Tyonek Global Services LLC awarded $29.2M for DLM Labor at FRCSE Jacksonville, supporting aircraft manufacturing

Contract Overview

Contract Amount: $29,156,183 ($29.2M)

Contractor: Tyonek Global Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2022-04-30

Contract Duration: 364 days

Daily Burn Rate: $80.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DLM LABOR FOR FRCSE JACKSONVILLE

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to TYONEK GLOBAL SERVICES LLC for work described as: DLM LABOR FOR FRCSE JACKSONVILLE Key points: 1. Contract value represents a significant investment in depot-level maintenance and repair services. 2. Competition was conducted under a specific exclusion of sources, warranting further review of justification. 3. The contract duration of one year suggests a focus on immediate operational needs. 4. Aircraft manufacturing support indicates a critical role in maintaining naval aviation readiness. 5. The cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns. However, the $29.2 million award for a one-year period for depot-level maintenance and repair services for aircraft manufacturing appears within a reasonable range for specialized support. Comparisons to similar contracts for depot maintenance at other Naval facilities would provide a clearer picture of value for money. The cost-plus-fixed-fee (CPFF) pricing structure necessitates diligent oversight to ensure costs remain controlled and the fixed fee is appropriate for the level of effort and risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial intent may have been broader competition, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for this exclusion are crucial for understanding the true level of competition. A limited competition scenario, even if initially open, can sometimes lead to less competitive pricing compared to full and open competition with multiple bidders.

Taxpayer Impact: The exclusion of sources, even if justified, may limit the potential for the government to secure the most cost-effective solution. Taxpayers benefit most from robust competition, which drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the Department of the Navy and its aviation fleet, ensuring aircraft are maintained and operational. Services delivered include depot-level maintenance and repair, crucial for extending the lifespan and readiness of aircraft. The geographic impact is centered at Fleet Readiness Center Southeast (FRCSE) Jacksonville, Florida. Workforce implications include employment opportunities for skilled labor in aircraft maintenance and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires careful scrutiny to ensure it was fully justified and did not unduly restrict competition.
Cost-plus-fixed-fee contracts can lead to cost overruns if not managed rigorously.
Reliance on a single contractor for critical depot-level maintenance could pose a risk if performance issues arise.

Positive Signals

The contract supports a critical function for naval aviation readiness.
The award to Tyonek Global Services LLC, an Alaska Native Corporation (ANC) owned entity, may align with federal goals for supporting specific business types.
The contract is for a defined period, allowing for re-evaluation of needs and competition upon expiration.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically supporting aircraft maintenance, repair, and overhaul (MRO) services. The MRO market is a significant segment of the defense industrial base, essential for maintaining the operational readiness of military fleets. Spending in this area is driven by the need to sustain aging aircraft and ensure the availability of modern platforms. Comparable spending benchmarks would involve analyzing other depot maintenance contracts awarded by the Department of the Navy and other military branches for similar aircraft types and service scopes.

Small Business Impact

While the data indicates the contractor is Tyonek Global Services LLC, an Alaska Native Corporation (ANC), it does not explicitly state if this contract was a small business set-aside or if there are specific subcontracting requirements for small businesses. ANCs are often eligible for sole-source or set-aside contracts under specific authorities. If this contract was not set aside for small businesses, the analysis of small business participation would depend on Tyonek's subcontracting plan and adherence to it. The impact on the broader small business ecosystem would be minimal unless significant subcontracting opportunities are directed towards them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, specifically the contracting officer and program management at FRCSE Jacksonville. The contract's cost-plus-fixed-fee structure necessitates robust financial oversight to monitor expenditures and ensure the fixed fee remains appropriate. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Naval Aviation Maintenance Program
Depot Maintenance Services
Aircraft Component Repair
Fleet Readiness Centers
Defense Logistics Management

Risk Flags

Limited Competition Justification
Cost Control in CPFF Contracts
Performance Monitoring for Maintenance Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to TYONEK GLOBAL SERVICES LLC. DLM LABOR FOR FRCSE JACKSONVILLE

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 $29.2 million.

What is the period of performance?

Start: 2021-05-01. End: 2022-04-30.

What is the specific justification for the 'exclusion of sources' in this contract's competition?

The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is critical to understanding the competitive landscape. This designation implies that while the procurement was intended to be open, certain entities were deliberately excluded. Common reasons for such exclusions include national security concerns, specific technological requirements that only a limited number of entities possess, or prior performance issues with other potential contractors. Without the specific justification document (often a Justification and Approval - J&A), it is impossible to definitively assess whether this exclusion was appropriate and if it potentially limited the government's ability to obtain the best value. This exclusion warrants further investigation to ensure fair and competitive practices were maintained to the greatest extent possible under the circumstances.

How does the cost-plus-fixed-fee (CPFF) structure impact cost control and value for money in this contract?

The Cost-Plus-Fixed-Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as complex repair or maintenance tasks. While it provides flexibility, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to prevent overruns. The 'fixed fee' component is intended to incentivize efficiency, as the contractor does not earn more profit by incurring higher costs. However, effective value for money is contingent on robust government oversight, clear performance metrics, and a well-defined baseline for allowable costs. Without strong oversight, CPFF contracts can be susceptible to cost creep, potentially diminishing the overall value realized by the government.

What is the historical spending pattern for DLM Labor at FRCSE Jacksonville, and how does this award compare?

Analyzing historical spending for DLM Labor at FRCSE Jacksonville requires access to historical contract data. Without specific historical figures, a direct comparison is not possible. However, the current award of $29.2 million for a one-year period suggests a substantial and ongoing requirement for these services. If previous contracts for similar services were significantly lower or higher, it could indicate changes in scope, market prices, or the contractor's efficiency. A trend of consistently high spending might suggest a critical, long-term need, while fluctuating amounts could point to variable demand or changes in contracting strategies. Understanding the historical context is vital for assessing whether the current award represents a fair market price and efficient use of taxpayer funds over time.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like this, supporting aircraft manufacturing and depot-level maintenance, would typically focus on operational readiness and quality. Examples include aircraft availability rates, turnaround time for repairs, adherence to maintenance schedules, defect rates, and compliance with technical orders and safety standards. The effectiveness of the contractor's labor force in meeting these metrics is paramount. The government's quality assurance personnel would be responsible for monitoring these KPIs and ensuring the contractor meets or exceeds the established performance standards. Failure to meet KPIs could result in contract deficiencies, performance deductions, or even termination.

What is the track record of Tyonek Global Services LLC in performing similar defense contracts?

Tyonek Global Services LLC, as an Alaska Native Corporation (ANC) subsidiary, has a history of performing various government contracts, often in logistics, maintenance, and support services. Their track record in defense contracts, particularly those involving complex aircraft maintenance and depot-level support, would need to be thoroughly reviewed. This includes examining past performance evaluations, any history of contract disputes or terminations, and their demonstrated ability to manage cost-plus-fixed-fee contracts effectively. A strong past performance record is a key indicator of a contractor's reliability and capability to successfully execute current and future contracts, ensuring taxpayer money is well-spent.

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: $29,349,411

Exercised Options: $29,349,411

Current Obligation: $29,156,183

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,760,101

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