State Dept. Awards $23M for Apache Services, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $22,984 ($23.0K)

Contractor: Silver Chain Kuwait Company

Awarding Agency: Department of State

Start Date: 2026-04-06

End Date: 2027-04-30

Contract Duration: 389 days

Daily Burn Rate: $59/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AMCOM APACHE SCHEDULED/UNSCHEDULED SERVICES CONTRACT 1ST OPTION YEAR FROM 05/01/2026 - 04/30/2027

Plain-Language Summary

Department of State obligated $22,983.71 to SILVER CHAIN KUWAIT COMPANY for work described as: AMCOM APACHE SCHEDULED/UNSCHEDULED SERVICES CONTRACT 1ST OPTION YEAR FROM 05/01/2026 - 04/30/2027 Key points: 1. Contract value of $22.98M for one year of Apache helicopter services. 2. Limited information available on specific services and performance metrics. 3. Potential for cost overruns due to firm-fixed-price structure without clear benchmarks. 4. Sector context suggests specialized aviation support services.

Value Assessment

Rating: questionable

The contract value of $22.98M for one year of Apache scheduled/unscheduled services lacks clear benchmarks for comparison. Without detailed service breakdowns or performance data, assessing value for money against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the limited details provided make it difficult to assess the effectiveness of price discovery and whether the lowest price technically acceptable was achieved.

Taxpayer Impact: Taxpayer impact is significant due to the substantial contract value, with potential for inefficiency if value for money is not maximized.

Public Impact

Citizens may question the necessity and cost-effectiveness of specialized Apache helicopter support services. Transparency concerns arise from the lack of detailed public information on service specifics and performance. Potential impact on military readiness if services are not optimally priced or delivered.

Waste & Efficiency Indicators

Waste Risk Score: 59 / 10

Warning Flags

Lack of detailed performance metrics
Limited public information on service scope
Potential for cost inefficiencies with FFP

Positive Signals

Awarded under full and open competition
Clear contract type (FFP)

Sector Analysis

This contract falls within the specialized aviation support services sector, often involving complex maintenance and operational support for military aircraft. Benchmarks for such niche services can be difficult to establish due to unique requirements and limited market players.

Small Business Impact

No information is provided regarding the participation of small businesses in this contract award. Further investigation would be needed to determine if small business goals were considered or met.

Oversight & Accountability

Oversight is primarily managed by the Department of State. The limited public data necessitates robust internal oversight to ensure accountability and value for taxpayer funds.

Related Government Programs

All Other Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Lack of detailed service scope
Absence of performance metrics
Unclear price reasonableness justification
Limited transparency on value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22,983.71 to SILVER CHAIN KUWAIT COMPANY. AMCOM APACHE SCHEDULED/UNSCHEDULED SERVICES CONTRACT 1ST OPTION YEAR FROM 05/01/2026 - 04/30/2027

Who is the contractor on this award?

The obligated recipient is SILVER CHAIN KUWAIT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $22,983.71.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-30.

What specific scheduled and unscheduled services are included in this contract, and how do they contribute to operational readiness?

The contract details are vague on the specific services. 'Scheduled' likely refers to routine maintenance and inspections, while 'unscheduled' covers unexpected repairs and emergent needs for Apache helicopters. These services are critical for maintaining aircraft airworthiness and operational availability, directly impacting the military's ability to deploy and execute missions effectively.

How was the $22.98 million price determined to be fair and reasonable under full and open competition?

While awarded under full and open competition, the justification for the $22.98 million price being fair and reasonable is not publicly detailed. Typically, this involves comparing proposed prices against historical data, independent government cost estimates, or other market research. The lack of transparency here makes it difficult to verify the government's assessment.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured?

Key performance indicators (KPIs) and specific performance measurement criteria are not publicly disclosed in the provided data. Effective oversight requires clearly defined KPIs related to response times, quality of work, and adherence to maintenance schedules. Without these, assessing the contractor's effectiveness and ensuring mission success is challenging.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BEIRUT STREET, BEIRUT HAWALLI

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

Financial Breakdown

Contract Ceiling: $22,984

Exercised Options: $22,984

Current Obligation: $22,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19KU2025D0008

IDV Type: IDC

Timeline