Department of the Navy awards $27.5M contract for depot-level aircraft maintenance to Tyonek Global Services LLC

Contract Overview

Contract Amount: $27,522,069 ($27.5M)

Contractor: Tyonek Global Services LLC

Awarding Agency: Department of Defense

Start Date: 2020-04-30

End Date: 2021-04-30

Contract Duration: 365 days

Daily Burn Rate: $75.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FLEET READINESS CENTER SOUTHEAST (FRCSE) DEPOT LEVEL MAINTENANCE (DLM)

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to TYONEK GLOBAL SERVICES LLC for work described as: FLEET READINESS CENTER SOUTHEAST (FRCSE) DEPOT LEVEL MAINTENANCE (DLM) Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process with specific justifications. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 3. The award value of $27.5 million covers a 365-day period, suggesting a significant investment in aircraft readiness. 4. The primary service involves depot-level maintenance for aircraft, critical for ensuring operational capability and safety. 5. The contractor, Tyonek Global Services LLC, is a significant player in government contracting, particularly within the defense sector. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing support services.

Value Assessment

Rating: good

The contract value of $27.5 million for 365 days of depot-level aircraft maintenance appears reasonable given the complexity and criticality of such services. Benchmarking against similar large-scale maintenance contracts within the Department of Defense suggests this pricing is within expected ranges. The CPFF structure necessitates close monitoring of costs to ensure value for money, but the fixed fee component provides a degree of cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, likely due to specific requirements or prior performance. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a more tailored competition than a completely unrestricted process. This could potentially limit the breadth of competition and impact price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'after exclusion of sources' clause suggests that the Navy sought competitive bids from qualified entities. Taxpayers benefit from a competitive process that aims to secure necessary services at a fair price, even if the pool of bidders was narrowed.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who receive essential aircraft maintenance services to ensure fleet readiness. The services delivered include depot-level maintenance, which involves complex repairs, overhauls, and modifications to aircraft. The geographic impact is primarily centered around the Fleet Readiness Center Southeast (FRCSE) operations in Florida. This contract supports a skilled workforce of technicians, engineers, and support staff involved in aircraft maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure efficiency.
The 'exclusion of sources' in the competition method warrants understanding the specific criteria used for exclusion to ensure fairness and optimal competition.
Reliance on a single delivery order under a potentially larger IDIQ could concentrate risk if the contractor faces performance issues.

Positive Signals

Awarded through a competitive process, indicating efforts to secure fair pricing and qualified performance.
The contractor, Tyonek Global Services LLC, has experience in defense contracting, suggesting a level of established capability.
Depot-level maintenance is a critical function that directly supports military operational readiness and safety.

Sector Analysis

The aerospace and defense industry is a significant sector within the U.S. economy, characterized by high technological demands and stringent quality requirements. Depot-level maintenance is a crucial sub-segment, ensuring the longevity and operational effectiveness of complex aircraft systems. Spending in this area is substantial, driven by the need to maintain aging fleets and incorporate upgrades. This contract fits within the broader defense maintenance, repair, and overhaul (MRO) market, which is highly competitive and specialized.

Small Business Impact

This contract does not indicate a small business set-aside (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. However, large prime contractors are often encouraged or required to meet small business subcontracting goals on larger contract vehicles, which may indirectly benefit small businesses.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and technical representatives. They are responsible for monitoring costs, ensuring performance standards are met, and approving reimbursements. Accountability measures are embedded in the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed cost breakdowns may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Depot Maintenance Contracts
Fleet Readiness Center Contracts
Department of the Navy Aviation Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Competition method 'after exclusion of sources' warrants understanding of exclusion criteria.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to TYONEK GLOBAL SERVICES LLC. FLEET READINESS CENTER SOUTHEAST (FRCSE) DEPOT LEVEL MAINTENANCE (DLM)

Who is the contractor on this award?

The obligated recipient is TYONEK GLOBAL 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 $27.5 million.

What is the period of performance?

Start: 2020-04-30. End: 2021-04-30.

What is the track record of Tyonek Global Services LLC with the Department of Defense, particularly in aircraft maintenance?

Tyonek Global Services LLC has a substantial track record with the Department of Defense, having been awarded numerous contracts across various agencies and service areas. Their portfolio often includes logistics, base operations support, and specialized technical services, including aircraft maintenance and sustainment. Historical data indicates they are a frequent recipient of defense contracts, suggesting a demonstrated capability to meet government requirements. Specific to aircraft maintenance, their experience likely spans various platforms and levels of complexity, from routine servicing to more extensive depot-level overhauls. Performance reviews and past performance information, often available through government databases like the Federal Procurement Data System (FPDS), would provide a more granular assessment of their success on similar contracts.

How does the $27.5 million award compare to similar depot-level aircraft maintenance contracts?

The $27.5 million award for 365 days of depot-level aircraft maintenance is a significant sum, reflecting the high cost and complexity associated with such specialized services. To benchmark effectively, one would compare this value against contracts for similar aircraft types (e.g., fixed-wing, rotary-wing), the scope of work (e.g., scheduled maintenance, unscheduled repairs, major overhauls), and the specific military branch or fleet supported. Contracts for depot-level maintenance can range from tens of millions to hundreds of millions of dollars annually, depending on the scale of operations and the number of aircraft involved. Given the duration and the critical nature of depot maintenance, this award appears to be within the expected range for supporting a substantial portion of an operational fleet's needs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft maintenance?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, such as this one, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can incentivize the contractor to manage costs efficiently to maximize their profit, but it also requires robust government oversight to ensure that all claimed costs are reasonable, allocable, and necessary. If costs escalate significantly beyond projections, the government bears the burden, potentially leading to a higher overall expenditure than initially anticipated. Another risk is the potential for scope creep or inefficient performance if not managed closely by the government's technical representatives, as the contractor is guaranteed their fee regardless of ultimate cost efficiency beyond the fee itself.

What is the significance of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this contract?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the Department of the Navy intended to solicit bids from all responsible sources capable of meeting the requirements, but with specific exclusions. This exclusion is typically based on factors such as unique capabilities, prior performance on related systems, or specific security requirements that limit the pool of eligible bidders. While it represents a form of competition, it is less broad than unrestricted full and open competition. The significance lies in understanding the rationale behind the exclusions; if justified, it ensures that only highly qualified contractors participate, potentially leading to better technical solutions. However, if the exclusions are overly restrictive, it could limit price competition and potentially increase costs for taxpayers.

How does this contract contribute to the overall readiness of the Navy's aircraft fleet?

This contract is directly crucial for maintaining the operational readiness of the Navy's aircraft fleet. Depot-level maintenance involves comprehensive inspections, repairs, overhauls, and upgrades that are beyond the capabilities of intermediate-level maintenance units. By ensuring that aircraft receive this intensive servicing, the contract helps to extend their service life, restore them to optimal performance standards, and ensure they meet stringent safety and reliability requirements. A well-maintained fleet is essential for the Navy to execute its missions effectively, whether for training, power projection, or combat operations. Delays or deficiencies in depot maintenance can lead to aircraft being grounded, impacting operational availability and mission accomplishment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134019R0001

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyonek Technical Services LLC

Address: 1689 C ST STE 219, ANCHORAGE, AK, 99501

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: $27,522,069

Exercised Options: $27,522,069

Current Obligation: $27,522,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134020D0007

IDV Type: IDC

Timeline