State Department awards $27.4M for helicopter maintenance, boosting critical aviation support services

Contract Overview

Contract Amount: $27,423,936 ($27.4M)

Contractor: Precision AIR Inc

Awarding Agency: Department of State

Start Date: 2023-09-25

End Date: 2026-09-25

Contract Duration: 1,096 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RETURN TO SERVICE 6 MD500 HELOS

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of State obligated $27.4 million to PRECISION AIR INC for work described as: RETURN TO SERVICE 6 MD500 HELOS Key points: 1. Contract value represents a significant investment in maintaining essential aviation assets. 2. Competition dynamics suggest a potentially competitive bidding process for specialized services. 3. Contract duration of three years indicates a need for sustained, reliable support. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on South Carolina highlights regional operational needs. 6. The award supports the operational readiness of vital transportation and logistics capabilities.

Value Assessment

Rating: good

The contract value of $27.4 million for the maintenance of 6 MD500 helicopters appears reasonable given the specialized nature of aviation support. Benchmarking against similar contracts for helicopter fleet maintenance would provide a clearer picture of value for money. The firm-fixed-price structure suggests an effort to manage costs effectively, but detailed cost breakdowns are not available for granular price assessment. The contract's scope includes return to service, implying comprehensive repair and overhaul work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded initially. The specific reasons for exclusion are not detailed, which could limit the breadth of competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery. This procurement method warrants further investigation into the justification for excluding potential bidders.

Taxpayer Impact: The limited competition may have resulted in a higher price than if full and open competition had been pursued without exclusions. Taxpayers may not have benefited from the most competitive pricing achievable.

Public Impact

The primary beneficiaries are the Department of State personnel and operations relying on the MD500 helicopters for critical missions. Services delivered include the return to service of 6 MD500 helicopters, ensuring their operational readiness. The geographic impact is centered around the operational bases of these helicopters, likely supporting diplomatic or security missions. Workforce implications include the need for skilled aviation mechanics and technicians to perform the maintenance and repair work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the exclusion of sources in the competition process.
Potential for reduced price competition due to the limited nature of the bidding process.
Limited public data on the specific maintenance tasks and their associated costs.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a specific contractor (PRECISION AIR INC) suggests established capability in this niche.
Contract duration of three years indicates a commitment to sustained operational support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on aviation maintenance and support. The market for specialized helicopter maintenance is often characterized by a limited number of highly qualified providers due to the technical expertise and certifications required. Comparable spending benchmarks for similar fleet maintenance contracts would be necessary for a precise industry comparison, but the award amount suggests a significant contract within this specialized niche.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided information, and the impact on the small business ecosystem is likely minimal unless the prime contractor actively engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is limited by the available public data, particularly concerning the competitive process and detailed cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Aviation Support Contracts
Helicopter Fleet Maintenance Services
Government Aviation Logistics
Defense Contract Services

Risk Flags

Limited competition justification unclear
Potential for uncompetitive pricing
Lack of detailed cost transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.4 million to PRECISION AIR INC. RETURN TO SERVICE 6 MD500 HELOS

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 $27.4 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-25.

What is the track record of PRECISION AIR INC in performing similar aviation maintenance contracts for the Department of State or other federal agencies?

Assessing the track record of PRECISION AIR INC is crucial for understanding their capability and reliability in fulfilling this contract. While the provided data confirms they were awarded this contract, it does not detail their past performance history. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to identify previous contracts awarded to PRECISION AIR INC, their values, durations, and performance ratings. Examining past performance reviews, any documented issues, or commendations would provide valuable context on their ability to successfully execute the 'return to service' for the 6 MD500 helicopters within the specified timeframe and budget. Without this historical performance data, the risk associated with contractor capability remains partially unknown.

How does the awarded amount of $27.4 million compare to the estimated market rates for maintaining a fleet of 6 MD500 helicopters over a three-year period?

The awarded amount of $27.4 million for the maintenance of 6 MD500 helicopters over three years requires benchmarking against industry standards and similar government contracts. The average annual cost per helicopter for maintenance can vary significantly based on usage, age, and the complexity of required services (e.g., routine checks vs. major overhauls). If each helicopter requires approximately $1.5 million annually for comprehensive maintenance, this award might be within a reasonable range. However, without access to detailed cost breakdowns or specific market surveys conducted by the agency, it's difficult to definitively assess if this represents excellent value. Comparing this to publicly available data on civilian fleet maintenance costs or other government contracts for similar aircraft types would provide a more robust comparison point for value for money.

What specific risks are associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, and how were they mitigated?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type introduces specific risks, primarily related to potentially limiting the pool of qualified bidders and potentially inflating costs. The exclusion of certain sources, even if justified, can reduce competitive pressure, leading to less favorable pricing for the government. Risks include the possibility that a more innovative or cost-effective solution was overlooked due to the exclusion criteria. Mitigation strategies would typically involve a thorough justification for the exclusion, ensuring that the remaining sources provide adequate competition, and robust negotiation tactics by the contracting officer. The agency's documentation justifying the exclusion and the subsequent competitive process is key to understanding how these risks were managed.

What is the expected impact of this contract on the operational readiness and mission capabilities of the Department of State's aviation assets?

This contract is directly aimed at enhancing the operational readiness and mission capabilities of the Department of State by ensuring that 6 MD500 helicopters are maintained and returned to service. MD500 helicopters are often utilized for various critical functions, including surveillance, transport, and support in challenging environments. By securing dedicated maintenance services for a three-year period, the Department ensures that these vital assets are available when needed, reducing downtime and potential mission failures. The successful execution of this contract directly translates to improved safety, reliability, and effectiveness of the State Department's aviation support, which is crucial for its diplomatic and security operations worldwide.

How does the historical spending pattern for MD500 helicopter maintenance by the Department of State compare to this new award?

Analyzing historical spending patterns for MD500 helicopter maintenance by the Department of State is essential for contextualizing the $27.4 million award. Without specific historical data, it's challenging to determine if this contract represents an increase, decrease, or stable level of investment. Factors such as the number of helicopters maintained historically, the frequency of major overhauls, and previous contract values would inform this comparison. If previous contracts were significantly lower or higher, it could indicate changes in maintenance requirements, market prices, or the agency's strategic priorities regarding its aviation assets. Understanding these patterns helps assess the long-term financial commitment and the efficiency of current procurement strategies.

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: $29,496,064

Exercised Options: $29,496,064

Current Obligation: $27,423,936

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $15,862,300

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