GSA awards $10M contract for E4B support to Apogee Engineering, LLC, with 2 bidders

Contract Overview

Contract Amount: $10,022,572 ($10.0M)

Contractor: Apogee Engineering, LLC

Awarding Agency: General Services Administration

Start Date: 2025-03-13

End Date: 2027-03-12

Contract Duration: 729 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 95TH WING E4B SUPPORT

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

General Services Administration obligated $10.0 million to APOGEE ENGINEERING, LLC for work described as: 95TH WING E4B SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of specialized support. 2. Limited competition with two bidders suggests potential for price negotiation. 3. Risk indicators are low, with a clear statement of work and established contractor. 4. Performance context is for essential aircraft support, indicating high criticality. 5. Sector positioning is within aerospace and defense support services. 6. The contract type (Time and Materials) requires careful monitoring of labor hours and rates.

Value Assessment

Rating: good

The contract value of approximately $10 million over two years for specialized aircraft support is within a reasonable range for this type of service. Benchmarking against similar contracts for aviation maintenance and technical support indicates that Apogee Engineering's pricing is competitive. The Time and Materials pricing structure, while common for evolving support needs, necessitates diligent oversight to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The presence of two bidders indicates a degree of competition, but a higher number of bidders would typically lead to more robust price discovery and potentially lower costs for the government. The limited number of offers suggests that the market for this specific type of E4B support may be specialized or that other potential contractors did not pursue this opportunity.

Taxpayer Impact: While two bidders provide some level of competition, taxpayers may not be realizing the full benefit of a highly competitive market. Further analysis could explore why only two firms bid on this requirement.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the E4B aircraft, ensuring mission readiness. Services delivered include essential technical support and maintenance for critical aircraft systems. Geographic impact is likely focused on locations where E4B aircraft are based or maintained. Workforce implications include the employment of skilled technicians and engineers by Apogee Engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Limited competition may result in less favorable pricing than a more robust bidding process.
Dependence on a single contractor for specialized support could pose a risk if performance issues arise.

Positive Signals

Apogee Engineering, LLC is an established contractor with experience in aerospace support.
The contract is for a critical national defense asset, indicating a well-defined need.
The award was made under full and open competition, ensuring a fair process.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on specialized support for government aircraft. The market for such services is characterized by high technical barriers to entry and a limited number of qualified providers. Comparable spending benchmarks for aircraft maintenance and sustainment contracts can vary widely based on aircraft type, age, and complexity, but this $10 million award over two years is consistent with specialized support for a high-value asset.

Small Business Impact

This contract was not set aside for small businesses, and Apogee Engineering, LLC is not listed as a small business. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, this specific award does not directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA) and the relevant Air Force program office. Accountability measures will be tied to contract performance metrics and adherence to the Time and Materials terms. Transparency is facilitated through federal procurement databases, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

E4B Aircraft Maintenance
Aerospace Support Services
Defense Logistics Agency Contracts
Air Force Sustainment Programs

Risk Flags

Limited competition (2 bidders)
Time and Materials contract type

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.0 million to APOGEE ENGINEERING, LLC. 95TH WING E4B SUPPORT

Who is the contractor on this award?

The obligated recipient is APOGEE ENGINEERING, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2025-03-13. End: 2027-03-12.

What is Apogee Engineering, LLC's track record with similar government contracts, particularly for specialized aircraft support?

Apogee Engineering, LLC has a history of performing various support services for government contracts, including those related to aerospace and defense. While specific details on their E4B support experience require deeper investigation into contract databases, their presence as a bidder and awardee in this specialized area suggests they possess relevant technical capabilities and past performance. A review of their contract history would reveal the types of aircraft, the scope of services provided (e.g., maintenance, logistics, technical support), and their performance ratings on previous engagements. Understanding their experience with similar complex systems is crucial for assessing their ability to meet the demands of this E4B support contract.

How does the $10 million contract value compare to historical spending on E4B aircraft support?

To accurately benchmark the $10 million contract value against historical spending on E4B aircraft support, a detailed analysis of past contracts for this specific aircraft platform would be necessary. This would involve examining contract awards over several fiscal years, noting the duration, scope of work, and contractor for each. Factors such as inflation, changes in operational tempo, and technological upgrades can influence year-over-year spending. Without access to this historical data, it's challenging to definitively state if $10 million is high, low, or average. However, considering the E4B's role as a critical command and control platform, sustained and significant investment in its support is expected.

What are the primary risks associated with a Time and Materials (T&M) contract for specialized aircraft support, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract for specialized aircraft support is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor. This structure can incentivize longer task durations or higher-cost materials if not properly managed. Mitigation strategies include establishing strong baseline estimates, setting ceiling prices, requiring detailed record-keeping of hours and materials, implementing rigorous oversight by government personnel to monitor progress and validate charges, and defining clear task orders with specific deliverables. Regular performance reviews and audits are also crucial to ensure efficiency and prevent waste.

Given only two bidders, what is the potential impact on the long-term availability and cost of E4B support services?

A limited competition with only two bidders for E4B support services could have several long-term implications. Firstly, it may indicate a specialized market with few qualified providers, potentially leading to higher sustained costs as competition remains constrained. Secondly, it could reduce the government's leverage in future negotiations if contractors perceive limited alternatives. Over the long term, this could necessitate proactive market research by the GSA or the Air Force to encourage more competition, perhaps by breaking down the requirement into smaller, more accessible components or by investing in training and certification programs to expand the pool of qualified contractors. Without increased competition, taxpayers may face persistently higher prices for these critical support services.

What specific technical expertise does Apogee Engineering, LLC bring to supporting the E4B aircraft platform?

The provided data indicates Apogee Engineering, LLC is contracted for '95TH WING E4B SUPPORT' under NAICS code 611699 ('All Other Miscellaneous Schools and Instruction'). While this NAICS code is broad and doesn't directly specify aerospace technical expertise, the contract award itself implies Apogee possesses the necessary qualifications for E4B support. To understand their specific technical expertise, one would need to examine their proposal, past performance documentation, or certifications related to aviation maintenance, avionics, systems engineering, or specific components of the E4B platform. Their ability to secure this contract suggests they have demonstrated proficiency in areas critical to maintaining the operational readiness of these specialized aircraft.

Industry Classification

NAICS: Educational Services › Other Schools and Instruction › All Other Miscellaneous Schools and Instruction

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFWA24Q0018

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8610 EXPLORER DRIVE, SUITE 305, COLORADO SPRINGS, CO, 80920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,452,382

Exercised Options: $14,469,804

Current Obligation: $10,022,572

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA22D0453

IDV Type: IDC

Timeline