DoD awards $30.8M for E-2/C-2A aircraft maintenance, with M1 Support Services securing the contract

Contract Overview

Contract Amount: $30,851,305 ($30.9M)

Contractor: M1 Support Services, L.P.

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-03-31

Contract Duration: 729 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: O-LEVEL MAINTENANCE SUPPORT OF E-2, C-2A AIRCRAFT WITHIN VAW-120 SQUADRON IN NORFOLK, VA.

Place of Performance

Location: DENTON, DENTON County, TEXAS, 76201

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to M1 SUPPORT SERVICES, L.P. for work described as: O-LEVEL MAINTENANCE SUPPORT OF E-2, C-2A AIRCRAFT WITHIN VAW-120 SQUADRON IN NORFOLK, VA. Key points: 1. Contract value of $30.8M over two years suggests a significant investment in maintaining critical naval aviation assets. 2. Full and open competition indicates a potentially competitive bidding process, which could lead to better pricing. 3. The contract's focus on O-level maintenance highlights its importance for immediate operational readiness of E-2 and C-2A aircraft. 4. Performance is tied to VAW-120 squadron operations in Norfolk, VA, directly impacting fleet readiness. 5. The firm-fixed-price contract type shifts performance risk to the contractor, M1 Support Services, L.P. 6. This award falls under the broader category of aircraft maintenance and support services within the defense sector.

Value Assessment

Rating: good

The contract value of $30.8 million over approximately two years for O-level maintenance of E-2/C-2A aircraft appears reasonable given the specialized nature of naval aviation support. Benchmarking against similar contracts for depot-level or specialized component maintenance would provide a more precise value assessment. However, the firm-fixed-price structure suggests the government has negotiated a set price, limiting cost overruns if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The presence of four bidders (as indicated by 'no': 4) is a positive sign for price discovery and potentially competitive pricing. This level of competition generally allows the government to select the offer that provides the best value, balancing cost and technical factors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential aircraft maintenance, preventing potential overpricing associated with less competitive solicitations.

Public Impact

Naval aviation readiness is enhanced through the maintenance of E-2 and C-2A aircraft, crucial for intelligence, surveillance, and reconnaissance missions. The VAW-120 squadron in Norfolk, Virginia, directly benefits from the sustained operational capability of its aircraft. The contract supports specialized technical expertise in aircraft maintenance, potentially sustaining skilled jobs within the aerospace support industry. Geographic impact is concentrated in Norfolk, VA, where the squadron is based and maintenance activities are likely performed or overseen.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for performance issues if contractor lacks sufficient specialized expertise for E-2/C-2A systems.
Risk of cost increases if unforeseen technical challenges arise, despite firm-fixed-price structure.
Dependence on a single contractor for critical maintenance could create vulnerabilities if contractor faces financial or operational difficulties.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract type transfers cost risk to the contractor.
Contract duration of two years allows for stable planning and execution of maintenance tasks.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The E-2 Hawkeye and C-2 Greyhound are specialized naval aircraft, meaning the market for their maintenance is niche and requires specific technical capabilities. Spending in this area is critical for maintaining the operational readiness of naval aviation fleets, supporting national security objectives. Comparable spending benchmarks would likely be found within other military aircraft sustainment contracts, though the unique nature of these platforms may limit direct comparisons.

Small Business Impact

The contract was awarded to M1 Support Services, L.P., and there is no indication of a small business set-aside (ss: false) or specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary awardee is likely a larger entity, and the direct impact on the small business ecosystem may be limited unless M1 Support Services actively engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were part of the solicitation.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms for contract performance and financial management. The firm-fixed-price nature provides a degree of cost control. Accountability will be managed through performance metrics and delivery schedules outlined in the contract. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance Program
Aircraft Sustainment Contracts
Defense Logistics Agency Support
Aerospace Component Repair Services
Fleet Readiness Centers

Risk Flags

Potential for performance degradation if contractor lacks specialized E-2/C-2A expertise.
Risk of schedule delays impacting squadron readiness.
Dependence on a single contractor for critical maintenance functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to M1 SUPPORT SERVICES, L.P.. O-LEVEL MAINTENANCE SUPPORT OF E-2, C-2A AIRCRAFT WITHIN VAW-120 SQUADRON IN NORFOLK, VA.

Who is the contractor on this award?

The obligated recipient is M1 SUPPORT SERVICES, L.P..

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 $30.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-03-31.

What is the track record of M1 Support Services, L.P. in performing similar O-level maintenance for naval aircraft?

M1 Support Services, L.P. has a history of providing aviation maintenance and support services to various branches of the U.S. military. While specific details on their performance for E-2/C-2A aircraft at the O-level maintenance standard were not provided in the initial data, their portfolio often includes aircraft component repair, logistics support, and base operations. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar contracts, would be necessary to fully assess their suitability and reliability for this specific requirement. Their experience with other complex aircraft platforms could indicate transferable skills, but the unique systems of the E-2/C-2A necessitate specialized knowledge.

How does the $30.8 million contract value compare to historical spending on E-2/C-2A aircraft maintenance?

The $30.8 million contract value, spanning approximately two years, represents a significant but potentially standard investment for maintaining a squadron's worth of E-2/C-2A aircraft at the O-level. Historical spending data for these specific aircraft types and maintenance levels would be crucial for a precise comparison. However, considering the specialized nature of naval aviation platforms like the E-2 Hawkeye (an airborne early warning aircraft) and the C-2 Greyhound (a carrier onboard delivery aircraft), annual maintenance costs can easily run into millions of dollars per aircraft, especially when factoring in labor, parts, and specialized technical support. This award appears to align with the expected expenditure for sustaining such critical, albeit aging, platforms.

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

The primary risks associated with this contract include potential performance deficiencies by the contractor (M1 Support Services, L.P.) in executing O-level maintenance, leading to reduced aircraft availability or readiness. Given the specialized nature of the E-2/C-2A aircraft, a lack of adequate technical expertise or skilled personnel by the contractor poses a significant risk. Another risk is the potential for unforeseen technical issues or parts obsolescence that could drive up costs or delay maintenance, although the firm-fixed-price (FFP) contract structure aims to mitigate cost overruns by placing that risk on the contractor. Mitigation strategies include robust government oversight, performance monitoring, clear contract requirements, and potentially requiring the contractor to maintain specific certifications and staffing levels.

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

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 performance risks are manageable. For O-level maintenance of E-2/C-2A aircraft, where the tasks are largely routine and predictable, FFP incentivizes the contractor to perform efficiently and control costs to maximize profit. This shifts the financial risk of cost overruns to M1 Support Services, L.P. The government pays the agreed-upon price, provided the contractor meets the performance standards. This structure encourages the contractor to be proactive in managing resources and identifying efficiencies, thereby potentially delivering better value compared to cost-reimbursement contracts, assuming performance standards are met.

What is the strategic importance of the E-2/C-2A aircraft platforms, and how does this contract support their continued operation?

The E-2 Hawkeye is a vital airborne early warning and control aircraft, providing critical situational awareness and command and control capabilities for naval forces, especially carrier strike groups. The C-2 Greyhound serves as the primary carrier onboard delivery aircraft, transporting personnel, mail, and high-priority cargo to and from aircraft carriers. Both platforms are essential for naval operations, though they are aging platforms. This contract, focusing on O-level maintenance (the most frequent and direct maintenance performed by the operating unit), is crucial for ensuring these aircraft remain mission-capable and operationally ready. Sustaining these platforms through diligent maintenance directly supports the Navy's ability to project power and maintain maritime security.

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: 300 N ELM ST STE 101, DENTON, TX, 76201

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $51,367,689

Exercised Options: $30,851,305

Current Obligation: $30,851,305

Actual Outlays: $3,686,568

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0015

IDV Type: IDC

Timeline