DoD's $43.3M Air Force contract for RSAF Supply Services awarded to S & K Aerospace, LLC

Contract Overview

Contract Amount: $43,340,075 ($43.3M)

Contractor: S & K Aerospace, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2022-09-22

Contract Duration: 365 days

Daily Burn Rate: $118.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

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 $43.3 million to S & K AEROSPACE, LLC for work described as: RSAF SUPPLY SERVICES Key points: 1. Contract value represents a significant investment in aviation support services. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Fixed Price Incentive contract type introduces performance-based risk and reward elements. 4. The contract duration of one year indicates a focus on immediate operational needs. 5. Geographic location in Montana may point to specific operational or logistical requirements. 6. The North American Industry Classification System (NAICS) code 488190 aligns with air transportation support.

Value Assessment

Rating: fair

Benchmarking the value of this $43.3 million contract is challenging without more specific service details. However, the fixed-price incentive structure suggests an attempt to align contractor performance with cost objectives. The award amount appears substantial for a one-year contract, implying critical or extensive support requirements. Further analysis would require comparing this to similar contracts for aviation supply chain management or logistics support within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally promotes a wider range of proposals and potentially more competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially driving down costs.

Public Impact

The Department of the Air Force benefits from essential supply chain and logistical support for its aviation operations. This contract ensures the availability of critical parts and services necessary for maintaining aircraft readiness. The primary geographic impact is within Montana, likely supporting a specific Air Force installation or operational area. The contract supports the aerospace and defense industry workforce, particularly within S & K Aerospace, LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess value for money.
The fixed-price incentive structure requires careful monitoring to ensure cost control.
Limited information on the specific services provided hinders a comprehensive risk assessment.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contract type (Fixed Price Incentive) aims to incentivize cost efficiency.
The contractor, S & K Aerospace, LLC, is a participant in the federal contracting space.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on support activities for air transportation. The market for such services is characterized by specialized logistics, maintenance, and supply chain management for military and commercial aviation. Spending in this area is often driven by operational tempo, fleet readiness requirements, and the complexity of modern aircraft systems. Comparable spending benchmarks would typically involve analyzing other contracts for aviation logistics, parts warehousing, and maintenance support within the DoD.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, S & K Aerospace, LLC. Without further information on subcontracting plans, it's difficult to assess the extent of small business involvement or its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant Department of the Air Force administrative contracting officer (ACO). The fixed-price incentive structure implies performance monitoring to ensure adherence to cost and delivery targets. Transparency is facilitated by contract award databases, but detailed operational oversight and accountability measures are internal to the agency and contractor.

Related Government Programs

Air Transportation Support Services
Aerospace Logistics Contracts
Department of Defense Supply Chain Management
Fixed-Price Incentive Contracts
Air Force Aviation Maintenance Support

Risk Flags

Potential for cost overruns due to FPI contract type.
Dependence on contractor performance for critical supply chain functions.
Geographic concentration of services in Montana may limit broader applicability.
Limited transparency on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.3 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 $43.3 million.

What is the period of performance?

Start: 2021-09-22. End: 2022-09-22.

What is the track record of S & K Aerospace, LLC in fulfilling federal contracts, particularly those involving supply chain and logistics?

Information regarding the specific track record of S & K Aerospace, LLC in fulfilling federal contracts, especially those related to supply chain and logistics, is not detailed in the provided data. A comprehensive assessment would require examining past performance reviews, contract completion history, and any reported issues or successes on previous government awards. Analyzing their history with similar contract types (Fixed Price Incentive) and within the defense sector would provide further insight into their capabilities and reliability as a contractor for this $43.3 million award.

How does the awarded price of $43.3 million compare to market rates for similar aviation supply services?

Directly comparing the $43.3 million award to precise market rates for 'RSAF Supply Services' is difficult without a detailed breakdown of the services included and their specific scope. However, the contract's duration of one year suggests a significant annual expenditure. To benchmark, one would need to identify comparable contracts awarded by the DoD or other federal agencies for similar aviation logistics and supply chain management. Factors such as the type of aircraft supported, the criticality of the supplies, and the geographic location of service delivery would influence market rates. The 'full and open competition' award mechanism suggests an effort to achieve competitive pricing, but the actual value for money depends on the specific performance outcomes achieved.

What are the primary risks associated with a Fixed Price Incentive (FPI) contract of this magnitude?

The primary risks associated with a Fixed Price Incentive (FPI) contract of this magnitude ($43.3 million) revolve around cost overruns and contractor performance. For the government, the risk is that the final cost could exceed the target price if the contractor incurs higher-than-expected costs, although the incentive fee structure aims to limit this. For the contractor, the risk lies in not meeting performance targets, which could reduce their profit margin or even lead to losses if costs escalate significantly. Effective oversight is crucial to monitor cost accumulation, track performance against established metrics, and ensure the incentive clauses are appropriately applied to manage these risks and achieve the desired value.

What is the expected effectiveness of these supply services in supporting Air Force readiness in Montana?

The expected effectiveness of these supply services in supporting Air Force readiness in Montana hinges on the contractor's ability to deliver the right parts and materials on time and within budget, as stipulated by the contract. Given the $43.3 million value and the 'Other Support Activities for Air Transportation' NAICS code, these services are likely critical for maintaining operational aircraft and supporting airbase functions. The effectiveness will be directly tied to the performance metrics outlined in the Fixed Price Incentive contract and the contractor's adherence to those standards. Successful execution should lead to improved aircraft availability and mission capability for Air Force assets operating in or supported by facilities in Montana.

How has historical spending on similar aviation support contracts by the Department of the Air Force trended over the past five years?

Analyzing historical spending trends for similar aviation support contracts by the Department of the Air Force over the past five years would require access to comprehensive federal procurement data. Generally, spending in this category can fluctuate based on factors such as operational tempo, modernization programs, fleet size, and geopolitical events. Contracts for supply chain management, logistics, and maintenance support are typically substantial and ongoing necessities for the Air Force. An upward trend might indicate increased operational demands or aging fleets requiring more support, while a downward trend could suggest fleet reductions or efficiencies gained. This specific $43.3 million contract represents a snapshot within that broader spending landscape.

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: $43,340,075

Exercised Options: $43,340,075

Current Obligation: $43,340,075

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