DoD's $19.17M contract for AH-64 A/D MTADS field service support awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $19,170,158 ($19.2M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2009-02-20

End Date: 2011-12-31

Contract Duration: 1,044 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR FIELD SERVICE REPRESENTATIVES - AH-64 A/D MTADS

Place of Performance

Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: CONTRACTOR FIELD SERVICE REPRESENTATIVES - AH-64 A/D MTADS Key points: 1. Contract value represents a significant investment in maintaining critical aviation assets. 2. Competition dynamics suggest a potentially competitive bidding process for specialized services. 3. Contract duration of 1044 days indicates a need for sustained support. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic location in New Jersey may indicate a specific operational hub or maintenance facility. 6. The nature of field service representative roles implies direct support to operational readiness.

Value Assessment

Rating: good

The contract value of approximately $19.17 million for field service representatives supporting AH-64 A/D MTADS appears reasonable given the specialized nature of aviation maintenance and the duration of the contract. Benchmarking against similar contracts for specialized aviation support would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With two bids received, the competition level suggests a moderate degree of interest, which can contribute to price discovery. However, a higher number of bidders might have led to even more competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to lower prices and better service quality.

Public Impact

The primary beneficiaries are the U.S. Army aviation units relying on the AH-64 Apache helicopter fleet. Services delivered include essential field support, ensuring the operational readiness and maintenance of critical attack helicopters. The contract's impact is likely concentrated around the operational bases or maintenance facilities where the AH-64s are stationed, potentially in New Jersey. Workforce implications include the employment of skilled technical personnel for specialized aviation support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated with the incumbent.
Risk of cost overruns if unforeseen technical challenges arise, despite fixed-price structure.
Dependence on contractor performance for critical operational readiness of attack helicopters.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Experienced contractor likely possesses specialized knowledge for AH-64 maintenance.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically supporting military aviation platforms. The market for specialized field service representatives for complex aircraft like the AH-64 is niche, requiring highly skilled personnel and specific technical expertise. Spending in this area is driven by defense readiness requirements and the lifecycle management of advanced weapon systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, with performance metrics likely monitored. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

AH-64 Apache Helicopter Maintenance
Aviation Field Support Services
Department of Defense Aviation Readiness Programs
Military Aircraft Component Support

Risk Flags

Potential for performance issues impacting operational readiness.
Risk of cost escalation if unforeseen technical challenges arise.
Dependence on contractor expertise for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC. CONTRACTOR FIELD SERVICE REPRESENTATIVES - AH-64 A/D MTADS

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2009-02-20. End: 2011-12-31.

What is the historical spending trend for AH-64 A/D MTADS field service representative support by the Department of the Army?

Analyzing historical spending for this specific support function requires access to detailed contract databases beyond the provided data. However, general trends in defense spending on aviation maintenance and support services indicate a consistent need for such contracts to ensure fleet readiness. Factors influencing spending include the operational tempo of AH-64 units, modernization programs, and the overall defense budget. Without specific historical data for this contract line item, it's difficult to ascertain if the $19.17 million award represents an increase, decrease, or stable level of investment compared to previous periods. It is reasonable to assume that sustained operational use of the AH-64 fleet necessitates ongoing investment in field service support.

How does the awarded price compare to industry benchmarks for similar field service representative contracts for attack helicopters?

Directly comparing the awarded price of $19.17 million to industry benchmarks for similar field service representative contracts for attack helicopters is challenging without access to proprietary industry data or a comprehensive database of government contracts for comparable services. The value of such contracts is highly dependent on the specific helicopter model (AH-64 A/D MTADS), the scope of services (e.g., technical assistance, repair, training, logistics support), the duration of the contract, and the geographic locations of service. The firm fixed-price nature of this contract suggests an effort to achieve cost efficiency. A detailed benchmark analysis would require identifying contracts with similar service scopes, durations, and aircraft types, and then normalizing for differences in labor rates, overhead, and profit margins.

What are the key performance indicators (KPIs) used to evaluate the performance of PAE Aviation and Technical Services LLC under this contract?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for field service representative contracts in the defense aviation sector often include metrics related to response time for technical assistance, aircraft availability rates, successful completion of maintenance tasks, adherence to safety protocols, and timely delivery of support services. The government would likely monitor the contractor's ability to maintain the operational readiness of the AH-64 A/D MTADS fleet. Performance evaluations would also consider the contractor's compliance with contract terms, including reporting requirements and any specified service level agreements. Failure to meet these KPIs could result in contractual remedies or impact future contract awards.

What is the potential risk associated with the contractor's track record in supporting complex aviation systems?

Assessing the potential risk associated with PAE Aviation and Technical Services LLC's track record requires a review of their past performance on similar government contracts, particularly those involving complex aviation systems like the AH-64. A positive track record, characterized by successful contract completion, adherence to schedules and budgets, and positive past performance reviews, would indicate lower risk. Conversely, a history of performance issues, contract disputes, or significant cost overruns on comparable projects could signal higher risk. Given that this is a firm fixed-price contract, the government relies on the contractor's demonstrated capability to manage costs and deliver services effectively. A thorough risk assessment would involve examining contractor performance evaluations and any documented issues from previous engagements.

How does the duration of this contract (1044 days) align with the typical lifecycle support needs for AH-64 A/D MTADS?

The contract duration of 1044 days, approximately 2.86 years, suggests a medium-term commitment for field service support of the AH-64 A/D MTADS. The AH-64 Apache is a long-serving attack helicopter, and its operational lifecycle extends for many years, often decades. Therefore, a contract of this duration is likely intended to cover a significant portion of a specific operational period or a phase of maintenance and support. It aligns with the need for sustained, reliable support to ensure the fleet's readiness. Shorter contracts might be used for specific upgrades or temporary surge requirements, while longer-term contracts could encompass broader sustainment. This duration appears reasonable for providing consistent field service expertise.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 901 LINCOLN DR W STE 200, MARLTON, NJ, 08053

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,170,158

Exercised Options: $19,170,158

Current Obligation: $19,170,158

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9115104D0015

IDV Type: IDC

Timeline