Dod's $9.8M Mh/Ch-53 D/E R&M Contract Awarded to D.P. Associates Inc. in FY08
Contract Overview
Contract Amount: $9,845,056 ($9.8M)
Contractor: D.P. Associates Inc.
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2014-09-30
Contract Duration: 2,556 days
Daily Burn Rate: $3.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH/CH-53 D/E R&M, FY08
Place of Performance
Location: JACKSONVILLE, ONSLOW County, NORTH CAROLINA, 28540
Plain-Language Summary
Department of Defense obligated $9.8 million to D.P. ASSOCIATES INC. for work described as: MH/CH-53 D/E R&M, FY08 Key points: 1. Value for money appears fair given the long duration and cost-plus contract type, suggesting potential for cost overruns. 2. Competition dynamics were full and open, indicating a competitive bidding process. 3. Risk indicators include the cost-plus fixed fee structure, which can incentivize contractor spending. 4. Performance context is for depot-level maintenance, repair, and overhaul of MH/CH-53 D/E helicopters. 5. Sector positioning is within the defense industrial base, specifically supporting aviation readiness.
Value Assessment
Rating: fair
The contract's total value of approximately $9.8 million over nearly 7 years suggests a moderate annual spend. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus fixed fee structure, while allowing for flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. Benchmarking against similar depot maintenance contracts for heavy-lift helicopters would provide a clearer picture of pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a reasonable level of competition for this specialized service. This competitive environment is generally expected to drive more favorable pricing for the government.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market that encourages competitive pricing and potentially higher quality services due to the need to win bids.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the U.S. Navy, ensuring the operational readiness of MH/CH-53 D/E helicopter fleets. Services delivered include depot-level maintenance, repair, and overhaul, crucial for extending the lifespan and ensuring the safety of these aircraft. The geographic impact is primarily within the United States, likely at naval air depots where these aircraft are serviced. Workforce implications include the employment of skilled technicians and support staff in specialized aviation maintenance roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type can lead to higher final costs than anticipated if not closely managed.
- Long contract duration increases the potential for scope creep or unforeseen cost increases over time.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Multiple bidders (3) indicate market interest and potential for competitive pricing.
- Focus on essential aircraft maintenance contributes directly to military readiness.
Sector Analysis
This contract falls within the defense industrial sector, specifically supporting aviation maintenance and repair services. The market for depot-level maintenance of military aircraft is specialized, often dominated by a few key players capable of handling complex systems like the MH/CH-53 helicopters. Spending in this area is critical for maintaining the operational readiness of military assets and ensuring the longevity of expensive equipment.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, this contract did not directly prioritize small businesses through set-asides. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary data. The overall impact on the small business ecosystem for this specific contract is likely minimal unless D.P. ASSOCIATES INC. actively engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy contracting and program management offices. Accountability measures would be embedded in the contract terms, including reporting requirements and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Aviation Maintenance Contracts
- Naval Air Systems Command (NAVAIR) Contracts
- Heavy-Lift Helicopter Support Services
- Aircraft Depot Maintenance
- Cost-Plus Fixed Fee Contracts
Risk Flags
- Cost-plus contract type carries inherent risk of cost escalation.
- Long contract duration increases exposure to changing requirements and economic factors.
- Limited data on specific performance metrics hinders a full value assessment.
Tags
defense, department-of-defense, department-of-the-navy, aviation-maintenance, helicopter-support, full-and-open-competition, cost-plus-fixed-fee, delivery-order, fy08, north-carolina, commercial-and-service-industry-machinery-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.8 million to D.P. ASSOCIATES INC.. MH/CH-53 D/E R&M, FY08
Who is the contractor on this award?
The obligated recipient is D.P. ASSOCIATES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.8 million.
What is the period of performance?
Start: 2007-10-01. End: 2014-09-30.
What is the track record of D.P. ASSOCIATES INC. with similar defense contracts?
Information regarding D.P. ASSOCIATES INC.'s specific track record with similar defense contracts, particularly for MH/CH-53 helicopter maintenance, is not detailed in the provided data snippet. A comprehensive analysis would require examining their contract history, past performance reviews, and any reported issues or successes on previous awards. Understanding their experience with cost-plus fixed fee contracts and their ability to manage costs effectively would be crucial for assessing their reliability on this particular award. Further research into their financial stability and operational capacity would also be beneficial.
How does the pricing of this contract compare to market rates for similar helicopter maintenance services?
A direct comparison of pricing is difficult without specific line-item costs or detailed service descriptions. However, the total award of approximately $9.8 million over nearly 7 years suggests an average annual spend of roughly $1.4 million. This figure needs to be contextualized by the scope of work, which involves depot-level maintenance for heavy-lift helicopters. Benchmarking against industry standards for similar services, considering factors like labor rates, parts costs, and overhead, would be necessary. The cost-plus fixed fee structure inherently allows for costs to fluctuate, making direct price comparisons challenging unless detailed cost breakdowns are available and normalized for scope.
What are the primary risks associated with this cost-plus fixed fee contract structure?
The primary risk associated with a Cost-Plus Fixed Fee (CPFF) contract is the potential for cost overruns. Unlike fixed-price contracts, the government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee. This structure can incentivize contractors to incur higher costs, as their profit (the fixed fee) remains constant regardless of the actual expenses. Effective government oversight, rigorous cost monitoring, and clear definition of allowable costs are critical to mitigate this risk. Without strong management, the final cost to the government could significantly exceed initial estimates.
How effective has the Department of the Navy been in managing similar aviation maintenance contracts?
The Department of the Navy, through Naval Air Systems Command (NAVAIR), manages a vast portfolio of aviation maintenance contracts. Historically, the effectiveness has varied. Success often depends on the clarity of contract requirements, the robustness of oversight mechanisms, and the contractor's performance. Issues can arise from technical complexities, supply chain disruptions, and the inherent challenges of managing complex weapon systems. The Navy employs various strategies, including performance-based logistics and competitive sourcing, to improve efficiency and control costs. Analyzing specific program outcomes and IG reports related to aviation maintenance would provide a more nuanced view of their management effectiveness.
What has been the historical spending trend for MH/CH-53 D/E helicopter maintenance within the DoD?
Historical spending trends for MH/CH-53 D/E helicopter maintenance within the DoD would likely show consistent investment due to the critical role these aircraft play. Spending levels can fluctuate based on operational tempo, aircraft age, modernization programs, and budget allocations. The MH-53 Pave Low and CH-53 Sea Stallion/Super Stallion families are long-serving platforms, requiring ongoing depot-level support. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) for similar contract actions over multiple fiscal years would reveal patterns in annual expenditures, average contract values, and the number of contracts awarded for this specific type of support.
What is the significance of the 'NC' (North Carolina) state code in this contract data?
The 'NC' state code likely indicates the primary place of performance or the location of the contractor's facility associated with this contract. North Carolina has a significant defense industry presence, including major naval installations and aerospace companies. If this contract's performance was centered in North Carolina, it suggests that the work was carried out at a specific naval air depot or a contractor facility located within the state. This has implications for regional economic impact and workforce development in that area.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6133907R0045
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc.
Address: 1320 BRADDOCK PL STE 700, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $9,845,056
Exercised Options: $9,845,056
Current Obligation: $9,845,056
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6133903D5017
IDV Type: IDC
Timeline
Start Date: 2007-10-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2023-08-09
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