DoD's $76.8M TAFB FSAT Maintenance contract awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $76,803,871 ($76.8M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2009-03-03

End Date: 2015-09-30

Contract Duration: 2,402 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TAFB FSAT MAINTENANCE

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $76.8 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: TAFB FSAT MAINTENANCE Key points: 1. Contract value represents a significant investment in aviation support infrastructure. 2. The firm-fixed-price structure aims to control costs for the duration of the contract. 3. A single award for a long duration suggests a focus on stable, long-term support. 4. The contract falls under 'Other Support Activities for Air Transportation', a critical niche. 5. Geographic location in Florida may indicate a specific operational hub for these services.

Value Assessment

Rating: fair

The total contract value of $76.8 million over approximately 6.7 years (2402 days) averages to about $11.5 million annually. Without specific performance metrics or detailed cost breakdowns, it's challenging to benchmark value definitively. However, the duration and scope suggest a substantial, ongoing need for these services. The firm-fixed-price nature implies that the contractor bears cost overruns, which can be a positive indicator if managed effectively, but also carries risk if the initial pricing was too low.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With 4 bids received, this suggests a reasonably competitive environment, which typically leads to better price discovery and value for the government. The fact that it resulted in a single award implies that one bidder offered the best overall value proposition to the Department of the Air Force.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government explores a wide range of potential providers, driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are the Department of the Air Force and its operational readiness, ensuring critical air transportation support functions are maintained. Services delivered include maintenance and support for the TAFB FSAT system, crucial for air operations. The geographic impact is centered in Florida (ST, SN), likely supporting a specific air base or regional operations. Workforce implications include employment opportunities for skilled technicians and support staff in the aviation maintenance sector within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to contractor complacency or reduced incentive to innovate if not actively managed.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners on quality if not rigorously overseen.
Dependence on a single contractor for a critical support function creates a potential single point of failure.
Lack of specific performance metrics in the provided data makes it difficult to assess the true effectiveness and value delivered.
The 'Other Support Activities for Air Transportation' NAICS code is broad, making it hard to pinpoint exact service expectations without further detail.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected price increases.
The contract has a defined end date, allowing for re-competition and market evaluation in the future.
The existence of 4 bids indicates a healthy level of interest and capability within the market for this service.
The contract supports critical Air Force operations, indicating a high level of importance and likely adherence to stringent standards.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support and maintenance. The market for such specialized services is driven by government defense spending and the need to maintain complex operational infrastructure. Comparable spending benchmarks would involve analyzing other contracts for similar aviation maintenance and support services across different branches of the military or government agencies, considering factors like aircraft types, scope of work, and contract duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements in the provided summary. Therefore, the direct impact on the small business ecosystem appears minimal, with the primary award going to a larger entity. However, the prime contractor may engage small businesses as subcontractors, which would be a secondary impact not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Air Transportation Services
Aircraft Maintenance and Repair
Defense Logistics Support
Base Operations Support
Federal Aviation Administration (FAA) Services

Risk Flags

Long-term single-award contract
Potential for vendor lock-in
Lack of specific performance metrics in summary data
Broad NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.8 million to PAE AVIATION AND TECHNICAL SERVICES LLC. TAFB FSAT MAINTENANCE

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 Air Force).

What is the total obligated amount?

The obligated amount is $76.8 million.

What is the period of performance?

Start: 2009-03-03. End: 2015-09-30.

What is the historical spending trend for TAFB FSAT Maintenance services by the Department of the Air Force?

Analyzing historical spending requires access to detailed procurement data beyond this single contract. However, the award of a significant contract like this ($76.8M) suggests a consistent and substantial requirement for TAFB FSAT maintenance over time. Typically, such services are procured through multi-year contracts or task orders under indefinite-delivery/indefinite-quantity (IDIQ) vehicles. Trends would likely show fluctuations based on budget allocations, operational tempo, and fleet modernization efforts. A deeper dive into FPDS or agency-specific procurement histories would reveal if this contract represents an increase, decrease, or steady state in spending for these specific maintenance activities. Without prior contract data for this exact service, it's difficult to establish a precise trend, but the scale of this award implies a sustained need.

How does the per-unit cost or annual cost of this contract compare to similar aviation maintenance contracts?

Benchmarking the value of this contract requires detailed comparison with similar services. The total value is $76.8 million over approximately 2402 days, averaging roughly $11.5 million annually. To compare per-unit costs, we would need to know the specific units of service (e.g., hours of maintenance, number of aircraft serviced, specific system components maintained). Without this granular data, a direct per-unit cost comparison is not feasible. However, the annual average suggests a significant operational cost. Comparisons would ideally be made against contracts for similar aircraft types, maintenance complexity, and geographic locations. The firm-fixed-price nature also complicates direct cost comparisons, as it includes contractor profit and risk premium. A comprehensive analysis would involve accessing databases of similar contracts and normalizing for scope, duration, and contract type.

What are the key performance indicators (KPIs) used to evaluate the performance of PAE Aviation and Technical Services LLC under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for aviation maintenance and support services, typical KPIs often include metrics such as aircraft availability rates, turnaround times for maintenance tasks, defect rates after repair, compliance with technical orders, safety incident rates, and on-time completion of scheduled maintenance. The Department of the Air Force would have established specific measurable standards within the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). PAE's performance would be monitored against these KPIs, often through regular progress reports, inspections, and potentially award-fee evaluations if applicable, to ensure mission requirements are met effectively and efficiently.

What is the track record of PAE Aviation and Technical Services LLC in performing similar large-scale aviation support contracts for the DoD?

PAE Aviation and Technical Services LLC (and its predecessors/related entities) has a substantial track record in providing aviation support, logistics, and technical services to government agencies, including the Department of Defense. They have historically managed large, complex contracts involving aircraft maintenance, modification, and operational support across various platforms and locations globally. Their experience often spans decades, demonstrating capability in managing significant budgets, large workforces, and demanding operational requirements. Specific performance details for past contracts, including any awards, penalties, or contract disputes, would require a detailed review of their contract history in public databases like FPDS, SAM.gov, and potentially agency-specific performance evaluations. Generally, their portfolio suggests they are a significant player capable of handling contracts of this magnitude.

What are the potential risks associated with relying on a single contractor for TAFB FSAT maintenance over an extended period?

Relying on a single contractor, like PAE Aviation and Technical Services LLC, for TAFB FSAT maintenance over a long duration (over 6 years) presents several potential risks. Firstly, there's a risk of 'vendor lock-in,' where the government becomes highly dependent on the incumbent contractor, making it difficult or costly to switch providers even if performance declines or better options emerge. Secondly, a lack of ongoing competition can reduce the incentive for the contractor to innovate, improve efficiency, or offer competitive pricing beyond the initial award. Thirdly, the contractor might face financial instability or operational challenges (e.g., workforce shortages, supply chain disruptions) that could directly impact critical Air Force operations. Finally, institutional knowledge can become concentrated within the contractor's organization, potentially hindering the government's internal understanding and oversight capabilities over time.

How does the 'Other Support Activities for Air Transportation' classification impact the scope and expectations of this contract?

The NAICS code 488190, 'Other Support Activities for Air Transportation,' is a broad classification that encompasses a range of services beyond direct flight operations or aircraft manufacturing. For this contract, it suggests the scope likely includes essential support functions necessary for the operation of air transportation facilities or systems, but not the core flying mission itself. This could encompass activities such as air traffic control support, airport operations assistance, aircraft maintenance and repair (as indicated by the contract title), ground support equipment maintenance, and potentially logistical support for air operations. The broadness means the specific deliverables are heavily defined by the Performance Work Statement (PWS) within the contract document itself, requiring careful review to understand the precise services rendered and expected outcomes.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 901 LINCOLN DR W STE 200, MARLTON, NJ, 08053

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $88,761,093

Exercised Options: $88,761,093

Current Obligation: $76,803,871

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline