DoD's $24.4M Apache Sensor Support Contract Awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $24,435,470 ($24.4M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2011-12-15

End Date: 2015-06-30

Contract Duration: 1,293 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR FIELD SERVICE REPRESENTATIVES FOR APACHE AH64D MTADS/PNVS (SENSORS), TRAIN AND ADVISE ON TECHNICAL PROPRIETARY ASPECTS OF THE APACHE SENSORS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: CONTRACTOR FIELD SERVICE REPRESENTATIVES FOR APACHE AH64D MTADS/PNVS (SENSORS), TRAIN AND ADVISE ON TECHNICAL PROPRIETARY ASPECTS OF THE APACHE SENSORS Key points: 1. Contract focused on specialized technical support and training for critical Apache AH64D MTADS/PNVS sensor systems. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 3.6 years indicates a need for sustained technical expertise. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 6. Contractor PAE Aviation and Technical Services LLC has experience in aviation support services. 7. The contract was a Delivery Order, implying it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: good

The total award amount of $24.4 million for approximately 3.6 years of service suggests a significant investment in maintaining advanced sensor capabilities for the Apache fleet. Without specific benchmarks for this highly specialized technical support and training, a direct value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost predictability. Comparing this to similar contracts for advanced aviation system support would be necessary for a more precise valuation, but the specialized nature of Apache sensors likely commands a premium.

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 typically suggests a robust bidding environment, which can lead to more competitive pricing and better value for the government. The fact that it was a single award delivery order implies that PAE Aviation and Technical Services LLC was selected as the best value among the competing proposals.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Army aviation units operating the Apache AH64D helicopter, ensuring their sensor systems are maintained and their personnel are adequately trained. Services delivered include technical training and advice on the proprietary aspects of the Apache's advanced sensor systems (MTADS/PNVS). The geographic impact is likely concentrated where Apache helicopter units are stationed or deployed, both domestically and potentially overseas. Workforce implications include the need for highly skilled technical representatives and trainers provided by the contractor, as well as the training of military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to proprietary knowledge of advanced sensor systems.
Reliance on a single contractor for critical training and technical support could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract structure helps manage cost overruns.
Full and open competition suggests a competitive process that should yield fair pricing.
Contractor's specialization in aviation technical services indicates relevant expertise.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on support services for military aircraft. The market for specialized technical support and training for advanced defense platforms like the Apache helicopter is niche, often dominated by a few key contractors with the requisite expertise and security clearances. Spending in this area is driven by the need to maintain the operational readiness and technological superiority of military assets. Comparable spending benchmarks would likely involve other contracts for advanced avionics, sensor systems, and flight training support for complex military aircraft.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary competition was likely among larger, established defense contractors. There is no explicit information on subcontracting plans for small businesses within this delivery order. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal, though the prime contractor may engage small businesses for ancillary support.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army, likely managed by program executive offices or specific aviation commands responsible for Apache operations. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and performance standards. Transparency is generally maintained through contract award databases and reporting requirements, although the proprietary nature of the technical details may limit public disclosure. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Apache AH-64 Attack Helicopter Program
Avionics and Sensor Systems Support Contracts
Military Aviation Training Services
Defense Contractor Technical Support
Department of the Army Aviation Procurement

Risk Flags

Proprietary knowledge dependency
Specialized technical skill requirement
Potential for performance gaps in training delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC. CONTRACTOR FIELD SERVICE REPRESENTATIVES FOR APACHE AH64D MTADS/PNVS (SENSORS), TRAIN AND ADVISE ON TECHNICAL PROPRIETARY ASPECTS OF THE APACHE SENSORS

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 $24.4 million.

What is the period of performance?

Start: 2011-12-15. End: 2015-06-30.

What is the track record of PAE Aviation and Technical Services LLC in supporting similar advanced military sensor systems?

PAE Aviation and Technical Services LLC, as part of the broader PAE (now acquired by Amentum) portfolio, has a significant history in providing aviation and technical support services to government and defense clients. Their experience often includes logistics, maintenance, training, and operational support for complex aircraft platforms. While specific details on their involvement with the Apache AH64D MTADS/PNVS sensors require deeper investigation into their past performance reports and contract history, their general expertise in aviation technical services suggests a foundational capability. Benchmarking their performance on similar, high-technology sensor support contracts would be crucial to fully assess their suitability and value proposition for this specific requirement.

How does the cost of this contract compare to similar support services for other advanced attack helicopters?

Direct cost comparisons for highly specialized technical support and training for advanced military sensor systems like the Apache AH64D MTADS/PNVS are challenging due to the proprietary nature of the technology and the unique requirements of each platform. The $24.4 million award over approximately 3.6 years represents a significant investment, but without detailed breakdowns of labor rates, training hours, and specific technical services provided, it's difficult to benchmark against other helicopter support contracts. Factors such as the complexity of the sensors, the level of training required, the contractor's overhead, and the competitive landscape at the time of award all influence pricing. A comprehensive value analysis would necessitate comparing the contractor's proposed costs against independent government cost estimates and potentially other bids received during the competition.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential performance shortfalls by the contractor in delivering specialized training and technical advice, leading to degraded sensor system readiness or operational effectiveness. Another risk is the reliance on a single provider for proprietary technical knowledge, which could create dependencies. Mitigation strategies likely include robust performance monitoring by the Department of the Army, clearly defined service level agreements (SLAs) within the contract, and potentially contingency planning for alternative support if needed. The firm fixed-price nature also incentivizes the contractor to manage their own risks effectively to maintain profitability. Furthermore, the full and open competition process aims to select a contractor with a proven track record, reducing the risk of selecting an underqualified vendor.

How effective has PAE Aviation and Technical Services LLC been in fulfilling similar technical support and training contracts in the past?

Assessing the past effectiveness of PAE Aviation and Technical Services LLC (and its parent entities like PAE/Amentum) requires reviewing their performance history on relevant contracts. This typically involves examining past performance evaluations, contract award histories, and any documented issues or commendations. For contracts involving specialized sensor systems and technical training, key indicators of effectiveness would include the successful transfer of knowledge, the reliability of technical support provided, and the impact on aircraft operational readiness. Without access to specific past performance data for this contractor related to the Apache AH64D MTADS/PNVS, a definitive statement on their effectiveness is speculative. However, their continued presence in the defense contracting space suggests a general level of satisfactory performance on many engagements.

What has been the historical spending trend for Apache sensor support and training by the Department of Defense?

Historical spending on Apache sensor support and training by the Department of Defense (DoD) has likely been substantial and subject to fluctuations based on fleet modernization, operational tempo, and evolving threats. The Apache AH64D, and its successor variants, represent a significant investment in rotary-wing aviation capabilities, necessitating ongoing expenditure for maintenance, upgrades, and training related to its complex systems, including the MTADS/PNVS. Tracking specific spending trends for this niche support function requires analyzing historical contract awards for similar services over multiple fiscal years. This would reveal patterns related to the lifecycle of the AH64D platform and the introduction of new technologies, potentially showing increased spending during periods of major upgrades or heightened operational deployments.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,435,470

Exercised Options: $24,435,470

Current Obligation: $24,435,470

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9115104D0015

IDV Type: IDC

Timeline