DoD's $25.7M Air Transport Support Contract with Aero Tech Service Associates Raises Questions on Value and Competition
Contract Overview
Contract Amount: $25,668,644 ($25.7M)
Contractor: Aero Tech Service Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-07-15
End Date: 2017-08-31
Contract Duration: 2,239 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OTHER SUPPORT ACTIVITIES FOR AIR TRANSPORTATION
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73108
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $25.7 million to AERO TECH SERVICE ASSOCIATES, INC. for work described as: OTHER SUPPORT ACTIVITIES FOR AIR TRANSPORTATION Key points: 1. The contract awarded to Aero Tech Service Associates for $25.7M represents a significant investment in air transportation support. 2. Competition was full and open after exclusion of sources, suggesting a deliberate but potentially limited approach to market engagement. 3. The firm fixed price contract type aims to control costs, but the lack of small business participation is a notable concern. 4. The 'Other Support Activities for Air Transportation' sector is critical for defense logistics, but specific performance metrics are not detailed here.
Value Assessment
Rating: fair
The contract's value of $25.7M over its duration needs further benchmarking against similar support services. Without detailed performance data or comparison points, assessing the true value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'full and open competition after exclusion of sources' indicates a structured procurement process. However, the exclusion of certain sources might have limited the competitive landscape, potentially impacting price discovery and innovation.
Taxpayer Impact: The total value of $25.7M represents taxpayer funds allocated to air transportation support. Ensuring this expenditure yields optimal value and achieves strategic objectives is paramount for fiscal responsibility.
Public Impact
Taxpayers are funding essential air transportation support services for the Department of Defense. The contract's duration and value suggest a long-term commitment to a specific service provider. The lack of small business involvement may limit opportunities for smaller, specialized firms in this sector. The specific nature of 'other support activities' warrants further clarity to understand the full scope of services rendered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited small business participation
- Potential for limited competition due to source exclusion
- Lack of detailed performance metrics for value assessment
Positive Signals
- Firm fixed price contract type
- Full and open competition utilized
Sector Analysis
This contract falls within the broader air transportation services sector, which is vital for military logistics and operations. Benchmarking spending in this niche requires comparison with similar government contracts for specialized support, which are often sensitive.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This indicates that the procurement did not actively seek or include small businesses, potentially missing out on specialized capabilities and economic opportunities for smaller enterprises.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the effectiveness of this oversight in ensuring optimal value and performance for the $25.7M expenditure requires further review.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of small business participation
- Potential for limited competition due to source exclusion
- Broad service description lacks specificity
- Need for detailed performance metrics to assess value
Tags
other-support-activities-for-air-transpo, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to AERO TECH SERVICE ASSOCIATES, INC.. OTHER SUPPORT ACTIVITIES FOR AIR TRANSPORTATION
Who is the contractor on this award?
The obligated recipient is AERO TECH SERVICE ASSOCIATES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $25.7 million.
What is the period of performance?
Start: 2011-07-15. End: 2017-08-31.
What specific 'other support activities' were provided under this contract, and how did they contribute to the DoD's air transportation mission?
The contract's description 'Other Support Activities for Air Transportation' is broad. To assess value, a detailed breakdown of services rendered, such as maintenance, logistics coordination, ground support, or specialized technical assistance, is necessary. Understanding the specific contributions would clarify how these activities directly supported the DoD's operational readiness and efficiency in air transport.
How did the 'exclusion of sources' in the full and open competition process impact the final contract price and the range of available solutions?
While the contract utilized 'full and open competition after exclusion of sources,' the rationale and impact of excluding specific sources need examination. This exclusion might have narrowed the competitive field, potentially leading to a less competitive price than if all potential sources were considered. Understanding the criteria for exclusion is key to determining if it was justified and if it ultimately served the government's best interest.
Given the $25.7M value and lack of small business participation, what steps were taken to ensure this contract achieved maximum effectiveness and efficiency for taxpayer dollars?
The significant value of this contract, coupled with the absence of small business involvement, necessitates a review of effectiveness and efficiency measures. While a firm fixed price contract aims for cost control, the government should have employed robust performance monitoring and quality assurance processes. Evaluating whether the chosen provider delivered services that met or exceeded expectations and represented a sound use of public funds is crucial.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA810610R0013
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 909 S MERIDIAN AVE STE 200, OKLAHOMA CITY, OK, 73108
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $70,310,904
Exercised Options: $25,668,644
Current Obligation: $25,668,644
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2011-07-15
Current End Date: 2017-08-31
Potential End Date: 2017-08-31 00:00:00
Last Modified: 2020-02-10
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