PKL Services awarded $25.8M for aircraft maintenance, facing limited competition
Contract Overview
Contract Amount: $25,789,507 ($25.8M)
Contractor: PKL Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-03
End Date: 2012-09-30
Contract Duration: 1,488 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIRCRAFT MAINTENANCE SERVICES-PHASE II
Place of Performance
Location: MOUNTAIN HOME AFB, ELMORE County, IDAHO, 83648
State: Idaho Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to PKL SERVICES, INC. for work described as: AIRCRAFT MAINTENANCE SERVICES-PHASE II Key points: 1. Contract value of $25.8M for aircraft maintenance services. 2. Awarded to PKL Services, Inc. by the Department of the Air Force. 3. Contract duration spans from September 2008 to September 2012. 4. Procurement type: Full and Open Competition after Exclusion of Sources. 5. Pricing structure: Firm Fixed Price. 6. Geographic location: Idaho. 7. NAICS code: 488190 (Other Support Activities for Air Transportation).
Value Assessment
Rating: fair
The contract value of $25.8 million for aircraft maintenance services over approximately four years appears to be within a reasonable range for such specialized support. However, without specific details on the scope of services, the number of aircraft supported, or the complexity of the maintenance required, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for aircraft maintenance at Air Force installations would provide a clearer picture of whether the pricing reflects competitive market rates or potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which suggests that while the intent was competition, specific circumstances led to the exclusion of certain potential bidders. The number of bidders is not explicitly stated, but the 'limited' competition level implies fewer than ideal participants. This could potentially lead to less aggressive pricing than a truly open and unrestricted competition, as the contractor may face less pressure to offer the lowest possible price.
Taxpayer Impact: A limited competition environment may result in taxpayers not receiving the most cost-effective solution, as the potential for price reduction through broader bidding is diminished.
Public Impact
The primary beneficiaries are the Department of the Air Force, receiving essential aircraft maintenance services. Services delivered include support activities for air transportation, ensuring aircraft readiness and operational capability. The geographic impact is concentrated in Idaho, where the maintenance services are performed. Workforce implications include employment opportunities for skilled aircraft maintenance technicians and support staff in the Idaho region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have reduced price discovery and potentially increased costs for taxpayers.
- The 'Exclusion of Sources' clause warrants further investigation into the rationale and impact on competition.
- Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.
Positive Signals
- Awarded to a single contractor, potentially streamlining management and communication.
- Firm Fixed Price contract type provides cost certainty for the government.
- Contract duration of nearly four years allows for stable service provision and workforce planning.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for aircraft maintenance is substantial, driven by the continuous need to maintain the operational readiness of military and commercial fleets. Contracts like this are crucial for ensuring the longevity and performance of aircraft assets. Comparable spending benchmarks would involve analyzing other Air Force contracts for similar maintenance services at different bases or for different aircraft types to gauge cost-effectiveness.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract (ss: false, sb: false). Therefore, the primary contractor, PKL Services, Inc., is likely not a small business, or if it is, the contract was not specifically designated for small business participation. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is unclear, though larger prime contracts often involve subcontracting opportunities.
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. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Aircraft Maintenance Services
- Air Transportation Support
- Defense Logistics Support
- Air Force Operations & Maintenance
Risk Flags
- Limited competition may lead to higher costs.
- Potential for reduced price discovery due to source exclusion.
- Need for detailed performance review to ensure quality.
Tags
defense, department-of-the-air-force, aircraft-maintenance, support-activities-for-air-transportation, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, idaho, medium-value-contract, pk-services-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to PKL SERVICES, INC.. AIRCRAFT MAINTENANCE SERVICES-PHASE II
Who is the contractor on this award?
The obligated recipient is PKL SERVICES, INC..
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 $25.8 million.
What is the period of performance?
Start: 2008-09-03. End: 2012-09-30.
What specific types of aircraft were maintained under this contract, and what was the scope of the maintenance services provided?
The provided data does not specify the exact types of aircraft maintained or the detailed scope of services. The NAICS code 488190, 'Other Support Activities for Air Transportation,' suggests a broad range of services beyond basic repair, potentially including line maintenance, component repair, inspection, and logistical support for aircraft operations. To understand the full scope, one would need to review the contract's Statement of Work (SOW). Without this, it's difficult to precisely gauge the complexity and value of the services rendered.
How did the 'Full and Open Competition after Exclusion of Sources' process impact the final contract price compared to a standard full and open competition?
The 'Full and Open Competition after Exclusion of Sources' (F&O CAEoS) clause indicates that the solicitation was initially intended for full and open competition, but specific sources were excluded for documented reasons (e.g., national security, proprietary data, or unique capabilities). While it aims for competition, the exclusion of potential bidders inherently limits the pool of offerors. This limitation can reduce competitive pressure, potentially leading to a higher final price than if all qualified sources were allowed to compete. The extent of this impact depends on how many sources were excluded and the competitiveness of the remaining bidders.
What is the track record of PKL Services, Inc. in performing similar aircraft maintenance contracts for the Department of Defense?
Assessing PKL Services, Inc.'s track record requires examining their past performance on similar contracts. This would involve reviewing performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and their experience with the specific aircraft types and maintenance requirements relevant to this $25.8 million award. A history of successful, on-time, and within-budget performance on comparable DoD contracts would indicate a lower risk for this current award. Conversely, a history of issues could signal potential performance risks.
How does the $25.8 million contract value compare to historical spending on aircraft maintenance by the Air Force in Idaho or for similar support activities?
Comparing the $25.8 million contract value requires context. Historical spending data for aircraft maintenance in Idaho or for similar support activities (NAICS 488190) by the Air Force would be necessary for a meaningful benchmark. Without access to this specific historical data, it's challenging to determine if this award represents an increase, decrease, or stable level of spending. Analyzing trends in contract values, number of awards, and average contract size within this category and geographic region would provide valuable insights into the current award's relative scale.
What are the potential risks associated with a Firm Fixed Price (FFP) contract for aircraft maintenance services, and how were they mitigated?
The primary risk of an FFP contract for the contractor is bearing the cost overrun if expenses exceed the fixed price. For the government, the risk is that the contractor may cut corners on quality or scope to protect profit margins if costs escalate unexpectedly. Mitigation strategies by the government often include a well-defined Statement of Work (SOW), robust inspection and acceptance processes, and performance monitoring. The 'Exclusion of Sources' aspect might suggest a need for careful oversight to ensure the contractor isn't exploiting a less competitive environment.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA489708R0003
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10659 EGLANTINE COURT, SAN DIEGO, CA, 90
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $25,789,507
Exercised Options: $25,789,507
Current Obligation: $25,789,507
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-03
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2013-10-03
More Contracts from PKL Services, Inc.
- Reset Services — $168.5M (Department of Defense)
- Republic of Singapore AIR Force F-15 Flight Operations and Maintenance Support Training — $89.2M (Department of Defense)
- F-15 C/D/S Acft Maint UGT Bridge Contract — $62.5M (Department of Defense)
- Aircraft Maintenance and Operations Training Services — $62.5M (Department of Defense)
- Aircraft Maintenance&operation Services, Mountain Home AFB, ID — $59.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)