DoD's $53.9M Marine Corps aircraft reset services contract awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $53,891,068 ($53.9M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-08

End Date: 2014-07-04

Contract Duration: 2,034 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AV-8B, F/A-18+/C/D, EA-B, AND KC-130J MARINE CORPS RESET SERVICES

Place of Performance

Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: AV-8B, F/A-18+/C/D, EA-B, AND KC-130J MARINE CORPS RESET SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Services provided are related to aircraft maintenance and readiness for the Marine Corps. 4. The contract duration was 2034 days, indicating a long-term support requirement. 5. The award was made by the Defense Contract Management Agency. 6. The North American Industry Classification System (NAICS) code is 488190, related to air transportation support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service costs. The total value of $53.9 million over approximately 5.5 years averages to about $9.8 million annually. This figure needs to be assessed against the scope of work, the number and type of aircraft serviced, and the complexity of the 'reset' operations. Without detailed breakdowns of labor, parts, and overhead, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature suggests that the contractor is responsible for managing costs to meet the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a reasonable level of competition for these specialized aviation support services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is intended to drive down costs and ensure the government receives the best possible value for its investment in maintaining critical military assets.

Public Impact

The primary beneficiaries are the United States Marine Corps, ensuring the readiness and operational capability of their aircraft fleet. Services delivered include maintenance, repair, and overhaul (reset) of various Marine Corps aircraft, such as AV-8B, F/A-18+/C/D, EA-B, and KC-130J models. The geographic impact is likely concentrated around the locations where the aircraft are based or where the contractor performs the reset services, potentially within the United States. Workforce implications include employment for skilled aviation mechanics, technicians, and support staff involved in aircraft maintenance and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'reset' is underestimated by the contractor.
Dependence on contractor performance for critical aircraft readiness.
Risk of supply chain disruptions for specialized aircraft parts.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Long-term contract duration allows for sustained support and planning.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for military aircraft maintenance and sustainment is substantial, driven by the need to maintain high operational readiness for aging and complex fleets. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft reset, depot-level maintenance, or aviation system support provided to military branches. The size of this contract, approximately $53.9 million, is moderate within the broader defense contracting landscape for aircraft sustainment.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements in the provided data. This suggests that the prime contractor, PAE Aviation and Technical Services LLC, likely has the capacity to perform the majority of the work in-house or through its own established supply chains. The impact on the small business ecosystem would depend on whether PAE utilizes small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the firm-fixed-price contract type, where the contractor is financially responsible for delivering the specified services within the agreed budget. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Marine Corps Aviation Readiness Programs
Aircraft Depot Maintenance Contracts
Defense Logistics Agency Aviation Support
F/A-18 Hornet Sustainment Programs
AV-8B Harrier Sustainment Programs

Risk Flags

Potential for scope creep
Supply chain vulnerability for specialized parts
Contractor performance risk impacting readiness
Long-term dependency on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to PAE AVIATION AND TECHNICAL SERVICES LLC. AV-8B, F/A-18+/C/D, EA-B, AND KC-130J MARINE CORPS RESET SERVICES

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 Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $53.9 million.

What is the period of performance?

Start: 2008-12-08. End: 2014-07-04.

What is the track record of PAE Aviation and Technical Services LLC in performing similar aircraft reset services for the Department of Defense?

PAE Aviation and Technical Services LLC, and its parent company PAE, have a significant history of providing aviation support services to the U.S. military, including maintenance, logistics, and operational support. Their experience spans various aircraft platforms and mission requirements. For aircraft reset services specifically, their track record would involve assessing past performance on similar contracts, including their ability to meet delivery schedules, quality standards, and cost targets. Reviews of past performance evaluations and contract close-outs would provide a clearer picture of their capabilities and reliability in executing complex maintenance and upgrade programs for military aviation assets. This includes their experience with the specific aircraft types mentioned in this contract (AV-8B, F/A-18, EA-B, KC-130J).

How does the awarded price of $53.9 million compare to the estimated value or benchmark for similar Marine Corps aircraft reset services?

Determining a precise benchmark for this $53.9 million contract requires detailed comparison with other 'reset' contracts for similar aircraft types and service scopes. 'Reset' typically involves extensive refurbishment, modernization, and repair to bring aircraft to a specified readiness level. Factors influencing cost include the age and condition of the aircraft, the specific upgrades required, labor rates, and the availability of parts. Without access to detailed cost breakdowns or a database of comparable contract values adjusted for scope and inflation, a direct comparison is difficult. However, the fact that it was awarded under full and open competition with five bidders suggests that the pricing was considered competitive within the market at the time of award.

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

Key risks include potential cost overruns if the scope of 'reset' is underestimated, delays in parts procurement due to supply chain issues, and contractor performance failures impacting aircraft readiness. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price (FFP) nature shifts significant cost risk to PAE Aviation and Technical Services LLC, incentivizing them to manage expenses efficiently. The contract's duration (2034 days) allows for better planning and resource allocation. The Department of Defense, through the Defense Contract Management Agency (DCMA), provides oversight to monitor progress, ensure quality, and address performance issues proactively. Clear performance metrics and reporting requirements also serve as risk mitigation tools.

What is the expected program effectiveness and impact on Marine Corps operational readiness resulting from this contract?

The program's effectiveness is directly tied to its ability to enhance the operational readiness of the specified Marine Corps aircraft (AV-8B, F/A-18+/C/D, EA-B, and KC-130J). Successful execution of the 'reset' services should result in a higher number of aircraft available for deployment, improved system reliability, and extended service life for these critical assets. This directly supports the Marine Corps' mission capabilities by ensuring they have the necessary air power for various operational theaters. The impact on readiness is measured by metrics such as aircraft availability rates, mission capable rates, and the successful completion of scheduled maintenance and upgrades, ultimately contributing to the overall effectiveness of Marine Corps aviation.

How has historical spending on Marine Corps aircraft maintenance and reset services trended, and does this contract align with those trends?

Historical spending on Marine Corps aircraft maintenance and reset services has generally been substantial, reflecting the high operational tempo and the aging nature of many aircraft platforms. Trends often show consistent investment in sustainment, with peaks and troughs related to specific modernization programs or fleet retirement cycles. This $53.9 million contract for reset services appears to align with the ongoing need for comprehensive maintenance to ensure the longevity and readiness of key aircraft. Without specific historical spending data for these exact platforms and service types, it's difficult to pinpoint precise alignment, but the continuous requirement for such services suggests this contract represents a typical investment in maintaining fleet readiness over its contract period.

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

Solicitation ID: N0042108R0073

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 1320 N COURTHOUSE RD STE 800, ARLINGTON, VA, 22201

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $54,019,890

Exercised Options: $53,933,696

Current Obligation: $53,891,068

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline