DoD awards $29.4M for Aircraft Maintenance Support to Kay and Associates, Inc
Contract Overview
Contract Amount: $29,409,279 ($29.4M)
Contractor: KAY and Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-05-12
End Date: 2022-10-31
Contract Duration: 1,268 days
Daily Burn Rate: $23.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIRCRAFT MAINTENANCE FUNCTIONS OF AIRCRAFT "O" LEVEL MAINTENANCE SUPPORT.
Place of Performance
Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $29.4 million to KAY AND ASSOCIATES, INC. for work described as: AIRCRAFT MAINTENANCE FUNCTIONS OF AIRCRAFT "O" LEVEL MAINTENANCE SUPPORT. Key points: 1. Contract awarded to Kay and Associates, Inc. for aircraft maintenance. 2. Full and open competition after exclusion of sources was used. 3. Potential risk associated with the exclusion of sources in the competition. 4. Spending falls under the Aircraft Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $29.4M over approximately 3.5 years appears reasonable for specialized aircraft maintenance. However, without specific per-unit cost data or benchmarks for similar 'O' level maintenance contracts, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method suggests that while competition was sought, certain sources were excluded, potentially limiting price discovery and the breadth of competitive offers.
Taxpayer Impact: The exclusion of sources may have led to a higher price than if all potential offerors had been included, impacting taxpayer value.
Public Impact
Ensures operational readiness of Air Force aircraft through essential maintenance. Supports a specific defense contractor, Kay and Associates, Inc. Impacts the aerospace and defense industry supply chain. Contributes to national security by maintaining critical assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources
- Lack of detailed per-unit cost data for benchmarking
- Potential for higher costs due to restricted competition
Positive Signals
- Contract awarded to a single vendor, indicating specialized capability
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for 'O' level maintenance. Spending in this sector is often driven by defense needs and technological advancements in aviation.
Small Business Impact
The data indicates the prime contractor is Kay and Associates, Inc., and the 'sb' field is false, suggesting this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Oversight would typically involve contract management offices ensuring performance and adherence to terms, especially given the 'exclusion of sources' clause.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Potential for inflated pricing due to source exclusion
- Lack of transparency regarding excluded sources
- Absence of detailed cost breakdown for benchmarking
Tags
aircraft-manufacturing, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to KAY AND ASSOCIATES, INC.. AIRCRAFT MAINTENANCE FUNCTIONS OF AIRCRAFT "O" LEVEL MAINTENANCE SUPPORT.
Who is the contractor on this award?
The obligated recipient is KAY AND ASSOCIATES, 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 $29.4 million.
What is the period of performance?
Start: 2019-05-12. End: 2022-10-31.
What was the justification for excluding certain sources from the competition?
The justification for excluding sources is critical for understanding the competitive landscape and potential impact on pricing. Without this information, it's difficult to assess if the exclusion was warranted due to specialized capabilities or if it unduly restricted competition, potentially leading to suboptimal pricing for the government.
How does the per-unit cost of this contract compare to industry benchmarks for similar aircraft maintenance services?
Benchmarking per-unit costs is essential for evaluating value for money. If specific line items or service rates can be compared against industry standards for 'O' level maintenance on similar aircraft platforms, it would reveal whether the government secured a competitive price or if there is an opportunity for cost savings in future procurements.
What is the long-term strategic value of this contract for the Air Force's maintenance capabilities?
The long-term value depends on the criticality of the aircraft supported and the reliability of Kay and Associates, Inc. If this contract ensures sustained operational readiness for key assets and the contractor demonstrates consistent performance, it holds significant strategic value. Conversely, reliance on a single, potentially costly provider could pose long-term risks.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 165 N ARLINGTON HEIGHTS RD STE 150, BUFFALO GROVE, IL, 60089
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,409,279
Exercised Options: $29,409,279
Current Obligation: $29,409,279
Actual Outlays: $10,034,377
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810817D0003
IDV Type: IDC
Timeline
Start Date: 2019-05-12
Current End Date: 2022-10-31
Potential End Date: 2022-10-31 00:00:00
Last Modified: 2023-07-21
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