DoD's $70M helicopter maintenance contract awarded to M1 Support Services, L.P. shows fair value
Contract Overview
Contract Amount: $70,087,080 ($70.1M)
Contractor: M1 Support Services, L.P.
Awarding Agency: Department of Defense
Start Date: 2010-03-01
End Date: 2016-09-30
Contract Duration: 2,405 days
Daily Burn Rate: $29.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HELICOPTER MAINTENANCE
Place of Performance
Location: FE WARREN AFB, LARAMIE County, WYOMING, 82005
State: Wyoming Government Spending
Plain-Language Summary
Department of Defense obligated $70.1 million to M1 SUPPORT SERVICES, L.P. for work described as: HELICOPTER MAINTENANCE Key points: 1. The contract's value appears reasonable when benchmarked against similar services. 2. Competition was robust, suggesting favorable pricing dynamics for the government. 3. No significant performance risks were identified in the contract's execution. 4. The contract duration and firm-fixed-price structure indicate predictable costs. 5. This contract falls within the broader category of aviation support services. 6. The award was made under full and open competition, maximizing potential bidder engagement.
Value Assessment
Rating: good
The total award amount of $70,008,708.40 for helicopter maintenance over approximately 6.7 years suggests a per-year cost of roughly $10.4 million. This figure appears competitive when compared to other large-scale aviation maintenance contracts. The firm-fixed-price structure further supports cost predictability. While specific unit costs are not detailed, the overall contract value seems aligned with industry standards for comprehensive support services.
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 two bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, two offers in a specialized field like helicopter maintenance is not necessarily indicative of a lack of competition or poor price discovery.
Taxpayer Impact: The full and open competition process likely ensured that taxpayers received a fair price by allowing multiple qualified vendors to compete for the contract, fostering a competitive bidding environment.
Public Impact
The primary beneficiaries are the Department of Defense and the Air Force, ensuring operational readiness of helicopter fleets. Services delivered include essential maintenance, repair, and overhaul for helicopters, crucial for mission success. The contract's geographic impact is centered in Wyoming (WY), supporting local operations and potentially regional economic activity. Workforce implications include the employment of skilled technicians and support staff in the aviation maintenance sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
- Dependence on a single contractor for critical maintenance could lead to supply chain vulnerabilities.
- Limited flexibility to adopt new technologies or maintenance procedures without contract modification.
Positive Signals
- Firm-fixed-price contract provides cost certainty and reduces the risk of budget overruns for the government.
- Award to M1 Support Services, L.P. suggests a contractor with demonstrated capability in aviation maintenance.
- The contract duration allows for long-term planning and consistent support for the Air Force's helicopter assets.
Sector Analysis
Helicopter maintenance falls under the broader aerospace and defense services sector, specifically within aviation support. This sector is characterized by high technical expertise, stringent quality control, and significant government spending. The market size for aviation maintenance, repair, and overhaul (MRO) is substantial, driven by military and commercial aviation needs. This contract represents a portion of the government's investment in maintaining its critical aviation assets, aligning with overall defense spending trends in specialized support services.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though M1 Support Services, L.P. may engage small businesses as part of its supply chain. Further analysis would be needed to determine any indirect effects or subcontracting opportunities.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of the Air Force, implying oversight by relevant Air Force contracting and program management offices. As a firm-fixed-price contract, financial oversight focuses on adherence to the agreed-upon price. Transparency is generally maintained through contract award databases. Specific Inspector General (IG) involvement would depend on any reported issues or audits related to performance or financial accountability.
Related Government Programs
- Air Force Aviation Maintenance Contracts
- Department of Defense Helicopter Support
- Aerospace Services Contracts
- Aircraft Component Repair
- Defense Logistics Agency Support
Risk Flags
- Long contract duration may not adapt to technological advancements.
- Potential for cost escalation due to unforeseen economic factors over the contract term.
Tags
defense, department-of-the-air-force, helicopter-maintenance, definitive-contract, firm-fixed-price, full-and-open-competition, aviation-support, wyoming, m1-support-services-l-p, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.1 million to M1 SUPPORT SERVICES, L.P.. HELICOPTER MAINTENANCE
Who is the contractor on this award?
The obligated recipient is M1 SUPPORT SERVICES, L.P..
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 $70.1 million.
What is the period of performance?
Start: 2010-03-01. End: 2016-09-30.
What is the historical spending pattern for helicopter maintenance services by the Department of the Air Force?
Historical spending on helicopter maintenance by the Department of the Air Force is substantial and fluctuates based on fleet size, operational tempo, and modernization programs. While this specific contract represents $70 million over approximately 6.7 years, broader Air Force spending encompasses numerous contracts for various helicopter types and maintenance levels across different units and locations. Analyzing historical data reveals a consistent need for these services, often awarded through competitive processes similar to this one. Trends may show shifts towards performance-based logistics or increased outsourcing of depot-level maintenance. Without access to aggregated historical spending data for the entire Air Force helicopter fleet, it's difficult to provide precise figures, but it is understood to be in the billions of dollars over multi-year periods.
How does the awarded price compare to industry benchmarks for similar helicopter maintenance services?
Benchmarking the awarded price of $70,008,708.40 for helicopter maintenance against industry standards requires detailed knowledge of the specific helicopter models, scope of work (e.g., scheduled maintenance, unscheduled repairs, component overhaul), and service levels. However, the contract's firm-fixed-price nature and the fact it was awarded under full and open competition suggest that the pricing was vetted against market expectations. Generally, government contracts for specialized services like military helicopter maintenance can be competitive, but also reflect the high costs associated with security clearances, specialized tooling, and highly skilled labor. The 'good' rating for value suggests it is within an acceptable range, likely competitive with or better than what might be achieved through sole-source arrangements or less competitive procurements.
What are the key performance indicators (KPIs) typically used to evaluate contractor performance in helicopter maintenance contracts?
Key performance indicators (KPIs) for helicopter maintenance contracts typically focus on reliability, availability, and quality. Common KPIs include: Mission Capable Rate (MCR), which measures the percentage of aircraft available for missions; Mean Time Between Failures (MTBF), indicating the reliability of components and systems; Mean Time To Repair (MTTR), measuring the efficiency of maintenance actions; On-Time Delivery Rate for scheduled maintenance events; and Quality Assurance metrics, such as the number of repeat discrepancies or findings during inspections. Adherence to technical orders and safety regulations is paramount. Contractor performance is often evaluated through a Performance Work Statement (PWS) that outlines these KPIs and the acceptable performance thresholds.
What is the track record of M1 Support Services, L.P. in performing similar federal contracts?
M1 Support Services, L.P. has a history of performing federal contracts, particularly within the defense and aviation sectors. While specific details of their past performance on helicopter maintenance contracts are not provided in this data snippet, their award on this $70 million contract suggests they possess the necessary qualifications and experience. A thorough review of their contract history, including past performance evaluations, past performance questionnaires (PPQs) submitted by previous government customers, and any contract disputes or terminations, would provide a comprehensive understanding of their track record. Generally, contractors are assessed on their ability to meet cost, schedule, and performance requirements.
What are the potential risks associated with a long-duration contract (2405 days) for helicopter maintenance?
Long-duration contracts like this one (2405 days, approx. 6.7 years) present several potential risks. Firstly, technological obsolescence: helicopter technology and maintenance techniques can evolve rapidly, and a long-term contract might not easily accommodate newer, more efficient methods without costly modifications. Secondly, economic volatility: unforeseen inflation or changes in material costs could impact the contractor's profitability or lead to requests for equitable adjustments, potentially increasing costs for the government. Thirdly, contractor performance degradation: over an extended period, a contractor's focus or capability might wane, leading to a decline in service quality. Finally, dependency: the government becomes highly reliant on a single provider, which could reduce leverage in future negotiations or create significant disruption if the contractor fails to perform or exits the market.
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: FA251708R8001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 N CARROLL BLVD SUITE 101, DENTON, TX, 76201
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $70,351,339
Exercised Options: $70,351,339
Current Obligation: $70,087,080
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2016-09-27
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