PAE Aviation and Technical Services LLC awarded $52.2M for aircraft maintenance at NAS Lemoore, CA

Contract Overview

Contract Amount: $52,186,050 ($52.2M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2017-11-17

End Date: 2021-03-31

Contract Duration: 1,230 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIRCRAFT MAINTENANCE FOR VAQ-129 LOCATED AT NAS LEMOORE, CA.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: AIRCRAFT MAINTENANCE FOR VAQ-129 LOCATED AT NAS LEMOORE, CA. Key points: 1. Contract value of $52.2M over approximately 3.4 years suggests a significant investment in specialized aircraft support. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable government spending. 4. The North American Industry Classification System (NAICS) code 336411 points to a focus on aircraft manufacturing and related services. 5. The contract's duration and scope imply a need for consistent, high-quality maintenance to ensure operational readiness. 6. The award to PAE Aviation and Technical Services LLC represents a substantial commitment to a single provider for these services.

Value Assessment

Rating: good

The contract value of $52.2 million over approximately 1230 days (about 3.4 years) averages to roughly $15.3 million per year. This figure needs to be benchmarked against similar aircraft maintenance contracts for naval aviation squadrons. Without specific comparable data, it's difficult to definitively assess value for money. However, the firm-fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively. The presence of 7 bidders in the competition also suggests a degree of market interest that could contribute to competitive pricing.

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 solicitation attracted 7 bidders, indicating a healthy level of interest and competition within the market for these specialized aircraft maintenance services. A higher number of bidders generally suggests a more robust price discovery process, potentially leading to more favorable pricing for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

Naval aviation squadrons, specifically VAQ-129, benefit from the reliable maintenance of their aircraft, ensuring operational readiness. The services delivered include essential aircraft maintenance, crucial for the safety and effectiveness of military operations. The geographic impact is concentrated at Naval Air Station (NAS) Lemoore, California, supporting local military infrastructure. The contract supports a workforce skilled in aviation technical services, contributing to employment in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if contract scope expands beyond initial estimates.
Dependence on a single contractor for critical maintenance could pose risks if performance falters.
Ensuring consistent quality across all maintenance tasks over the contract's duration requires robust oversight.

Positive Signals

Firm-fixed-price contract type limits government exposure to cost overruns.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The contractor, PAE Aviation and Technical Services LLC, likely possesses specialized expertise in aircraft maintenance.

Sector Analysis

The aerospace and defense industry is characterized by high technological complexity and stringent quality requirements. Aircraft maintenance is a critical sub-sector, ensuring the operational readiness and safety of aviation assets. The market for these services is competitive, with specialized firms vying for contracts with government entities. Spending benchmarks for similar maintenance contracts can vary significantly based on aircraft type, complexity, and service level agreements. This contract fits within the broader defense sector's need for sustainment and support services for its extensive fleet.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, PAE Aviation and Technical Services LLC, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own supply chain strategies and the specific requirements of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of Defense, specifically the Department of the Air Force as the servicing agency. Performance metrics and quality assurance surveillance plans would be key to monitoring contractor performance. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Depot Maintenance
Aviation Support Services
Naval Aviation Readiness Programs
Defense Logistics Agency Maintenance Contracts
Air Force Sustainment Contracts

Risk Flags

Potential for performance issues impacting operational readiness.
Risk of cost overruns if contract scope is not precisely managed.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC. AIRCRAFT MAINTENANCE FOR VAQ-129 LOCATED AT NAS LEMOORE, CA.

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 $52.2 million.

What is the period of performance?

Start: 2017-11-17. End: 2021-03-31.

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

PAE Aviation and Technical Services LLC has a history of performing various aviation support and maintenance contracts for the Department of Defense. Their experience often includes base operations support, aircraft maintenance, and technical services across different branches of the military. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving naval aviation or specific aircraft types like those operated by VAQ-129, would provide insight into their reliability, quality of service, and ability to manage costs effectively. Reviewing past performance evaluations and any contract disputes or awards would be crucial for a comprehensive assessment. Their ability to successfully execute this $52.2 million contract hinges on their demonstrated capacity to meet stringent performance requirements and delivery schedules, as evidenced by their prior contract history.

How does the annual cost of this contract compare to industry benchmarks for similar aircraft maintenance services?

The annual cost for this contract, approximately $15.3 million ($52.2M / 3.4 years), needs to be benchmarked against industry standards for maintaining specialized naval aircraft. Factors influencing this benchmark include the specific aircraft models (e.g., EA-18G Growler), the scope of maintenance (e.g., scheduled, unscheduled, depot-level), required turnaround times, and the labor rates in the Lemoore, CA area. Without access to proprietary cost data or specific market research reports for this niche, a precise comparison is challenging. However, the presence of 7 bidders in a full and open competition suggests that the pricing is likely within a competitive range. If PAE's proposed pricing was significantly higher or lower than anticipated by the government's cost estimators, it would warrant further scrutiny.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance failures leading to aircraft downtime, cost overruns if the firm-fixed-price structure is inadequate for unforeseen issues, and contractor dependency. Mitigation strategies likely involve robust performance work statements (PWS) clearly defining deliverables and quality standards, stringent quality assurance surveillance plans (QASP) executed by government representatives, and regular performance reviews. The firm-fixed-price nature itself mitigates financial risk for the government regarding direct costs, shifting it to the contractor. However, the government must ensure the PWS is comprehensive to avoid scope creep or disputes. Contractor dependency is managed through clear contract terms and the potential for future competition, incentivizing good performance.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific aircraft maintenance service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For aircraft maintenance, where tasks can be predictable (scheduled maintenance) but also subject to unforeseen issues (unscheduled repairs), FFP places the burden of cost control on the contractor. This incentivizes efficiency and cost-consciousness from PAE Aviation and Technical Services LLC. The government benefits from predictable costs, assuming the initial price reflects a realistic estimate of the work required. If the scope is poorly defined or unexpected complexities arise, the contractor may struggle to maintain profitability, potentially impacting quality or leading to change orders, which could erode value. The success of FFP here depends heavily on the thoroughness of the PWS and the contractor's ability to manage their internal costs.

What is the historical spending trend for aircraft maintenance services at NAS Lemoore, CA, or for VAQ-129 specifically?

Analyzing historical spending trends for aircraft maintenance at NAS Lemoore or specifically for the VAQ-129 squadron would provide crucial context for this $52.2 million award. This includes examining previous contracts for similar services, their values, durations, and the contractors involved. Understanding if spending has been consistent, increasing, or decreasing can indicate changes in operational tempo, fleet size, or maintenance requirements. For instance, if previous contracts were significantly smaller or shorter, this award might represent an expansion of services or a shift towards longer-term, comprehensive support. Conversely, if spending has been stable, it suggests a consistent need for these services. Data on prior contract performance and competition levels would also inform whether current spending represents good value compared to historical norms.

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: FA810818R0002

Offers Received: 7

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: $82,154,865

Exercised Options: $52,186,050

Current Obligation: $52,186,050

Actual Outlays: $3,615,382

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