Tyonek Services Overhaul Facility-Stennis, LLC Awarded $19.3M Contract for MV22 CMS Support by GSA

Contract Overview

Contract Amount: $19,304,361 ($19.3M)

Contractor: Tyonek Services Overhaul Facility-Stennis, LLC

Awarding Agency: General Services Administration

Start Date: 2023-03-20

End Date: 2026-03-19

Contract Duration: 1,095 days

Daily Burn Rate: $17.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USMC 2ND MAW MV22 CMS

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $19.3 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC for work described as: USMC 2ND MAW MV22 CMS Key points: 1. Contract awarded to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC for $19.3M. 2. Contract duration is 1095 days. 3. The contract is a Firm Fixed Price type. 4. The North American Industry Classification System (NAICS) code is 488190. 5. The contract was not competed. 6. The contract is for Other Support Activities for Air Transportation. 7. The contract was awarded by the General Services Administration (GSA). 8. The contract is for USMC 2ND MAW MV22 CMS.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to the lack of competitive bidding and limited public information on the specific services provided under the MV22 CMS. The firm fixed price structure suggests cost certainty, but without comparison to market rates or similar contracts, it's difficult to definitively assess if the $19.3 million represents excellent value. Further analysis would require understanding the scope of work and comparing it to industry standards for similar aviation maintenance and support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there was no opportunity for price discovery through a bidding process, which can sometimes lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially leading to a higher overall cost for the services rendered.

Public Impact

The primary beneficiaries are the US Marine Corps (USMC) units operating the MV22 Osprey aircraft, ensuring their operational readiness. The contract supports critical maintenance, repair, and overhaul (MRO) services for the MV22 Osprey fleet. Geographic impact is likely concentrated around the facilities where the MV22 CMS operations are conducted, potentially in North Carolina. Workforce implications include employment opportunities for skilled technicians and support staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced incentive for cost efficiency.
Limited transparency into the specific services and pricing structure due to sole-source award.
Dependence on a single contractor for critical MV22 CMS support could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Contract duration of three years allows for stable, long-term support for the MV22 fleet.
Award to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC suggests they possess specialized capabilities for this niche requirement.

Sector Analysis

The aviation support services sector is a critical component of national defense and transportation infrastructure. This contract falls under the broader aerospace and defense industry, which is characterized by high technical expertise, stringent quality standards, and significant government spending. The market for specialized aircraft maintenance, particularly for complex platforms like the MV22 Osprey, is often concentrated among a few key players due to the unique skill sets and certifications required. Comparable spending benchmarks are difficult to establish without more detailed service scope and competitive data, but the overall defense aviation MRO market represents billions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, TYONEK SERVICES OVERHAUL FACILITY, LLC, is not explicitly identified as a small business. There is no information provided regarding subcontracting plans for small businesses. This suggests that the primary contract is not designed to directly benefit the small business ecosystem, although the prime contractor may engage small businesses as subcontractors if it aligns with their operational needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the relevant US Marine Corps program managers. Accountability measures are typically embedded within the contract terms, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award and the proprietary details of the services. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

MV22 Osprey Sustainment Programs
USMC Aviation Maintenance Contracts
Defense Contract Services
Aerospace Overhaul and Repair Services
General Services Administration (GSA) Aviation Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public information on specific services and performance metrics.
Potential for contractor dependency and disruption risk.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.3 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC. USMC 2ND MAW MV22 CMS

Who is the contractor on this award?

The obligated recipient is TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2023-03-20. End: 2026-03-19.

What is the specific scope of work covered by this $19.3 million contract for MV22 CMS?

The provided data indicates the contract is for 'USMC 2ND MAW MV22 CMS' and falls under NAICS code 488190 (Other Support Activities for Air Transportation). While the exact scope of work is not detailed, this typically encompasses a range of services essential for maintaining the operational readiness of the MV22 Osprey tiltrotor aircraft. This could include scheduled and unscheduled maintenance, component repair and overhaul, technical support, logistics services, and potentially modifications or upgrades. The 'CMS' likely refers to a specific component or system within the MV22, such as the Common Maintenance System or a similar critical subsystem requiring specialized expertise for upkeep and repair. The firm fixed price nature suggests a defined set of deliverables or service levels.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. For specialized aviation platforms like the MV22 Osprey, this could be due to unique technical expertise, proprietary knowledge of the systems, existing infrastructure, or specific certifications required for maintenance and overhaul. TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC may possess unique capabilities or intellectual property related to the MV22 CMS that cannot be replicated by other potential contractors. The General Services Administration (GSA), as the awarding agency, would have conducted a justification and approval (J&A) process to document the rationale for the sole-source award, which is a standard government procurement procedure when full and open competition is not feasible.

How does the $19.3 million contract value compare to similar MV22 support contracts?

Direct comparison of the $19.3 million contract value to similar MV22 support contracts is challenging without access to detailed, publicly available data on comparable sole-source or competed contracts for the same or similar services. The value is influenced by numerous factors, including the specific scope of work, duration, required expertise, and market conditions. Given that this is a three-year contract (1095 days), the annual value is approximately $6.43 million. Without knowing the precise services rendered (e.g., depot-level maintenance, component repair, technical support), it's difficult to benchmark against industry standards or other government contracts. The lack of competition further complicates value assessment, as there's no market-driven price point for comparison.

What are the potential risks associated with a sole-source contract for critical MV22 support?

Sole-source contracts carry inherent risks, primarily related to cost and performance. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for the government. There's also a reduced incentive for the contractor to innovate or improve efficiency beyond what is contractually required. Furthermore, the government becomes heavily reliant on a single provider. If TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC experiences performance issues, financial instability, or decides to exit the market, it could significantly disrupt the critical support for the MV22 fleet, impacting the US Marine Corps' operational capabilities. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the historical spending pattern for MV22 CMS support by the USMC or GSA?

Historical spending data for MV22 CMS support is not directly available from the provided contract details. To assess historical spending patterns, one would need to query federal procurement databases (like FPDS or USASpending.gov) for previous contracts awarded to TYONEK SERVICES OVERHAUL FACILITY, LLC, or other contractors, specifically for MV22 maintenance, repair, or overhaul services, particularly those related to the 'CMS' component or system. Analyzing these patterns would reveal trends in contract values, durations, competition levels, and the agencies involved (e.g., USMC directly vs. GSA acting as a contracting vehicle). This analysis would help determine if current spending is consistent with past investments or represents a significant deviation.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFRA23Q0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7095 ROSCOE TURNER RD, KILN, MS, 39556

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,607,648

Exercised Options: $19,565,148

Current Obligation: $19,304,361

Actual Outlays: $13,171,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline