DoD Spends $48.8M on Aircraft Overhaul in Afghanistan, Awarded Sole-Source

Contract Overview

Contract Amount: $48,778,406 ($48.8M)

Contractor: Tyonek Services Overhaul Facility-Stennis, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-29

End Date: 2022-08-31

Contract Duration: 793 days

Daily Burn Rate: $61.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OVERHAUL OF 4 AIRCRAFT IN AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $48.8 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC for work described as: OVERHAUL OF 4 AIRCRAFT IN AFGHANISTAN Key points: 1. Significant expenditure on aircraft maintenance for operations in Afghanistan. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of 793 days suggests a substantial, ongoing need. 4. Lack of competition may limit opportunities for small businesses in this sector.

Value Assessment

Rating: questionable

The contract value of $48.8M for aircraft overhaul is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is reasonable or if it represents good value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the standard competitive bidding process, potentially leading to higher prices and reduced price discovery.

Taxpayer Impact: The absence of competition in this large contract may result in taxpayers paying more than necessary for aircraft overhaul services.

Public Impact

Ensures operational readiness of critical aircraft assets supporting military operations. Potential for cost overruns due to lack of competitive pressure. Limited visibility into the specific aircraft types and the scope of the overhaul. Impact on the efficiency and cost-effectiveness of military logistics in a deployed environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Limited transparency on pricing

Positive Signals

Supports critical military operations
Ensures aircraft readiness

Sector Analysis

This contract falls under support activities for air transportation, a crucial component of military logistics. Spending benchmarks in this sector can vary widely based on the type of aircraft, complexity of repairs, and operational environment.

Small Business Impact

The sole-source nature of this award, coupled with the lack of explicit small business set-asides, suggests limited direct opportunities for small businesses. Larger prime contractors may subcontract, but direct participation is not evident.

Oversight & Accountability

The sole-source justification and the significant value of this contract warrant close oversight to ensure fair pricing and effective service delivery. Accountability for the expenditure rests with the Department of the Navy.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition
Potential for inflated costs
Lack of transparency in pricing
Limited small business participation
High contract value requires scrutiny

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC. OVERHAUL OF 4 AIRCRAFT IN AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is TYONEK SERVICES OVERHAUL FACILITY-STENNIS, 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 $48.8 million.

What is the period of performance?

Start: 2020-06-29. End: 2022-08-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source award. A thorough review would require access to the contract's justification and approval (J&A) documentation to understand the specific reasons, such as urgency, unique capabilities, or lack of sources, and to verify if competitive options were indeed explored and deemed unsuitable.

How does the $48.8M cost compare to industry benchmarks for similar aircraft overhaul services, considering the operational context?

Benchmarking this $48.8M contract is challenging without detailed specifications of the aircraft type, the scope of the overhaul (e.g., depot-level maintenance, component replacements), and the specific operational environment in Afghanistan. Industry benchmarks for similar services can vary significantly, making a direct comparison difficult without more granular data on the work performed and the aircraft involved.

What mechanisms are in place to ensure the effectiveness and efficiency of the aircraft overhaul services provided under this contract?

Effectiveness and efficiency are typically ensured through performance metrics, quality assurance surveillance plans (QASPs), and regular progress reviews outlined in the contract. For this sole-source award, the Department of the Navy would be responsible for monitoring contractor performance against the contract's requirements and ensuring that the services delivered meet the necessary standards for aircraft safety and operational readiness.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042119R0030

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7095 ROSCOE TURNER RD, KILN, MS, 39556

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, 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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,815,407

Exercised Options: $48,815,407

Current Obligation: $48,778,406

Actual Outlays: $179,214

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $12,055,815

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0028

IDV Type: IDC

Timeline