DoD's $81.7M Combat Support Equipment Maintenance Contract Awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $81,716,941 ($81.7M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2018-03-13

End Date: 2020-03-10

Contract Duration: 728 days

Daily Burn Rate: $112.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE OF COMBAT SUPPORT EQUIPMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $81.7 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: MAINTENANCE OF COMBAT SUPPORT EQUIPMENT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of over $81 million indicates a significant investment in maintaining critical combat support equipment. 3. The duration of the contract (728 days) suggests a long-term need for these maintenance services. 4. The fixed-price contract type aims to control costs by setting a predetermined price for services. 5. The award to PAE Aviation and Technical Services LLC highlights their role in supporting defense logistics. 6. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, suggesting a focus on aviation-related support equipment.

Value Assessment

Rating: good

The contract value of approximately $81.7 million over two years for maintenance of combat support equipment appears reasonable given the critical nature of the assets. Benchmarking against similar large-scale defense maintenance contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The award was made to a single contractor, PAE Aviation and Technical Services LLC, indicating their specialized capabilities in this area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this significant contract. While not an exhaustive number, it suggests that multiple companies were interested and capable of performing the required services, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The competition here likely resulted in a more favorable price than a sole-source award would have.

Public Impact

The primary beneficiaries are the U.S. Air Force units relying on well-maintained combat support equipment for operational readiness. Services delivered include the maintenance and repair of critical combat support equipment, ensuring its functionality. The geographic impact is likely concentrated at Air Force bases where this equipment is deployed and maintained. Workforce implications include the potential for skilled technicians and support staff employed by PAE Aviation and Technical Services LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical equipment maintenance could pose a risk if performance issues emerge.
The specific nature of 'combat support equipment' is broad and could encompass a wide range of items, making precise cost benchmarking difficult.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Award through full and open competition suggests a robust evaluation of multiple proposals.
The contractor, PAE Aviation and Technical Services LLC, likely possesses specialized expertise in defense equipment maintenance.

Sector Analysis

The defense maintenance sector is a substantial part of the federal contracting landscape, with significant spending allocated to ensuring the operational readiness of military assets. This contract falls within the broader aerospace and defense industry, specifically supporting the maintenance and sustainment of equipment crucial for combat operations. Comparable spending benchmarks would typically involve other large-scale maintenance, repair, and overhaul (MRO) contracts for military platforms and associated support systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it was not specifically designated for small businesses. While PAE Aviation and Technical Services LLC is the prime contractor, there is no explicit information provided regarding subcontracting goals for small businesses. The impact on the small business ecosystem would depend on whether PAE actively seeks small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver services within the agreed-upon cost. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Combat Support Equipment Maintenance
Aircraft Component Repair
Defense Logistics Support Services
Military Equipment Sustainment

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Contractor performance risk for specialized maintenance.
Dependence on a single vendor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.7 million to PAE AVIATION AND TECHNICAL SERVICES LLC. MAINTENANCE OF COMBAT SUPPORT EQUIPMENT

Who is the contractor on this award?

The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES 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 $81.7 million.

What is the period of performance?

Start: 2018-03-13. End: 2020-03-10.

What is the specific breakdown of 'combat support equipment' covered under this contract?

The provided data abbreviates the description as 'MAINTENANCE OF COMBAT SUPPORT EQUIPMENT' and assigns NAICS code 336411 (Aircraft Manufacturing). This suggests the equipment is likely related to aviation operations, potentially including ground support equipment, specialized tools, or components for aircraft that are essential for combat missions. However, a precise itemized list of all equipment covered is not detailed in the provided summary. Further investigation into the contract's statement of work (SOW) would be necessary to ascertain the full scope of equipment requiring maintenance.

How does the per-unit cost of maintaining this combat support equipment compare to industry benchmarks?

A direct per-unit cost comparison is not feasible with the provided data. The contract value is a total amount for a broad category of 'combat support equipment' over a specific period. To establish a per-unit cost benchmark, one would need to know the exact number and types of equipment maintained, as well as the specific maintenance tasks performed. Industry benchmarks for similar equipment maintenance vary widely based on complexity, age, and usage. Without a detailed breakdown of services and equipment, a meaningful per-unit cost analysis against market rates cannot be performed.

What is PAE Aviation and Technical Services LLC's track record with similar Department of Defense maintenance contracts?

PAE Aviation and Technical Services LLC has a significant history of performing contracts for the Department of Defense, often involving aviation and technical services. While specific details of their past performance on *identical* combat support equipment maintenance contracts are not in this summary, their established presence in the defense sector suggests experience with complex logistical and maintenance requirements. A deeper dive into their contract history, performance evaluations (e.g., CPARS reports), and past awards would provide a more comprehensive understanding of their capabilities and reliability in fulfilling such obligations.

What are the key performance indicators (KPIs) used to measure the success of this maintenance contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for maintenance contracts of this nature, KPIs would focus on metrics such as equipment availability rates, turnaround time for repairs, quality of work (e.g., defect rates), adherence to maintenance schedules, and cost control. The success of the contract would be evaluated against these predefined metrics, likely outlined in the contract's Performance Work Statement (PWS) or Statement of Work (SOW), and monitored by the Air Force.

How has spending on combat support equipment maintenance evolved over the past five years for the Department of the Air Force?

Historical spending data on combat support equipment maintenance for the Department of the Air Force is not included in this specific contract award summary. To analyze spending trends, one would need to aggregate data from multiple contracts related to combat support equipment maintenance across various fiscal years. This would involve searching federal procurement databases for similar contracts awarded to different entities. Such an analysis could reveal patterns of increasing, decreasing, or stable investment in this area, potentially influenced by operational tempo, equipment modernization efforts, or budget allocations.

What is the potential risk associated with the fixed-price contract type for this specific maintenance requirement?

The primary risk associated with a firm-fixed-price contract for maintenance is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to reduced profit margins or, in extreme cases, financial distress for the contractor. Conversely, the government bears the risk if the contractor underbids and subsequently struggles to deliver the full scope of required services adequately. For complex maintenance involving potentially unforeseen issues, a fixed-price contract can incentivize the contractor to cut corners if not rigorously overseen. However, it also provides the government with cost certainty.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA810818R0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 901 LINCOLN DR W STE 200, MARLTON, NJ, 08053

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $251,650,000

Exercised Options: $81,716,941

Current Obligation: $81,716,941

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0012

IDV Type: IDC

Timeline