DHS Awards $576M for Aircraft Maintenance and Logistics Support to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $576,175,288 ($576.2M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-11-13

End Date: 2018-09-30

Contract Duration: 3,243 days

Daily Burn Rate: $177.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: NATIONAL AIRCRAFT MAINATENANCE AND LOGISTICS SUPPORT

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32502

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $576.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: NATIONAL AIRCRAFT MAINATENANCE AND LOGISTICS SUPPORT Key points: 1. The contract value of $576.2 million over its life is substantial, indicating significant operational needs. 2. PAE Aviation and Technical Services LLC secured this award, suggesting strong capabilities in aviation support. 3. The contract type (Cost Plus Incentive Fee) introduces performance-based incentives but also cost-reimbursement risks. 4. The sector is 'Other Support Activities for Air Transportation', a critical but often overlooked area of federal spending.

Value Assessment

Rating: good

The contract's total value of $576.2 million over nearly nine years suggests a significant investment. Benchmarking against similar large-scale aviation support contracts would be necessary for a precise value assessment, but the duration and scope imply a competitive pricing strategy was likely employed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a definitive contract structure implies a well-defined scope of work.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by leveraging market forces to drive down costs.

Public Impact

Ensures continued operational readiness for U.S. Customs and Border Protection aircraft. Supports critical border security and law enforcement missions. Provides essential maintenance and logistics, preventing disruptions to vital services. The long-term nature of the contract offers stability for both the agency and the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not managed tightly.
The long duration of the contract may not always reflect the most current technological advancements or market prices.
Lack of specific small business participation noted.

Positive Signals

Awarded through full and open competition, indicating potential for good value.
Supports critical national security and law enforcement functions.
Contractor has a significant role in maintaining essential operational capabilities.

Sector Analysis

This contract falls under 'Other Support Activities for Air Transportation,' a sector crucial for government operations, particularly in defense and law enforcement. Spending in this area is often driven by the need for specialized maintenance and logistical support for complex aircraft fleets.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). This suggests that the primary focus was on the capabilities of larger, established firms for this specialized aviation support.

Oversight & Accountability

The contract's long duration and significant value warrant robust oversight to ensure performance standards are met and costs remain controlled. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type carries inherent cost overrun potential.
Long contract duration (over 9 years) may not reflect current market efficiencies or technological advancements.
No explicit mention of small business participation.
The specific nature of 'Other Support Activities for Air Transportation' can be complex and require specialized oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $576.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC. NATIONAL AIRCRAFT MAINATENANCE AND LOGISTICS SUPPORT

Who is the contractor on this award?

The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $576.2 million.

What is the period of performance?

Start: 2009-11-13. End: 2018-09-30.

What was the specific incentive structure within the Cost Plus Incentive Fee (CPIF) contract, and how did it align with the agency's performance objectives?

The CPIF structure likely tied contractor bonuses to achieving specific performance metrics, such as aircraft availability, maintenance turnaround times, or cost savings. A detailed review of the contract's incentive clauses would reveal the exact targets and their weighting, indicating how effectively they were designed to drive desired outcomes and ensure taxpayer value while managing contractor risk.

How did the 'full and open competition' process ensure the best possible price and quality for these specialized aviation services?

Full and open competition allows any responsible source to submit a bid, fostering a competitive environment. This process typically involves detailed technical and cost proposals, allowing the agency to evaluate offers based on best value, not just the lowest price. The agency likely established clear evaluation criteria to select the contractor offering the optimal balance of technical capability, past performance, and cost.

What are the potential risks associated with a nearly nine-year contract for aircraft maintenance and logistics in terms of technological obsolescence and evolving operational needs?

Long-term contracts risk locking the government into potentially outdated technologies or inefficient processes if market advancements outpace contract adjustments. Evolving threats or mission requirements might also necessitate changes not easily accommodated within the original scope. Mitigation strategies could include contract clauses for modernization, regular performance reviews, and options for renegotiation or termination.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 081342873)

Address: 12000 HORIZON WAY STE 400, MOUNT LAUREL, NJ, 08054

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,117,936,017

Exercised Options: $577,254,088

Current Obligation: $576,175,288

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline