DoD's $62.5M Aircraft Maintenance Training Contract with PKL Services Raises Questions on Value and Competition
Contract Overview
Contract Amount: $62,507,194 ($62.5M)
Contractor: PKL Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-01
End Date: 2022-12-31
Contract Duration: 1,582 days
Daily Burn Rate: $39.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AIRCRAFT MAINTENANCE AND OPERATIONS TRAINING SERVICES
Place of Performance
Location: MOUNTAIN HOME AFB, ELMORE County, IDAHO, 83648
State: Idaho Government Spending
Plain-Language Summary
Department of Defense obligated $62.5 million to PKL SERVICES, INC. for work described as: AIRCRAFT MAINTENANCE AND OPERATIONS TRAINING SERVICES Key points: 1. The contract awarded to PKL Services, Inc. for aircraft maintenance and operations training services totals $62.5 million. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The 'Other Support Activities for Air Transportation' sector is broad, making direct sector benchmarks challenging. 4. The firm fixed-price contract type aims to control costs, but the overall value and efficiency require further scrutiny.
Value Assessment
Rating: fair
The contract's value of $62.5 million over approximately four years needs comparison against similar training services. Without specific performance metrics or detailed cost breakdowns, assessing the true value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, the process should have facilitated price discovery. However, the lack of detailed award information makes it hard to confirm if the lowest price technically acceptable or best value was achieved.
Taxpayer Impact: The firm fixed-price structure aims to protect taxpayers from cost overruns, but the overall efficiency and necessity of the services at this price point are key considerations for taxpayer impact.
Public Impact
Taxpayers are funding extensive training services for aircraft maintenance and operations. The Department of the Air Force is the primary beneficiary, impacting readiness and operational capabilities. The duration of the contract (over 4 years) suggests a long-term need for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics
- Limited transparency on cost breakdown
- Potential for scope creep in 'Other Support Activities'
Positive Signals
- Firm fixed-price contract type
- Full and open competition awarded
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation,' a broad category. Benchmarking requires detailed comparison with similar specialized training services, which are often unique to specific aircraft and operational needs.
Small Business Impact
The data indicates that PKL Services, Inc. is not a small business, and there is no specific mention of small business subcontracting goals or achievements within this contract award.
Oversight & Accountability
Oversight would focus on contract performance, adherence to the firm fixed-price terms, and ensuring the training provided meets the Air Force's operational requirements effectively and efficiently.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost breakdown
- Ambiguity in 'Other Support Activities' scope
- No clear performance metrics provided
- Potential for uncompetitive pricing despite open competition
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 $62.5 million to PKL SERVICES, INC.. AIRCRAFT MAINTENANCE AND OPERATIONS TRAINING SERVICES
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 $62.5 million.
What is the period of performance?
Start: 2018-09-01. End: 2022-12-31.
What specific training outcomes and performance metrics were established to ensure the $62.5 million investment delivers tangible improvements in aircraft maintenance and operations readiness?
The provided data does not specify the training outcomes or performance metrics. A thorough review would require access to the contract's statement of work and performance work statement to identify measurable objectives and key performance indicators (KPIs) used to evaluate the contractor's success and ensure the significant investment yields desired operational improvements.
How does the pricing structure and final award amount compare to industry benchmarks for similar specialized aircraft maintenance and operations training services, considering the full and open compet
While awarded under full and open competition, the data lacks specific pricing details beyond the total award amount. A comprehensive comparison to industry benchmarks would necessitate analyzing the detailed cost proposals submitted by bidders, the specific services rendered, and prevailing market rates for comparable training programs to ascertain if the $62.5 million represents a competitive and fair price.
What is the assessed effectiveness of the training provided by PKL Services, Inc. in enhancing the Air Force's operational capabilities and reducing long-term maintenance costs?
The effectiveness of the training is not detailed in the provided data. Assessing this would require examining post-contract performance reviews, feedback from Air Force personnel who received the training, and any documented impact on operational efficiency, incident reduction, or maintenance cost savings over the contract period.
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: FA489717R0006
Offers Received: 3
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: $64,485,351
Exercised Options: $62,507,194
Current Obligation: $62,507,194
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-01
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-09-21
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&operation Services, Mountain Home AFB, ID — $59.3M (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)