DHS Awards $201.7M for Aviation Maintenance to PAE Aviation, Lacking Competition

Contract Overview

Contract Amount: $201,757,331 ($201.8M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-04-01

End Date: 2021-09-30

Contract Duration: 547 days

Daily Burn Rate: $368.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: NATIONAL AVIATION MAINTENANCE AND LOGISTICS SERVICES FOR CBP'S FLEET OF AIRCRAFT (EXCLUDING UAS AND P-3 AIRCRAFTS)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $201.8 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: NATIONAL AVIATION MAINTENANCE AND LOGISTICS SERVICES FOR CBP'S FLEET OF AIRCRAFT (EXCLUDING UAS AND P-3 AIRCRAFTS) Key points: 1. Significant contract value of over $200 million for aviation maintenance services. 2. Sole-source award to PAE Aviation and Technical Services LLC raises competition concerns. 3. Risk of inflated costs due to lack of competitive bidding. 4. Spending falls within the 'Other Support Activities for Air Transportation' sector.

Value Assessment

Rating: questionable

The contract's cost-plus incentive fee structure, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar contracts. The awarded amount of $201.7M for 547 days of service suggests a high per-day cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to PAE Aviation and Technical Services LLC. The absence of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying a premium for these essential aviation maintenance services.

Public Impact

Ensures continued operational readiness of Customs and Border Protection's aircraft fleet. Supports critical border security and law enforcement missions. Potential for cost overruns due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
High contract value

Positive Signals

Essential service for national security
Experienced contractor

Sector Analysis

This contract falls under 'Other Support Activities for Air Transportation,' a sector that includes services essential for maintaining aviation operations. Benchmarking is challenging without competitive data, but the scale of this award is substantial.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the 'ss' (Small Business Set-aside) and 'sb' (Small Business) flags are false.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. Robust performance monitoring is crucial.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award limits competitive pricing.
Cost-plus contract type can lead to cost overruns.
High contract value increases financial risk.
Lack of small business participation.
Potential for contractor performance issues without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $201.8 million to PAE AVIATION AND TECHNICAL SERVICES LLC. NATIONAL AVIATION MAINTENANCE AND LOGISTICS SERVICES FOR CBP'S FLEET OF AIRCRAFT (EXCLUDING UAS AND P-3 AIRCRAFTS)

Who is the contractor on this award?

The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $201.8 million.

What is the period of performance?

Start: 2020-04-01. End: 2021-09-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, such awards are made when only one responsible source can provide the required services, or in cases of urgent and compelling need. Further investigation into the contract file would be necessary to determine the specific rationale.

How does the cost-plus incentive fee structure mitigate risk in a sole-source environment?

A cost-plus incentive fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government based on performance targets. However, in a sole-source scenario, the baseline for these targets might be less rigorously defined, potentially limiting its effectiveness in preventing inflated costs compared to a competitive environment.

What is the potential impact on operational effectiveness if maintenance services are not adequately resourced due to cost concerns?

Inadequate resourcing of aviation maintenance could directly impact the operational effectiveness of CBP's aircraft fleet. This could lead to reduced flight hours, delayed response times for critical missions, and potentially compromise border security. Ensuring sufficient funding and contractor performance is paramount.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B02C20R00000053

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

Address: 1320 N COURTHOUSE RD STE 800, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $210,019,060

Exercised Options: $201,757,331

Current Obligation: $201,757,331

Actual Outlays: $4,124,862

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline