DoD's $23.2M IT Services Contract with S&K Aerospace Shows Mixed Value and Limited Competition

Contract Overview

Contract Amount: $23,187,444 ($23.2M)

Contractor: S & K Aerospace, LLC

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2014-02-28

Contract Duration: 1,976 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FINANCIAL MANAGEMENT SYSTEMS SERVICES

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to S & K AEROSPACE, LLC for work described as: FINANCIAL MANAGEMENT SYSTEMS SERVICES Key points: 1. Contract value of $23.2 million over its life suggests a moderate investment in IT services. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a potentially competitive process. 3. A limited number of bidders (2) raises questions about the extent of market engagement. 4. The time and materials pricing structure can pose risks if not closely managed, potentially leading to cost overruns. 5. Performance context is limited without specific details on deliverables and outcomes. 6. Sector positioning within custom computer programming services is standard for IT support contracts.

Value Assessment

Rating: fair

Benchmarking the value of this $23.2 million contract is challenging without specific performance metrics or comparable contract data. The time and materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. The relatively long duration of the contract (1976 days) also necessitates careful oversight to ensure continued value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting that while the competition was open, specific sources may have been excluded for defined reasons. With only two bidders, the level of competition was limited, which could impact price discovery and potentially lead to less competitive pricing than a broader competition might yield.

Taxpayer Impact: Limited competition can mean taxpayers may not have received the most cost-effective solution available in the market.

Public Impact

The Department of the Air Force benefits from custom computer programming services to support its operations. This contract likely supports IT infrastructure and software development needs within the Air Force. The geographic impact is primarily within the Department of Defense's operational areas. Workforce implications include employment for IT professionals working for S&K Aerospace and potentially within the Air Force IT departments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to uncontrolled costs if not managed effectively.
Limited competition (2 bidders) may have resulted in a higher price than a more robust bidding process.
The long contract duration increases the risk of scope creep and cost escalation without strong oversight.

Positive Signals

Awarded under full and open competition, indicating an attempt at market fairness.
Contractor S&K Aerospace, LLC has a track record with the government, suggesting some level of established performance.
The contract supports critical IT functions for the Department of the Air Force.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming services (NAICS 541511). The federal IT services market is substantial, with significant spending across various agencies. This contract represents a portion of the Department of Defense's overall IT expenditure, supporting its mission-critical functions. Comparable spending benchmarks would typically involve analyzing other custom programming contracts within DoD or similar agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, S&K Aerospace, LLC, is likely a larger entity, and its role in subcontracting would depend on the specific terms of the contract and its own business strategy.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within the Department of the Air Force, and potentially the Defense Contract Management Agency (DCMA). Accountability measures are usually tied to performance metrics, delivery schedules, and adherence to contract terms. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Technology Contracting
Custom Software Development Services
IT Support Services
Department of Defense IT Procurement
Air Force Technology Services

Risk Flags

Limited competition may impact price.
Time and Materials pricing poses cost control risks.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to S & K AEROSPACE, LLC. FINANCIAL MANAGEMENT SYSTEMS SERVICES

Who is the contractor on this award?

The obligated recipient is S & K AEROSPACE, LLC.

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 $23.2 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-02-28.

What is the track record of S&K Aerospace, LLC with government contracts, particularly within the Department of Defense?

S&K Aerospace, LLC has a history of receiving government contracts, including those with the Department of Defense. Analyzing their contract portfolio reveals a pattern of engagement in various service areas. While specific performance details for each contract are not publicly detailed in summary data, their continued award of contracts suggests a capacity to meet government requirements. Further investigation into past performance reviews and any documented issues or successes would provide a more comprehensive understanding of their reliability and effectiveness as a contractor.

How does the pricing structure (Time and Materials) compare to industry benchmarks for similar custom computer programming services?

Time and Materials (T&M) pricing is common for custom programming services where the scope of work can be difficult to define precisely upfront. However, T&M contracts carry inherent risks of cost escalation if not managed rigorously. Industry benchmarks often favor fixed-price or cost-plus-fixed-fee structures for projects with well-defined scopes, as they offer greater cost certainty. For T&M, benchmarks would focus on average hourly rates for specific skill sets (e.g., software developers, system analysts) in the relevant geographic market and the contractor's historical billing rates. Without specific rate data for this contract, a direct comparison is difficult, but the potential for costs to exceed initial estimates is a key consideration.

What specific IT services were delivered under this contract, and were they critical to the Air Force's mission?

The contract's description as 'Custom Computer Programming Services' (NAICS 541511) indicates that the services likely involved the development, modification, and maintenance of software and IT systems tailored to the Air Force's unique requirements. This could encompass a wide range of activities, from developing new applications to integrating existing systems or providing specialized IT support. While the exact deliverables are not detailed in the provided data, custom programming services are often critical for maintaining and enhancing the operational capabilities and technological edge of military branches like the Air Force, supporting everything from logistics and communication to intelligence and command and control.

What was the total spending on custom computer programming services by the Department of the Air Force in the years this contract was active (2008-2014)?

To determine the total spending on custom computer programming services by the Department of the Air Force between 2008 and 2014, one would need to query comprehensive federal procurement databases (like FPDS-NG or USAspending.gov) using the relevant NAICS code (541511) and filtering by the Department of the Air Force and the specified date range. This contract alone accounted for approximately $23.2 million over its lifespan. However, this figure represents only a fraction of the Air Force's total IT expenditure. Broader analysis would reveal significant investments in software development, IT support, and related services across numerous contracts during that period, reflecting the ongoing need for advanced technological capabilities within the military.

Were there any performance issues or contract disputes associated with this contract during its active period?

The provided summary data does not contain information regarding performance issues or contract disputes related to this specific contract. Such details are typically found in contract performance reports, award fee justifications, or official dispute resolution records, which are not included here. While the contract was awarded and completed within its timeframe, the absence of negative indicators does not guarantee flawless execution. A thorough review would require accessing more granular contract administration files or agency inspection reports, if available.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA664308R0009

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 63066 OLD HIGHWAY 93, SAINT IGNATIUS, MT, 01

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,399,515

Exercised Options: $24,399,515

Current Obligation: $23,187,444

Contract Characteristics

Cost or Pricing Data: NO

Timeline