DoD's $15.8M Aerospace Ground Equipment Services contract awarded to TKC Aerospace Inc. shows limited competition

Contract Overview

Contract Amount: $15,810,409 ($15.8M)

Contractor: TKC Aerospace Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-01

End Date: 2013-03-31

Contract Duration: 1,672 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AEROSPACE GROUND EQUIPMENT SERVICES BASE YEAR. SERVICES. BASED ON MONTHS. TAS::57 3400::TAS

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to TKC AEROSPACE INC for work described as: AEROSPACE GROUND EQUIPMENT SERVICES BASE YEAR. SERVICES. BASED ON MONTHS. TAS::57 3400::TAS Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Duration of over 4.5 years suggests a long-term need for these services. 3. The contract was not competed, raising questions about potential cost efficiencies. 4. Services are geographically concentrated in Florida. 5. The North American Industry Classification System (NAICS) code 488190 points to specialized aviation support. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

Benchmarking the value of this $15.8 million contract for Aerospace Ground Equipment Services is challenging without comparable contract data. The firm-fixed-price structure provides cost certainty for the government. However, the lack of competition means there's no direct market comparison to assess if the pricing is optimal or if taxpayers received the best possible value. Further analysis would require understanding the specific services provided and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the number of potential bidders to one, which can lead to higher prices and reduced innovation compared to a fully competed contract. The justification for a sole-source award is critical to understanding why other capable contractors were not considered.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers as the government lacks the leverage of competitive bidding to drive down prices.

Public Impact

The Department of the Air Force benefits from specialized ground equipment services essential for aircraft operations. This contract supports critical aviation infrastructure and maintenance capabilities. Services are primarily delivered in Florida, impacting the local economy and workforce in that region. The contract ensures the availability of necessary equipment for military aviation readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award raises concerns about transparency and potential cost overruns.
Contract duration could lock in potentially inefficient practices.
Limited public information on performance metrics.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long-term award suggests a stable and ongoing need for services.
Award to a single contractor may indicate specialized capabilities.

Sector Analysis

The Aerospace Ground Equipment Services sector is a critical component of the broader aviation and defense industries. This contract falls under support activities for air transportation, encompassing maintenance, repair, and provision of specialized equipment necessary for aircraft ground operations. The market for such services is often characterized by high barriers to entry due to specialized knowledge, certifications, and equipment requirements. Comparable spending benchmarks are difficult to establish without more specific service details, but contracts in this domain typically range from millions to tens of millions of dollars annually, depending on the scope and scale of operations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting no specific small business subcontracting goals were mandated. This means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, may be limited. The absence of set-asides could impact the broader small business ecosystem supporting the aerospace and defense sectors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined by the contract's performance work statement and terms. Transparency is limited due to the sole-source nature of the award and the lack of readily available performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aerospace Maintenance and Repair Services
Air Transportation Support Services
Defense Logistics Support
Ground Support Equipment Procurement
Military Aviation Infrastructure

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency on performance metrics.
Potential for cost overruns due to lack of competition.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to TKC AEROSPACE INC. AEROSPACE GROUND EQUIPMENT SERVICES BASE YEAR. SERVICES. BASED ON MONTHS. TAS::57 3400::TAS

Who is the contractor on this award?

The obligated recipient is TKC AEROSPACE 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 $15.8 million.

What is the period of performance?

Start: 2008-09-01. End: 2013-03-31.

What specific aerospace ground equipment services are provided under this contract?

The provided data does not detail the specific types of aerospace ground equipment services rendered. However, based on the NAICS code 488190 (Other Support Activities for Air Transportation) and the contract title 'AEROSPACE GROUND EQUIPMENT SERVICES', it can be inferred that the services likely include the maintenance, repair, calibration, and potentially the provision of specialized equipment used on the ground to support aircraft operations. This could encompass a wide range of items such as diagnostic tools, power units, jacks, lifts, and other mission-critical ground support equipment (GSE).

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION', which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required services, urgent and compelling needs, or specific national security requirements. Without the official justification document, it is impossible to ascertain the precise reasons.

How does the firm-fixed-price (FFP) contract type impact cost control for these services?

A Firm-Fixed-Price (FFP) contract type, as indicated for this award, is generally considered advantageous for cost control when the scope of work is well-defined. Under an FFP contract, the contractor agrees to a total price for a well-defined effort. This shifts the risk of cost overruns from the government to the contractor. If the contractor's costs exceed the agreed-upon price, they absorb the loss. Conversely, if costs are lower than anticipated, the contractor benefits from increased profit. This structure incentivizes the contractor to manage costs efficiently and complete the work within the agreed budget.

What is the historical spending trend for Aerospace Ground Equipment Services by the Department of the Air Force?

The provided data only pertains to a single contract awarded in 2008 with an end date in 2013. It does not offer historical spending trends for Aerospace Ground Equipment Services by the Department of the Air Force. To analyze historical spending, one would need access to a broader dataset encompassing multiple contracts over several fiscal years, including contract awards, modifications, and final amounts paid. This would allow for the identification of patterns, fluctuations, and overall investment in these services over time.

What are the potential risks associated with a sole-source award for critical aerospace ground equipment services?

Sole-source awards for critical services like aerospace ground equipment present several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process. There's also a risk of reduced service quality or innovation, as the contractor may face less pressure to excel when there are no competing alternatives. Furthermore, reliance on a single provider can create vulnerabilities if that contractor experiences financial difficulties, operational issues, or decides to exit the market, potentially disrupting essential military operations.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Kuskokwim Corporation (UEI: 055665624)

Address: 4300 B ST STE 205, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,810,409

Exercised Options: $15,810,409

Current Obligation: $15,810,409

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline