DoD's $84.5M helicopter maintenance contract awarded to M1 Support Services, L.P. shows fair value

Contract Overview

Contract Amount: $84,464,472 ($84.5M)

Contractor: M1 Support Services, L.P.

Awarding Agency: Department of Defense

Start Date: 2014-12-15

End Date: 2021-09-01

Contract Duration: 2,452 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CL,CT::IGF; HELICOPTER MAINTENANCE

Place of Performance

Location: BERNALILLO, SANDOVAL County, NEW MEXICO, 87004

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $84.5 million to M1 SUPPORT SERVICES, L.P. for work described as: IGF::CL,CT::IGF; HELICOPTER MAINTENANCE Key points: 1. Contract value of $84.5M over 2452 days indicates a significant investment in aviation support. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration and scope point to a critical, long-term need for specialized maintenance services. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs for the government. 5. Awarded to a single contractor, M1 Support Services, L.P., performance history will be key to assessing value. 6. Geographic focus on New Mexico highlights regional operational needs for the Air Force.

Value Assessment

Rating: fair

The contract's total value of $84.5M over approximately 6.7 years averages to about $12.6M annually. Benchmarking this against similar large-scale aviation maintenance contracts is challenging without more specific service details. However, the firm fixed-price structure suggests that the government has negotiated a price that the contractor must adhere to, which can be advantageous if costs are well-managed. The provided data does not include specific performance metrics or cost breakdowns to definitively assess value-for-money, but the competitive award process offers a baseline for fair pricing.

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 specialized service. A competitive environment generally encourages bidders to offer their best pricing and terms to secure the contract, which is beneficial for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is not overpaying due to a lack of market alternatives.

Public Impact

The primary beneficiaries are the U.S. Air Force units requiring helicopter maintenance, ensuring operational readiness. Services delivered include essential maintenance, repair, and overhaul for rotary-wing aircraft. The geographic impact is concentrated in New Mexico, supporting Air Force operations in that region. Workforce implications include the creation or sustainment of skilled aviation mechanic and support jobs in the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed-price estimate was too low and unforeseen issues arise.
Dependence on a single contractor for critical maintenance could lead to performance risks if issues emerge.
Limited transparency into the specific cost components of the fixed-price bid without further analysis.

Positive Signals

Full and open competition suggests a strong initial vetting of potential contractors.
Firm fixed-price contract type provides cost certainty for the government.
The contract's duration implies a stable, long-term need and a potentially experienced contractor.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for aircraft maintenance, repair, and overhaul (MRO) is substantial, driven by the operational needs of military and commercial aviation. Comparable spending benchmarks would typically involve analyzing other large MRO contracts awarded by the DoD or other federal agencies for similar aircraft types or service scopes. The $84.5M value positions this as a significant contract within its niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated for small businesses within this specific award. The primary contractor, M1 Support Services, L.P., will likely manage its own supply chain and potentially engage subcontractors, but this is not a small business set-aside. The impact on the small business ecosystem is indirect, relying on the prime contractor's procurement practices.

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. Performance monitoring, quality assurance checks, and financial audits are standard oversight mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance data may be less public.

Related Government Programs

DoD Aviation Maintenance Contracts
Air Force Logistics and Sustainment Programs
Rotary-Wing Aircraft Support
Federal Aviation Services Contracts
Defense Contractor Performance Monitoring

Risk Flags

Contract Duration
Contract Value
Contract Type
Competition Level
Contractor Performance History (Requires further investigation)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.5 million to M1 SUPPORT SERVICES, L.P.. IGF::CL,CT::IGF; 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 $84.5 million.

What is the period of performance?

Start: 2014-12-15. End: 2021-09-01.

What is the track record of M1 Support Services, L.P. with similar Department of Defense contracts?

M1 Support Services, L.P. has a history of performing aviation maintenance and support services for the Department of Defense. Analyzing their past performance on similar contracts, particularly those involving helicopter maintenance or fixed-wing aircraft support, is crucial. Key indicators include on-time delivery, quality of work, adherence to budget (especially in fixed-price contracts), and any past performance issues or awards. A review of contract databases and performance assessment reports (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide a more detailed picture of their reliability and capability in fulfilling complex defense contracts.

How does the average annual cost of this contract compare to industry benchmarks for helicopter maintenance?

The contract's total value of $84.5M over approximately 6.7 years (2452 days) averages to roughly $12.6M per year. To benchmark this against industry standards for helicopter maintenance, one would need to consider the specific types of helicopters, the scope of services (e.g., scheduled maintenance, unscheduled repairs, component overhaul), and the operational tempo. General aviation maintenance costs can vary widely. For military-grade maintenance on complex rotary-wing aircraft, this annual figure might be considered within a reasonable range, especially given the firm fixed-price nature which often incorporates risk premiums. However, a precise comparison requires detailed service level agreements and market data for comparable military helicopter fleets.

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

The primary risk with a firm fixed-price (FFP) contract of this magnitude ($84.5M) and duration (approx. 6.7 years) is that the contractor, M1 Support Services, L.P., may face financial strain if their initial cost estimates do not accurately reflect the actual expenses incurred over the contract period. Unexpected increases in labor costs, material prices, or the need for unforeseen repairs due to operational demands could erode profit margins or lead to losses. Conversely, the government's risk is that the contractor may have inflated prices to cover potential contingencies, leading to overpayment if costs are lower than anticipated. Contractor performance could also suffer if they attempt to cut corners to protect profitability.

How effective is the full and open competition process in ensuring value for money in specialized defense contracting?

Full and open competition is generally considered the most effective method for ensuring value for money in defense contracting, including specialized areas like helicopter maintenance. By allowing all responsible sources to compete, the government maximizes the potential for receiving competitive bids, driving down prices and encouraging innovation. The presence of 6 bidders in this case suggests a healthy market and a strong likelihood that the award price reflects a competitive market rate. However, the effectiveness also depends on the clarity of the solicitation requirements and the government's ability to accurately evaluate the technical and cost proposals submitted by the bidders.

What historical spending trends exist for helicopter maintenance within the Department of the Air Force?

Historical spending trends for helicopter maintenance within the Department of the Air Force (and DoD broadly) typically show consistent, significant investment due to the critical role of rotary-wing aircraft in various operations. Spending levels are influenced by fleet size, aircraft age, operational tempo, and modernization programs. Contracts for maintenance, repair, and overhaul (MRO) are common and often awarded through competitive processes, though durations and values can vary significantly. Analyzing past spending patterns reveals a sustained demand for these services, often resulting in multi-year contracts valued in the tens to hundreds of millions of dollars, depending on the scope and scale of the supported fleet.

Are there specific performance metrics or KPIs tied to this contract that indicate its success?

The provided data does not explicitly list specific Key Performance Indicators (KPIs) or metrics tied to this contract. However, for a contract of this nature (helicopter maintenance), typical KPIs would likely include metrics related to aircraft availability rates, turnaround times for maintenance tasks, quality of repairs (e.g., defect rates), adherence to scheduled maintenance, and compliance with safety regulations. The firm fixed-price nature suggests that the contractor is incentivized to meet performance standards efficiently. The ultimate measure of success would be the sustained operational readiness of the supported helicopter fleet.

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: FA300213R0024

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 N ELM ST STE 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: $86,537,293

Exercised Options: $86,457,293

Current Obligation: $84,464,472

Actual Outlays: $1,592,429

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline