DoD's $52.4M contract for F5 maintenance awarded to PAE Aviation and Technical Services LLC shows fair value

Contract Overview

Contract Amount: $52,384,449 ($52.4M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-01

End Date: 2019-07-31

Contract Duration: 364 days

Daily Burn Rate: $143.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F5 MAINTENANCE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: F5 MAINTENANCE Key points: 1. Contract value represents a significant investment in critical aviation support infrastructure. 2. Competition dynamics suggest a robust bidding process, potentially leading to favorable pricing. 3. Risk indicators appear manageable given the nature of maintenance services. 4. Performance context is crucial for assessing the long-term effectiveness of this maintenance contract. 5. Sector positioning places this contract within the broader defense aviation support ecosystem.

Value Assessment

Rating: good

The contract's total value of $52.4 million for a one-year period appears reasonable for comprehensive F5 aircraft maintenance. Benchmarking against similar large-scale aviation maintenance contracts suggests that the pricing is competitive, especially considering the specialized nature of F5 systems. While specific per-unit cost data is not provided, the overall expenditure aligns with industry standards for maintaining complex military aircraft fleets. The firm-fixed-price structure further supports value by shifting some cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but the 'full and open' designation suggests a competitive environment. This level of competition is generally expected to drive down costs and encourage innovation as contractors vie for the award. It provides a strong signal that the government sought the best value through a broad solicitation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential F5 maintenance services, preventing potential overpricing associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Navy, ensuring the operational readiness of F5 aircraft. Services delivered include essential maintenance, repair, and technical support for the F5 fleet. Geographic impact is likely concentrated around naval air stations where F5 aircraft are operated and maintained. Workforce implications include the employment of skilled technicians and support personnel by the contractor, PAE Aviation and Technical Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance requirements are not clearly defined and managed.
Dependence on contractor performance for critical operational readiness of the F5 fleet.
Risk of unforeseen technical issues requiring costly repairs beyond initial estimates.

Positive Signals

Award to an established contractor with a track record in aviation support.
Firm-fixed-price contract structure provides cost certainty.
Full and open competition suggests a well-vetted and competitive pricing strategy.

Sector Analysis

This contract falls within the Defense Aviation Support sector, a critical component of national security. The market for military aircraft maintenance is specialized, requiring significant technical expertise and adherence to stringent quality and safety standards. Spending in this area is driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would involve analyzing other large contracts for aircraft maintenance, depot-level support, and specialized technical services within the DoD.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, PAE Aviation and Technical Services LLC, is a large business. There is no explicit information provided regarding subcontracting plans or goals for small business participation. This suggests that the primary focus was on securing the best overall technical and price solution from a large, capable provider, with potential implications for small business opportunities being indirect through the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, performance standards, and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

F5 Aircraft Sustainment Programs
Naval Aviation Maintenance Contracts
Defense Logistics Agency Support Services
Air Force Readiness and Sustainment Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Dependence on contractor's supply chain for parts availability.
Risk of performance degradation impacting aircraft availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC. F5 MAINTENANCE

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 $52.4 million.

What is the period of performance?

Start: 2018-08-01. End: 2019-07-31.

What is the historical spending trend for F5 aircraft maintenance by the Department of the Navy?

Analyzing historical spending for F5 aircraft maintenance by the Department of the Navy requires access to detailed budget and contract databases. Generally, spending on legacy aircraft like the F5 tends to fluctuate based on fleet size, operational tempo, and the availability of modernization or replacement programs. Over the past decade, there has been a trend towards consolidating maintenance contracts to achieve economies of scale and leverage competition. However, as aircraft age, maintenance costs can increase due to the need for more extensive repairs and the scarcity of parts. Without specific historical data for this contract vehicle, it's difficult to provide precise figures, but it's reasonable to assume that annual spending has been in the tens of millions of dollars to maintain a significant F5 inventory.

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

The awarded price of $52.4 million for a one-year F5 maintenance contract is substantial, reflecting the complexity and criticality of supporting military aircraft. To benchmark effectively, one would compare this to contracts for similar services on other fighter or trainer aircraft within the DoD or allied nations. Factors influencing the benchmark include the specific aircraft model, the scope of work (e.g., scheduled maintenance, unscheduled repairs, component overhaul), the contractor's overhead structure, and the level of competition. Given that this was a full and open competition, the price is likely competitive within the specialized defense aviation MRO (Maintenance, Repair, and Overhaul) market. However, a precise comparison would necessitate access to proprietary cost data or publicly available benchmark reports for comparable contracts.

What are the key performance indicators (KPIs) used to evaluate PAE Aviation and Technical Services LLC's performance under this contract?

Key Performance Indicators (KPIs) for aviation maintenance contracts typically focus on ensuring aircraft readiness, safety, and cost-effectiveness. For this F5 maintenance contract, common KPIs would likely include: Aircraft Availability Rate (percentage of aircraft ready for mission), Turnaround Time (time taken to complete scheduled maintenance or repairs), Mean Time Between Failures (MTBF) for critical components, Quality Assurance metrics (e.g., number of defects found post-maintenance), and adherence to schedule and budget. The firm-fixed-price nature of the contract incentivizes the contractor to meet these KPIs efficiently. Performance evaluations would be conducted regularly by the Navy's contracting officer's representative (COR) to ensure compliance and identify areas for improvement.

What is the potential impact of this contract on the overall readiness of the F5 fleet?

This contract is directly tied to the operational readiness of the F5 fleet. By ensuring that these aircraft receive timely and effective maintenance, repair, and technical support, the contract contributes significantly to the availability of F5s for their intended missions, whether training, aggressor support, or other specialized roles. A well-executed maintenance program prevents degradation of aircraft systems, enhances safety, and extends the service life of the airframes. Conversely, any performance issues or delays in maintenance could negatively impact readiness, potentially grounding aircraft and disrupting training schedules or operational commitments. The $52.4 million investment suggests a commitment to maintaining a substantial portion of the F5 inventory.

Are there any known risks associated with PAE Aviation and Technical Services LLC's performance history on similar defense contracts?

Assessing the specific risks associated with PAE Aviation and Technical Services LLC's performance history requires a deep dive into their past performance evaluations and any documented issues on previous defense contracts. PAE is a large, established government contractor with a broad portfolio. Generally, large contractors may face challenges related to managing complex supply chains, workforce stability, and adapting to evolving technological requirements. However, they also typically possess robust management systems and experienced personnel. Without specific data on past performance issues related to aviation maintenance or similar technical services, it's difficult to pinpoint unique risks. Standard due diligence would involve reviewing past performance questionnaires (PPQs) and any debriefings from prior solicitations.

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: N0001913R0092

Pricing Type: FIRM FIXED PRICE (J)

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: $52,390,236

Exercised Options: $52,390,236

Current Obligation: $52,384,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042115D0007

IDV Type: IDC

Timeline