PAE Aviation and Technical Services LLC awarded $67.1M for backshop maintenance, with a high contract duration

Contract Overview

Contract Amount: $67,149,461 ($67.1M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2011-04-26

End Date: 2016-09-30

Contract Duration: 1,984 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE SUPPORT, BACKSHOP SERVICES

Place of Performance

Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $67.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: MAINTENANCE SUPPORT, BACKSHOP SERVICES Key points: 1. Contract value of $67.1M over 1984 days indicates significant long-term support needs. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The North American Industry Classification System (NAICS) code 488190 points to specialized aviation support services. 5. The contract's duration of 1984 days (over 5 years) suggests a stable, ongoing requirement for these services. 6. The award was managed by the Defense Contract Management Agency, indicating a focus on defense-related aviation support.

Value Assessment

Rating: fair

The total contract value of $67.1M over nearly 2000 days averages to approximately $34,000 per day. Without specific details on the services provided, it's difficult to benchmark against similar contracts. However, the firm-fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if performance is met. The relatively high number of bids (4) suggests a degree of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Four bids were received, indicating a reasonable level of competition for these specialized aviation maintenance services. The open competition process is designed to foster price discovery and ensure that the government receives competitive pricing by allowing multiple qualified vendors to vie for the contract.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the most advantageous pricing for the government by leveraging market forces.

Public Impact

The Department of Defense benefits from essential backshop maintenance and technical support for aviation assets. Services delivered ensure the operational readiness and longevity of critical military aircraft. The contract's performance is likely concentrated in New Jersey, where the contractor is registered. This contract supports specialized technical roles within the aviation maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost creep if not managed effectively.
Firm-fixed-price contracts can sometimes lead to reduced contractor flexibility for unforeseen issues.
Dependence on a single contractor for critical backshop services poses a risk if performance degrades.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
Firm-fixed-price contract type transfers cost risk to the contractor.
The contract's duration indicates a stable, long-term need being met, ensuring continuity of services.

Sector Analysis

The aviation maintenance and repair industry is a critical component of the aerospace and defense sector. This contract falls under support activities for air transportation, specifically focusing on backshop services which are essential for keeping aircraft operational. The market for such services is competitive, with numerous specialized firms capable of providing the required technical expertise. Benchmarking spending in this area requires comparing the contract's value against the scope of work and the complexity of the aircraft systems being supported.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The contractor, PAE Aviation and Technical Services LLC, is a large business. The absence of set-asides means that small businesses did not have a preferential pathway to bid on this specific contract, and their participation would likely be through subcontracting if opportunities arise and are offered by the prime contractor.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions, and monitoring contractor performance. As a firm-fixed-price contract, oversight would focus on delivery schedules, quality standards, and adherence to the statement of work. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair Services
Defense Aviation Support Contracts
Backshop Repair Services
Aerospace Technical Services

Risk Flags

Long contract duration
Firm-fixed-price risk
Specialized technical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC. MAINTENANCE SUPPORT, BACKSHOP SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $67.1 million.

What is the period of performance?

Start: 2011-04-26. End: 2016-09-30.

What specific types of backshop maintenance and technical services are covered under this contract?

The contract description indicates 'MAINTENANCE SUPPORT, BACKSHOP SERVICES' under NAICS code 488190 (Other Support Activities for Air Transportation). While specific details are not provided in the summary data, backshop services typically encompass the repair, overhaul, and testing of aircraft components, engines, and systems that cannot be performed at the line maintenance level. This could include specialized work on avionics, hydraulics, power plants, landing gear, and structural components. The 'technical services' aspect suggests support beyond basic repair, potentially including engineering analysis, diagnostics, and technical documentation.

How does the $67.1M contract value compare to similar aviation maintenance contracts awarded by the DoD?

Benchmarking the $67.1M value requires a detailed comparison of the scope of work, duration, and specific services rendered against other contracts. For a contract spanning 1984 days (over 5 years), this value averages approximately $34,000 per day. This daily rate needs to be assessed against the complexity of the aircraft, the criticality of the components being serviced, and the prevailing market rates for specialized aviation maintenance. Without more granular data on the specific services and the types of aircraft supported, a precise comparison is challenging. However, for long-term, specialized backshop support, this value appears within a plausible range for significant defense contracts.

What is the track record of PAE Aviation and Technical Services LLC in performing similar defense contracts?

PAE Aviation and Technical Services LLC has a history of performing various defense and government contracts. While specific performance details for this particular contract (awarded in 2011 and ending in 2016) are not detailed here, the company's broader portfolio often includes aviation support, logistics, and technical services for military clients. Assessing their track record would involve reviewing past performance evaluations, any contract disputes or awards, and their overall success in delivering on similar firm-fixed-price contracts within the defense sector. A comprehensive review would look at on-time delivery, quality of work, and adherence to budget.

What are the potential risks associated with a firm-fixed-price contract of this duration?

A primary risk with firm-fixed-price (FFP) contracts, especially those with long durations like this 1984-day award, is the potential for the contractor to cut corners on quality or service to maintain profitability if costs escalate unexpectedly. Conversely, the government might miss out on potential cost savings if market prices decrease significantly during the contract period. For the contractor, unforeseen technical challenges or material cost increases not accounted for in the initial bid can erode profit margins. Effective oversight by the DCMA is crucial to mitigate these risks by ensuring quality standards are met and that the contractor remains financially viable throughout the contract's life.

How does the competition level (4 bidders) impact the value received by the government?

Having four bidders for this contract suggests a healthy level of competition, which generally benefits the government. More bidders typically lead to more competitive pricing as companies vie for the award. It also increases the likelihood that the government selects a contractor with the best technical capabilities and a realistic understanding of the costs involved. A limited number of bidders (e.g., one or two) could indicate market concentration or barriers to entry, potentially leading to higher prices. The four-bidder scenario here implies that the market had sufficient capacity and interest to support multiple qualified providers.

What is the historical spending trend for similar aviation backshop support services within the DoD?

Historical spending on aviation backshop support services within the DoD is substantial and generally consistent, reflecting the continuous need to maintain a large and complex fleet of aircraft. Spending fluctuates based on modernization programs, operational tempo, and budget allocations. Contracts like this one, for specialized component repair and maintenance, are a recurring necessity. Analyzing historical data would reveal trends in contract values, durations, and the prevalence of different contract types (like FFP) for these services. Factors such as the introduction of new aircraft types or the retirement of older fleets also influence spending patterns in this category.

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: FA282311R0007

Offers Received: 4

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,721,041

Exercised Options: $68,071,217

Current Obligation: $67,149,461

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline