any indicators of performance issues or exceptional value that warra

The provided data does not include performance metrics or specific outcomes achieved by S & K Aerospace, LLC. Therefore, assessing the effectiveness of their service delivery is not possible. The 10-year duration, however, implies a perceived necessity and likely satisfactory performance to date, but without explicit data, it remains an assumption rather than a confirmed assessment of exceptional value or identified issues.

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: $1,636,000,000

Exercised Options: $1,636,000,000

Current Obligation: $184,628,056

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA863012D5018

IDV Type: IDC

Timeline