Department of Energy awards King Aerospace $27.7M for aircraft maintenance, impacting air transportation support

Contract Overview

Contract Amount: $27,756,628 ($27.8M)

Contractor: King Aerospace, Inc.

Awarding Agency: Department of Energy

Start Date: 2019-03-11

End Date: 2024-05-31

Contract Duration: 1,908 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: DC-9 AND 737 AIRCRAFT MAINTENANCE AND SUPPORT SERVICES (AMSS) CONTRACT FOR OFFICE OF SECURE TRANSPORTATION (OST) AVIATION OPERATIONS DIVISION (AOD)- NA-15.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185

State: New Mexico Government Spending

Plain-Language Summary

Department of Energy obligated $27.8 million to KING AEROSPACE, INC. for work described as: DC-9 AND 737 AIRCRAFT MAINTENANCE AND SUPPORT SERVICES (AMSS) CONTRACT FOR OFFICE OF SECURE TRANSPORTATION (OST) AVIATION OPERATIONS DIVISION (AOD)- NA-15. Key points: 1. The contract supports critical aviation operations for the Office of Secure Transportation. 2. King Aerospace, Inc. is the sole awardee under a full and open competition. 3. The firm fixed price contract aims to control costs for maintenance and support services. 4. This spending falls under the 'Other Support Activities for Air Transportation' NAICS code.

Value Assessment

Rating: good

The contract value of $27.7M over approximately 5 years appears reasonable for specialized aircraft maintenance. Benchmarking against similar government contracts for DC-9 and 737 support would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The use of a definitive contract indicates a clear scope of work.

Taxpayer Impact: Taxpayer funds are being used for essential government transportation support services, with competition aiming to ensure value for money.

Public Impact

Ensures continued operational readiness for secure government transport flights. Supports specialized maintenance for aging but critical aircraft fleets. Provides essential services for the Department of Energy's aviation division.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the air transportation support sector, specifically focusing on maintenance and operational services for government aircraft. Spending benchmarks for similar specialized aviation contracts are typically high due to the technical expertise and regulatory compliance required.

Small Business Impact

The data indicates that neither small business nor small disadvantaged business participation was a stated requirement or outcome for this specific contract award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Energy's Office of Secure Transportation is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance, quality control, and financial management are expected to be in place.

Related Government Programs

Risk Flags

Tags

other-support-activities-for-air-transpo, department-of-energy, nm, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $27.8 million to KING AEROSPACE, INC.. DC-9 AND 737 AIRCRAFT MAINTENANCE AND SUPPORT SERVICES (AMSS) CONTRACT FOR OFFICE OF SECURE TRANSPORTATION (OST) AVIATION OPERATIONS DIVISION (AOD)- NA-15.

Who is the contractor on this award?

The obligated recipient is KING AEROSPACE, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2019-03-11. End: 2024-05-31.

What is the specific breakdown of maintenance tasks covered by this contract and their associated costs?

The contract details likely outline specific maintenance schedules, repair services, and parts procurement for the DC-9 and 737 aircraft. A detailed cost breakdown would reveal the allocation of funds towards labor, materials, and overhead, allowing for a more granular assessment of value for money and potential areas for cost savings.

What are the key performance indicators (KPIs) used to measure the contractor's performance and ensure mission effectiveness?

Key performance indicators would likely include metrics such as aircraft availability rates, on-time maintenance completion, adherence to safety standards, and response times for unscheduled maintenance. Effective monitoring of these KPIs is crucial for ensuring the OST's aviation operations remain secure and reliable.

Are there any contingency plans or alternative contractors in place should King Aerospace be unable to fulfill its contractual obligations?

While the contract is awarded to King Aerospace, government agencies typically maintain contingency plans for critical services. The existence and robustness of these plans, including potential for emergency procurement or support from other entities, are important for assessing overall program risk.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DE-SOL-0008818

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 WESTGROVE DR, 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: $29,306,072

Exercised Options: $29,306,072

Current Obligation: $27,756,628

Actual Outlays: $21,528,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2019-03-11

Current End Date: 2024-05-31

Potential End Date: 2026-04-18 00:00:00

Last Modified: 2026-02-25

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