Navy Awards $8.99M for Aircraft Parts Repair/Upgrade to S & K Aerospace, LLC
Contract Overview
Contract Amount: $8,994,165 ($9.0M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Defense
Start Date: 2025-08-06
End Date: 2027-07-15
Contract Duration: 708 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MULTIPLE ITEMS FOR REPAIR/OVERHAUL/UPGRADE UNDER LTC N0038325DA501
Place of Performance
Location: SAINT IGNATIUS, LAKE County, MONTANA, 59865
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $9.0 million to S & K AEROSPACE, LLC for work described as: MULTIPLE ITEMS FOR REPAIR/OVERHAUL/UPGRADE UNDER LTC N0038325DA501 Key points: 1. Contract awarded for repair, overhaul, and upgrade of aircraft parts. 2. S & K Aerospace, LLC is the sole contractor for this delivery order. 3. The contract is valued at $8.99 million with a duration of 708 days. 4. This falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: fair
The contract value of $8.99 million for aircraft parts repair/overhaul/upgrade appears reasonable given the scope and duration. Benchmarking against similar contracts for specialized aircraft components would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayers may bear a slightly higher cost due to the limited competition, but the specialized nature of aircraft parts repair might necessitate this approach.
Public Impact
Ensures operational readiness of naval aircraft through essential repair and upgrade services. Supports a specific aerospace company, potentially impacting local employment in Montana. The fixed-price contract structure provides cost certainty for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Potential for cost overruns if unforeseen issues arise during overhaul/upgrade.
- Dependence on a single contractor for critical aircraft components.
Positive Signals
- Clear scope of work for repair, overhaul, and upgrade.
- Fixed-price contract provides budget predictability.
- Delivery order under an existing contract structure.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is critical for national security and often involves specialized, high-value components.
Small Business Impact
The data indicates the awardee is S & K Aerospace, LLC. Further analysis is needed to determine if this company qualifies as a small business and if subcontracting opportunities for small businesses are included in the contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The fixed-price contract and defined delivery period provide some accountability, but ongoing monitoring of performance and adherence to specifications is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Potential for schedule delays impacting naval readiness.
- Dependence on a single contractor for critical parts.
- Lack of detailed information on the specific services and parts involved.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mt, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to S & K AEROSPACE, LLC. MULTIPLE ITEMS FOR REPAIR/OVERHAUL/UPGRADE UNDER LTC N0038325DA501
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 Navy).
What is the total obligated amount?
The obligated amount is $9.0 million.
What is the period of performance?
Start: 2025-08-06. End: 2027-07-15.
What is the specific nature of the 'repair/overhaul/upgrade' required for the aircraft parts, and how does this justify the limited competition approach?
The specific nature of the repair, overhaul, and upgrade services is not detailed in the provided data. However, specialized aircraft components often require unique expertise, proprietary tooling, or specific certifications that may limit the pool of qualified contractors. This limitation can justify a 'full and open competition after exclusion of sources' approach to ensure technical capability and airworthiness standards are met, even if it restricts broader market participation.
How does the $8.99 million contract value compare to industry benchmarks for similar aircraft parts repair and upgrade services, considering the duration?
Without specific details on the types of aircraft parts and the complexity of the required services (repair vs. overhaul vs. upgrade), a precise benchmark is difficult. However, $8.99 million over approximately two years for specialized aerospace components suggests a significant scope. Industry benchmarks would typically consider factors like part criticality, material costs, labor hours, and required certifications. A comparative analysis with similar contracts for naval aviation components would be necessary to assess if this price is competitive.
What are the potential risks associated with relying on S & K Aerospace, LLC for these critical aircraft components, and what mitigation strategies are in place?
Potential risks include contractor performance issues, delays in delivery, cost overruns if unforeseen problems arise, and the impact of a single point of failure for critical parts. Mitigation strategies could involve robust contract monitoring by the Navy, clear performance metrics, liquidated damages for delays, and potentially requiring the contractor to maintain adequate inventory or have contingency plans for critical component sourcing.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0038324R007T
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 63066 OLD HIGHWAY 93 STE B, SAINT IGNATIUS, MT, 59865
Business Categories: 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, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,931,354
Exercised Options: $8,931,354
Current Obligation: $8,994,165
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038325DA501
IDV Type: IDC
Timeline
Start Date: 2025-08-06
Current End Date: 2027-07-15
Potential End Date: 2027-07-15 00:00:00
Last Modified: 2026-01-20
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