DoD's $17M Aircraft Manufacturing Contract Awarded to Kay and Associates, Inc

Contract Overview

Contract Amount: $17,073,801 ($17.1M)

Contractor: KAY and Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-01

End Date: 2025-10-31

Contract Duration: 1,095 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CFT SUPPORT SERVICES

Place of Performance

Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to KAY AND ASSOCIATES, INC. for work described as: CFT SUPPORT SERVICES Key points: 1. Contract value of $17.07M for CFT Support Services. 2. Awarded to Kay and Associates, Inc. by the Department of the Air Force. 3. Full and open competition after exclusion of sources was utilized. 4. Contract duration is 1095 days, ending October 31, 2025.

Value Assessment

Rating: good

The contract value of $17.07M appears reasonable for specialized CFT support services over a 3-year period. Benchmarking against similar aircraft manufacturing support contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process that aimed to maximize participation. This method generally supports fair price discovery.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered.

Public Impact

Ensures continued support for critical Air Force aircraft manufacturing operations. Supports a specific defense contractor, Kay and Associates, Inc. Impacts the readiness and operational capabilities of the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of specific performance metrics in provided data.
Reliance on a single contractor for critical support.

Positive Signals

Competitive award process.
Clear contract duration and end date.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft manufacturing. Spending in this area is critical for national security and often involves specialized, high-value services.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine the overall impact on small businesses in the defense supply chain.

Oversight & Accountability

Oversight would typically be managed by the Department of the Air Force contracting officers and program managers to ensure performance and adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed service scope.
No explicit mention of performance metrics or KPIs.
Dependence on a single awardee for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to KAY AND ASSOCIATES, INC.. CFT SUPPORT SERVICES

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 $17.1 million.

What is the period of performance?

Start: 2022-11-01. End: 2025-10-31.

What specific CFT support services are being provided under this contract?

The provided data does not specify the exact nature of the CFT (Consolidated Functional Test) support services. These could range from technical assistance, maintenance, calibration, or integration support for aircraft manufacturing processes. Understanding the specifics is crucial for assessing value and risk.

What was the rationale for excluding certain sources in the competition?

The rationale for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award is not detailed here. Typically, such exclusions are based on specific technical requirements, proprietary data, or unique capabilities that only a limited number of vendors possess, potentially impacting overall competition.

How does the $17.07M contract value compare to industry benchmarks for similar support?

Without specific details on the services rendered, a direct benchmark comparison is difficult. However, $17.07M over three years for specialized defense manufacturing support is substantial. Industry benchmarks would require detailed service scope, labor rates, and overhead comparisons for similar DoD contracts.

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: 3

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: $23,632,688

Exercised Options: $23,497,543

Current Obligation: $17,073,801

Actual Outlays: $662,279

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