NASA's $46.8M purchase order to PAE Applied Technologies for air transportation support shows long-term commitment

Contract Overview

Contract Amount: $46,865,880 ($46.9M)

Contractor: PAE Applied Technologies LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2004-03-01

End Date: 2009-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $23.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::80 0120::TAS THIS IS A SUB-TASK AWARDED UNDER THE JSC CCI CONTRACT NNJ04JA83C

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76126

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $46.9 million to PAE APPLIED TECHNOLOGIES LLC for work described as: TAS::80 0120::TAS THIS IS A SUB-TASK AWARDED UNDER THE JSC CCI CONTRACT NNJ04JA83C Key points: 1. The contract's duration of over five years suggests a need for sustained support services. 2. Awarded as a purchase order, it may indicate a less complex procurement than a traditional contract. 3. The firm fixed-price structure aims to control costs for the agency. 4. The lack of competition raises questions about potential cost efficiencies and market responsiveness. 5. Services provided fall under 'Other Support Activities for Air Transportation,' a broad category. 6. The contract was awarded to a single entity, PAE Applied Technologies LLC.

Value Assessment

Rating: fair

Benchmarking the value of this specific purchase order is challenging without more detailed service descriptions and comparable contract data. However, a $46.8 million expenditure over five years for air transportation support activities indicates a significant investment. The firm fixed-price nature suggests an attempt to manage cost predictability, but the lack of competition means there's no direct market comparison to assess if the pricing represents optimal value for money. Further analysis would require understanding the specific deliverables and comparing them to industry standards or other government contracts for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for specific reasons, such as unique capabilities or urgent needs, they generally limit the government's ability to leverage market competition to secure the best possible pricing and terms. The absence of competition here means potential cost savings that might have been realized through a bidding process were not explored.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially leading to a higher overall cost for the services rendered compared to a competed procurement.

Public Impact

The primary beneficiary is the National Aeronautics and Space Administration (NASA), receiving essential support for its air transportation operations. The services delivered likely include maintenance, logistics, ground support, or other operational functions critical to NASA's aviation activities. The geographic impact is centered in Texas, where the contractor, PAE Applied Technologies LLC, is located. Workforce implications include employment opportunities for individuals with expertise in aviation support and logistics within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the broader aerospace and defense sector, specifically focusing on support services for air transportation. This segment of the industry is characterized by specialized technical expertise and often involves long-term relationships between government agencies and contractors. Spending in this area is crucial for maintaining operational readiness and efficiency. Comparable spending benchmarks would typically involve analyzing other government contracts for aviation support, logistics, and maintenance services across various agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. Therefore, its direct impact on the small business ecosystem is likely minimal. The focus appears to be on a large-scale support service requirement fulfilled by a single, presumably larger, prime contractor.

Oversight & Accountability

Oversight for this purchase order would primarily reside with the National Aeronautics and Space Administration (NASA). As a purchase order, it might be subject to internal agency procurement regulations and oversight processes. Accountability measures would be tied to the terms and conditions of the firm fixed-price agreement and the delivery of contracted services. Transparency is limited due to the sole-source nature and the lack of detailed public reporting typically associated with highly competed contracts.

Related Government Programs

Risk Flags

Tags

nasa, purchase-order, firm-fixed-price, sole-source, air-transportation-support, other-support-activities, pae-applied-technologies-llc, texas, 2004-2009, large-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $46.9 million to PAE APPLIED TECHNOLOGIES LLC. TAS::80 0120::TAS THIS IS A SUB-TASK AWARDED UNDER THE JSC CCI CONTRACT NNJ04JA83C

Who is the contractor on this award?

The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $46.9 million.

What is the period of performance?

Start: 2004-03-01. End: 2009-08-31.

What specific air transportation support activities were included under this purchase order?

The provided data classifies this award under 'Other Support Activities for Air Transportation' (NAICS code 488190). While the specific details are not itemized, this category typically encompasses a range of services essential for aviation operations. These could include, but are not limited to, aircraft maintenance and repair, ground support equipment operation and maintenance, air traffic control support services (where applicable and not provided by other government entities), airport facility management, cargo handling, and logistical support for flight operations. The firm fixed-price nature suggests that the scope of work was defined with specific deliverables or service levels expected by NASA.

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

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Without further documentation, the specific justification remains unknown. Common reasons for sole-source awards include situations where only one responsible source can provide the required supplies or services (e.g., proprietary technology, unique expertise), urgent and compelling needs that preclude full and open competition, or when the contract is a follow-on to a previously competed contract where the original contractor possesses unique knowledge or capabilities. NASA would have had to formally document and approve the justification for not seeking competitive bids.

How does the $46.8 million value compare to similar air transportation support contracts?

Directly comparing the $46.8 million value of this purchase order to similar contracts is difficult without knowing the precise scope of services and the duration of those comparable contracts. However, for a period spanning from March 2004 to August 2009 (over five years), this represents a significant annual expenditure, averaging approximately $9.37 million per year. This level of spending suggests a substantial and ongoing requirement for support activities. To provide a robust comparison, one would need to identify other NASA or Department of Defense contracts for aviation support services of similar duration and scope, analyzing their total value and annual spending rates.

What is the track record of PAE Applied Technologies LLC with NASA or similar government contracts?

PAE Applied Technologies LLC has a history of performing various support services for government agencies, including NASA. While this specific purchase order highlights a significant contract, PAE (and its predecessors or related entities) has been involved in numerous contracts across different sectors, often related to logistics, technical support, and base operations. Their track record with NASA would likely involve a portfolio of contracts, some potentially larger or smaller than this one, spanning different time periods and service areas. A comprehensive assessment would require reviewing their performance history, any past performance evaluations, and any documented issues or commendations on previous government engagements.

What are the potential risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the potential for reduced value for money due to the absence of competition. Without competing bids, there is less market pressure on the contractor to offer the lowest possible price or the most innovative solutions. This can lead to higher costs for the government and, consequently, taxpayers. Additionally, sole-source awards can sometimes indicate a lack of market research or planning, or potentially a reliance on a single vendor that might create future dependency. Oversight becomes even more critical to ensure the contractor is performing effectively and efficiently, and that the pricing remains fair and reasonable.

What does the firm fixed-price (FFP) contract type imply for cost management?

A Firm Fixed-Price (FFP) contract type, like the one used for this purchase order, is generally considered advantageous for cost management when the scope of work is well-defined. Under an FFP agreement, the contractor assumes the primary risk for cost overruns. The price is set and is not subject to adjustment based on the contractor's cost experience. This provides the agency with cost certainty and predictability. For NASA, this means they knew the total cost of the services upfront, simplifying budgeting. However, it also means that if the contractor is highly efficient, they retain the savings, whereas if they encounter unexpected costs, they bear the burden, which could potentially lead to quality compromises if not carefully monitored.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3430 ALEMEDA SUITE 124, FORT WORTH, TX, 76126

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,529,281

Exercised Options: $47,529,281

Current Obligation: $46,865,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2004-03-01

Current End Date: 2009-08-31

Potential End Date: 2009-08-31 00:00:00

Last Modified: 2020-02-28

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