Army Helicopter Maintenance Contract Awarded to IAP World Services for Over $34.6 Million

Contract Overview

Contract Amount: $34,603,431 ($34.6M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-31

End Date: 2021-07-29

Contract Duration: 1,275 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMY HELICOPTER MAINTENANCE FOR 1106 TASMG

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to IAP WORLD SERVICES, INC. for work described as: ARMY HELICOPTER MAINTENANCE FOR 1106 TASMG Key points: 1. Contract value of $34.6 million for helicopter maintenance services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans over three years, indicating a significant operational requirement. 4. Fixed-price contract type aims to control costs for the government. 5. Services are for the Army's 1106 TASMG, highlighting a critical support function. 6. The contract was issued as a delivery order, implying it's part of a larger framework agreement.

Value Assessment

Rating: good

The contract value of $34.6 million for helicopter maintenance appears reasonable given the duration and scope of services. Benchmarking against similar large-scale aviation maintenance contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control, though it places more risk on the contractor to manage expenses effectively. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation among bidders, ultimately leading to more efficient use of public funds.

Public Impact

Provides essential maintenance for Army helicopters, ensuring operational readiness. Supports the Army's aviation fleet, crucial for national defense operations. Services are likely concentrated in Florida, where the contractor is based. Maintains critical infrastructure for military aviation support. Ensures the safety and reliability of aircraft used in various missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise under a fixed-price contract.
Dependence on a single contractor for a critical support function could pose a risk if performance falters.
Limited transparency into the specific maintenance tasks and associated costs without further detail.

Positive Signals

Awarded through full and open competition, suggesting a competitive price.
Firm fixed-price contract type provides cost certainty for the government.
Long-term contract duration indicates a stable and reliable support provider.
Contract supports a critical military function, ensuring operational readiness.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance services. The market for military aircraft maintenance is substantial, driven by the extensive fleets operated by various branches of the U.S. military. Companies like IAP World Services often compete for these types of service contracts, which require specialized technical expertise and adherence to stringent quality standards. Spending in this area is critical for maintaining the readiness and operational capability of the armed forces.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, IAP World Services, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal, though large prime contractors are often encouraged or required to have broader subcontracting goals across their portfolio.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Air Force or Army contracting office. Performance monitoring, quality assurance checks, and invoice reviews are standard oversight mechanisms. The firm fixed-price nature of the contract shifts some risk to the contractor but still requires diligent government oversight to ensure compliance with terms and conditions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Aviation Maintenance Programs
Department of Defense Aviation Support Contracts
Aircraft Component Maintenance Services
Logistics and Support Services for Military Aircraft

Risk Flags

Potential for cost overruns if contractor performance is suboptimal under fixed-price terms.
Dependence on contractor for critical aviation maintenance services.
Need for robust government oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to IAP WORLD SERVICES, INC.. ARMY HELICOPTER MAINTENANCE FOR 1106 TASMG

Who is the contractor on this award?

The obligated recipient is IAP WORLD 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 $34.6 million.

What is the period of performance?

Start: 2018-01-31. End: 2021-07-29.

What is the track record of IAP World Services, Inc. in performing similar helicopter maintenance contracts for the U.S. military?

IAP World Services, Inc. has a significant history of providing aviation support and maintenance services to the U.S. military and government agencies. They have held numerous contracts for aircraft maintenance, base operations support, and logistics services across various locations globally. Their experience often includes complex maintenance, repair, and overhaul (MRO) operations for a range of aircraft types. While specific performance details for this particular Army helicopter maintenance contract are not detailed here, their extensive portfolio suggests a capacity to handle such requirements. A deeper dive into past performance reviews and any documented issues on similar contracts would provide a more comprehensive understanding of their track record.

How does the awarded amount of $34.6 million compare to the estimated value or budget for this helicopter maintenance requirement?

The provided data shows an award amount of $34,603,430.89. Without access to the government's initial cost estimates, budget allocations, or the specific line items within the Statement of Work (SOW), it is difficult to definitively assess how this award compares to the anticipated value. However, since the contract was awarded under full and open competition, the final award price is generally considered to be a result of market forces and competitive bidding. If the award was significantly below the government's estimate, it could indicate strong competition or efficient contractor proposals. Conversely, if it was at or above the estimate, it might suggest the estimate was accurate or that the scope was comprehensive.

What are the primary risks associated with this firm fixed-price contract for helicopter maintenance?

The primary risk for the contractor under a firm fixed-price (FFP) contract is the potential for cost overruns if actual expenses exceed the agreed-upon price. This can occur due to unforeseen technical challenges, rising labor or material costs, or scope creep if not managed carefully. For the government, the main risk is that the contractor might cut corners on quality or service to maintain profitability if profit margins are squeezed, although quality assurance surveillance plans are designed to mitigate this. Another risk is contractor performance failure; if IAP World Services, Inc. cannot adequately perform the maintenance, it could impact Army aviation readiness, necessitating a potentially costly and time-consuming transition to a new provider.

What specific helicopter models or types are covered under this maintenance contract?

The provided data does not specify the exact models or types of Army helicopters that are covered under this maintenance contract. The description 'ARMY HELICOPTER MAINTENANCE FOR 1106 TASMG' suggests it pertains to a specific unit or program (1106 TASMG - Theater Aviation Sustainment Maintenance Group). These groups are responsible for maintaining a wide array of Army aircraft. Therefore, the contract likely covers the maintenance, repair, and overhaul (MRO) services for the specific fleet operated or supported by the 1106 TASMG, which could include various utility, attack, or transport helicopters. A review of the contract's Statement of Work (SOW) would be necessary to identify the precise aircraft covered.

What is the geographic scope of this contract, and where will the maintenance services be performed?

The contract data indicates the contractor's state is 'FL' (Florida) and their state name is 'FLORIDA'. This suggests that IAP World Services, Inc. is based in Florida and likely performs services from or near their facilities in that state, or potentially deploys personnel to Army installations. However, the contract is for 'ARMY HELICOPTER MAINTENANCE', which implies the services could be required at various Army aviation bases or forward operating locations where these helicopters are stationed. Without the specific delivery order details or SOW, the exact geographic location of service performance is not definitively stated, but the contractor's base in Florida is a key data point.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6905 N WICKHAM RD STE 500, MELBOURNE, FL, 32940

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,818,300

Exercised Options: $34,603,431

Current Obligation: $34,603,431

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0011

IDV Type: IDC

Timeline