DOE awards $16.65M contract for aircraft support services to Yulista Solutions, LLC
Contract Overview
Contract Amount: $16,650,732 ($16.7M)
Contractor: Yulista Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2024-04-18
End Date: 2027-04-17
Contract Duration: 1,094 days
Daily Burn Rate: $15.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AIRCRAFT MAINTENANCE, INFLIGHT AND GROUND SUPPORT, EQUIPMENT MAINTENANCE, FLIGHT FOLLOWING, AND ADMINISTRATIVE SUPPORT ON TWO (2) BOEING 737-400 COMBI AIRCRAFTS AND ONE (1) BOEING 737-700 FLEX-COMBI AIRCRAFTS FOR OFFICE OF SECURE TRANSPORTATION (OST)
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $16.7 million to YULISTA SOLUTIONS, LLC for work described as: AIRCRAFT MAINTENANCE, INFLIGHT AND GROUND SUPPORT, EQUIPMENT MAINTENANCE, FLIGHT FOLLOWING, AND ADMINISTRATIVE SUPPORT ON TWO (2) BOEING 737-400 COMBI AIRCRAFTS AND ONE (1) BOEING 737-700 FLEX-COMBI AIRCRAFTS FOR OFFICE OF SECURE TRANSPORTATION (OST) Key points: 1. Contract awarded for specialized aircraft maintenance and support for three Boeing aircraft. 2. Services include inflight and ground support, equipment maintenance, flight following, and administrative support. 3. The contract duration is 1094 days, indicating a medium-term commitment. 4. Yulista Solutions, LLC is the sole contractor for this requirement. 5. The contract type is a Firm Fixed Price (FFP), which shifts cost risk to the contractor. 6. The contract is not set aside for small businesses. 7. The primary location for service is New Mexico.
Value Assessment
Rating: fair
The total contract value is $16.65 million over approximately three years. Benchmarking this specific service is challenging due to the niche nature of supporting specialized Boeing 737 variants for secure transport. However, the firm-fixed-price structure suggests that the government has negotiated a price that it believes represents good value, with the contractor bearing the risk of cost overruns. Without more comparable contracts for similar specialized aircraft support, a precise value-for-money assessment is difficult, but the duration and scope suggest a reasonable allocation of resources.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the unique capabilities, resources, or security clearances required for the specific service. The lack of competition means that price discovery through market forces was not utilized, and the government relied on negotiation to establish a fair price. The justification for sole-source awards should be carefully reviewed to ensure it is appropriate.
Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers compared to competitively bid contracts, as the absence of competition limits price pressure. It also means that opportunities for other businesses to secure government work are reduced.
Public Impact
The Office of Secure Transportation (OST) within the Department of Energy (DOE) will benefit from reliable aircraft support. Services ensure the operational readiness of three specific Boeing aircraft critical for secure transport missions. The primary geographic impact is in New Mexico, where the aircraft are likely based or serviced. The contract supports specialized aviation maintenance and support roles, potentially impacting a niche workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and opportunities for other businesses.
- Lack of competition may reduce transparency in pricing and service delivery benchmarks.
- Dependence on a single contractor for critical aircraft support poses a potential risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- Longer contract duration provides stability for service delivery and planning.
- Specialized nature of the aircraft suggests a high level of required expertise from the contractor.
Sector Analysis
This contract falls within the broader aerospace and defense services sector, specifically focusing on aircraft maintenance and support. The market for specialized aircraft support, particularly for unique government platforms like those used for secure transport, is often characterized by a limited number of qualified providers. While the overall aerospace maintenance market is substantial, contracts for highly specialized or sensitive operations are typically awarded through more restricted procurement processes. Benchmarking against general aviation maintenance contracts would not be appropriate due to the specific requirements and security considerations.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The sole-source nature of the award further limits the likelihood of small business participation unless they are the sole source provider. This means that opportunities for small businesses within this specific procurement are likely minimal.
Oversight & Accountability
Oversight for this contract will be managed by the Department of Energy's Office of Secure Transportation (OST). As a firm-fixed-price contract, performance monitoring will focus on adherence to service level agreements and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. The specific Inspector General jurisdiction would typically be that of the Department of Energy, responsible for auditing and investigating potential fraud, waste, or abuse.
Related Government Programs
- Aircraft Maintenance Services
- Aviation Support Services
- Secure Transportation Logistics
- Department of Energy Aviation Operations
- Boeing 737 Aircraft Support
Risk Flags
- Sole-source award
- Potential for higher costs without competition
- Dependence on a single contractor for critical services
Tags
aircraft-maintenance, aviation-support, secure-transportation, department-of-energy, office-of-secure-transportation, yulista-solutions-llc, sole-source, firm-fixed-price, boeing-737, new-mexico, definitive-contract, other-support-activities-for-air-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.7 million to YULISTA SOLUTIONS, LLC. AIRCRAFT MAINTENANCE, INFLIGHT AND GROUND SUPPORT, EQUIPMENT MAINTENANCE, FLIGHT FOLLOWING, AND ADMINISTRATIVE SUPPORT ON TWO (2) BOEING 737-400 COMBI AIRCRAFTS AND ONE (1) BOEING 737-700 FLEX-COMBI AIRCRAFTS FOR OFFICE OF SECURE TRANSPORTATION (OST)
Who is the contractor on this award?
The obligated recipient is YULISTA SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2024-04-18. End: 2027-04-17.
What is the track record of Yulista Solutions, LLC with the Department of Energy or similar agencies for aircraft support?
Yulista Solutions, LLC has a history of performing various aviation and logistics services for government agencies. While specific details on their performance with the Department of Energy (DOE) for this exact type of aircraft and service are not immediately available in this data snippet, the company has been awarded other contracts for aircraft maintenance, modification, and support. A deeper dive into their contract history, past performance reviews, and any reported issues or successes with similar complex aviation requirements would be necessary for a comprehensive assessment of their track record. This would include examining their experience with specialized aircraft like the Boeing 737 Combi variants and their ability to meet stringent security and operational demands.
How does the $16.65 million contract value compare to similar sole-source aircraft support contracts?
Direct comparison of this $16.65 million sole-source contract to similar agreements is challenging due to the unique nature of supporting specialized Boeing 737 Combi aircraft for secure transport missions. Sole-source awards inherently lack the price discovery mechanisms of competitive bidding, making direct value benchmarking difficult. However, the contract duration of approximately three years suggests an average annual value of around $5.55 million. This figure needs to be evaluated against the complexity, security requirements, and specific maintenance needs of the aircraft. Without access to a database of comparable sole-source contracts for highly specialized aviation support, it's hard to definitively state if this represents a premium or a fair price, but the firm-fixed-price nature indicates the government sought to cap its financial exposure.
What are the primary risks associated with a sole-source award for critical aircraft support?
The primary risks associated with a sole-source award for critical aircraft support include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or improve efficiency beyond contractual requirements, and a heightened dependence on a single vendor. If Yulista Solutions, LLC experiences performance issues, financial instability, or faces unforeseen operational challenges, the Department of Energy's Office of Secure Transportation (OST) may have limited immediate alternatives for maintaining the operational readiness of these specialized aircraft. This dependence necessitates robust contract management and performance monitoring to mitigate risks and ensure continuity of essential services.
How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?
The Firm-Fixed-Price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and risks can be reasonably anticipated. For aircraft maintenance and support, FFP shifts the primary financial risk to the contractor, Yulista Solutions, LLC. This means the contractor is responsible for covering any cost overruns incurred during the contract period. This structure incentivizes the contractor to control costs and operate efficiently to maximize profit. However, for highly specialized or unpredictable maintenance needs, an FFP contract could potentially lead to higher initial pricing as the contractor may build in a contingency for unknown risks. The effectiveness also depends on the clarity of the Statement of Work (SOW) and the government's ability to monitor performance against it.
What are the historical spending patterns for aircraft maintenance and support within the Office of Secure Transportation (OST)?
Analyzing historical spending patterns for aircraft maintenance and support within the Office of Secure Transportation (OST) would require access to detailed procurement data beyond this single contract award. This would involve examining previous contracts awarded by OST for similar services, including the number of contracts, their values, durations, and the contractors involved. Understanding whether OST has historically relied on sole-source procurements or has utilized competitive bidding for these services would provide context. Furthermore, tracking spending trends over several fiscal years could reveal patterns in the types of aircraft supported, the scope of services procured, and the overall budget allocated to aviation operations, helping to assess if the current $16.65 million award aligns with historical investment levels.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233124RNA000209
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8600 ADVANCED GTWY SW, HUNTSVILLE, AL, 35808
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,618,384
Exercised Options: $22,724,765
Current Obligation: $16,650,732
Actual Outlays: $9,412,014
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-18
Current End Date: 2027-04-17
Potential End Date: 2029-04-17 00:00:00
Last Modified: 2026-03-31
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