DoD awards $19.5M for Flight Line Maintenance Support to Strategic Technology Institute Inc

Contract Overview

Contract Amount: $19,520,869 ($19.5M)

Contractor: Strategic Technology Institute Inc

Awarding Agency: Department of Defense

Start Date: 2023-02-13

End Date: 2026-01-31

Contract Duration: 1,083 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLIGHT LINE, CORROSION CONTROL, TOOL ROOM AND "O" LEVEL MAINTENANCE SUPPORT (HSM-40, MAYPORT, FL)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to STRATEGIC TECHNOLOGY INSTITUTE INC for work described as: FLIGHT LINE, CORROSION CONTROL, TOOL ROOM AND "O" LEVEL MAINTENANCE SUPPORT (HSM-40, MAYPORT, FL) Key points: 1. Contract awarded to Strategic Technology Institute Inc. for flight line, corrosion control, and maintenance support. 2. The contract is a delivery order under a larger contract, indicating potential for follow-on work. 3. The procurement method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding other vendors. 4. The sector is Aircraft Manufacturing, a critical area for defense operations.

Value Assessment

Rating: fair

The contract value of $19.5M over approximately 3 years appears reasonable for specialized maintenance support. Benchmarking against similar contracts for depot-level aircraft maintenance is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'Full and Open Competition After Exclusion of Sources' implies that while competition was sought, certain sources were excluded. This could impact price discovery if the excluded sources were significant competitors.

Taxpayer Impact: Taxpayer funds are being used for essential aircraft maintenance, which is a necessary expenditure for defense readiness. The value for money depends on the effectiveness of the competition process.

Public Impact

Ensures readiness of naval aviation assets at Mayport, FL. Supports critical maintenance functions for aircraft safety and operational capability. Impacts the efficiency and cost-effectiveness of aircraft upkeep for the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for cost overruns if pricing is not tightly managed.
Dependence on a single contractor for critical support functions.

Positive Signals

Addresses a clear need for specialized maintenance.
Fixed-price contract type can incentivize cost control.
Long-term contract duration provides stability.

Sector Analysis

The Aircraft Manufacturing sector, particularly for defense, involves complex and specialized services. Spending benchmarks for aircraft maintenance can vary widely based on aircraft type, age, and required services. This contract falls within the scope of supporting operational readiness.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if subcontracting opportunities exist.

Oversight & Accountability

Oversight will be crucial to ensure Strategic Technology Institute Inc. meets performance requirements and adheres to the contract terms. The Department of the Air Force, as the contracting agency, is responsible for monitoring this contract.

Related Government Programs

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

Risk Flags

Potential for limited competition driving up costs.
Contractor performance risk for critical maintenance functions.
Dependency on a single contractor for specialized support.
Lack of transparency regarding source exclusion justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to STRATEGIC TECHNOLOGY INSTITUTE INC. FLIGHT LINE, CORROSION CONTROL, TOOL ROOM AND "O" LEVEL MAINTENANCE SUPPORT (HSM-40, MAYPORT, FL)

Who is the contractor on this award?

The obligated recipient is STRATEGIC TECHNOLOGY INSTITUTE 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 $19.5 million.

What is the period of performance?

Start: 2023-02-13. End: 2026-01-31.

What was the specific justification for excluding other sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The justification for excluding sources typically relates to unique capabilities, proprietary technology, or specific requirements that only certain vendors can meet. Understanding this rationale is key to assessing if the exclusion was justified and if it led to a competitive disadvantage, potentially inflating the price. Without this information, it's difficult to definitively gauge the value achieved.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured to ensure effectiveness and mitigate risks?

Effective oversight requires clearly defined KPIs related to response times, quality of work, adherence to safety standards, and overall aircraft availability. Regular performance reviews and audits by the contracting officer's representative are essential. Tracking these metrics will help identify any performance deficiencies early and allow for corrective actions, thereby mitigating risks to operational readiness and taxpayer investment.

How does the cost of this contract compare to industry benchmarks for similar flight line and corrosion control maintenance services, considering the specific aircraft types and complexity involved?

A thorough cost comparison against industry benchmarks is vital for assessing value. This involves analyzing the per-unit costs for specific tasks (e.g., corrosion treatment per square foot, labor hours per maintenance check) against publicly available data or consultant reports for similar DoD or commercial aviation contracts. Significant deviations from benchmarks warrant further investigation into the contract's pricing structure and the contractor's cost basis.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6000 EXECUTIVE BLVD STE 205, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,520,869

Exercised Options: $19,520,869

Current Obligation: $19,520,869

Actual Outlays: $1,714,900

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0006

IDV Type: IDC

Timeline