DoD's $10.45M A-10 Depot Maintenance Contract Awarded to SABCA Without Competition

Contract Overview

Contract Amount: $10,452,910 ($10.5M)

Contractor: Societe Anonyme Belge DE Constructions Aeronautiques

Awarding Agency: Department of Defense

Start Date: 2007-11-20

End Date: 2009-09-30

Contract Duration: 680 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: A-10 IN-THEATER DEPOT MAINTENANCE USAFE

Plain-Language Summary

Department of Defense obligated $10.5 million to SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES for work described as: A-10 IN-THEATER DEPOT MAINTENANCE USAFE Key points: 1. Contract awarded without competition, raising questions about value for money. 2. Sole-source award limits price discovery and potentially increases costs. 3. Lack of competition is a significant risk indicator for future awards. 4. Contract performance period spans nearly two years, indicating a substantial maintenance requirement. 5. This contract falls within the broader category of aircraft maintenance and support services. 6. The fixed-price contract type offers some cost certainty but may not reflect true market value due to lack of competition.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging due to the absence of competitive bids. Without comparable offers, it's difficult to ascertain if the $10.45 million price reflects a fair market rate for A-10 in-theater depot maintenance. The fixed-price nature provides some cost predictability, but the lack of competition means the government may not have secured the best possible price. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar aircraft maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES (SABCA), was solicited. The absence of a competitive bidding process prevents a thorough evaluation of market dynamics and limits the government's ability to leverage competition to drive down costs. This approach suggests potential reliance on a specific capability or urgency that precluded a broader solicitation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from competitive pricing. This lack of competition means funds may not be utilized as efficiently as they could be in a more open market.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating A-10 aircraft in the European theater, ensuring operational readiness. The contract delivers essential depot-level maintenance services for the A-10 Thunderbolt II aircraft. Geographic impact is focused on the European theater where the A-10s are deployed. Workforce implications include the employment of skilled aviation mechanics and technicians at SABCA's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition raises concerns about whether the government received the best value.
Contract duration of nearly two years suggests a significant, ongoing need that could have been explored competitively.
Absence of small business subcontracting data requires further investigation into potential impacts.

Positive Signals

Fixed-price contract type provides cost certainty for the awarded amount.
Contract addresses critical in-theater maintenance needs for a key Air Force asset.
SABCA's established role in aviation maintenance may indicate specialized capabilities.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and repair services. The market for depot-level maintenance is specialized, often involving original equipment manufacturers or highly certified third-party providers. While specific market size data for A-10 depot maintenance is not readily available, the overall aerospace MRO (Maintenance, Repair, and Overhaul) market is substantial, with significant government spending allocated to sustain aging fleets. This contract represents a portion of that ongoing investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements mentioned. This sole-source award to a large, established company like SABCA suggests limited direct opportunities for small businesses within this specific contract's scope. Further review of subcontracting plans would be necessary to determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process challenging. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

A-10 Thunderbolt II Sustainment Programs
Air Force Depot Maintenance Contracts
In-Theater Aircraft Repair Services
Aerospace Maintenance and Repair Services

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES. A-10 IN-THEATER DEPOT MAINTENANCE USAFE

Who is the contractor on this award?

The obligated recipient is SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES.

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 $10.5 million.

What is the period of performance?

Start: 2007-11-20. End: 2009-09-30.

What is SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES (SABCA)'s track record with U.S. Department of Defense contracts, particularly for A-10 maintenance?

SABCA has a history of providing aviation services, including maintenance and manufacturing, to various defense entities. While specific details on their A-10 maintenance track record with the U.S. DoD for this particular type of in-theater depot maintenance require deeper database analysis, their long-standing presence in the aerospace industry suggests experience with complex aircraft. However, the sole-source nature of this $10.45 million contract awarded in 2007 indicates a specific, perhaps unique, capability or relationship that led to this direct award, rather than a broad competitive history for this exact service.

How does the $10.45 million value of this contract compare to similar A-10 depot maintenance contracts awarded competitively?

Direct comparison of this $10.45 million sole-source contract to competitively awarded A-10 depot maintenance contracts is inherently difficult. Competitive awards allow for price discovery, revealing market rates. Without competitive bids for this specific 'in-theater depot maintenance' requirement, it's impossible to definitively state if $10.45 million represents a high or low price. Historical data on similar, but not identical, maintenance contracts might offer some benchmarks, but the unique operational context ('in-theater') and the specific services rendered under this fixed-price agreement would need careful consideration to ensure a valid comparison.

What are the primary risks associated with awarding a sole-source contract for critical aircraft maintenance?

The primary risks of a sole-source award for critical aircraft maintenance include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or improve efficiency, and a missed opportunity to foster broader market participation. Taxpayers may bear a higher cost than necessary. Furthermore, over-reliance on a single provider can create vulnerabilities if that provider faces operational issues or if their capabilities become outdated. For critical assets like the A-10, ensuring long-term, cost-effective maintenance readiness is paramount, making competitive sourcing generally preferable.

How effective is the fixed-price contract type in ensuring value for money in aircraft maintenance scenarios like this?

The fixed-price contract type aims to ensure value for money by establishing a ceiling cost for the defined scope of work. This shifts the risk of cost overruns to the contractor, incentivizing them to manage expenses efficiently. In this $10.45 million A-10 maintenance contract, the fixed-price structure provides cost certainty for the Air Force. However, the effectiveness in achieving the *best* value is significantly undermined by the sole-source nature of the award. While the price is fixed, it may not be the most competitive price achievable if the contract had been competed, potentially leading to a less optimal value outcome for taxpayers despite the cost certainty.

What are the historical spending patterns for A-10 depot maintenance, and how does this contract fit within them?

Historical spending on A-10 depot maintenance reflects the ongoing need to sustain the aging "Warthog" fleet. The U.S. Air Force has consistently allocated significant funds towards keeping these aircraft operational, given their unique close air support capabilities. This $10.45 million contract, awarded in late 2007 for work through late 2009, represents a specific instance of that spending. Its sole-source nature is a deviation from potentially more competitive approaches used in other periods or for different maintenance aspects. Analyzing broader spending trends would involve examining annual budgets for aircraft sustainment and comparing the total investment in A-10 maintenance over the aircraft's lifecycle.

What specific 'in-theater' depot maintenance capabilities does SABCA provide under this contract that might justify a sole-source award?

The term 'in-theater depot maintenance' suggests specialized, potentially urgent, and geographically specific repair and overhaul services performed closer to operational deployment areas in Europe. This could involve capabilities such as rapid turnaround times, specialized tooling or expertise required for deployed environments, or logistical advantages that a European-based facility like SABCA offers. Justification for a sole-source award would typically hinge on demonstrating that only SABCA possesses the unique combination of technical skills, facility readiness, security clearances, and proximity to the A-10 fleet operating in USAFE's area of responsibility, making a competitive procurement impractical or detrimental to operational readiness within the required timeframe.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Groupe Industriel Marcel Dassault (UEI: 552120201)

Address: CHAUSSEE DE HAECHT 1470, BRUXELLES

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,452,910

Exercised Options: $10,452,910

Current Obligation: $10,452,910

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820207D0001

IDV Type: IDC

Timeline