PAE Aviation and Technical Services LLC received over $279M for air transportation support, awarded via full and open competition

Contract Overview

Contract Amount: $279,702,275 ($279.7M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2011-08-01

End Date: 2017-10-31

Contract Duration: 2,283 days

Daily Burn Rate: $122.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NTWP LABOR

Place of Performance

Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $279.7 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: NTWP LABOR Key points: 1. The contract's value of over $279 million indicates a significant investment in air transportation support services. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns, requiring close monitoring. 4. The contract duration of over 6 years (2283 days) suggests a long-term need for these services. 5. The award to PAE Aviation and Technical Services LLC positions them as a key provider in this niche. 6. The geographic location in New Jersey (NJ) may indicate a concentration of air transportation infrastructure or operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contracts. However, a $279 million award over six years for air transportation support is substantial. The CPFF structure means the government pays actual costs plus a fixed fee, which can lead to higher overall costs if not managed tightly. Without specific performance metrics or comparisons to similar service contracts, it's difficult to definitively assess value for money. The contract's duration suggests a sustained need, but the pricing structure warrants careful oversight to ensure efficiency.

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 a bid. The presence of 4 bidders (no) suggests a competitive environment, which is generally favorable for price discovery and achieving market-based rates. The level of competition can influence the final price and the quality of services offered, as contractors vie for the award.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiaries are likely military or government personnel relying on air transportation services. Services delivered include essential support activities for air transportation, crucial for operational readiness. The geographic impact is centered in New Jersey, suggesting operations at or supporting facilities in that state. Workforce implications include employment opportunities for individuals with expertise in aviation technical services and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to incur higher costs to increase their fee base, potentially leading to cost overruns if not rigorously managed.
The long duration of the contract (over 6 years) increases the risk of scope creep or evolving requirements that may not be adequately addressed within the original contract terms.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness throughout the contract period.
The absence of small business subcontracting information raises questions about the extent to which small businesses are benefiting from this large federal contract.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive bidding process that could lead to better pricing and service.
The contract was awarded to PAE Aviation and Technical Services LLC, a known entity in aviation support, suggesting a level of established capability.
The definitive contract award type implies a clear agreement on terms and conditions, providing a stable framework for service delivery.
The contract's duration suggests a sustained and critical need for these air transportation support services by the Department of Defense.

Sector Analysis

This contract falls within the 'Other Support Activities for Air Transportation' sector, a critical component of the broader aerospace and defense industry. This sector encompasses a wide range of services essential for the operation and maintenance of air fleets, including logistics, maintenance, technical support, and ground operations. The market size for such services is substantial, driven by government and commercial aviation needs. Comparable spending benchmarks would typically involve analyzing other large-scale aviation support contracts awarded by the Department of Defense or other federal agencies to gauge cost-effectiveness and market rates.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals or achievements. This suggests that the primary contractor, PAE Aviation and Technical Services LLC, likely handled the majority of the work directly or subcontracted to larger entities. Consequently, the direct impact on the small business ecosystem may be limited unless specific subcontracting plans were in place and executed, which are not detailed here. Further investigation into subcontracting reports would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy and the broader Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and potentially oversight by the Defense Contract Audit Agency (DCAA) and the Inspector General. Transparency would be facilitated through contract award databases and reporting requirements. The effectiveness of oversight depends on the rigor of these processes in monitoring costs, performance, and compliance with contract terms.

Related Government Programs

Department of Defense Aviation Support Contracts
Air Mobility Command Services
Logistics and Maintenance Support Contracts
Federal Aviation Administration (FAA) Support Services
Defense Logistics Agency Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration may lead to scope creep or technological obsolescence.
Lack of detailed performance metrics makes independent value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $279.7 million to PAE AVIATION AND TECHNICAL SERVICES LLC. NTWP LABOR

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $279.7 million.

What is the period of performance?

Start: 2011-08-01. End: 2017-10-31.

What specific air transportation support services were provided under this contract?

The contract NAICS code 488190, 'Other Support Activities for Air Transportation,' suggests a broad range of services. These could include aircraft maintenance and repair, aircrew support, flight operations support, ground handling, air traffic control assistance, aerial port operations, and logistical support for aviation assets. Without more specific contract details or statements of work, the precise nature of the services remains general. However, given the awarding agency (Department of the Navy) and the substantial value, it likely involved critical operational support for naval aviation assets, potentially including maintenance, logistics, and readiness support, possibly at specific naval air stations or deployed locations.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope of work is not precisely defined at the outset or is subject to change, such as research and development or complex support services. In this case, it means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. FFP contracts provide greater cost control but require a very well-defined scope. For long-term, evolving support services like those potentially covered here, CPFF can be appropriate, but it necessitates robust government oversight to manage costs effectively and prevent contractor inefficiencies from inflating the final price beyond the initial estimate.

What is the historical spending pattern for air transportation support services by the Department of the Navy?

Historical spending on air transportation support services by the Department of the Navy is substantial and fluctuates based on operational tempo, fleet size, and strategic priorities. While this specific contract represents a significant outlay of over $279 million between 2011 and 2017, it is part of a larger, ongoing investment in aviation readiness and support. Analyzing broader trends would involve examining annual defense budgets, specific appropriations for aviation maintenance, logistics, and operational support across multiple fiscal years. Factors such as geopolitical events, modernization programs, and the retirement of older aircraft can influence spending levels. This contract's value should be viewed within the context of the Navy's overall aviation sustainment strategy and budget allocations for similar services over extended periods.

What are the potential risks associated with a 6-year contract for aviation technical services?

A contract duration of over six years (2283 days) for aviation technical services presents several potential risks. Firstly, the longer the contract, the greater the chance of technological obsolescence in the services or equipment provided, especially in the fast-paced aviation sector. Secondly, requirements may evolve significantly over such a period, leading to scope creep or the need for costly contract modifications if not managed proactively. Thirdly, contractor performance can degrade over time, or key personnel might leave, impacting service quality. Finally, long-term contracts can reduce flexibility for the government to adopt new technologies or switch to more cost-effective providers if market conditions change. Robust contract management, regular performance reviews, and clear modification clauses are crucial to mitigate these risks.

How does the number of bidders (4) impact the value for money achieved in this contract?

Having four bidders for this contract suggests a moderate level of competition. While more bidders generally lead to more competitive pricing, four is often considered a sufficient number to drive down costs and encourage innovation. It indicates that the market for these specific air transportation support services is not overly concentrated, allowing multiple capable firms to compete. This level of competition likely helped the Department of the Navy achieve reasonable pricing and service terms compared to a sole-source or limited-competition scenario. However, a deeper analysis would require comparing the awarded price against independent cost estimates or benchmarks for similar services to definitively assess the value for money obtained.

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: N0042109R0140

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

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

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

Financial Breakdown

Contract Ceiling: $299,780,037

Exercised Options: $294,941,274

Current Obligation: $279,702,275

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline