DoD's $36.1M T&M Contract for Aircraft Manufacturing Services Awarded to PAE Aviation

Contract Overview

Contract Amount: $36,100,332 ($36.1M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2009-01-14

End Date: 2010-03-08

Contract Duration: 418 days

Daily Burn Rate: $86.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TIME AND MATERIAL LABOR

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $36.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: TIME AND MATERIAL LABOR Key points: 1. Significant spending on aircraft manufacturing services. 2. PAE Aviation and Technical Services LLC secured the contract. 3. Full and open competition was utilized. 4. Contract duration was 418 days.

Value Assessment

Rating: fair

The contract utilized a Time and Materials (T&M) pricing structure, which can lead to cost overruns if not closely managed. Benchmarking T&M contracts is challenging due to variable labor rates and material costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the T&M nature of the contract means the final price is dependent on actual hours and materials used, potentially impacting the initial price competitiveness.

Taxpayer Impact: Taxpayer funds were used for aircraft manufacturing services. The T&M structure necessitates careful oversight to ensure value for money and prevent excessive costs.

Public Impact

Supports critical aircraft manufacturing capabilities for the Air Force. Ensures operational readiness through specialized technical services. Potential for cost escalation due to T&M pricing model.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Lack of specific unit cost benchmarks
Contract duration could be optimized

Positive Signals

Full and open competition
Awarded to established contractor

Sector Analysis

This contract falls within the aerospace and defense sector, specifically aircraft manufacturing. Spending in this sector is often driven by national security needs and technological advancements. Benchmarks for T&M contracts in this area are highly variable.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Air Force. Oversight would typically involve monitoring contractor performance, adherence to T&M rates, and ensuring the delivery of required aircraft manufacturing services.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of detailed cost breakdown in provided data.
Limited insight into specific services rendered.
No clear indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC. TIME AND MATERIAL LABOR

Who is the contractor on this award?

The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $36.1 million.

What is the period of performance?

Start: 2009-01-14. End: 2010-03-08.

What was the average hourly labor rate and material markup under this T&M contract?

The provided data does not specify the average hourly labor rates or material markups. Time and Materials contracts rely on pre-negotiated rates for labor categories and a defined markup for materials. Without these specifics, a precise cost analysis is difficult, and the total cost is contingent on the actual effort expended.

What specific aircraft manufacturing tasks were performed under this contract?

The contract falls under NAICS code 336411 (Aircraft Manufacturing), suggesting services related to the production or assembly of aircraft. However, the specific tasks are not detailed in the provided data. These could range from component manufacturing to final assembly, or specialized technical support during the manufacturing process.

Were there any performance metrics or deliverables tied to this contract?

The provided data does not explicitly state performance metrics or deliverables. For T&M contracts, performance is often measured by the successful completion of tasks within the scope of work and adherence to agreed-upon labor rates. Specific deliverables would depend on the detailed statement of work associated with the contract.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 12000 HORIZON WAY STE 400, MOUNT LAUREL, NJ, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,115,355

Exercised Options: $36,100,332

Current Obligation: $36,100,332

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0003

IDV Type: IDC

Timeline