DoD's $59.3M Aircraft Maintenance Contract with PKL Services Raises Questions on Competition and Value
Contract Overview
Contract Amount: $59,299,144 ($59.3M)
Contractor: PKL Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2018-03-31
Contract Duration: 2,007 days
Daily Burn Rate: $29.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF AIRCRAFT MAINTENANCE&OPERATION SERVICES, MOUNTAIN HOME AFB, ID
Place of Performance
Location: MOUNTAIN HOME AFB, ELMORE County, IDAHO, 83648
State: Idaho Government Spending
Plain-Language Summary
Department of Defense obligated $59.3 million to PKL SERVICES, INC. for work described as: IGF::OT::IGF AIRCRAFT MAINTENANCE&OPERATION SERVICES, MOUNTAIN HOME AFB, ID Key points: 1. Significant spending on aircraft maintenance services highlights the importance of efficient contract management. 2. The contract's sole-source nature warrants scrutiny regarding potential overpricing and limited market options. 3. Long contract duration (over 5 years) may not reflect current market conditions or technological advancements. 4. Lack of small business participation is noted, potentially missing opportunities for economic inclusion.
Value Assessment
Rating: questionable
The contract value of $59.3M over approximately 5.5 years, with a firm fixed price, is difficult to assess without comparable data. The absence of a stated per-unit cost benchmark makes direct comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a definitive contract with 'NOT AVAILABLE FOR COMPETITION', this indicates a limited competition approach. This method can lead to higher prices if the chosen vendor is not incentivized by market pressures.
Taxpayer Impact: The lack of robust competition suggests taxpayers may not have received the best possible price for these essential aircraft maintenance services.
Public Impact
Taxpayers funded nearly $60 million for aircraft maintenance at Mountain Home AFB. The contract supported air transportation activities, crucial for military readiness. PKL Services, Inc. was the sole provider under this specific contract. The contract spanned from October 2012 to March 2018.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in pricing
- Long contract duration
- No small business participation
Positive Signals
- Definitive contract awarded
- Firm fixed price structure
Sector Analysis
Aircraft maintenance services fall under the broader 'Other Support Activities for Air Transportation' sector. Spending benchmarks for this sector can vary widely based on aircraft type, operational tempo, and specific service requirements. This contract represents a substantial investment within this niche.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests a missed opportunity to leverage small business capabilities and promote economic diversity within defense contracting.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation raises questions about the oversight process that led to this award. Further review would be needed to confirm if adequate justification and approval were obtained for limiting competition.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for overpayment due to limited competition
- Lack of transparency in pricing mechanisms
- Missed opportunities for small business engagement
- Questionable justification for sole-source award
- Risk of outdated service provisions due to long duration
Tags
other-support-activities-for-air-transpo, department-of-defense, id, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.3 million to PKL SERVICES, INC.. IGF::OT::IGF AIRCRAFT MAINTENANCE&OPERATION SERVICES, MOUNTAIN HOME AFB, ID
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 $59.3 million.
What is the period of performance?
Start: 2012-10-01. End: 2018-03-31.
What was the justification for awarding this contract on a limited competition basis, and were alternative competitive strategies considered?
The contract was designated 'NOT AVAILABLE FOR COMPETITION,' implying a specific reason, potentially related to unique capabilities or urgent needs. However, without further documentation, it's unclear if alternative competitive strategies were thoroughly explored or if this limitation was fully justified to ensure the best value for the government.
How does the per-unit cost of these aircraft maintenance services compare to industry benchmarks or similar contracts awarded competitively?
A direct per-unit cost comparison is not possible as the data does not provide this level of detail or a benchmark. The firm fixed price nature of the contract, combined with limited competition, makes it difficult to ascertain if the pricing was optimal or if taxpayers received competitive market rates.
What was the impact of the long contract duration (over 5 years) on the overall cost-effectiveness and adaptability to changing operational needs?
A long contract duration, especially in a dynamic field like aircraft maintenance, can lead to inefficiencies if technology or operational requirements change. While a fixed price might seem stable, it could also mean the government overpaid if market rates decreased or underpaid if costs significantly increased beyond initial projections.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA489712R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14265 DANIELSONS ST C1, POWAY, CA, 92064
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $59,299,144
Exercised Options: $59,299,144
Current Obligation: $59,299,144
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $24,139,030
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-10-01
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2018-02-20
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)
- F-15 Upgrade Training — $46.1M (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)