DoD's $102M Air Transportation Support Contract Awarded to PAE Applied Technologies LLC
Contract Overview
Contract Amount: $102,271,307 ($102.3M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2002-10-04
End Date: 2011-06-30
Contract Duration: 3,191 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $102.3 million to PAE APPLIED TECHNOLOGIES LLC for work described as: Key points: 1. Contract value of over $100 million indicates a significant investment in air transportation support services. 2. The firm-fixed-price contract type suggests a clear understanding of scope and cost expectations between the DoD and the contractor. 3. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 4. The contract duration of approximately 8.8 years (3191 days) points to a long-term need for these services. 5. The contractor, PAE Applied Technologies LLC, has secured a substantial portion of federal spending in this category. 6. The North American Industry Classification System (NAICS) code 488190 signifies a focus on support activities crucial for air transportation operations.
Value Assessment
Rating: good
The contract value of $102.3 million over nearly nine years suggests a substantial but potentially reasonable investment for comprehensive air transportation support. Without specific performance metrics or detailed breakdowns of services rendered, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Benchmarking against similar long-term, large-scale air support contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this significant contract. A competitive process generally leads to more favorable pricing and innovative solutions for the government, as contractors vie to win the award by offering their best terms and capabilities.
Taxpayer Impact: The full and open competition likely resulted in taxpayer savings by driving down costs through competitive bidding, ensuring the government received the best possible value for its investment in air transportation support.
Public Impact
The Department of the Air Force benefits from reliable and comprehensive support for its air transportation operations. Services provided likely include maintenance, logistics, ground support, and other essential functions to ensure aircraft readiness and operational efficiency. The geographic impact is primarily within Florida (ST='FL', SN='FLORIDA'), suggesting a concentration of air operations or support facilities in that state. The contract supports a workforce involved in specialized air transportation services, contributing to employment in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential complacency or reduced incentive for innovation over time if not actively managed.
- Dependence on a single contractor for critical air transportation support over an extended period could pose a risk if contractor performance degrades.
- The specific nature of 'Other Support Activities for Air Transportation' can be broad, requiring diligent oversight to ensure all contracted services are necessary and efficiently delivered.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process and likely competitive pricing.
- Firm-fixed-price contract type shifts cost risk to the contractor, encouraging cost control and efficiency.
- The substantial contract value suggests the contractor possesses the capacity and expertise to handle complex and large-scale support operations.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on support services for air transportation. The market for such services is substantial, driven by the operational needs of military and commercial aviation. Comparable spending benchmarks would involve analyzing other large-scale contracts for aviation support, logistics, and maintenance provided to government agencies. The NAICS code 488190 encompasses a range of activities essential for the smooth functioning of airports and air carriers.
Small Business Impact
This contract was not set aside for small businesses (SS=false, SB=false), and there is no explicit indication of subcontracting requirements for small businesses within the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless PAE Applied Technologies LLC voluntarily engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Air Transportation Services
- Aviation Logistics Support
- Aerospace Maintenance Contracts
- Defense Support Services
- Federal Aviation Administration Contracts
Risk Flags
- Long-term contract duration requires sustained oversight.
- Potential for scope creep if not managed diligently.
- Contractor performance stability over extended period.
Tags
defense, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, air-transportation-support, aviation-services, florida, large-contract, pae-applied-technologies-llc, naics-488190
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.3 million to PAE APPLIED TECHNOLOGIES LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $102.3 million.
What is the period of performance?
Start: 2002-10-04. End: 2011-06-30.
What is the historical spending pattern for NAICS code 488190 by the Department of Defense over the last decade?
Analyzing the historical spending for NAICS code 488190 by the Department of Defense (DoD) over the past decade reveals a consistent and significant investment in air transportation support activities. While specific figures fluctuate annually based on operational tempo, strategic priorities, and budget allocations, the overall trend indicates a sustained need for these services. The DoD frequently utilizes contracts under this code for base operations, aircraft maintenance, logistics, and airfield management at various installations. Spending can be influenced by factors such as deployments, new aircraft procurements requiring specialized support, and the modernization of airfields. Comparing this $102 million award to the historical average spending for similar contracts provides context on its scale and significance within the DoD's overall aviation support budget. It is important to note that spending can also be influenced by shifts towards outsourcing certain functions to private contractors versus maintaining them in-house.
How does the per-unit cost of services under this contract compare to industry benchmarks for air transportation support?
Determining the precise per-unit cost for services under this contract is challenging without a detailed breakdown of the specific services rendered and their associated quantities. The contract is a firm-fixed-price award valued at $102.3 million over approximately 3191 days, covering 'Other Support Activities for Air Transportation.' Industry benchmarks for air transportation support are highly variable, depending on the specific service (e.g., aircraft maintenance hours, baggage handling, fuel services, airfield management personnel). However, given the competitive bidding process (6 bidders) and the firm-fixed-price nature, it is reasonable to infer that the pricing was benchmarked against market rates during the solicitation phase. To conduct a thorough comparison, one would need to identify comparable contracts with detailed service line items and pricing structures, then normalize these figures against factors like geographic location, labor costs, and specific operational requirements. Without such granular data, a definitive per-unit cost comparison remains speculative.
What is PAE Applied Technologies LLC's track record with similar large-scale government contracts, particularly in aviation support?
PAE Applied Technologies LLC (now part of PAE Inc.) has a significant track record of performing large-scale government contracts, including those related to aviation support and logistics. The company has historically been a major contractor for various U.S. federal agencies, often handling complex operational and support services in challenging environments. Their portfolio frequently includes base operations, maintenance, and technical support for military and civilian aviation. This specific $102 million contract with the Department of the Air Force for air transportation support aligns with their established capabilities. Examining past performance evaluations, contract modifications, and any past performance issues on similar contracts would provide a more detailed picture of their reliability and effectiveness in delivering these types of services. Their extensive experience suggests a strong understanding of government contracting requirements and operational demands within the defense sector.
What are the potential risks associated with a firm-fixed-price contract of this duration (nearly 9 years)?
While firm-fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, a duration of nearly nine years presents unique considerations. One primary risk is that the contractor may become less incentivized to innovate or seek efficiencies over such an extended period, potentially leading to stagnant service quality or higher-than-necessary costs embedded in the initial price. Scope creep, if not meticulously managed through contract modifications, can also become a significant issue, potentially undermining the fixed-price nature. Furthermore, unforeseen technological advancements or changes in operational requirements could render the contracted services less effective or obsolete before the contract term concludes. The government must maintain robust oversight to ensure the contractor remains efficient, adaptable, and continues to deliver value throughout the contract's lifecycle, and that the initial pricing remains fair and reasonable over time.
How does the level of competition (6 bidders) impact the overall value and risk for this contract?
The presence of six bidders for this contract, awarded under full and open competition, is a positive indicator for both value and risk management. A higher number of bidders generally suggests a more competitive marketplace for these services, which typically drives down prices and encourages contractors to offer their best capabilities and terms to win the award. This competitive pressure directly benefits taxpayers by ensuring the government is likely receiving services at a more favorable price point than if there were fewer bidders. From a risk perspective, a competitive process can also reduce the government's reliance on any single entity, providing more options and leverage should performance issues arise. It also implies that the chosen contractor, PAE Applied Technologies LLC, demonstrated a superior offering in terms of technical approach, past performance, and price compared to five other capable competitors.
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
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 6500 WEST FREEWAY, SUITE 6, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-10-04
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2014-06-04
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