DoD Awards $449M Aircraft Maintenance Contract to M1 Support Services, L.P. for Nellis AFB

Contract Overview

Contract Amount: $449,027,798 ($449.0M)

Contractor: M1 Support Services, L.P.

Awarding Agency: Department of Defense

Start Date: 2021-01-25

End Date: 2026-02-28

Contract Duration: 1,860 days

Daily Burn Rate: $241.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NELLIS AIRCRAFT MAINTENANCE AND SUPPORT SERVICES

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $449.0 million to M1 SUPPORT SERVICES, L.P. for work described as: NELLIS AIRCRAFT MAINTENANCE AND SUPPORT SERVICES Key points: 1. Contract value of $449M over 5 years. 2. M1 Support Services, L.P. is the sole awardee. 3. Risk of limited competition due to sole awardee. 4. Spending falls under Air Transportation Support Services. 5. Contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $449M over approximately 5 years suggests a significant investment. Benchmarking against similar aircraft maintenance contracts is difficult without more granular data on services provided and specific performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating an initial effort to solicit a broad range of bidders. However, the definitive contract awarded to a single entity may limit future competitive opportunities.

Taxpayer Impact: Taxpayer funds are being utilized for essential aircraft maintenance and support services at Nellis AFB, ensuring operational readiness.

Public Impact

Ensures continued operational readiness of Air Force aircraft at Nellis AFB. Supports critical maintenance and support functions, potentially impacting pilot training and mission execution. Economic impact through employment and local spending in Nevada.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for price creep if competition is not sustained in future contract actions.
  • Dependence on a single contractor for critical support services.
  • Limited visibility into detailed cost breakdowns for services rendered.

Positive Signals

  • Firm Fixed Price contract type provides cost certainty.
  • Awarded under Full and Open Competition, suggesting initial market engagement.
  • Long-term contract provides stability for service provision.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on support activities for air transportation. Spending benchmarks for similar maintenance contracts can vary widely based on aircraft type, scope of services, and location.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting that larger prime contractors are handling these extensive support services. Opportunities for small businesses may exist further down the subcontracting chain.

Oversight & Accountability

Oversight will be crucial to ensure M1 Support Services, L.P. meets performance requirements and that the contract remains cost-effective throughout its duration. The Air Force Contracting Command is responsible for administering this contract.

Related Government Programs

  • Other Support Activities for Air Transportation
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole awardee may limit future competition.
  • Potential for contractor performance issues impacting readiness.
  • Lack of small business prime participation.
  • Contract duration may outpace technological advancements in maintenance.

Tags

other-support-activities-for-air-transpo, department-of-defense, nv, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $449.0 million to M1 SUPPORT SERVICES, L.P.. NELLIS AIRCRAFT MAINTENANCE AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is M1 SUPPORT SERVICES, L.P..

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 $449.0 million.

What is the period of performance?

Start: 2021-01-25. End: 2026-02-28.

What specific maintenance and support tasks are included in this $449M contract, and how do they align with industry best practices for aircraft readiness?

The contract covers 'Other Support Activities for Air Transportation,' which likely includes a wide range of services such as aircraft inspection, repair, component replacement, and logistical support. Detailed task orders would specify the exact duties. Alignment with best practices would be assessed through performance metrics and quality assurance surveillance plans outlined in the contract, ensuring operational readiness and safety standards are met.

Given the 'Full and Open Competition' award type, what factors led to M1 Support Services, L.P. being the sole definitive contract awardee, and what are the long-term implications for competition?

While the initial solicitation was open, the definitive contract award to a single entity suggests M1 Support Services, L.P. was the most advantageous offer based on technical capabilities, past performance, and price. This could be due to specialized expertise or economies of scale. Long-term implications may include reduced future competition if barriers to entry remain high for other firms.

How does the Firm Fixed Price (FFP) contract structure mitigate risks associated with cost overruns for the government, and are there provisions for price adjustments?

The FFP structure places the primary risk of cost overruns on the contractor, M1 Support Services, L.P., providing the government with significant cost certainty. Price adjustments are typically limited under FFP unless specific contract clauses allow for them, such as for significant changes in scope or economic price adjustments based on pre-defined indices. This structure incentivizes contractor efficiency.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489020R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 N ELM ST STE 101, DENTON, TX, 76201

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $457,545,057

Exercised Options: $449,750,647

Current Obligation: $449,027,798

Actual Outlays: $34,952,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-01-25

Current End Date: 2026-02-28

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2025-12-19

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