Air Force awards $272M contract for intermediate maintenance services across five bases

Contract Overview

Contract Amount: $272,463,529 ($272.5M)

Contractor: M1 Support Services, L.P.

Awarding Agency: Department of Defense

Start Date: 2017-01-01

End Date: 2025-09-30

Contract Duration: 3,194 days

Daily Burn Rate: $85.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: IGF::OT::IGF INTERMED MAINTENANCE AT HOLLOMAN, LANGLEY, TYNDALL, WHITEMAN, AND BEALE AFB'S

Place of Performance

Location: ALAMOGORDO, OTERO County, NEW MEXICO, 88310

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $272.5 million to M1 SUPPORT SERVICES, L.P. for work described as: IGF::OT::IGF INTERMED MAINTENANCE AT HOLLOMAN, LANGLEY, TYNDALL, WHITEMAN, AND BEALE AFB'S Key points: 1. Contract awarded to M1 Support Services, L.P. for a period of nearly 8 years. 2. Services include intermediate maintenance for aircraft and related equipment. 3. The contract was awarded under full and open competition. 4. Fixed Price Award Fee contract type suggests performance incentives. 5. Geographic distribution of services across multiple Air Force bases. 6. Potential for significant workforce implications at each location.

Value Assessment

Rating: good

The contract value of $272.4 million over approximately 8 years averages to about $34 million annually. Benchmarking this against similar intermediate maintenance contracts for Air Force installations is challenging without more specific service scope details. However, the fixed-price award fee structure implies that the government aims to control costs while incentivizing performance, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors were likely solicited. The presence of two bidders, as suggested by the 'no' field, allows for price discovery and competitive pressure, which generally benefits the government. The specific details of the bidding process and the number of proposals received would provide further insight into the robustness of the competition.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The Department of the Air Force benefits from essential aircraft maintenance services. Airmen and support personnel at Holloman, Langley, Tyndall, Whiteman, and Beale AFB's receive critical support. Ensures operational readiness and safety of aircraft fleets. Supports the Air Force's mission readiness across multiple strategic locations. Potential impact on local economies through contractor employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting aircraft readiness.
Reliance on a single contractor for critical maintenance across multiple bases.
Award Fee structure requires careful monitoring to ensure fair compensation.

Positive Signals

Full and open competition suggests a competitive bidding process.
Fixed Price Award Fee structure incentivizes performance and cost control.
Long-term contract provides stability for service delivery.
Contract covers essential maintenance, crucial for operational readiness.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aircraft maintenance and support. The market for these services is substantial, driven by the continuous need for operational readiness of military aviation assets. Comparable spending benchmarks would involve analyzing other intermediate and depot-level maintenance contracts awarded by the Air Force and other military branches for similar aircraft types and service scopes.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this large prime contract (ss: false, sb: false). However, M1 Support Services, L.P. may engage small businesses as subcontractors to fulfill certain aspects of the maintenance requirements. The extent of subcontracting to small businesses would need further investigation to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance metrics and deliverables outlined in the contract would be monitored to ensure compliance. The Inspector General's office may conduct audits or investigations if performance issues or allegations of fraud arise. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Aircraft Maintenance Services
Base Operations Support
Logistics and Sustainment Services
Air Force Readiness Programs
Defense Maintenance Contracts

Risk Flags

Potential for performance degradation impacting operational readiness.
Contractor workforce stability and retention.
Supply chain disruptions affecting parts availability.
Complexity of managing services across multiple geographically dispersed locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $272.5 million to M1 SUPPORT SERVICES, L.P.. IGF::OT::IGF INTERMED MAINTENANCE AT HOLLOMAN, LANGLEY, TYNDALL, WHITEMAN, AND BEALE AFB'S

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 $272.5 million.

What is the period of performance?

Start: 2017-01-01. End: 2025-09-30.

What is the historical performance record of M1 Support Services, L.P. with the Department of the Air Force or other government agencies?

A review of federal procurement data and contract databases would be necessary to assess M1 Support Services, L.P.'s historical performance. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or corrective actions. Understanding their track record with similar maintenance services, contract types, and agency clients provides crucial context for evaluating their capability to successfully execute this $272 million contract. A history of strong performance would indicate a lower risk, while a pattern of issues might raise concerns about potential disruptions to Air Force operations.

How does the annual cost of this contract compare to similar intermediate maintenance contracts at other Air Force installations?

To benchmark the value, one would need to identify comparable intermediate maintenance contracts awarded by the Air Force for similar aircraft types and operational tempos at other bases. Key metrics for comparison would include the annual cost per aircraft, cost per maintenance hour, or cost as a percentage of aircraft value. Without access to detailed service scopes and pricing structures of other contracts, a precise comparison is difficult. However, if this contract's annual average of approximately $34 million is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding, respectively. Further analysis of contract line item numbers (CLINs) and service level agreements would be required for a definitive assessment.

What are the primary risks associated with this intermediate maintenance contract, and how are they being mitigated?

Primary risks include potential contractor underperformance leading to aircraft downtime, difficulties in retaining skilled maintenance personnel, and unforeseen cost increases due to evolving maintenance requirements or supply chain disruptions. Mitigation strategies likely involve the Fixed Price Award Fee structure, which incentivizes performance and cost control. The Air Force's oversight through CORs, performance metrics, and potential penalties for non-compliance are also key. Furthermore, the contract's duration allows for relationship building, but also necessitates robust contract management to address issues proactively. The geographic dispersion across five bases also introduces logistical complexities that require careful management.

How effective is the Award Fee component in ensuring optimal performance and value for money?

The effectiveness of the Award Fee component hinges on the clarity and measurability of the performance criteria established in the contract. If the criteria are well-defined, objective, and directly tied to mission-critical outcomes (e.g., aircraft availability, turnaround time, quality of repairs), the Award Fee can be a powerful tool for incentivizing high performance and ensuring value. Conversely, if the criteria are vague or subjective, it can lead to disputes or fail to drive the desired results. Regular performance reviews and transparent communication between the government and the contractor are essential for the Award Fee to function as intended, ensuring that the contractor is rewarded for exceeding expectations and that taxpayer money is spent efficiently.

What is the historical spending trend for intermediate maintenance services at these specific Air Force bases?

Analyzing historical spending data for intermediate maintenance at Holloman, Langley, Tyndall, Whiteman, and Beale AFB's would provide context for the current $272 million award. This involves examining previous contracts for similar services at these locations, noting any significant increases or decreases in spending over time. Trends might be influenced by factors such as aircraft fleet modernization, changes in maintenance philosophy (e.g., shifting from organic to contractor support), or evolving operational tempo. Understanding these historical patterns can help identify whether the current contract represents a continuation of established spending levels, a significant escalation, or a cost-saving measure, and whether past contracts were competitively procured or sole-sourced.

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: FA489015R0007

Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE (M)

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, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $284,863,071

Exercised Options: $280,429,076

Current Obligation: $272,463,529

Actual Outlays: $25,393,443

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline