DoD's $26M Corrosion Control Contract Awarded to VSE Corp. for Kadena Air Base
Contract Overview
Contract Amount: $26,020,856 ($26.0M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2017-04-18
End Date: 2020-11-11
Contract Duration: 1,303 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF CORROSION CONTROL PREVENTION PROGRAM AT KADENA, JAPAN.
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to VSE CORPORATION for work described as: IGF::OT::IGF CORROSION CONTROL PREVENTION PROGRAM AT KADENA, JAPAN. Key points: 1. Contract awarded to VSE Corporation for corrosion control services. 2. Services to be performed at Kadena Air Base, Japan. 3. Contract duration spans over three years. 4. Awarded under a full and open competition. 5. The contract type is Firm Fixed Price. 6. This award represents a significant investment in maintaining aircraft readiness.
Value Assessment
Rating: good
The contract value of $26 million over approximately 3.5 years suggests a moderate annual spend. Benchmarking against similar corrosion control contracts is challenging without more specific service details. However, the firm-fixed-price structure generally provides cost certainty for the government, assuming the scope of work is well-defined. The pricing appears reasonable given the duration and location, but a detailed cost breakdown would be needed for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders suggests a reasonably competitive environment for this type of service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.
Public Impact
Benefits the Department of the Air Force by ensuring the longevity and operational readiness of aircraft stationed at Kadena Air Base. Delivers essential corrosion prevention and control services, critical for maintaining complex military aviation assets. Geographic impact is focused on U.S. Air Force operations in the Pacific theater, specifically Okinawa, Japan. Supports specialized technical labor in aircraft maintenance and corrosion control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial corrosion assessments are more extensive than anticipated.
- Dependence on VSE Corporation's specialized expertise and personnel availability.
- Logistical challenges associated with performing maintenance in an overseas location.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm Fixed Price contract type provides cost predictability.
- Long-term contract duration allows for sustained focus on critical maintenance needs.
Sector Analysis
The aerospace and defense industry heavily relies on specialized maintenance and repair services to ensure the operational readiness of its assets. Corrosion control is a critical component of aircraft sustainment, directly impacting safety and lifecycle costs. This contract fits within the broader defense maintenance, repair, and overhaul (MRO) sector, which is a significant market driven by government procurement. Comparable spending in this sector can vary widely based on the type of aircraft and the scope of services required.
Small Business Impact
This contract was awarded through full and open competition and does not appear to have a specific small business set-aside. While VSE Corporation is a large business, there may be opportunities for small businesses to participate as subcontractors, particularly for specialized materials or labor. The extent of small business subcontracting would depend on VSE's own supply chain strategy and contractual obligations.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability for performance against the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are typically internal. The Inspector General for the Department of Defense would have jurisdiction over any allegations of fraud or mismanagement.
Related Government Programs
- Aircraft Maintenance Services
- Corrosion Prevention Programs
- Defense Logistics Agency Contracts
- Air Force Sustainment Contracts
- Base Operations Support Contracts
Risk Flags
- Overseas Operations Logistics
- Specialized Technical Personnel Availability
- Scope Definition Accuracy
Tags
defense, department-of-defense, department-of-the-air-force, kadena-air-base, vse-corporation, corrosion-control, aircraft-maintenance, firm-fixed-price, full-and-open-competition, delivery-order, japan, pacific-theater
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to VSE CORPORATION. IGF::OT::IGF CORROSION CONTROL PREVENTION PROGRAM AT KADENA, JAPAN.
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
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 $26.0 million.
What is the period of performance?
Start: 2017-04-18. End: 2020-11-11.
What is VSE Corporation's track record with similar corrosion control contracts for the Department of Defense?
VSE Corporation has a history of performing various maintenance, repair, and logistics services for the Department of Defense. While specific details on their corrosion control contract performance are not publicly detailed in this award notice, their extensive experience in defense contracting suggests a familiarity with military specifications and operational requirements. A deeper dive into their contract history, performance reviews, and any past issues or commendations related to aircraft maintenance and corrosion control would provide a more comprehensive understanding of their capabilities and reliability for this specific service.
How does the awarded price compare to industry benchmarks for corrosion control services at overseas military installations?
Directly comparing the awarded price of $26 million over approximately 3.5 years to industry benchmarks is challenging without granular data on the specific services rendered, the types of aircraft involved, and the exact scope of work. Overseas operations typically incur higher costs due to logistics, labor differentials, and facility requirements. The firm-fixed-price nature suggests a negotiated rate that VSE deemed profitable and the Air Force deemed acceptable. To establish a robust benchmark, one would need to analyze similar contracts for corrosion control at comparable overseas bases, factoring in inflation, specific environmental conditions, and the complexity of the airframes being serviced.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential underestimation of the extent of corrosion, leading to cost overruns if the scope needs expansion (though FFP aims to mitigate this), logistical challenges in a remote overseas location, and the availability of specialized personnel. Mitigation strategies likely involve thorough initial inspections, robust project management by VSE, clear communication channels with the Air Force, and contingency planning for supply chain disruptions or personnel shortages. The firm-fixed-price structure incentivizes VSE to manage these risks effectively to maintain profitability.
How effective is the corrosion control program at Kadena Air Base likely to be under this contract?
The effectiveness hinges on the quality of VSE Corporation's execution, the adequacy of the defined scope of work, and the Air Force's oversight. Given that corrosion is a persistent threat to aircraft integrity, especially in humid environments like Okinawa, a well-executed program under this contract should significantly extend the service life of aircraft and maintain safety standards. The long-term duration suggests a commitment to ongoing maintenance rather than one-off fixes. Success will be measured by reduced maintenance-related delays, fewer corrosion-related component failures, and adherence to Air Force technical orders.
What are the historical spending patterns for corrosion control at Kadena Air Base or similar Pacific-based Air Force installations?
Historical spending data for corrosion control at Kadena Air Base or similar installations is not readily available in this award notice. However, it is understood that maintaining aircraft in humid, tropical environments like Okinawa incurs significant and ongoing costs due to the accelerated rate of corrosion. Annual spending on such services can range from hundreds of thousands to millions of dollars, depending on the size and type of the aircraft fleet, the specific maintenance schedules, and the extent of preventative measures employed. This $26 million award over roughly 3.5 years suggests a substantial, consistent investment in addressing this critical issue.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6348 WALKER LANE, ALEXANDRIA, VA, 22310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,455,386
Exercised Options: $26,020,906
Current Obligation: $26,020,856
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810817D0017
IDV Type: IDC
Timeline
Start Date: 2017-04-18
Current End Date: 2020-11-11
Potential End Date: 2020-11-11 00:00:00
Last Modified: 2021-03-05
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