DoD's $87.7M Royal Saudi Air Force Supply Services Contract Awarded to S & K Aerospace
Contract Overview
Contract Amount: $87,692,001 ($87.7M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-22
End Date: 2022-09-22
Contract Duration: 1,096 days
Daily Burn Rate: $80.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ROYAL SAUDI AIR FORCE SUPPLY SERVICES
Place of Performance
Location: SAINT IGNATIUS, LAKE County, MONTANA, 59865
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $87.7 million to S & K AEROSPACE, LLC for work described as: ROYAL SAUDI AIR FORCE SUPPLY SERVICES Key points: 1. Contract value of $87.7 million for supply services. 2. Awarded to S & K Aerospace, LLC. 3. Managed by the Department of the Air Force. 4. Competition type: Full and Open. 5. Contract type: Fixed Price Incentive.
Value Assessment
Rating: good
The contract value of $87.7 million appears reasonable for specialized aerospace supply services. Benchmarking against similar DoD contracts for foreign military sales support would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The taxpayer impact is likely positive due to competitive bidding driving down costs for the services provided to the Royal Saudi Air Force.
Public Impact
Supports foreign military sales, enhancing international partnerships. Ensures operational readiness for allied air forces. Contributes to the aerospace and defense industry supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Fixed Price Incentive contract type.
- Dependence on a single contractor for critical supply chain functions.
Positive Signals
- Awarded through full and open competition.
- Supports a key international ally.
- Long-term contract duration ensures stability.
Sector Analysis
This contract falls within the Defense sector, specifically supporting air transportation logistics. Spending benchmarks in this area are highly variable, depending on the specific equipment and services required for foreign military sales.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is provided by the Department of the Air Force. The contract's duration and value suggest regular performance reviews and financial monitoring are in place to ensure accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded under full and open competition.
- Supports a key international ally.
- Fixed Price Incentive contract type can incentivize cost control.
- Long contract duration provides stability.
Tags
other-support-activities-for-air-transpo, department-of-defense, mt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.7 million to S & K AEROSPACE, LLC. ROYAL SAUDI AIR FORCE SUPPLY 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 $87.7 million.
What is the period of performance?
Start: 2019-09-22. End: 2022-09-22.
What specific supply chain efficiencies or cost savings were realized through this contract compared to alternative methods?
The contract's Fixed Price Incentive structure suggests that both the government and the contractor share in any cost savings or overruns. Specific efficiencies would be detailed in performance reports, but the competitive award process likely initiated cost-effective solutions. Without access to detailed performance metrics and post-award reviews, quantifying precise savings is challenging.
What are the primary risks associated with S & K Aerospace's ability to fulfill these supply services for the Royal Saudi Air Force?
Key risks include potential supply chain disruptions, geopolitical instability affecting delivery routes or material availability, and the contractor's capacity to manage complex logistics for a foreign military. The Fixed Price Incentive (FPI) contract type also introduces risk related to cost overruns, where both parties share the financial burden if actual costs exceed target costs.
How effectively does this contract contribute to the overall operational readiness and strategic objectives of the Royal Saudi Air Force?
This contract directly supports the operational readiness of the Royal Saudi Air Force by ensuring the timely and reliable supply of necessary parts and services. Its effectiveness is measured by the contractor's performance in meeting delivery schedules and quality standards, thereby enabling the RSAF to maintain its aircraft and fulfill its mission objectives.
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
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 63066 OLD HWY 93 STE B, SAINT IGNATIUS, MT, 59865
Business Categories: 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: $87,692,001
Exercised Options: $87,692,001
Current Obligation: $87,692,001
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA850517D0005
IDV Type: IDC
Timeline
Start Date: 2019-09-22
Current End Date: 2022-09-22
Potential End Date: 2022-09-22 00:00:00
Last Modified: 2023-08-29
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