IMP GROUP LTD awarded $12.2M for P-3 aircraft maintenance and modifications, supporting NOAA's Aircraft Operations Center

Contract Overview

Contract Amount: $12,247,085 ($12.2M)

Contractor: IMP Group Ltd

Awarding Agency: Department of Commerce

Start Date: 2006-09-14

End Date: 2010-12-30

Contract Duration: 1,568 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHASED DEPOT MAINTENANCE AND OTHER AIRCRAFT MODIFICATIONS ON A P-3 AIRCRAFT FOR AIRCRAFT OPERATIONS CENTER, MACDILL AFB, FL

Plain-Language Summary

Department of Commerce obligated $12.2 million to IMP GROUP LTD for work described as: PHASED DEPOT MAINTENANCE AND OTHER AIRCRAFT MODIFICATIONS ON A P-3 AIRCRAFT FOR AIRCRAFT OPERATIONS CENTER, MACDILL AFB, FL Key points: 1. Contract value appears reasonable for specialized aircraft depot maintenance and modifications. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration of nearly four years indicates a significant, long-term requirement. 4. The work supports critical NOAA aviation operations, highlighting its operational importance. 5. Fixed-price contract type shifts performance risk to the contractor. 6. No small business set-aside was applied, indicating the primary awardee is not an SMB.

Value Assessment

Rating: good

The contract value of $12.2 million for phased depot maintenance and modifications on P-3 aircraft is within a reasonable range for such specialized aviation services. Benchmarking against similar contracts for aircraft depot maintenance, especially for specialized platforms like the P-3, would provide a more precise value-for-money assessment. However, given the complexity and duration, the price appears to reflect the scope of work. The firm fixed-price structure also suggests that the contractor has committed to a specific price, which can be advantageous for the government if costs are managed effectively by the awardee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to lead to more favorable pricing and better quality services for the government. The agency sought proposals from a wide range of potential contractors, maximizing the opportunity for diverse solutions.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging multiple companies to compete, potentially driving down costs and improving service delivery.

Public Impact

The primary beneficiary is the National Oceanic and Atmospheric Administration (NOAA), which receives essential maintenance and modification services for its P-3 aircraft. These services ensure the operational readiness of aircraft used for critical scientific research, weather monitoring, and environmental surveillance missions. The contract supports the continued operation of NOAA's Aircraft Operations Center at MacDill AFB, Florida. The work indirectly supports the scientific and meteorological communities that rely on NOAA's data collection capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise during maintenance, despite the fixed-price structure.
Dependence on a single contractor for a critical maintenance function could pose a risk if performance issues emerge.
The long duration of the contract may require careful monitoring to ensure continued adherence to specifications and quality standards.

Positive Signals

The firm fixed-price contract type shifts cost-related risks to the contractor.
Full and open competition suggests a robust selection process that likely identified a capable provider.
The contract supports a critical operational asset for NOAA, indicating a well-defined and necessary requirement.

Sector Analysis

This contract falls within the aerospace and defense services sector, specifically focusing on aircraft depot maintenance and modification. This sector is characterized by highly specialized technical expertise, stringent quality requirements, and significant capital investment. The market includes a mix of large aerospace corporations and specialized maintenance, repair, and overhaul (MRO) providers. Spending in this area is driven by the need to maintain aging fleets and adapt aircraft for evolving mission requirements, often involving complex modifications.

Small Business Impact

The contract was not awarded as a small business set-aside, and the awardee, IMP GROUP LTD, is not typically classified as a small business for federal contracting purposes. This means that opportunities for small business subcontracting were not mandated as part of the set-aside strategy. However, the prime contractor may still engage small businesses for specific components or services as part of their overall subcontracting plan, though this is not guaranteed by the contract's structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce, specifically NOAA. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Depot Maintenance Services
Aircraft Modification Services
Aviation Support Services
National Oceanic and Atmospheric Administration (NOAA) Operations
P-3 Aircraft Fleet Support

Risk Flags

Long contract duration may require sustained oversight.
Dependence on a single contractor for critical maintenance.
Potential for scope creep if modifications are extensive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $12.2 million to IMP GROUP LTD. PHASED DEPOT MAINTENANCE AND OTHER AIRCRAFT MODIFICATIONS ON A P-3 AIRCRAFT FOR AIRCRAFT OPERATIONS CENTER, MACDILL AFB, FL

Who is the contractor on this award?

The obligated recipient is IMP GROUP LTD.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2006-09-14. End: 2010-12-30.

What is the track record of IMP GROUP LTD in performing similar aircraft maintenance and modification contracts for government agencies?

IMP GROUP LTD has a history of performing various aviation-related services, including maintenance, repair, and overhaul (MRO) for different types of aircraft. While specific details on their track record for P-3 aircraft modifications are not immediately available from this data alone, their past performance on similar government contracts would be a key factor in their selection. Agencies typically review past performance evaluations, such as those in the Contractor Performance Assessment Reporting System (CPARS), to gauge a contractor's reliability, quality of work, and adherence to schedule and budget on previous projects. A review of IMP GROUP LTD's contract history would reveal their experience with fixed-price contracts, complex modifications, and government oversight.

How does the awarded amount of $12.2 million compare to the estimated cost or budget for this type of P-3 aircraft maintenance and modification?

Without access to the government's independent cost estimate or the contractor's proposed price breakdown, a direct comparison is challenging. However, $12.2 million for phased depot maintenance and modifications on a specialized aircraft like the P-3 over a period of nearly four years suggests a significant undertaking. Factors influencing cost include the extent of modifications, the age and condition of the specific aircraft, required parts, labor rates, and overhead. If this award was made under full and open competition, it implies that the price was deemed competitive and represented good value relative to the bids received. A more thorough analysis would involve comparing this value to historical spending on similar P-3 maintenance actions or comparable aircraft types.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract include potential cost overruns if unforeseen technical issues arise during maintenance, contractor performance failures (delays, quality issues), and the long-term dependence on a single provider. Mitigation strategies are inherent in the contract structure and management. The firm fixed-price (FFP) nature shifts cost-related risks to IMP GROUP LTD. The full and open competition process aims to select a capable contractor with a strong past performance record. NOAA's program office and contracting officer will provide oversight, monitor progress, ensure quality control, and enforce contract terms. Clear performance standards and delivery schedules are crucial for managing contractor performance.

How effective is this contract in ensuring the operational readiness of NOAA's P-3 aircraft fleet?

This contract is designed to be highly effective in ensuring the operational readiness of NOAA's P-3 aircraft by providing essential depot-level maintenance and necessary modifications. P-3 aircraft are critical assets for NOAA's scientific missions, including hurricane research and environmental monitoring. Regular, in-depth maintenance and upgrades are vital to keep these aging platforms safe, reliable, and capable of performing their demanding tasks. By outsourcing this specialized work to a contractor like IMP GROUP LTD, NOAA can ensure that its aircraft receive the necessary attention without diverting internal resources from core operational or scientific activities. The success of the contract hinges on the contractor's ability to meet performance requirements and timelines.

What are the historical spending patterns for P-3 aircraft maintenance and modification within NOAA or the Department of Commerce?

Historical spending patterns for P-3 aircraft maintenance and modification within NOAA or the Department of Commerce would likely show consistent investment in sustaining this specialized fleet. P-3 aircraft are long-serving platforms, and their continued operation necessitates ongoing, significant maintenance and periodic upgrades to remain airworthy and mission-capable. Annual spending can fluctuate based on the specific maintenance cycles, the number of aircraft undergoing major work, and the scope of modifications required in a given year. Analyzing past contract awards for P-3 support would reveal trends in contract values, durations, and the types of services procured, providing context for the $12.2 million award.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: WC133M-06-RP-0086

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: I.M.P. Group International Incorporated (UEI: 200269330)

Address: 2651 JOSEPH HOWE DR, HALIFAX

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,247,085

Exercised Options: $12,247,085

Current Obligation: $12,247,085

Contract Characteristics

Cost or Pricing Data: NO

Timeline