DoD's $40M maintenance contract for FRCMA awarded to Tyonek Services Overhaul Facility-Stennis, LLC

Contract Overview

Contract Amount: $39,974,780 ($40.0M)

Contractor: Tyonek Services Overhaul Facility-Stennis, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2026-07-31

Contract Duration: 1,491 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR MAINTENANCE SUPPORT SERVICES FOR FRCMA

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC for work described as: CONTRACTOR MAINTENANCE SUPPORT SERVICES FOR FRCMA Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 3. The contract duration is 1491 days, suggesting a long-term need for these maintenance services. 4. The award was made to Tyonek Services Overhaul Facility-Stennis, LLC, a company with a significant contract value. 5. The contract falls under 'Other Support Activities for Air Transportation', a niche but critical sector. 6. The base contract value is substantial, requiring careful oversight to ensure value for money.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure warrants close scrutiny to ensure costs remain reasonable and do not escalate unnecessarily. Benchmarking this contract's value against similar maintenance support services for aviation facilities would be crucial for a definitive value assessment. Without specific performance metrics or comparable contract data, it is difficult to definitively assess the value for money provided by this award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be open, certain sources may have been excluded prior to the final award. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. Further details on the exclusion criteria would be needed for a complete analysis.

Taxpayer Impact: The limited competition, as indicated by the award type, may have resulted in a less competitive pricing environment, potentially leading to higher costs for taxpayers than if a broader, unrestricted competition had occurred.

Public Impact

This contract directly supports the Fleet Readiness Center Mid-Atlantic (FRCMA), ensuring the operational readiness of naval aviation assets. The services provided are critical for the maintenance and repair of aircraft and related components. The contract's geographic impact is primarily centered around FRCMA facilities, likely in Maryland. It supports a specialized workforce skilled in aviation maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The 'after exclusion of sources' clause in the competition type warrants further investigation into the rationale for exclusions.
Lack of detailed performance metrics in the provided data makes it hard to assess efficiency.
The substantial contract value necessitates robust oversight to ensure fiscal responsibility.

Positive Signals

Awarded through a competitive process, even with exclusions, suggests an effort to secure services.
The long contract duration indicates a stable, ongoing need for these critical services.
The contract supports a vital function within the Department of Defense's aviation maintenance infrastructure.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation maintenance and support. The market for such specialized services is characterized by high technical barriers to entry and stringent quality requirements. Comparable spending benchmarks would involve analyzing other large-scale maintenance contracts for military aviation facilities, which often represent significant investments due to the complexity and criticality of the assets being serviced.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the prime contractor, Tyonek Services Overhaul Facility-Stennis, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business ecosystem in supporting critical defense maintenance operations.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed cost reporting and performance monitoring. Transparency is generally facilitated through contract award databases, though specific performance data may be less publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance
Fleet Readiness Centers
Aircraft Maintenance Services
Defense Logistics Support
Aerospace Maintenance Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Competition was not fully unrestricted due to exclusion of sources.
Lack of detailed performance metrics in public data hinders value assessment.
Small business participation was not a stated priority for this award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC. CONTRACTOR MAINTENANCE SUPPORT SERVICES FOR FRCMA

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 $40.0 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-07-31.

What is the historical spending pattern for similar maintenance support services at FRCMA or comparable naval aviation facilities?

Analyzing historical spending for similar contracts at FRCMA or other naval aviation depots is crucial for context. This would involve examining past contract awards for maintenance, repair, and overhaul (MRO) services for aircraft and related systems. Key metrics to compare would include contract duration, total value, contract type (e.g., CPFF, FFP), number of bidders, and the incumbent contractor. Significant deviations in price or duration from historical norms could signal potential issues or efficiencies. For instance, if this $40M contract over 4 years is substantially higher per year than previous contracts for similar scope, it warrants deeper investigation into the reasons, such as increased scope, inflation, or market shifts. Without access to specific historical data for FRCMA's maintenance contracts, a precise comparison is not possible, but general trends in defense MRO spending can indicate whether this award is within expected parameters.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract potentially impact cost control and value for money?

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While CPFF can be useful for complex projects where the scope is not fully defined, it carries inherent risks for cost control. The contractor is incentivized to incur costs, as their fee is fixed regardless of the total cost. This necessitates robust government oversight to scrutinize allowable costs, prevent overspending, and ensure the contractor exercises cost efficiency. Without stringent monitoring and clear performance metrics, CPFF contracts can lead to cost overruns and reduced value for money compared to fixed-price contracts. The effectiveness of this CPFF award hinges on the government's ability to manage and audit costs diligently throughout the contract's lifecycle.

What are the specific services included under 'CONTRACTOR MAINTENANCE SUPPORT SERVICES FOR FRCMA' and how are they measured for performance?

The designation 'CONTRACTOR MAINTENANCE SUPPORT SERVICES FOR FRCMA' is broad and likely encompasses a range of activities essential for maintaining naval aviation readiness. These services could include scheduled and unscheduled aircraft maintenance, component repair and overhaul, logistical support for maintenance operations, technical services, and potentially depot-level maintenance. Performance measurement under a CPFF contract typically involves evaluating the contractor's adherence to technical specifications, delivery schedules, quality standards, and cost control measures. Key Performance Indicators (KPIs) might include aircraft availability rates, turnaround times for repairs, defect rates, and compliance with safety regulations. The effectiveness of the contract is directly tied to how well these services are delivered and how rigorously performance is monitored against defined metrics.

What is the track record of Tyonek Services Overhaul Facility-Stennis, LLC in managing similar large-scale defense maintenance contracts?

Assessing the track record of Tyonek Services Overhaul Facility-Stennis, LLC is crucial for understanding their capability to successfully execute this $40 million contract. This involves reviewing their past performance on similar contracts, particularly those involving aviation maintenance, repair, and overhaul (MRO) for the Department of Defense or other government agencies. Key aspects to examine include their history of meeting cost, schedule, and performance targets, any past performance issues or disputes, and their experience with Cost Plus Fixed Fee (CPFF) contract structures. A contractor with a proven history of successful project execution, strong financial stability, and positive past performance reviews is more likely to deliver value and meet the demanding requirements of this FRCMA support contract.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply for the competitive landscape and potential cost savings?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the competition was intended to be open to all responsible sources, certain entities were excluded from consideration prior to the solicitation or award. The reasons for exclusion are critical; they could range from non-responsiveness to specific requirements, failure to meet pre-qualification criteria, or even national security concerns. This exclusion limits the pool of potential bidders, which can reduce the intensity of competition compared to a truly unrestricted full and open competition. Consequently, the potential for significant cost savings through aggressive bidding might be diminished. Understanding the scope and justification for these exclusions is key to evaluating whether the government achieved the best possible value and price for taxpayers.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6852022R0007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $51,041,083

Exercised Options: $39,974,780

Current Obligation: $39,974,780

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,640,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline