Air Force B-1 maintenance contract awarded to Kay and Associates for $29.8M, spanning over 3 years

Contract Overview

Contract Amount: $29,768,157 ($29.8M)

Contractor: KAY and Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-08

End Date: 2026-04-07

Contract Duration: 1,034 days

Daily Burn Rate: $28.8K/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: ORGANIZATIONAL, INTERMEDIATE, AND DEPOT LEVEL MAINTENANCE FUNCTIONS TO FACILITATE COMPREHENSIVE AVIATION MAINTENANCE IN SUPPORT OF B-1 MAINTENANCE UNITS AT DYESS AFB, TX AND ELLSWORTH AFB, SD

Place of Performance

Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to KAY AND ASSOCIATES, INC. for work described as: ORGANIZATIONAL, INTERMEDIATE, AND DEPOT LEVEL MAINTENANCE FUNCTIONS TO FACILITATE COMPREHENSIVE AVIATION MAINTENANCE IN SUPPORT OF B-1 MAINTENANCE UNITS AT DYESS AFB, TX AND ELLSWORTH AFB, SD Key points: 1. Contract provides essential aviation maintenance for B-1 units at two key Air Force bases. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. This contract supports specialized maintenance functions, indicating a need for skilled technical services. 5. The duration of over 1000 days highlights the long-term nature of the support required. 6. The contract value is moderate within the context of large-scale defense aviation support.

Value Assessment

Rating: good

The contract value of $29.8 million over approximately 3 years for specialized aviation maintenance appears reasonable. Benchmarking against similar large-scale aviation maintenance contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control. However, without detailed breakdowns of labor hours, material costs, and overhead, a definitive assessment of pricing efficiency is challenging.

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 that while the competition was intended to be open, specific sources may have been excluded based on predefined criteria. This suggests a structured procurement process that aimed for broad participation but with specific requirements. The presence of two bids (implied by 'no': 2) indicates some level of competition, but the exact number of proposals received and evaluated would offer a clearer picture of the competitive landscape.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are the U.S. Air Force B-1 maintenance units at Dyess AFB, TX, and Ellsworth AFB, SD, ensuring operational readiness. Services delivered include organizational, intermediate, and depot-level maintenance functions for B-1 aircraft. The geographic impact is concentrated at the two specified Air Force bases in Texas and South Dakota. This contract supports a specialized workforce of aviation mechanics and technicians, potentially creating or sustaining jobs in these locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' was narrowly applied.
Dependence on a single contractor for critical maintenance functions could pose a risk if performance issues arise.
The specific nature of B-1 maintenance may limit the pool of qualified contractors.

Positive Signals

Award under full and open competition suggests a structured and fair procurement process.
Firm fixed-price contract type provides cost certainty for the government.
The contract duration indicates a stable, long-term support relationship.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on aviation maintenance and support services. The market for specialized military aircraft maintenance is characterized by high technical barriers to entry and significant government oversight. Comparable spending benchmarks would involve analyzing other contracts for depot-level maintenance of strategic bomber fleets, which often represent substantial investments due to the complexity and criticality of the aircraft.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses ('sb': false). There is no explicit information regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large defense contracts often have subcontracting requirements that can benefit smaller firms.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) and program management offices within the Air Force. Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

B-1 Bomber Sustainment Programs
Air Force Aviation Maintenance Contracts
Depot-Level Maintenance and Repair
Defense Logistics Agency Support Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on contractor for critical, specialized maintenance.
Risk of supply chain disruptions for unique aircraft parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to KAY AND ASSOCIATES, INC.. ORGANIZATIONAL, INTERMEDIATE, AND DEPOT LEVEL MAINTENANCE FUNCTIONS TO FACILITATE COMPREHENSIVE AVIATION MAINTENANCE IN SUPPORT OF B-1 MAINTENANCE UNITS AT DYESS AFB, TX AND ELLSWORTH AFB, SD

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 $29.8 million.

What is the period of performance?

Start: 2023-06-08. End: 2026-04-07.

What is the historical spending pattern for B-1 aircraft maintenance at Dyess AFB and Ellsworth AFB?

Analyzing historical spending for B-1 aircraft maintenance at these specific bases requires access to detailed historical contract data. Typically, such maintenance is procured through a series of contracts, often awarded competitively, with durations varying based on program needs and budget cycles. Spending can fluctuate year-to-year due to factors like aircraft utilization rates, scheduled major overhauls, and modernization efforts. Without specific historical data for these bases and the B-1 program, it's difficult to provide precise figures. However, large-scale aviation maintenance is a consistent and significant expenditure within the Department of Defense budget, often running into tens or hundreds of millions of dollars annually for major weapon systems.

How does Kay and Associates' performance on previous contracts compare to this award?

Evaluating Kay and Associates' performance requires a review of their past contract history, including ratings from past performance questionnaires (PPQs) and any documented instances of outstanding work or deficiencies. Information on contractor performance is often available through government databases like the Contractor Performance Assessment Reporting System (CPARS). A thorough analysis would involve examining their track record on similar aviation maintenance contracts, particularly those involving complex military aircraft. Positive past performance is a key factor in source selection for new contracts, suggesting that Kay and Associates likely met or exceeded expectations on prior engagements to be awarded this significant contract.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

Key performance indicators (KPIs) for this aviation maintenance contract would likely focus on metrics such as aircraft availability rates, turnaround time for maintenance tasks, quality of work (e.g., defect rates), adherence to schedules, and cost control. These KPIs are typically defined in the contract's Performance Work Statement (PWS). Measurement methods would involve regular reporting by the contractor, government inspections and quality assurance checks, and potentially the use of specialized software to track maintenance progress and aircraft status. Failure to meet critical KPIs could result in contractually defined remedies, such as performance incentives or penalties.

What is the estimated total cost of ownership for the B-1 aircraft maintenance over the contract period?

The total cost of ownership (TCO) for B-1 aircraft maintenance over the contract period is represented by the contract's ceiling value, which is $29.8 million. This figure covers organizational, intermediate, and depot-level maintenance functions. However, the TCO also encompasses other related costs not directly included in this specific contract, such as spare parts procurement, logistics, personnel training, facility operations, and potential upgrades or modifications. A comprehensive TCO analysis would require aggregating data from all relevant cost categories over the lifecycle of the B-1 program, not just this single maintenance contract.

Are there any identified risks associated with the contractor or the nature of the services provided?

Risks associated with this contract could include potential performance issues from the contractor, such as delays in maintenance or subpar quality, which could impact aircraft readiness. The specialized nature of B-1 maintenance means reliance on a contractor with specific expertise, and a lack of qualified personnel or supply chain disruptions for unique parts could pose risks. Furthermore, the 'exclusion of sources' clause in the competition, if applied too narrowly, might limit the competitive landscape and potentially increase long-term costs or reduce innovation. Government oversight and robust quality assurance processes are critical to mitigating these 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: 2

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: $51,066,288

Exercised Options: $29,768,157

Current Obligation: $29,768,157

Actual Outlays: $4,208,811

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