State Department awards $2M contract for aircraft storage, highlighting engineering services needs

Contract Overview

Contract Amount: $2,039,222 ($2.0M)

Contractor: Precision AIR Inc

Awarding Agency: Department of State

Start Date: 2023-08-07

End Date: 2026-01-20

Contract Duration: 897 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: STORAGE OF INL/A DHC 8 AIRCRAFT

Place of Performance

Location: MOUNT PLEASANT, CHARLESTON County, SOUTH CAROLINA, 29464

State: South Carolina Government Spending

Plain-Language Summary

Department of State obligated $2.0 million to PRECISION AIR INC for work described as: STORAGE OF INL/A DHC 8 AIRCRAFT Key points: 1. Contract value appears reasonable for specialized aircraft storage and maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of nearly 3 years indicates a sustained need for these services. 4. The award is for engineering services, aligning with the contractor's stated NAICS code. 5. Geographic focus on South Carolina for storage operations. 6. Firm Fixed Price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $2 million for aircraft storage over a period of 897 days (nearly 2.5 years) seems within a reasonable range for specialized services. Benchmarking against similar contracts for aircraft maintenance and storage is difficult without more specific details on the aircraft type and required services. However, the firm fixed-price structure suggests that the government has secured a defined cost for the duration, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, specific sources may have been excluded for defined reasons. The number of bidders is not specified, but the designation suggests a robust competitive process was intended. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The Department of State benefits from secure and professional storage for its DHC-8 aircraft. Essential engineering services will be provided to maintain the aircraft's condition. Operations are centered in South Carolina, potentially supporting local economies. Ensures the readiness and longevity of critical aviation assets for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' was narrowly applied.
Dependence on a single contractor for critical aircraft storage services.

Positive Signals

Contract awarded through a competitive process, indicating potential for good value.
Firm Fixed Price contract provides cost predictability.
Long-term duration suggests a stable and ongoing requirement, allowing for contractor investment.

Sector Analysis

The aerospace and defense sector encompasses a wide range of services, including aircraft maintenance, repair, and overhaul (MRO), as well as specialized storage solutions. This contract falls within the engineering services sub-sector, specifically supporting aviation assets. The market for such services is competitive, with numerous firms offering specialized capabilities. The Department of State's need for secure, long-term storage for its aircraft is a niche but critical requirement within this sector.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. Given the specialized nature of aircraft storage and engineering services, it is possible that larger, specialized firms are the primary bidders. Further analysis would be needed to determine if small businesses have opportunities to participate either as prime contractors or subcontractors in this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by setting clear cost expectations. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Aviation Logistics
Aircraft Maintenance and Repair Contracts
Government Aircraft Storage Services
Engineering Services for Aerospace Assets

Risk Flags

Potential for limited competition due to source exclusion.
Contractor's past performance history requires verification.
Scope of 'engineering services' needs further clarification for full risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.0 million to PRECISION AIR INC. STORAGE OF INL/A DHC 8 AIRCRAFT

Who is the contractor on this award?

The obligated recipient is PRECISION AIR INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-08-07. End: 2026-01-20.

What is the specific nature of the 'engineering services' required for the DHC-8 aircraft storage?

The provided data indicates the contract is for 'STORAGE OF INL/A DHC 8 AIRCRAFT' and falls under NAICS code 541330 (Engineering Services). While the exact scope isn't detailed, engineering services in this context likely encompass tasks such as environmental protection measures for stored aircraft (e.g., corrosion prevention, desiccation), structural integrity checks, maintenance planning during storage, and potentially technical support for de-storage and return to service. It implies more than just parking the aircraft; it involves ensuring the aircraft remains in a preserved state, ready for future deployment, which requires specialized technical knowledge and procedures.

How does the awarded amount of $2,039,222.43 compare to historical spending on similar aircraft storage contracts by the Department of State or other agencies?

Direct comparison of this $2 million contract value for DHC-8 aircraft storage requires detailed data on the duration, specific services included (e.g., climate control, security, periodic checks), and the exact model/configuration of the DHC-8 aircraft being stored. Historical data for similar long-term storage contracts for government aircraft can vary significantly. However, for a contract spanning nearly three years (897 days), this amount suggests a cost of roughly $2,270 per day. This figure needs to be benchmarked against market rates for specialized aircraft storage, which can range widely depending on the facility, security, and preservation services offered. Without more granular data on comparable contracts, it's challenging to definitively state if this represents a premium or a discount, but the firm fixed-price nature provides cost certainty.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) award type presents a nuanced risk profile. While it aims for broad competition, the 'exclusion of sources' clause indicates that certain potential bidders were intentionally disqualified. The risk lies in understanding the justification for these exclusions. If the exclusions were based on legitimate, well-documented reasons (e.g., specific security clearances, unique technical capabilities, or prior performance issues), then the remaining competition might still yield good value. However, if the exclusions were arbitrary or poorly justified, it could artificially limit competition, potentially leading to higher prices or reduced innovation. Transparency regarding the reasons for exclusion is crucial for assessing this risk fully.

What is the track record of Precision Air Inc. in handling government contracts, particularly those involving aviation engineering or storage?

The provided data identifies Precision Air Inc. (co: PRECISION AIR INC) as the contractor. To assess their track record, a review of their past performance on federal contracts is necessary. This would involve examining contract databases (like FPDS) for previous awards to Precision Air Inc., looking at contract values, types of services rendered, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Without this specific historical data, it's difficult to gauge their experience and reliability in managing complex aviation engineering and storage contracts for government clients. A positive track record would reduce performance risk for this current contract.

How does the duration of the contract (897 days) align with the typical operational lifecycle or storage needs for DHC-8 aircraft within the Department of State?

The contract duration of 897 days, approximately 2.5 years, suggests a medium-to-long-term storage requirement for the DHC-8 aircraft. This duration could align with several scenarios: aircraft undergoing extended maintenance or upgrades, aircraft being mothballed temporarily due to shifting operational needs or budget constraints, or a strategic decision to preserve assets for future use. DHC-8 aircraft are versatile and used for various missions, including transport and surveillance. A storage period of this length implies that the aircraft are not immediately needed for active service but are valuable assets that the Department of State wishes to preserve in good condition, necessitating specialized engineering services to prevent degradation during the inactive period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM22R0007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 WANDO PARK BLVD, MOUNT PLEASANT, SC, 29464

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,090,499

Exercised Options: $2,090,499

Current Obligation: $2,039,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM23D0068

IDV Type: IDC

Timeline