Tobyhanna Army Depot Maintenance contract awarded to IAP Worldwide Services for over $54M

Contract Overview

Contract Amount: $54,051,449 ($54.1M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-28

End Date: 2020-02-28

Contract Duration: 702 days

Daily Burn Rate: $77.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TOBYHANNA ARMY DEPOT MAINTENANCE

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $54.1 million to IAP WORLDWIDE SERVICES, INC. for work described as: TOBYHANNA ARMY DEPOT MAINTENANCE Key points: 1. Value for money assessed through comparison to similar depot maintenance contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and fixed-price nature, which can shift risk to the contractor. 4. Performance context relies on contractor's historical performance and adherence to delivery schedules. 5. Sector positioning within aircraft manufacturing and depot maintenance services. 6. The contract's value represents a significant investment in maintaining critical military assets.

Value Assessment

Rating: good

The contract value of approximately $54 million over two years appears reasonable for depot maintenance services. Benchmarking against similar large-scale depot maintenance contracts for military aircraft suggests that the pricing is within expected ranges. The firm-fixed-price structure incentivizes the contractor to manage costs effectively, contributing to value for money. However, a detailed cost breakdown and comparison to government cost estimates would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of four bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to more favorable pricing for the government and encourages innovation among contractors seeking to win the award.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces. This approach ensures that the government is not unduly burdened by limited vendor options.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, ensuring the operational readiness of aircraft. Services delivered include essential maintenance, repair, and overhaul for military aircraft, extending their service life. Geographic impact is centered around Tobyhanna Army Depot, supporting its role as a critical maintenance hub. Workforce implications include employment opportunities at the depot and for the contractor's personnel involved in maintenance operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate change order management.
Dependence on contractor's ability to meet stringent quality and performance standards.
Risk of schedule delays impacting aircraft availability if contractor faces resource constraints.

Positive Signals

Firm-fixed-price contract shifts cost control risk to the contractor.
Full and open competition suggests a competitive market and potentially better pricing.
Contract duration provides stability for planning and execution of maintenance tasks.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on depot maintenance for military aircraft. The market for aircraft maintenance and repair services is substantial, driven by the ongoing need to maintain aging fleets and ensure operational readiness. This contract represents a significant portion of spending within this specialized niche, competing with other depot maintenance providers and original equipment manufacturers.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, IAP Worldwide Services, Inc., is likely a large business, and the contract was not specifically structured to promote small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) at Tobyhanna Army Depot, ensuring adherence to contract terms, quality standards, and delivery schedules. The Department of Defense's robust acquisition regulations and oversight mechanisms are in place to monitor performance and financial accountability. Inspector General (IG) investigations could be initiated if significant performance issues or fraud are suspected.

Related Government Programs

Aircraft Maintenance Services
Depot Level Maintenance and Repair
Military Logistics Support
Defense Readiness Contracts
Aerospace Manufacturing Support

Risk Flags

Contract Duration
Potential for Unforeseen Technical Issues
Dependence on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.1 million to IAP WORLDWIDE SERVICES, INC.. TOBYHANNA ARMY DEPOT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $54.1 million.

What is the period of performance?

Start: 2018-03-28. End: 2020-02-28.

What is the historical performance record of IAP Worldwide Services, Inc. on similar government contracts?

IAP Worldwide Services, Inc. has a long history of performing complex logistics, base operations, and aviation support services for the U.S. government, including extensive work with the Department of Defense and Department of State. Their track record includes managing large-scale operations in challenging environments. Performance on specific contracts can vary, but generally, they are considered an experienced provider. A detailed review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for similar maintenance or aviation support contracts would be necessary to fully assess their suitability and reliability for this specific Tobyhanna Army Depot requirement. This would include examining on-time delivery rates, quality of work, and responsiveness to issues.

How does the awarded price compare to the government's independent cost estimate for this depot maintenance work?

The provided data does not include the government's independent cost estimate (ICE) for this contract. To assess the value for money, a comparison between the awarded price of $54,051,449.26 and the ICE is crucial. If the awarded price is significantly below the ICE, it could indicate strong competition or potentially an underestimated scope by the government. Conversely, if it's substantially higher, it might suggest issues with the bidding process, contractor proposals, or the government's estimation accuracy. Without the ICE, a definitive statement on whether the price represents optimal value is difficult, though the full and open competition suggests competitive pressures were at play.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for depot maintenance contracts of this nature, typical KPIs would likely include metrics related to turnaround time for repairs, quality of workmanship (e.g., defect rates), adherence to maintenance schedules, and overall aircraft availability improvements. SLAs would define the acceptable performance thresholds for these KPIs, often with associated incentives for exceeding them or penalties for failing to meet them. The firm-fixed-price nature suggests that meeting delivery schedules and quality standards are paramount for the contractor to achieve profitability.

What is the historical spending trend for similar depot maintenance services at Tobyhanna Army Depot over the past five years?

The provided data focuses on a single contract award and does not offer historical spending trends for similar services at Tobyhanna Army Depot. To analyze historical spending, one would need to access contract databases (like FPDS or SAM.gov) and query for all depot maintenance contracts awarded to Tobyhanna over the last five fiscal years. This would involve identifying relevant contract vehicles, award amounts, and contractors. Such an analysis would reveal whether spending in this category has been consistent, increasing, or decreasing, and identify any shifts in awarded contractors or contract types, providing context for the current $54 million award.

Are there any specific risks identified by the government or the contractor regarding the execution of this maintenance contract?

The provided data does not detail specific risks identified by the government or the contractor beyond general contract attributes. However, common risks in depot maintenance include the aging of aircraft requiring complex repairs, availability of specialized parts, potential for unforeseen technical issues during maintenance, and the need for highly skilled labor. The firm-fixed-price structure inherently places the risk of cost overruns on the contractor, incentivizing efficient management. The duration of the contract (702 days) also presents a risk related to potential changes in military requirements or technological advancements over its term.

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

Parent Company: IAP Global Services, LLC

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,515,712

Exercised Options: $54,051,449

Current Obligation: $54,051,449

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0011

IDV Type: IDC

Timeline