DoD awards $3.1M for P-8A aircraft common item repairs, with S & K Aerospace winning contract

Contract Overview

Contract Amount: $3,082,567 ($3.1M)

Contractor: S & K Aerospace, LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-26

End Date: 2026-05-18

Contract Duration: 538 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPAIR/OVERHAUL/UPGRADE OF COMMERCIAL COMMON ITEMS UTILIZED IN SUPPORT OF THE P-8A AIRCRAFT

Place of Performance

Location: BYRON, PEACH County, GEORGIA, 31008

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $3.1 million to S & K AEROSPACE, LLC for work described as: REPAIR/OVERHAUL/UPGRADE OF COMMERCIAL COMMON ITEMS UTILIZED IN SUPPORT OF THE P-8A AIRCRAFT Key points: 1. Contract focuses on essential repairs and upgrades for P-8A aircraft components. 2. S & K Aerospace, LLC secured the award, indicating a competitive procurement process. 3. The contract duration of 538 days suggests a sustained need for these services. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 6. Geographic focus on Georgia (GA) for contract performance.

Value Assessment

Rating: good

The contract value of approximately $3.1 million for aircraft component repair and overhaul appears reasonable given the specialized nature of military aviation. Benchmarking against similar contracts for P-8A sustainment would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to establish clear cost expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to technical capabilities or prior performance. The number of bidders is not specified, but this procurement method suggests a deliberate effort to ensure a competitive landscape while managing specific requirements.

Taxpayer Impact: This limited competition approach aims to balance the need for specialized services with taxpayer interests by seeking competitive bids from qualified entities, potentially leading to cost efficiencies compared to a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Navy's P-8A Poseidon maritime patrol aircraft fleet, ensuring operational readiness. Services delivered include repair, overhaul, and upgrade of common commercial items critical to aircraft function. The contract performance is located in Georgia (GA), potentially impacting the local aerospace workforce. This contract supports the sustainment of a key military asset, contributing to national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition impacting price discovery.
Reliance on a single contractor for critical repair services could pose supply chain risks if not managed effectively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to S & K Aerospace, LLC suggests they met technical and performance requirements.
Focus on common items may streamline repair processes and reduce lead times.

Sector Analysis

This contract operates within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The P-8A Poseidon is a significant platform for maritime patrol and reconnaissance, and its sustainment is crucial. Spending on aircraft maintenance, repair, and overhaul (MRO) is a substantial component of defense budgets, with industry benchmarks varying widely based on aircraft type, complexity, and service scope.

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 the small business ecosystem would be through potential subcontracting opportunities if S & K Aerospace, LLC engages small businesses for specialized services or components. Without specific subcontracting plans, the direct benefit to small businesses remains uncertain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

P-8A Poseidon Aircraft Sustainment
Naval Aviation Maintenance Programs
Aerospace Component Repair Services
Defense Logistics Agency (DLA) Aviation Support

Risk Flags

Potential for limited competition impacting price discovery.
Need for robust quality assurance to ensure repair integrity.
Supply chain vulnerability for specialized components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.1 million to S & K AEROSPACE, LLC. REPAIR/OVERHAUL/UPGRADE OF COMMERCIAL COMMON ITEMS UTILIZED IN SUPPORT OF THE P-8A AIRCRAFT

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 $3.1 million.

What is the period of performance?

Start: 2024-11-26. End: 2026-05-18.

What is the historical spending pattern for P-8A aircraft component repair and overhaul by the Department of Defense?

Analyzing historical spending for P-8A component repair requires access to detailed contract databases beyond this single award. However, the overall sustainment costs for major defense platforms like the P-8A are significant and tend to increase as the fleet ages. Trends typically show consistent investment in maintenance, repair, and overhaul (MRO) to ensure operational readiness. Factors influencing spending include the number of aircraft in the fleet, operational tempo, and the introduction of new technologies or upgrades. Without specific historical data for this contract line item or similar services, it's difficult to establish a precise pattern, but it aligns with the general expectation of ongoing support for a critical military asset.

How does the awarded amount of $3.1 million compare to the total lifecycle cost of the P-8A program?

The $3.1 million award represents a very small fraction of the overall lifecycle cost of the P-8A program. The P-8A Poseidon is a sophisticated maritime patrol and reconnaissance aircraft, and its total program cost, encompassing research, development, procurement, sustainment, and operations over its service life, runs into the tens of billions of dollars. This specific contract addresses a component repair and overhaul need, which is a necessary but relatively minor expenditure within the broader financial picture of maintaining and operating such a complex weapon system. It is a typical operational expenditure for fleet readiness rather than a major program investment.

What are the potential risks associated with S & K Aerospace, LLC's performance on this contract?

Potential risks associated with S & K Aerospace, LLC's performance include delivery delays, quality control issues leading to non-conforming repairs, or cost overruns if the firm fixed-price contract does not adequately account for unforeseen complexities. Given the specialized nature of aircraft components, a lack of skilled personnel or inadequate technical expertise could also pose a risk. Furthermore, supply chain disruptions for necessary parts or materials could impact the timely completion of repairs. The 'exclusion of sources' in the competition might also indicate prior concerns or specific requirements that could translate into performance challenges if not meticulously managed by both the contractor and the government.

What is the significance of 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) in the context of defense spending?

NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' is highly significant in defense spending as it encompasses a broad range of components essential for the operation and maintenance of military aircraft. This sector provides everything from structural elements and engine parts to avionics and specialized systems. Defense contractors heavily rely on companies within this industry to supply and repair critical parts, making it a vital segment of the defense industrial base. Spending in this category directly supports fleet readiness, modernization efforts, and the overall capability of air forces, underscoring its strategic importance.

What does the contract type 'FIRM FIXED PRICE' imply for cost control and contractor incentive?

A 'FIRM FIXED PRICE' (FFP) contract type implies that the contractor, S & K Aerospace, LLC, bears the primary responsibility for all costs incurred and is obligated to complete the work for a predetermined price. This structure provides the government with significant cost certainty and budget predictability, as the final price will not change unless there are specific contract modifications. For the contractor, it creates a strong incentive to manage costs efficiently and perform the work effectively to maximize profit. However, it can also incentivize the contractor to cut corners on quality or scope if not adequately monitored, making robust government oversight crucial.

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

Pricing Type: FIRM FIXED PRICE (J)

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,082,567

Exercised Options: $3,082,567

Current Obligation: $3,082,567

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $284,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038320DXE01

IDV Type: IDC

Timeline