DoD's $30.6M C-130J Maintenance Contract with VSE Corp. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $30,572,311 ($30.6M)

Contractor: VSE Corporation

Awarding Agency: Department of Defense

Start Date: 2018-02-28

End Date: 2020-08-31

Contract Duration: 915 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130J LEGACY AIRCRAFT MAINTENANCE

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to VSE CORPORATION for work described as: C-130J LEGACY AIRCRAFT MAINTENANCE Key points: 1. The contract value is $30.6 million for C-130J legacy aircraft maintenance. 2. VSE Corporation secured this contract through full and open competition. 3. The contract duration is 915 days, ending August 31, 2020. 4. This spending falls within the Aircraft Manufacturing sector. 5. The contract type is Firm Fixed Price, indicating price certainty.

Value Assessment

Rating: good

The contract value of $30.6 million for aircraft maintenance appears reasonable given the scope and duration. Benchmarking against similar C-130J maintenance contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The use of a Delivery Order under a larger contract structure suggests a structured procurement process.

Taxpayer Impact: Full and open competition is designed to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Ensures continued operational readiness of critical C-130J aircraft for the Air Force. Supports jobs within the aerospace maintenance and support industry. The firm fixed price contract provides budget predictability for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed price.
  • Dependence on a single contractor for a critical maintenance function.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Firm Fixed Price contract type offers cost certainty.
  • Supports a key military asset, ensuring operational capability.

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, specifically focusing on maintenance for the C-130J transport aircraft. Spending in this sector is crucial for maintaining military readiness and involves specialized technical expertise.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded as a Delivery Order, suggesting it may be part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Oversight would focus on performance metrics, adherence to the fixed price, and timely delivery of maintenance services.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for scope creep if maintenance needs exceed initial estimates.
  • Reliance on a single contractor for critical aircraft maintenance.
  • Risk of performance issues impacting aircraft availability.
  • Contract duration is relatively long, increasing exposure to market changes.

Tags

aircraft-manufacturing, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to VSE CORPORATION. C-130J LEGACY AIRCRAFT MAINTENANCE

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 $30.6 million.

What is the period of performance?

Start: 2018-02-28. End: 2020-08-31.

What was the specific scope of maintenance covered under this contract, and how does it compare to industry standards for C-130J aircraft?

The provided data does not detail the specific maintenance tasks included in the $30.6 million contract. A comprehensive understanding of the scope is necessary to accurately benchmark the pricing against industry standards for C-130J legacy aircraft maintenance. This would involve reviewing the Statement of Work (SOW) to identify scheduled maintenance, unscheduled repairs, parts replacement, and any specialized services.

What were the key evaluation criteria used during the full and open competition, and how did VSE Corporation's proposal meet these criteria to justify the award?

The specific evaluation criteria for this full and open competition are not detailed in the provided data. Typically, criteria for such contracts include technical capability, past performance, price, and small business participation. VSE Corporation's successful bid implies they met or exceeded the government's requirements in these areas, demonstrating their ability to provide the necessary C-130J maintenance services effectively and at a competitive price.

What is the potential impact on Air Force operational readiness if VSE Corporation fails to meet the maintenance requirements outlined in the contract?

Failure by VSE Corporation to meet maintenance requirements could significantly impact Air Force operational readiness, potentially grounding C-130J aircraft and disrupting critical airlift missions. The firm fixed price nature of the contract may incentivize timely completion, but the government would need robust oversight and contingency plans to mitigate risks associated with contractor underperformance or default.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $47,562,411

Exercised Options: $30,572,311

Current Obligation: $30,572,311

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: 2018-02-28

Current End Date: 2020-08-31

Potential End Date: 2020-08-31 00:00:00

Last Modified: 2020-05-29

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