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
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
- Potential for cost overruns if unforeseen maintenance issues arise.
- Dependence on a single contractor for critical support services.
Positive Signals
- Competitive award process likely secured favorable pricing.
- Clear contract type (firm fixed price) aids budget predictability.
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
- Other Support Activities for Air Transportation
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration is lengthy (over 5 years).
- Sole contractor for critical support.
- Reliance on aging aircraft.
- Firm Fixed Price may not cover unforeseen technical issues.
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 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
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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