DoD's $23.7M Air Transport Repair Contract with S & K Aerospace Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $23,734,619 ($23.7M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Defense
Start Date: 2015-09-22
End Date: 2025-02-28
Contract Duration: 3,447 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF CLASSIFIED REPAIR AND RETURN SERVICES
Place of Performance
Location: SAINT IGNATIUS, LAKE County, MONTANA, 59865
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $23.7 million to S & K AEROSPACE, LLC for work described as: IGF::OT::IGF CLASSIFIED REPAIR AND RETURN SERVICES Key points: 1. The contract's value of $23.7 million for repair and return services raises questions about cost-effectiveness. 2. While awarded under full and open competition, the specific pricing and performance metrics need closer examination. 3. Potential risks include ensuring competitive pricing over the contract's extended duration and the lack of small business participation. 4. The sector involves critical support activities for air transportation, highlighting the importance of efficient spending.
Value Assessment
Rating: questionable
The contract's total value of $23.7 million for repair and return services requires a detailed cost-benefit analysis. Benchmarking against similar contracts for specialized aerospace repair is essential to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the effectiveness of this competition in achieving optimal pricing over the contract's long duration needs to be assessed.
Taxpayer Impact: Taxpayer funds are being utilized for essential aerospace repair services. Ensuring competitive pricing and efficient service delivery is crucial to maximize the value of this investment.
Public Impact
Ensures critical repair services for Air Force transportation assets are maintained. Supports the operational readiness of military aircraft through specialized maintenance. The contract's duration and value could impact long-term budget planning for aviation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Extended contract duration may lead to price creep
- Limited transparency on specific repair costs
Positive Signals
- Awarded under full and open competition
- Supports critical Air Force operations
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting air transportation logistics. Spending benchmarks in this area are highly variable due to the specialized nature of repairs and the critical need for operational readiness.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This indicates a missed opportunity to leverage small businesses for specialized repair services and potentially foster competition.
Oversight & Accountability
Oversight is crucial to ensure the contractor is meeting performance standards and that the pricing remains competitive throughout the contract's lifecycle. Regular audits and performance reviews are recommended.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to extended duration.
- Lack of small business involvement.
- Need for detailed cost-benefit analysis.
- Ensuring competitive pricing over time.
Tags
other-support-activities-for-air-transpo, department-of-defense, mt, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to S & K AEROSPACE, LLC. IGF::OT::IGF CLASSIFIED REPAIR AND RETURN SERVICES
Who is the contractor on this award?
The obligated recipient is S & K AEROSPACE, 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 $23.7 million.
What is the period of performance?
Start: 2015-09-22. End: 2025-02-28.
What is the breakdown of repair services provided and their associated costs to ensure value for money?
A detailed breakdown of the specific repair services rendered under this $23.7 million contract is necessary to assess value. Understanding the types of repairs, frequency, and complexity will allow for a more accurate comparison against industry standards and potentially identify areas where costs could be optimized or where pricing may be excessive.
How does the contractor's pricing compare to industry benchmarks for similar classified repair and return services?
Benchmarking the contractor's pricing against industry standards for similar classified repair and return services is critical. Without this comparison, it's difficult to ascertain if the $23.7 million awarded represents a fair market price or if taxpayers are potentially overpaying for the services rendered over the contract's extended period.
What measures are in place to ensure the effectiveness and efficiency of repair services over the contract's duration?
To ensure effectiveness and efficiency, the Department of the Air Force should implement robust performance metrics and regular quality assurance checks. Monitoring turnaround times, repair success rates, and adherence to technical specifications will help guarantee that the services provided meet the required standards and contribute to operational readiness.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 63066 OLD HWY 93, SAINT IGNATIUS, MT, 59865
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,796,952
Exercised Options: $29,586,050
Current Obligation: $23,734,619
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-22
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2024-12-17
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