DoD Awards $8.38M for Fleet Maintenance Support to Kay and Associates, Inc
Contract Overview
Contract Amount: $8,381,011 ($8.4M)
Contractor: KAY and Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-01
End Date: 2026-04-30
Contract Duration: 606 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FLEET REPLACEMENT SQUADRON ORGANIZATION LEVEL MAINTENANCE SUPPORT VRM-50
Place of Performance
Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $8.4 million to KAY AND ASSOCIATES, INC. for work described as: FLEET REPLACEMENT SQUADRON ORGANIZATION LEVEL MAINTENANCE SUPPORT VRM-50 Key points: 1. Contract awarded to Kay and Associates, Inc. for VRM-50 fleet maintenance. 2. Full and open competition after exclusion of sources was utilized. 3. The contract has a duration of 606 days. 4. This award represents a small portion of the overall aircraft manufacturing sector spending.
Value Assessment
Rating: good
The contract value of $8.38 million for a 606-day period appears reasonable given the specialized nature of fleet maintenance support. Benchmarking against similar contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competition, potentially impacting price discovery. The specific reasons for excluding sources would be critical to assess the full impact on pricing.
Taxpayer Impact: Taxpayer funds are being used for essential fleet maintenance, ensuring operational readiness. The limited competition may result in a higher cost than a fully open process.
Public Impact
Ensures continued operational readiness of Air Force fleets. Supports specialized maintenance services crucial for aircraft longevity. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Lack of detailed service scope makes precise value assessment challenging.
Positive Signals
- Supports critical defense infrastructure.
- Awarded to a single vendor for specialized services.
Sector Analysis
This contract falls within the broader aircraft manufacturing and maintenance sector, which is a significant area of federal spending. Benchmarks for similar specialized maintenance contracts vary widely based on aircraft type and service complexity.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the awardee is Kay and Associates, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure Kay and Associates, Inc. meets all performance requirements and that the limited competition process was justified and effectively managed to secure fair pricing.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may result in higher costs.
- Vendor lock-in potential.
- Dependence on a single source for critical maintenance.
- Lack of transparency in source exclusion.
Tags
aircraft-manufacturing, department-of-defense, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.4 million to KAY AND ASSOCIATES, INC.. FLEET REPLACEMENT SQUADRON ORGANIZATION LEVEL MAINTENANCE SUPPORT VRM-50
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 $8.4 million.
What is the period of performance?
Start: 2024-09-01. End: 2026-04-30.
What specific factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' scenario, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, proprietary knowledge, or unique past performance are required, which only a limited number of vendors possess. This limitation can reduce competitive pressure, potentially leading to higher prices than a truly open competition. Understanding the exact justification for exclusion is key to assessing if the price reflects fair value under these constraints.
How does the per-unit cost of this maintenance support compare to industry benchmarks for similar aircraft fleets, considering the specialized nature of the services?
Without specific details on the types of aircraft, the scope of maintenance tasks (e.g., scheduled, unscheduled, depot-level), and the specific support provided (e.g., personnel, parts, diagnostics), a direct per-unit cost comparison is challenging. However, specialized fleet maintenance is inherently costly due to required expertise, certifications, and equipment. The contract's fixed-price nature suggests a defined scope, but the benchmark would need to account for these variables.
What are the potential risks associated with relying on a single vendor for this critical fleet maintenance support over the contract duration?
Relying on a single vendor introduces risks such as potential price increases in future contracts, vendor lock-in, and reduced flexibility if the vendor's performance declines or they face financial instability. There's also a risk of knowledge silos, where critical maintenance expertise resides solely with the contractor, making transitions difficult. Robust performance monitoring and contingency planning are essential to mitigate 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: 4
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: $13,667,730
Exercised Options: $8,381,011
Current Obligation: $8,381,011
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: 2024-09-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-05
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