Transportation contract for King Air aircraft maintenance support awarded to King Aerospace, Inc. for over $6.5 million

Contract Overview

Contract Amount: $6,556,772 ($6.6M)

Contractor: King Aerospace, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-12-17

End Date: 2030-11-30

Contract Duration: 1,809 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ADD BASE YEAR FUNDING TO CLIN 0001 AND CLIN0007 OF KING AIR BE300/360 MX SUPPORT CONTRACT 6973GH-26-D-00006

Place of Performance

Location: ARDMORE, CARTER County, OKLAHOMA, 73401

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $6.6 million to KING AEROSPACE, INC. for work described as: ADD BASE YEAR FUNDING TO CLIN 0001 AND CLIN0007 OF KING AIR BE300/360 MX SUPPORT CONTRACT 6973GH-26-D-00006 Key points: 1. Contract provides essential maintenance for King Air aircraft, crucial for FAA operations. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration spans nearly five years, indicating a long-term need for these services. 4. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework. 5. The base year funding is substantial, reflecting the complexity and importance of aircraft maintenance. 6. The contract is for labor hours, providing flexibility in service delivery. 7. The contractor, King Aerospace, Inc., is based in Oklahoma, potentially benefiting the local economy.

Value Assessment

Rating: good

The contract value of $6,556,771.50 for a period of approximately five years appears reasonable for specialized aircraft maintenance. Benchmarking against similar long-term, comprehensive support contracts for aviation fleets would provide a more precise value-for-money assessment. However, given the critical nature of maintaining FAA aircraft, the investment is likely justified by operational necessity and safety requirements. The pricing structure based on labor hours allows for adaptability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to more competitive pricing and better value for the government. The specific number of bidders is not provided, but the designation implies multiple interested parties participated in the procurement process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible price for the services rendered.

Public Impact

The Federal Aviation Administration (FAA) benefits directly through the continued operational readiness of its King Air aircraft fleet. These aircraft are essential for various FAA missions, including flight inspection, calibration, and potentially other operational support roles. The services delivered ensure the safety and efficiency of the National Airspace System. The geographic impact is national, as FAA operations support air traffic across the United States. The contract supports skilled labor in the aviation maintenance sector, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours exceed initial estimates without corresponding adjustments in scope or efficiency.
Dependence on a single contractor for critical maintenance could pose a risk if performance issues arise or if the contractor faces financial instability.
The specific details of the maintenance tasks and their criticality are not fully elaborated, making a precise risk assessment challenging.

Positive Signals

Awarded under full and open competition, indicating a competitive market and likely fair pricing.
Contract duration of nearly five years suggests a stable, long-term relationship and commitment to service continuity.
The contractor, King Aerospace, Inc., has a history of providing aviation services, implying relevant experience and capability.
The contract is for labor hours, offering flexibility to adapt to evolving maintenance needs.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aircraft maintenance and support. The market for specialized aviation maintenance is competitive, with established players offering a range of services from routine checks to complex overhauls. The FAA's need for reliable support for its King Air fleet is a recurring requirement within this sector. Comparable spending benchmarks would involve analyzing other government contracts for similar aircraft types and maintenance scopes, as well as commercial aviation MRO (Maintenance, Repair, and Overhaul) market rates.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless King Aerospace, Inc. intends to subcontract portions of the work to small businesses, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Federal Aviation Administration (FAA). Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Maintenance Services
Aviation Support Contracts
Federal Aviation Administration Operations
King Air Aircraft Fleet Support
Transportation Sector Procurement

Risk Flags

Potential for cost growth due to labor hour basis
Long contract duration may not adapt to future needs
Dependence on single contractor for critical support

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.6 million to KING AEROSPACE, INC.. ADD BASE YEAR FUNDING TO CLIN 0001 AND CLIN0007 OF KING AIR BE300/360 MX SUPPORT CONTRACT 6973GH-26-D-00006

Who is the contractor on this award?

The obligated recipient is KING AEROSPACE, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2025-12-17. End: 2030-11-30.

What is the historical spending pattern for King Air aircraft maintenance support by the FAA?

Analyzing historical spending for King Air maintenance by the FAA requires access to detailed procurement data over multiple fiscal years. Without specific historical data, it's difficult to provide precise figures. However, the recurring need for such specialized support suggests consistent annual expenditures. Factors influencing historical spending include the size and age of the King Air fleet, the scope of maintenance required (e.g., scheduled inspections, unscheduled repairs, component overhauls), and the contracting vehicles used (e.g., IDIQ, fixed-price, cost-plus). The current award of over $6.5 million for a nearly five-year period indicates an average annual spend of approximately $1.3 million. This figure should be compared against previous years' spending to identify trends, potential increases or decreases in demand, and the impact of inflation or changes in maintenance strategies.

How does the per-hour labor rate for this contract compare to industry benchmarks?

The contract is awarded based on labor hours, but the specific hourly rates are not provided in the data. To compare these rates to industry benchmarks, one would need to obtain the detailed CLIN (Contract Line Item Number) structure and associated labor categories and rates from the full contract. Once obtained, these rates could be benchmarked against published data from industry associations (e.g., Professional Aviation Maintenance Association), commercial MRO provider price lists, or data from similar government contracts. Factors influencing these rates include the skill level of technicians, geographic location, overhead costs, and profit margins. A higher-than-average rate might be justified by specialized certifications, remote service locations, or expedited turnaround times, while a lower rate could indicate strong competition or efficient operations.

What is King Aerospace, Inc.'s track record with similar government contracts?

King Aerospace, Inc. has a documented history of providing aviation services, including maintenance, repair, and overhaul (MRO) for various aircraft types. Their experience often includes work for government entities. To assess their track record specifically for similar government contracts, a review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and contract awards would be necessary. Key aspects to examine include their on-time delivery rates, quality of work, responsiveness to issues, and overall customer satisfaction reported by previous government agencies. A strong track record with comparable contracts, particularly for military or civilian government aviation fleets, would indicate a lower performance risk for this FAA contract.

What are the potential risks associated with the 'Other Support Activities for Air Transportation' NAICS code in this contract?

The North American Industry Classification System (NAICS) code 488190, 'Other Support Activities for Air Transportation,' encompasses a broad range of services beyond direct flight operations. For this contract, which focuses on King Air aircraft maintenance, the primary risks are related to the specialized nature of aviation MRO. These include the potential for unexpected repair needs driving up costs, the availability of specialized parts and skilled technicians, and adherence to stringent safety and regulatory standards (e.g., FAA airworthiness directives). Operational risks could involve aircraft downtime impacting FAA missions. Furthermore, the 'other support' designation might imply a less standardized service than routine maintenance, potentially requiring adaptive management and clear performance metrics to mitigate scope creep or undefined service levels.

How does the contract duration of nearly five years impact value and risk for the FAA?

A contract duration of nearly five years (1809 days) offers several advantages and potential risks for the FAA. Positively, it provides stability and continuity of essential maintenance services, reducing the administrative burden and cost associated with frequent re-procurement. It also allows the contractor, King Aerospace, Inc., to invest in specialized tooling, training, and personnel, potentially leading to efficiencies and improved service quality over time. However, a long duration also carries risks. Market conditions, technology, or the FAA's own operational needs might change, making the contract less optimal or even obsolete before its expiration. There's also the risk of contractor performance degradation over time or unforeseen economic fluctuations impacting costs. To mitigate these risks, contracts of this length typically include mechanisms for price adjustments, performance reviews, and potentially termination clauses.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4500 WESTGROVE DR STE 250, ADDISON, TX, 75001

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,556,772

Exercised Options: $6,556,772

Current Obligation: $6,556,772

Actual Outlays: $404,983

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH26D00006

IDV Type: IDC

Timeline