Air Force's $94.8M T-38 Trainer Maintenance Contract Awarded to M1 Support Services, L.P

Contract Overview

Contract Amount: $94,826,783 ($94.8M)

Contractor: M1 Support Services, L.P.

Awarding Agency: Department of Defense

Start Date: 2011-06-30

End Date: 2016-12-31

Contract Duration: 2,011 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: T-38 COMPANION TRAINER PROGRAM - INTERMEDIATE MAINT HOLLOMAN CENTRALIZED REPAIR FACILITY; ORGANIZATIONAL MAINT AT 5 BASES AND 3 MAJCOMS

Place of Performance

Location: ALAMOGORDO, OTERO County, NEW MEXICO, 88310

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $94.8 million to M1 SUPPORT SERVICES, L.P. for work described as: T-38 COMPANION TRAINER PROGRAM - INTERMEDIATE MAINT HOLLOMAN CENTRALIZED REPAIR FACILITY; ORGANIZATIONAL MAINT AT 5 BASES AND 3 MAJCOMS Key points: 1. Contract provides intermediate and organizational maintenance for T-38 companion trainers across multiple Air Force bases. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Fixed Price Award Fee, which incentivizes performance while managing cost. 4. The duration of the contract spans over five years, indicating a significant commitment to sustainment. 5. The total value of $94.8 million over the period suggests a substantial investment in aircraft readiness. 6. The contractor, M1 Support Services, L.P., has experience in aviation support services.

Value Assessment

Rating: good

The contract value of $94.8 million over approximately five years averages to about $19 million annually. This figure needs to be benchmarked against similar intermediate and organizational maintenance contracts for trainer aircraft. Without specific comparable data, it's difficult to definitively assess value for money. However, the fixed-price award fee structure aims to ensure cost control while rewarding performance, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature should theoretically lead to more favorable pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It allows for a wider pool of qualified contractors to compete, potentially leading to better service at a more reasonable price.

Public Impact

The primary beneficiaries are the U.S. Air Force pilots who rely on well-maintained T-38 aircraft for training. The contract ensures the availability of essential maintenance services for T-38 companion trainers. Services are delivered at Holloman Air Force Base and extend to organizational maintenance at three additional major commands and four other bases. This contract supports a specialized workforce of maintenance technicians and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee criteria are not met efficiently by the contractor.
Dependence on a single contractor for critical maintenance services could pose a risk if performance degrades.
The long duration of the contract may limit flexibility to adapt to changing technological needs or market conditions.

Positive Signals

The fixed-price award fee structure incentivizes contractor performance and cost management.
Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor has a track record in aviation support, implying relevant experience.

Sector Analysis

The T-38 Talon is a twin-engine, supersonic jet trainer aircraft used by the U.S. Air Force and Navy. The market for aircraft maintenance and sustainment services is substantial, with significant government spending allocated to ensuring the readiness of its fleet. This contract fits within the broader aerospace and defense services sector, focusing on specialized support for training platforms.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, M1 Support Services, L.P., may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force program management office. Performance would be monitored against the contract's terms and conditions, including the award fee criteria. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not publicly detailed.

Related Government Programs

T-38 Aircraft Program
Air Force Training Command Services
Aerospace Maintenance and Sustainment Contracts
Fixed-Wing Aircraft Support
Defense Logistics Agency (DLA) Support Contracts

Risk Flags

Performance Risk: Ensuring consistent quality and timely execution of maintenance across multiple geographically dispersed locations.
Cost Control Risk: Managing the 'Award Fee' component effectively to ensure value for money and prevent cost overruns.
Contractor Dependency Risk: Reliance on a single entity for critical sustainment services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.8 million to M1 SUPPORT SERVICES, L.P.. T-38 COMPANION TRAINER PROGRAM - INTERMEDIATE MAINT HOLLOMAN CENTRALIZED REPAIR FACILITY; ORGANIZATIONAL MAINT AT 5 BASES AND 3 MAJCOMS

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 $94.8 million.

What is the period of performance?

Start: 2011-06-30. End: 2016-12-31.

What is the track record of M1 Support Services, L.P. with similar government contracts, particularly for aircraft maintenance?

M1 Support Services, L.P. has a history of performing aviation support services for the U.S. military. While specific details on past T-38 maintenance contracts are not immediately available in this dataset, the company has been awarded other significant contracts for aircraft maintenance, ground support, and base operations. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous awards, would provide a more comprehensive understanding of their reliability and capability in fulfilling complex maintenance requirements like those for the T-38 program.

How does the annual cost of this contract compare to the operational costs of maintaining other similar trainer aircraft fleets?

The annual average cost for this T-38 maintenance contract is approximately $19 million ($94.8M / ~5 years). Benchmarking this against other trainer aircraft fleets requires access to data on their specific maintenance contracts, which can vary significantly based on aircraft type, age, complexity, and the scope of services required (e.g., intermediate vs. depot-level maintenance). For instance, maintaining a more advanced or larger trainer jet might incur higher costs. Without direct comparative data for similar trainer programs, it's challenging to definitively state if this contract represents a higher or lower cost per aircraft or per flight hour compared to its peers.

What are the key performance indicators (KPIs) tied to the 'Award Fee' component of this contract?

The 'Award Fee' component of a Fixed Price Award Fee contract is designed to incentivize contractor performance beyond minimum requirements. While the specific KPIs for this T-38 maintenance contract are not detailed in the provided data, they typically relate to critical aspects of service delivery. Common KPIs include aircraft availability rates, mission capable rates, turnaround times for maintenance tasks, quality of repairs (e.g., defect rates), adherence to safety protocols, and responsiveness to urgent maintenance needs. The contractor earns a portion of the award fee based on how well they meet or exceed these pre-defined performance standards, as assessed by the government.

What is the historical spending trend for T-38 companion trainer maintenance by the Department of the Air Force?

Analyzing historical spending trends for T-38 companion trainer maintenance requires access to historical contract data beyond this single award. This contract, valued at $94.8 million over approximately five years (2011-2016), represents a significant but specific investment. To understand trends, one would need to examine spending on T-38 maintenance across previous contract vehicles, potentially including different types of maintenance (organizational, intermediate, depot) and different contracting approaches over multiple fiscal years. This would reveal whether spending has been consistent, increasing, or decreasing, and how it aligns with fleet size, operational tempo, and aircraft age.

What are the potential risks associated with the 'Organizational Maintenance' aspect of this contract across multiple bases?

Organizational maintenance, performed by the using unit, is critical for day-to-day aircraft readiness. Risks associated with this aspect of the contract, especially when performed across multiple bases, include maintaining consistent quality and standards across geographically dispersed locations. Challenges can arise from variations in local resources, personnel expertise, and logistical support. Ensuring standardized procedures, effective communication, and adequate training for personnel at each location is crucial. Furthermore, the contractor must manage a distributed workforce, which can increase oversight complexity and potential for communication breakdowns, impacting overall fleet readiness if not managed effectively.

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: FA489010R0008

Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE (M)

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: $99,279,897

Exercised Options: $97,654,735

Current Obligation: $94,826,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline