Navy awards $87.4M for depot-level aircraft maintenance, with PAE Aviation and Technical Services LLC as prime

Contract Overview

Contract Amount: $87,399,581 ($87.4M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2024-05-31

Contract Duration: 1,277 days

Daily Burn Rate: $68.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DEPOT LEVEL AIRCRAFT MAINTENANCE FOR CSFWP RRT, USN 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 $87.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: DEPOT LEVEL AIRCRAFT MAINTENANCE FOR CSFWP RRT, USN LOCATED AT NAS LEMOORE, CA. Key points: 1. Contract value of $87.4M over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract is for depot-level aircraft maintenance services. 4. Performance is located at NAS Lemoore, California. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contract duration is approximately 3.5 years.

Value Assessment

Rating: good

The contract value of $87.4 million for depot-level aircraft maintenance over 3.5 years appears reasonable given the scope of services. Benchmarking against similar large-scale maintenance contracts for naval aviation would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of predictable costs, but actual value depends on the efficiency and quality of services delivered by PAE Aviation and Technical Services LLC.

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 bids. The presence of 4 bidders (indicated by 'no': 4) suggests a healthy level of competition for this service requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by driving down prices through market forces. Multiple bidders increase the likelihood of securing the best value for the government.

Public Impact

The U.S. Navy benefits from the continued operational readiness of its aircraft through essential depot-level maintenance. Services delivered include comprehensive maintenance, repair, and overhaul of aircraft at a depot level. The geographic impact is concentrated at NAS Lemoore, California, supporting local operations and potentially local economies. The contract supports a skilled workforce in aviation maintenance, potentially including technicians and engineers.

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 contract.
Dependence on a single contractor for critical maintenance services could pose a risk if performance issues emerge.
Ensuring consistent quality across all maintenance tasks is crucial for aircraft safety and readiness.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive market for these services, potentially leading to better pricing.
The contract duration provides stability for both the Navy and the contractor in planning and execution.

Sector Analysis

Depot-level aircraft maintenance is a critical component of the aerospace and defense sector, supporting military readiness and extending the lifespan of complex aviation assets. This contract falls within the broader category of defense logistics and support services, a significant market segment. Spending in this area is often driven by fleet size, aircraft age, and operational tempo. Comparable spending benchmarks would typically be found within other large military branches for similar maintenance contracts.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. While PAE Aviation and Technical Services LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract type, which places financial responsibility on the contractor. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance Programs
Aircraft Depot Maintenance Services
Defense Logistics Support Contracts
Fleet Readiness Programs

Risk Flags

Contractor performance history
Potential for cost overruns
Scope definition clarity
Aircraft safety and readiness impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC. DEPOT LEVEL AIRCRAFT MAINTENANCE FOR CSFWP RRT, USN 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 $87.4 million.

What is the period of performance?

Start: 2020-12-01. End: 2024-05-31.

What is the track record of PAE Aviation and Technical Services LLC in performing similar depot-level aircraft maintenance contracts for the U.S. Navy?

PAE Aviation and Technical Services LLC, now part of Amentum, has a significant history of performing complex aviation maintenance and support services for various branches of the U.S. military, including the Navy. Their experience often encompasses depot-level maintenance, aircraft modification, and logistics support. Analyzing past performance evaluations, contract modifications, and any past performance issues on similar contracts would provide a clearer picture of their capabilities and reliability in executing this specific requirement. Historical data from contract databases and government performance reports would be essential for a comprehensive assessment of their track record.

How does the awarded price of $87.4 million compare to industry benchmarks for similar depot-level aircraft maintenance services?

Benchmarking the $87.4 million contract value requires comparing it against similar large-scale, long-term depot-level maintenance contracts for comparable aircraft types within the U.S. military or even commercial aviation sectors. Factors such as the specific aircraft platforms being serviced, the scope of work (e.g., scheduled maintenance, unscheduled repairs, upgrades), labor rates, and overhead costs significantly influence pricing. Without access to detailed cost breakdowns or specific comparable contract data, a precise benchmark is difficult. However, the firm fixed-price nature suggests the government sought predictable costs, and the competitive award implies the price was deemed reasonable relative to the bids received.

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

The primary risks associated with this firm fixed-price contract center on potential cost overruns for the contractor and the possibility of scope creep or performance deficiencies impacting the government. If unforeseen maintenance issues arise that are not clearly defined within the contract's scope, the contractor could incur significant unexpected costs, potentially leading to performance issues or requests for contract modifications. For the government, the risk lies in ensuring the contractor maintains quality standards and delivers services efficiently to avoid compromising aircraft readiness. Contractor financial stability and technical capability are also key risk factors.

How effective is the full and open competition process in ensuring value for money for this type of specialized maintenance service?

Full and open competition is generally considered a highly effective mechanism for ensuring value for money, especially for specialized services like depot-level aircraft maintenance. By allowing all qualified sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of four bidders in this case suggests sufficient market interest. The effectiveness is further realized when the government clearly defines its requirements and evaluation criteria, ensuring that the lowest price technically acceptable or best value proposal is selected, rather than solely focusing on the lowest bid.

What are the historical spending patterns for depot-level aircraft maintenance within the Department of the Navy?

Historical spending patterns for depot-level aircraft maintenance within the Department of the Navy are typically substantial, reflecting the large and complex nature of its aviation fleet. Annual expenditures can range from hundreds of millions to billions of dollars, depending on fleet size, aircraft age, modernization programs, and operational tempo. Spending is often distributed across various maintenance facilities and contractors, supporting different aircraft types and squadrons. Analyzing historical data reveals trends in maintenance costs, the prevalence of fixed-price versus cost-reimbursement contracts, and the degree of competition over time.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $87,399,581

Exercised Options: $87,399,581

Current Obligation: $87,399,581

Actual Outlays: $17,381,150

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $65,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0012

IDV Type: IDC

Timeline