DHS awards $19.3M for aircraft overhaul to Tyonek Aircraft Overhaul, LLC, with no competition

Contract Overview

Contract Amount: $19,313,227 ($19.3M)

Contractor: Tyonek Aircraft Overhaul, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-05-06

End Date: 2026-04-06

Contract Duration: 700 days

Daily Burn Rate: $27.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TMSS IDIQ TO 1

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.3 million to TYONEK AIRCRAFT OVERHAUL, LLC for work described as: TMSS IDIQ TO 1 Key points: 1. Significant contract value of $19.3 million for aircraft overhaul services. 2. Sole-source award indicates a lack of competitive bidding. 3. Potential risk associated with limited competition and price discovery. 4. Services fall under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code.

Value Assessment

Rating: questionable

The contract is a sole-source award, making direct pricing comparisons difficult. Without competitive bids, it's challenging to assess if the $19.3 million represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a more competitive process could potentially yield a lower price.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. Limited transparency in the procurement process for this significant contract. Potential for reduced innovation if alternative vendors are not explored.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited price discovery

Positive Signals

Clear contract duration
Firm fixed price contract type

Sector Analysis

This contract falls within the aerospace and defense sector, specifically related to aircraft maintenance and overhaul. Spending benchmarks in this sector can vary widely based on aircraft type and service complexity.

Small Business Impact

The awardee, Tyonek Aircraft Overhaul, LLC, is listed as a small business. However, the sole-source nature of this award means other small businesses in this sector did not have an opportunity to compete.

Oversight & Accountability

Further oversight is recommended to ensure the justification for the sole-source award is robust and that future procurements in this area explore competitive options to ensure best value.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive bidding.
Limited transparency in the procurement process.
Reliance on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.3 million to TYONEK AIRCRAFT OVERHAUL, LLC. TMSS IDIQ TO 1

Who is the contractor on this award?

The obligated recipient is TYONEK AIRCRAFT OVERHAUL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2024-05-06. End: 2026-04-06.

What is the specific justification for awarding this contract on a sole-source basis, and has a market research been conducted to confirm no other capable sources exist?

The provided data indicates the contract is 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. A thorough review of the agency's justification documentation is needed to understand the specific reasons, such as unique capabilities or urgent requirements. Without this, it's difficult to fully assess the value proposition and potential risks.

How does the $19.3 million price compare to similar aircraft overhaul contracts awarded competitively in the market?

Direct comparison is challenging due to the sole-source nature of this award. However, benchmarking against similar services for comparable aircraft types, especially those awarded competitively, would be crucial. If this price is significantly higher than competitive benchmarks, it suggests potential overpayment and a need for stronger price negotiation in the future.

What is the expected impact on operational readiness for U.S. Customs and Border Protection's aircraft fleet given this overhaul contract?

This contract is critical for maintaining the operational readiness of CBP's aircraft. The firm fixed price and defined duration suggest a structured approach to ensuring aircraft are serviced and returned to operational status within the specified timeframe, thereby supporting CBP's mission.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 880 H ST STE 210, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,317,204

Exercised Options: $19,313,227

Current Obligation: $19,313,227

Actual Outlays: $11,988,101

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,342,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B02C24D00000011

IDV Type: IDC

Timeline