DoD's $77.6M Air Transportation Support Contract Awarded to S & K Aerospace, LLC
Contract Overview
Contract Amount: $77,582,721 ($77.6M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-22
End Date: 2021-09-21
Contract Duration: 364 days
Daily Burn Rate: $213.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: RSAF SUPPLY SERVICES
Place of Performance
Location: SAINT IGNATIUS, LAKE County, MONTANA, 59865
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $77.6 million to S & K AEROSPACE, LLC for work described as: RSAF SUPPLY SERVICES Key points: 1. Contract value of $77.6M for air transportation support. 2. Awarded to S & K Aerospace, LLC under full and open competition. 3. Potential risks include performance under fixed-price incentive contract. 4. Spending falls under the 'Other Support Activities for Air Transportation' category.
Value Assessment
Rating: good
The contract value of $77.6M appears reasonable for a one-year duration supporting air transportation. Benchmarking against similar contracts for specialized aviation support would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through 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: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for services.
Public Impact
Ensures critical air transportation support services for the Department of the Air Force. Supports military readiness and operational capabilities. Potential for job creation within the aerospace and logistics sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed-price incentive contract structure may not fully mitigate cost overruns if not managed carefully.
- Reliance on a single vendor for a critical support function.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Clear contract duration and defined scope of work.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on air transportation support services. Spending benchmarks for similar support activities can vary significantly based on the specific nature of the services and the operational tempo of the supported units.
Small Business Impact
The data indicates that the prime contractor is S & K Aerospace, LLC. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific contract award.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure performance and accountability.
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 under fixed-price incentive structure.
- Dependence on a single contractor for critical support.
- Scope of 'Other Support Activities' could be broad, requiring careful management.
- Performance metrics and quality assurance need rigorous oversight.
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 $77.6 million to S & K AEROSPACE, LLC. RSAF 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 $77.6 million.
What is the period of performance?
Start: 2020-09-22. End: 2021-09-21.
What specific air transportation support activities are covered under this contract?
The contract, identified by NAICS code 488190, covers 'Other Support Activities for Air Transportation.' This typically includes services such as airport operations, air traffic control support, aircraft maintenance support, and other related logistical functions essential for the smooth operation of air bases and air mobility missions.
What are the primary risks associated with a fixed-price incentive contract for these services?
A key risk with fixed-price incentive contracts is the potential for cost overruns if the contractor's costs exceed the target cost, as the government shares in the excess costs up to a ceiling. Effective performance monitoring and cost control by the government are crucial to mitigate this risk.
How does this contract contribute to the overall effectiveness of the Air Force's operations?
This contract is vital for ensuring the operational readiness and efficiency of Air Force aviation assets. By providing essential support services, it allows flight operations to proceed without interruption, contributing directly to mission accomplishment, logistical support, and overall military effectiveness.
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: $77,582,721
Exercised Options: $77,582,721
Current Obligation: $77,582,721
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: 2020-09-22
Current End Date: 2021-09-21
Potential End Date: 2021-09-21 00:00:00
Last Modified: 2023-12-08
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