DoD's $146.8M Contract for Aircraft Parts: Long Duration, Limited Small Business Impact
Contract Overview
Contract Amount: $146,786,174 ($146.8M)
Contractor: Aai/Engineering Support Inc
Awarding Agency: Department of Defense
Start Date: 1999-11-15
End Date: 2009-09-30
Contract Duration: 3,607 days
Daily Burn Rate: $40.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: HUNT VALLEY, BALTIMORE County, MARYLAND, 21031
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $146.8 million to AAI/ENGINEERING SUPPORT INC for work described as: Key points: 1. The contract spans nearly a decade, suggesting a long-term need for these aircraft parts. 2. With a total value of $146.8 million, this represents a significant expenditure for the Air Force. 3. The absence of small business participation is noted, potentially limiting broader economic impact. 4. The 'Other Aircraft Parts' category indicates a specialized but crucial component of aerospace sustainment.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee (CPA) structure allows for performance-based incentives. However, without specific cost data or benchmarks for 'Other Aircraft Parts,' a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. The duration and specific nature of the parts may have influenced the number of bidders.
Taxpayer Impact: While competition was utilized, the long duration and lack of small business involvement suggest potential for missed cost savings and economic opportunities for smaller enterprises.
Public Impact
Ensures continued operational readiness for Air Force aircraft through the supply of essential parts. Supports a large aerospace prime contractor, potentially impacting a wider supply chain. The extended contract period may lead to price stability but also risks obsolescence if not managed proactively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (3607 days) increases risk of price escalation and technological obsolescence.
- No reported small business participation limits economic diversity and potential innovation.
- Cost Plus Award Fee (CPA) can lead to higher costs if not tightly managed.
- Lack of specific Product Service Code (PSC) makes detailed benchmarking difficult.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Contractor AAI/ENGINEERING SUPPORT INC has a long-standing relationship with the DoD.
- The contract addresses a critical need for aircraft parts, ensuring operational capability.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is critical for maintaining military readiness and is often characterized by long-term sustainment needs and specialized manufacturing requirements.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor or the nature of the required parts favored larger, established firms, potentially missing opportunities to engage smaller, specialized businesses.
Oversight & Accountability
The contract's long duration and CPA structure warrant close oversight to ensure cost control and performance standards are met. Regular reviews of award fees and contractor performance are essential for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration (over 9 years).
- No small business participation.
- Cost Plus Award Fee (CPA) structure.
- Lack of specific Product Service Code (PSC) for detailed analysis.
- Potential for price escalation over the contract term.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, md, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $146.8 million to AAI/ENGINEERING SUPPORT INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AAI/ENGINEERING SUPPORT INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $146.8 million.
What is the period of performance?
Start: 1999-11-15. End: 2009-09-30.
What is the average annual cost of this contract, and how does it compare to similar sustainment contracts for Air Force aircraft?
The average annual cost is approximately $15.2 million ($146.8M / 9.6 years). Comparing this to similar sustainment contracts requires access to a broader dataset of Air Force aircraft parts procurements. Benchmarking would ideally consider the specific aircraft type, complexity of parts, and contract type (e.g., fixed-price vs. cost-plus).
What are the primary risks associated with a contract of this duration and type (CPA)?
Key risks include price escalation over the decade-long period, potential for contractor complacency leading to reduced efficiency, and the risk of technological obsolescence if parts are not updated or replaced with newer designs. The CPA structure also carries a risk of inflated costs if award criteria are not stringent or if performance metrics are not well-defined and monitored.
How effectively does this contract support the Air Force's long-term readiness goals, given the 'Other Aircraft Parts' designation?
The contract likely supports readiness by ensuring the availability of critical, potentially specialized, aircraft components. However, the broad 'Other Aircraft Parts' designation makes it difficult to assess specific readiness impacts. Effective support hinges on the contractor's ability to consistently deliver high-quality parts on time and adapt to potential changes in aircraft configurations or operational demands.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Textron Inc (UEI: 001338979)
Address: 300 CLUBHOUSE RD, HUNT VALLEY, MD, 02
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-11-15
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2010-04-12
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