Tyonek Global Services awarded $24.9M for Harrier maintenance, highlighting potential value in specialized aviation support

Contract Overview

Contract Amount: $24,926,442 ($24.9M)

Contractor: Tyonek Global Services LLC

Awarding Agency: General Services Administration

Start Date: 2016-04-14

End Date: 2021-10-13

Contract Duration: 2,008 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF AV 8B HARRIER MAINTENANCE AT MCAS YUMA AND MCAS CHERRY POINT

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $24.9 million to TYONEK GLOBAL SERVICES LLC for work described as: IGF::OT::IGF AV 8B HARRIER MAINTENANCE AT MCAS YUMA AND MCAS CHERRY POINT Key points: 1. Contract value of $24.9M over 5 years suggests significant investment in maintaining specialized aircraft. 2. Full and open competition after exclusion of sources indicates a structured procurement process. 3. The contract's duration and scope point to a critical, long-term need for Harrier aircraft support. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. Award to Tyonek Global Services, an Alaska Native Corporation, may align with socio-economic goals. 6. The North Carolina award location is notable given the operational bases mentioned.

Value Assessment

Rating: good

The $24.9 million award for Harrier maintenance over approximately five years appears reasonable given the specialized nature of military aircraft support. Benchmarking against similar contracts for depot-level maintenance or specialized aviation services would provide a clearer picture of value for money. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for efficient spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while competition was sought, certain sources may have been excluded based on specific criteria, potentially limiting the breadth of bidders. The presence of two bidders indicates some level of competition, but the exclusion clause warrants further investigation into its justification and impact on the final price.

Taxpayer Impact: The limited competition, even after an initial open phase, could mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement. However, if the exclusions were justified by specialized capabilities, the price might reflect necessary expertise.

Public Impact

The primary beneficiaries are the U.S. Marine Corps units operating Harrier aircraft, ensuring their operational readiness. Services delivered include essential maintenance, repair, and support activities for aging Harrier jets. The contract supports operations at Marine Corps Air Station (MCAS) Yuma and MCAS Cherry Point. This contract likely supports a specialized technical workforce skilled in aviation maintenance, potentially in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion impacting price discovery.
Geographic disconnect between award location (NC) and operational bases (AZ, NC) requires clarification.
Reliance on a single platform (Harrier) which is being phased out by some services.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an Alaska Native Corporation may fulfill socio-economic contracting goals.
Long-term contract indicates a stable, ongoing need for critical support services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance and support services. The market for specialized military aircraft maintenance is often characterized by a limited number of highly qualified contractors due to stringent requirements and security clearances. Spending in this area is driven by the operational needs of the armed forces and the lifecycle of aging aircraft platforms.

Small Business Impact

The contract was awarded to Tyonek Global Services LLC, an Alaska Native Corporation. While this award may contribute to meeting socio-economic goals for contracting with such entities, it does not appear to be a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this large contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the relevant Department of Defense (DoD) contracting officers. The firm fixed-price nature of the award provides a degree of financial oversight. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Aircraft Maintenance Services
Aviation Support Services
Defense Logistics Support
Marine Corps Aviation Readiness
Specialized Aircraft Repair

Risk Flags

Limited Competition
Potential for Cost Overruns (despite fixed price)
Aircraft Obsolescence Risk
Geographic Award vs. Performance Location Discrepancy

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.9 million to TYONEK GLOBAL SERVICES LLC. IGF::OT::IGF AV 8B HARRIER MAINTENANCE AT MCAS YUMA AND MCAS CHERRY POINT

Who is the contractor on this award?

The obligated recipient is TYONEK GLOBAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2016-04-14. End: 2021-10-13.

What is the track record of Tyonek Global Services LLC in performing similar aviation maintenance contracts?

Tyonek Global Services LLC, as an Alaska Native Corporation, has a portfolio of government contracts across various sectors, including aviation support. While specific details on their performance for Harrier maintenance prior to this contract may require deeper investigation into past performance databases, their ability to secure a $24.9 million contract suggests they possess the necessary certifications, experience, and capacity. Government contract performance is typically evaluated, and information regarding past performance, including any issues or commendations, can often be found in federal procurement data systems or through agency-specific reports. Understanding their history with similar complex aircraft maintenance would provide context for the current contract's expected success.

How does the awarded price compare to market rates for similar specialized aviation maintenance services?

Determining the precise market rate for specialized Harrier maintenance is challenging due to the niche nature of the aircraft and the specific requirements of military contracts. However, the $24.9 million award over approximately five years, translating to roughly $5 million annually, can be benchmarked against publicly available data for similar depot-level maintenance contracts for other military aircraft. Factors influencing price include the complexity of the maintenance, required parts, labor rates, and overhead. The firm fixed-price structure suggests the government aimed to lock in a price, but without direct comparable contracts or detailed cost breakdowns, a definitive value-for-money assessment relative to the open market is difficult. The limited competition aspect also plays a role, potentially inflating the price compared to a fully open bid.

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

Key risks include potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen maintenance issues, delays in service delivery impacting operational readiness, and the obsolescence of the Harrier platform itself, which is being phased out. Mitigation strategies likely involve robust contract management by GSA and the DoD, clear performance standards, and potentially contingency planning within the contract terms. The 'exclusion of sources' in the competition phase might also introduce a risk if it excluded contractors with more competitive pricing or innovative solutions. The long-term nature of the contract also carries a risk related to the evolving needs of the military and the future viability of supporting older aircraft.

What is the expected effectiveness of this contract in ensuring the operational readiness of Harrier aircraft?

The effectiveness of this contract is directly tied to Tyonek Global Services' ability to provide timely and high-quality maintenance, repair, and overhaul services for the Harrier fleet. Given the contract's value and duration, it is intended to be a primary mechanism for ensuring the operational readiness of these aircraft at specified bases. Success will depend on the contractor's technical expertise, supply chain management for parts, and adherence to stringent military specifications. The Marine Corps' continued reliance on the Harrier during the contract period, despite its eventual retirement, underscores the critical nature of this support. Performance metrics and regular reviews by the contracting agency will be key indicators of effectiveness.

How does historical spending on Harrier maintenance compare to this contract's value?

Historical spending on Harrier maintenance would likely show significant investment over the aircraft's decades-long service life. This $24.9 million contract represents a substantial portion of funding for a specific period (2016-2021). To provide a comparative analysis, one would need to aggregate spending data for Harrier maintenance across different fiscal years and contract vehicles. It's important to note that maintenance costs can fluctuate based on the age of the aircraft, operational tempo, and the availability of spare parts. Comparing this contract's value to the total historical spend would contextualize its significance within the broader lifecycle support budget for the Harrier program.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID08150088

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 229 PALMER RD, MADISON, AL, 35758

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,536,713

Exercised Options: $24,943,894

Current Obligation: $24,926,442

Actual Outlays: $156,976

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $373,365

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline