Coast Guard awards $5.2M contract for aviation support services across two key locations

Contract Overview

Contract Amount: $5,244,479 ($5.2M)

Contractor: DTG Aviation Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-16

End Date: 2026-04-30

Contract Duration: 1,687 days

Daily Burn Rate: $3.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW MECHANIC SUPPORT SERVICES FOR AIR STATION ATLANTIC CITY, NEW JERSEY, AND THE AVIATION TRAINING CENTER IN MOBILE, ALABAMA

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.2 million to DTG AVIATION INC for work described as: NEW MECHANIC SUPPORT SERVICES FOR AIR STATION ATLANTIC CITY, NEW JERSEY, AND THE AVIATION TRAINING CENTER IN MOBILE, ALABAMA Key points: 1. Contract provides essential support for aviation operations at critical Coast Guard facilities. 2. The award was made under the Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller procurements. 3. A firm-fixed-price contract type suggests predictable costs for the government. 4. The duration of the contract extends over several years, ensuring sustained support. 5. The geographic spread of services across New Jersey and Alabama highlights the national reach of aviation support needs. 6. The contractor, DTG Aviation Inc., will be responsible for a range of mechanic support activities.

Value Assessment

Rating: good

The contract value of $5.2 million over approximately 5.6 years (1687 days) translates to an average annual value of roughly $935,000. This appears reasonable for specialized aviation mechanic support services, especially considering the dual locations. Benchmarking against similar contracts for aviation maintenance at military or government airfields would provide a more precise value-for-money assessment, but the fixed-price nature helps control costs. The contract was competed, which generally leads to better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source or limited solicitations. While the specific number of bids isn't detailed, the fact that it was competed suggests multiple interested parties likely submitted proposals. Competition under SAP aims to balance efficiency with achieving fair and reasonable pricing.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source award would have.

Public Impact

The U.S. Coast Guard benefits from reliable aviation maintenance, ensuring the operational readiness of its aircraft. Personnel at Air Station Atlantic City, NJ, and Aviation Training Center Mobile, AL, will receive consistent support for their aviation assets. The services directly support national security and maritime safety missions conducted by the Coast Guard. The contract supports skilled aviation mechanic jobs, contributing to the aerospace workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise that are not adequately covered by the fixed-price terms.
Dependence on a single contractor for critical aviation support could pose a risk if performance issues emerge.
Ensuring consistent quality of mechanic services across two geographically dispersed locations requires robust oversight.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
The contract was competed, indicating a market-driven price.
The multi-year duration suggests a stable and reliable support arrangement.
The services are critical for maintaining operational readiness of Coast Guard aviation assets.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support and maintenance. The market for such services is substantial, driven by government and commercial aviation needs. Comparable spending benchmarks would involve analyzing other government contracts for aircraft maintenance and support at military bases or federal aviation facilities. The $5.2 million value is moderate for a multi-year federal contract of this nature.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was competed under SAP, it's possible that small businesses were encouraged to bid, but without specific details, it's difficult to assess the direct impact on the small business ecosystem. Further investigation into the solicitation details would be needed to determine any small business participation goals or achievements.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officer and potentially a contract specialist or administrator. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through federal procurement databases like SAM.gov, where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Maintenance Services
Aviation Support Contracts
Department of Homeland Security Procurement
U.S. Coast Guard Operations Support
Federal Aviation Services

Risk Flags

Potential for performance issues due to contractor's track record (requires further investigation).
Risk of cost increases if contract scope expands beyond initial requirements.
Geographic dispersion of services may complicate oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.2 million to DTG AVIATION INC. NEW MECHANIC SUPPORT SERVICES FOR AIR STATION ATLANTIC CITY, NEW JERSEY, AND THE AVIATION TRAINING CENTER IN MOBILE, ALABAMA

Who is the contractor on this award?

The obligated recipient is DTG AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-04-30.

What is the track record of DTG Aviation Inc. with federal contracts, particularly with the Department of Homeland Security or U.S. Coast Guard?

A review of federal procurement data would be necessary to fully assess DTG Aviation Inc.'s track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. Understanding their experience with similar aviation support services, especially for military or government clients, is crucial. A positive history with the Coast Guard or DHS would indicate a lower performance risk for this new contract. Conversely, a history of performance issues or significant contract disputes would raise concerns about the reliability of service delivery and potentially impact value for money.

How does the pricing of this contract compare to similar aviation mechanic support services awarded by other federal agencies?

Benchmarking the pricing requires identifying comparable contracts for aviation mechanic support services awarded by agencies like the Department of Defense (Army, Navy, Air Force), NASA, or the FAA. Key comparison points would include the hourly labor rates, overhead rates, and any fixed fees or markups. The specific types of aircraft supported and the complexity of the maintenance tasks are also important factors. If this contract's rates are significantly higher than comparable contracts, it could indicate a potential issue with value for money, assuming similar service levels and quality. Conversely, rates in line with or below benchmarks would suggest fair pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential performance deficiencies by the contractor (e.g., delays, quality issues), unforeseen technical challenges requiring additional resources not covered by the fixed price, and potential cost increases if contract modifications become necessary. Mitigation strategies typically involve robust contract oversight by the government, clear performance standards and metrics, regular progress reviews, and potentially performance bonds. The firm-fixed-price structure itself is a risk mitigation tool for the government against cost overruns, but it places more risk on the contractor for managing their own costs.

How effective is the U.S. Coast Guard's oversight of this contract likely to be, given the dual locations?

The effectiveness of oversight will depend on the resources allocated by the Coast Guard and the contractor's internal quality control processes. Managing services across two distinct locations (New Jersey and Alabama) presents logistical challenges for government oversight. The Coast Guard will likely rely on a combination of on-site representatives at each location, remote monitoring, and regular reporting from the contractor. Establishing clear communication channels and performance metrics is vital. The success of oversight is also influenced by the contractor's commitment to quality and transparency.

What is the historical spending trend for aviation mechanic support services by the U.S. Coast Guard?

Analyzing historical spending data for aviation mechanic support services by the U.S. Coast Guard would reveal trends in demand, average contract values, and the prevalence of different contract types (e.g., competed vs. sole-source). This context helps determine if the current $5.2 million award is consistent with past spending patterns or represents a significant increase or decrease. Understanding historical spending can also highlight any shifts in strategy, such as increased reliance on contracted services versus organic maintenance capabilities.

What specific types of aviation mechanic support are included in this contract, and are they standard or specialized services?

The contract specifies 'NEW MECHANIC SUPPORT SERVICES.' This generally implies routine and potentially specialized maintenance, repair, and inspection of aircraft. The exact scope would be detailed in the contract's Statement of Work (SOW). Understanding whether these services are standard line maintenance or more complex depot-level repairs or modifications is important for assessing the contractor's required expertise and the potential risks involved. Specialized services often command higher prices due to the need for certified technicians and specific tooling.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z02321Q5PT39900

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6700 ODYSSEY DR NW STE 103, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,696,125

Exercised Options: $5,244,479

Current Obligation: $5,244,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline