DoD's $22M aircraft maintenance contract awarded to AVMAC LLC shows fair competition and potential value

Contract Overview

Contract Amount: $22,053,659 ($22.1M)

Contractor: Avmac LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-15

End Date: 2026-11-14

Contract Duration: 1,825 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR MAINTENANCE SERVICES

Place of Performance

Location: JACKSONVILLE, ONSLOW County, NORTH CAROLINA, 28540

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to AVMAC LLC for work described as: CONTRACTOR MAINTENANCE SERVICES Key points: 1. The contract's firm-fixed-price structure incentivizes cost control by the contractor. 2. Competition was robust, with 10 bids received, suggesting a competitive market. 3. The duration of the contract (5 years) allows for stable service delivery. 4. The contract falls under the Aircraft Manufacturing NAICS code, indicating specialized services. 5. The award to AVMAC LLC represents a significant investment in fleet readiness.

Value Assessment

Rating: good

The firm-fixed-price contract type is generally favorable for value, as it shifts cost overrun risk to the contractor. Benchmarking against similar aircraft maintenance contracts is difficult without more specific service details, but the number of bids suggests market rates were likely competitive. The total value of $22 million over five years indicates a substantial but potentially reasonable investment for ongoing fleet support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation. The receipt of 10 bids suggests a healthy level of competition within the aircraft maintenance sector for this type of service. A competitive bidding process typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition means taxpayer dollars are likely being used more efficiently, as contractors vied to offer the best value to secure the award.

Public Impact

The Department of the Navy benefits from enhanced aircraft readiness and maintenance capabilities. This contract ensures the continued operational status of critical naval aircraft assets. The services provided are essential for maintaining the U.S. Navy's air power projection capabilities. The contract supports skilled jobs in the aerospace maintenance industry, likely in North Carolina where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the long duration.
Dependence on a single contractor for critical maintenance could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract aligns incentives for cost efficiency.
Robust competition indicates a healthy market and potential for good value.
Long-term contract provides stability for service delivery and planning.

Sector Analysis

The aerospace and defense industry is characterized by high technological complexity and significant government investment. Aircraft maintenance is a critical sub-sector, ensuring the operational readiness of military fleets. This contract fits within the broader landscape of defense procurement, where specialized maintenance services are essential for maintaining expensive and complex assets. Comparable spending benchmarks would depend on the specific aircraft types and maintenance scope, but multi-million dollar contracts for fleet support are common.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, AVMAC LLC, is not listed as a small business. There is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if subcontracting opportunities exist and are being utilized to engage the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature provides a degree of financial oversight by capping costs. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Naval Aviation Readiness Programs
Defense Logistics Agency Support Contracts
Aerospace Component Repair Contracts

Risk Flags

Contract Duration
Performance Risk
Cost Overrun Potential (mitigated by FFP)
Dependence on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to AVMAC LLC. CONTRACTOR MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is AVMAC LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2021-11-15. End: 2026-11-14.

What is AVMAC LLC's track record with similar government contracts, particularly in aircraft maintenance?

AVMAC LLC has a history of performing aircraft maintenance and repair services for the U.S. military. While specific details on past performance metrics for this exact type of contract are not provided in the summary data, their award suggests they have met the necessary qualifications and demonstrated capability. A deeper dive into their contract history, including past performance evaluations and any reported issues or successes on previous DoD contracts, would provide a more comprehensive understanding of their reliability and expertise in fulfilling complex maintenance requirements.

How does the awarded price compare to industry benchmarks for similar aircraft maintenance services?

Directly comparing the awarded price of $22,053,658.64 to industry benchmarks is challenging without knowing the specific aircraft models, the scope of maintenance (e.g., scheduled, unscheduled, depot-level), and the geographic locations of service. However, the fact that the contract was awarded under full and open competition with 10 bidders suggests that the pricing was competitive within the market. The firm-fixed-price structure also implies that the government sought to establish a predictable cost. Further analysis would require access to detailed service level agreements and market research data specific to the types of aircraft and maintenance being performed.

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

Key risks include potential performance deficiencies by the contractor, leading to aircraft downtime and reduced readiness, and the possibility of cost overruns if the firm-fixed-price contract is poorly defined or managed. Mitigation strategies likely involve robust contract oversight, clearly defined performance metrics and service level agreements, and regular performance reviews. The government's ability to enforce contract terms and potentially penalize non-performance also serves as a mitigation factor. The long duration (5 years) also presents a risk of technological obsolescence or changing mission requirements that may not be fully addressed by the current contract.

How effective is this contract in ensuring the operational readiness of the Department of the Navy's aircraft fleet?

The effectiveness of this contract in ensuring operational readiness hinges on AVMAC LLC's ability to consistently meet or exceed the performance standards outlined in the contract. A successful execution means timely and high-quality maintenance, directly contributing to increased aircraft availability and mission capability. Conversely, any failures in maintenance execution could negatively impact readiness. The firm-fixed-price nature and competitive award suggest an intent to maximize value and performance, but ongoing monitoring and evaluation of maintenance turnaround times, defect rates, and overall fleet availability metrics are crucial to truly assess effectiveness.

What are the historical spending patterns for aircraft maintenance within the Department of the Navy, and how does this contract fit?

Historical spending on aircraft maintenance within the Department of the Navy is substantial, reflecting the high cost of operating and maintaining complex aviation assets. This $22 million contract over five years represents a portion of that overall spending. To understand its place, one would need to compare it to previous contracts for similar services, considering inflation, fleet size changes, and evolving maintenance strategies. It appears to be a significant, but not necessarily outlier, investment typical for supporting a segment of the Navy's aviation inventory over a multi-year period.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042120R0105

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 516 INNOVATION DR STE 201, CHESAPEAKE, VA, 23320

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,407,100

Exercised Options: $22,769,345

Current Obligation: $22,053,659

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6852020D0012

IDV Type: IDC

Timeline