DoD awards $4M airport operations contract to PCI Aviation LLC for one year

Contract Overview

Contract Amount: $4,056,401 ($4.1M)

Contractor: PCI Aviation LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-23

End Date: 2026-09-22

Contract Duration: 364 days

Daily Burn Rate: $11.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ORDERING PERIOD 1

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $4.1 million to PCI AVIATION LLC for work described as: ORDERING PERIOD 1 Key points: 1. Contract value appears reasonable for a one-year airport operations service delivery order. 2. Limited competition due to 'NOT AVAILABLE FOR COMPETITION' status raises concerns about price discovery. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period is standard for this type of service contract. 5. This contract falls under airport operations services within the broader defense sector. 6. No small business set-aside was indicated, suggesting potential missed opportunities for SMB participation.

Value Assessment

Rating: fair

The contract value of approximately $4.06 million for a 364-day period suggests a monthly cost of roughly $350,000. Without specific details on the scope of services (e.g., types of aircraft supported, volume of operations, specific facilities managed), direct comparison to similar contracts is challenging. However, the price appears within a plausible range for comprehensive airport operations support. Further benchmarking against industry standards for similar-sized airports or military installations would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' designation. This indicates that the agency determined that only one source was capable of satisfying the agency's needs. The lack of a competitive bidding process means that potential cost savings that could arise from multiple vendors vying for the contract were not realized. This approach is typically reserved for situations where specialized capabilities or urgent needs preclude open competition.

Taxpayer Impact: The absence of competition means taxpayers may not have received the lowest possible price for these essential airport operations services. The government relies on the justification for sole-source awards to ensure it is still receiving fair value, but the potential for higher costs remains.

Public Impact

The Department of the Navy benefits from essential airport operations services, ensuring the functionality of its facilities. Services likely include airfield management, ground support, maintenance, and potentially air traffic control support. The geographic impact is localized to the specific airport facility in Alabama where the services are performed. The contract supports jobs related to airport operations and aviation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
The 'NOT AVAILABLE FOR COMPETITION' justification requires rigorous scrutiny to ensure it was truly warranted.
Absence of small business participation could be a missed opportunity to foster economic growth in that sector.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
The contract is for a defined period, allowing for future reassessment of needs and competition.
Awarding to PCI Aviation LLC suggests they possess the necessary capabilities for these specialized operations.

Sector Analysis

Airport operations services are a critical component of the aviation and defense sectors, ensuring the smooth functioning of airfields. This contract fits within the broader category of base operations and support services for military installations. Comparable spending benchmarks would typically be found within the Department of Defense's budget for airfield management and support across various installations. The market for these services can be specialized, often requiring specific certifications and expertise.

Small Business Impact

The contract details indicate that this was not a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a non-small business entity. Without explicit set-aside provisions, the direct impact on the small business ecosystem for this specific contract is likely minimal, though PCI Aviation LLC may engage small businesses as subcontractors if it aligns with their operational needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price structure and the defined performance period. Transparency is dependent on the public availability of the sole-source justification and any subsequent performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Base Operations Support
Federal Aviation Administration Airport Grants
Military Airfield Management Services
Aviation Services Contracts

Risk Flags

Sole-source award requires justification to ensure fair pricing.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.1 million to PCI AVIATION LLC. ORDERING PERIOD 1

Who is the contractor on this award?

The obligated recipient is PCI AVIATION 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 $4.1 million.

What is the period of performance?

Start: 2025-09-23. End: 2026-09-22.

What specific services are included under 'Other Airport Operations' for this contract?

The provided data classifies the contract under 'Other Airport Operations' (NAICS code 488119). While specific service details are not in the abbreviated data, this category typically encompasses a range of activities essential for airfield functionality. These can include, but are not limited to, aircraft parking and hangarage, ramp services, air traffic control tower operations (if not separately contracted), airfield lighting and signage maintenance, snow removal, groundskeeping, and potentially passenger or cargo handling support. The exact scope would be detailed in the contract's Statement of Work (SOW), which is crucial for understanding the full value and performance expectations.

What is the justification for awarding this contract on a sole-source basis?

The contract is designated as 'NOT AVAILABLE FOR COMPETITION,' which is a form of sole-source award. Agencies typically use this designation when only one responsible source is available or capable of meeting the agency's requirements. Reasons can include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or specific government-unique requirements. For this PCI Aviation LLC contract, the Department of the Navy would have had to formally document and justify why other qualified vendors could not provide the necessary airport operations services. Without access to that justification document, the precise reason remains unknown, but it implies a specialized need or a lack of alternative providers.

How does the firm fixed-price (FFP) contract type benefit the government in this scenario?

A Firm Fixed-Price (FFP) contract is advantageous for the government as it establishes a ceiling price that the contractor agrees not to exceed. This shifts the risk of cost overruns from the government to the contractor. For services like airport operations, where the scope of work can be relatively well-defined, an FFP contract provides budget certainty. The government knows the maximum expenditure, simplifying financial planning and reducing the likelihood of unexpected cost increases. The contractor is incentivized to manage their costs efficiently to maintain profitability.

What is the typical market size and competitive landscape for airport operations services?

The market for airport operations services is substantial, encompassing both commercial and military airfields. It includes a range of companies, from large aerospace and defense contractors to specialized aviation support firms. The competitive landscape can vary significantly by location and the specific needs of the airfield. For military installations, competition might be more limited due to security requirements, specialized infrastructure, or the need for specific clearances. In contrast, commercial airports often see more robust competition. The 'NOT AVAILABLE FOR COMPETITION' status for this DoD contract suggests a niche or specialized requirement within the military aviation support sector.

What are the potential risks associated with a sole-source award for airport operations?

The primary risk associated with a sole-source award for airport operations is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the awarded contractor may not have the same incentive to offer the most cost-effective solution. Additionally, there's a risk that the government might overlook innovative or more efficient service delivery methods that could have emerged from a competitive process. Ensuring fair and reasonable pricing requires diligent government negotiation and market research, even in sole-source situations.

How does this contract compare to other federal spending on airport operations?

Federal spending on airport operations is distributed across various agencies, primarily the Department of Defense (DoD) for its installations and the Federal Aviation Administration (FAA) for civilian airports and air traffic control infrastructure. The DoD's spending often focuses on supporting military readiness and logistics, while the FAA's budget supports safety and capacity at civilian airports. This $4.06 million contract represents a specific, localized investment by the Navy. Broader federal spending encompasses much larger sums for major airport upgrades, air traffic system modernization, and extensive base support contracts across numerous locations, making this particular award a component within a much larger federal expenditure framework.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Airport Operations

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833525R0376

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3022 HIGHWAY 21, ATMORE, AL, 36502

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Government, Native American Tribal Government, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,056,401

Exercised Options: $4,056,401

Current Obligation: $4,056,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833525D0016

IDV Type: IDC

Timeline