DoD awards $31.2M A-10 Engineering Services task order to KIHOMAC INC

Contract Overview

Contract Amount: $31,255,313 ($31.3M)

Contractor: Kihomac Inc

Awarding Agency: Department of Defense

Start Date: 2018-12-24

End Date: 2024-06-23

Contract Duration: 2,008 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: A-10 OFP ENGINEERING SERVICES TASK ORDER ISSUED AGAINST GSA OASIS IDIQ.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to KIHOMAC INC for work described as: A-10 OFP ENGINEERING SERVICES TASK ORDER ISSUED AGAINST GSA OASIS IDIQ. Key points: 1. Value for money assessed through comparison to similar engineering service contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which can shift risk to the government. 4. Performance context is within the Air Force's sustainment and modernization efforts for the A-10. 5. Sector positioning is within the broader aerospace and defense engineering services market.

Value Assessment

Rating: good

The contract's value of $31.2 million for engineering services over approximately five years appears reasonable when benchmarked against similar long-term engineering support contracts for major weapon systems. The Cost Plus Fixed Fee (CPFF) structure, while common for complex R&D or sustainment, warrants careful monitoring to ensure costs remain controlled and aligned with the fixed fee. Without specific per-unit cost data for engineering hours or deliverables, a precise value-for-money assessment is challenging, but the overall award size suggests a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. However, a full and open competition generally fosters a competitive environment, which can lead to more favorable pricing and better technical solutions for the government.

Taxpayer Impact: A full and open competition maximizes the potential for taxpayer savings by encouraging a wide range of contractors to offer their best pricing and technical approaches, ensuring the government receives optimal value.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring continued engineering support for the A-10 Warthog aircraft. Services delivered include engineering, sustainment, and modernization support critical for maintaining the operational readiness of the A-10 fleet. The geographic impact is primarily within the United States, supporting Air Force bases and contractor facilities involved in A-10 sustainment. Workforce implications include the employment of specialized engineers and technical personnel by KIHOMAC INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed stringently.
Long performance period (over 5 years) increases the risk of scope creep or evolving requirements not being adequately addressed.
Reliance on a single task order against an IDIQ could concentrate risk if the IDIQ vehicle itself has limitations.

Positive Signals

Awarded against a GSA OASIS IDIQ, which typically involves pre-vetted contractors and streamlined acquisition processes.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor, KIHOMAC INC., has a track record of performing government contracts, implying experience relevant to this scope.

Sector Analysis

This contract falls within the aerospace and defense engineering services sector, a critical component of the defense industrial base. The market is characterized by high barriers to entry due to specialized knowledge, security clearances, and established relationships. Spending in this sector is driven by the need for sustainment, modernization, and development of complex military platforms. Comparable spending benchmarks would include other engineering support contracts for legacy aircraft or weapon systems, often running into tens or hundreds of millions of dollars over their lifecycle.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While KIHOMAC INC. may be a small business itself, the award does not appear to be part of a formal small business set-aside program. Subcontracting opportunities for small businesses may exist depending on KIHOMAC INC.'s strategy, but there is no explicit requirement indicated in the provided data. The impact on the broader small business ecosystem is likely indirect, through potential subcontracting relationships.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a task order under a GSA OASIS IDIQ, there are likely established oversight mechanisms within the GSA framework as well. Transparency is facilitated by contract award databases, but detailed performance metrics and cost breakdowns are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

A-10 Thunderbolt II Sustainment
GSA OASIS IDIQ Contracts
Aerospace Engineering Services
Department of Defense Engineering Support
Air Force Weapon System Modernization

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long performance period increases potential for scope creep and requirement changes.
Aging aircraft sustainment presents unique engineering challenges and risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to KIHOMAC INC. A-10 OFP ENGINEERING SERVICES TASK ORDER ISSUED AGAINST GSA OASIS IDIQ.

Who is the contractor on this award?

The obligated recipient is KIHOMAC 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 $31.3 million.

What is the period of performance?

Start: 2018-12-24. End: 2024-06-23.

What is KIHOMAC INC.'s past performance record with the Department of Defense, particularly on similar engineering services contracts?

KIHOMAC INC. has a history of performing various service contracts for the Department of Defense, including engineering, technical, and logistics support. While specific details on past performance quality for this exact type of A-10 engineering services are not publicly detailed in this data snippet, their presence as a contractor suggests they meet basic qualification criteria. A deeper dive into contract databases like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting (CPARS) would reveal more granular information on their track record, including any past issues or commendations on similar projects. Their ability to win this task order against a full and open competition implies a satisfactory past performance assessment by the Air Force.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services, and what are the implications for cost control?

Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope is not precisely defined or involves research and development, allowing flexibility. However, they shift cost risk to the government, as the contractor is reimbursed for all allowable costs plus a fixed fee. Compared to Firm-Fixed-Price (FFP) contracts, which offer greater cost certainty for the government but require a well-defined scope, CPFF can lead to higher overall costs if not managed diligently. For engineering services like A-10 sustainment, where requirements might evolve, CPFF provides necessary flexibility. Effective cost control under CPFF relies heavily on robust government oversight, detailed cost tracking, and clear performance metrics to ensure the contractor remains efficient and the fixed fee remains appropriate for the work performed.

What is the estimated total cost per year for these A-10 engineering services, and how does it benchmark against industry averages?

The total award amount is $31,255,313.45 with a performance period from December 24, 2018, to June 23, 2024, spanning approximately 5.5 years. This averages out to roughly $5.68 million per year. Benchmarking this against industry averages for specialized aerospace engineering services is complex due to variations in scope, complexity, and overhead. However, for sustainment and engineering support of a major military aircraft platform, this annual figure appears within a reasonable range, considering the specialized expertise required. Direct comparison requires detailed breakdowns of labor categories, hours, and specific deliverables, which are not provided here. It is generally considered competitive for long-term, complex engineering support.

What specific engineering tasks or deliverables are included under this task order, and how do they contribute to the A-10's operational readiness?

While the provided data does not list specific deliverables, engineering services for an aircraft like the A-10 typically encompass a range of activities crucial for operational readiness. This can include systems engineering, software engineering, structural analysis, maintenance engineering, reliability and maintainability improvements, obsolescence management, and technical data package development. These services directly support the Air Force's efforts to keep the A-10 fleet flying, address aging aircraft issues, implement necessary upgrades, and ensure the aircraft meets its mission requirements. The engineering expertise provided helps in troubleshooting complex issues, developing solutions, and ensuring the aircraft's systems function as intended throughout its extended service life.

How many other task orders have been issued against the GSA OASIS IDIQ for similar engineering services, and what is the total spending trend in this category?

The GSA OASIS (One Acquisition, Solution for Integrated Services) IDIQ is a broad contract vehicle used across many agencies for various professional services. Without access to the specific OASIS contract data, it's impossible to state the exact number of similar engineering services task orders or the total spending trend within this category across the government. However, OASIS is designed to facilitate a wide range of services, and engineering support is a significant component. Trends generally show consistent government spending on engineering and technical services to support aging weapon systems and develop new capabilities. The Air Force, in particular, utilizes such vehicles extensively for sustainment and modernization programs.

What is the potential impact of this contract on the long-term sustainment strategy for the A-10 Thunderbolt II aircraft?

This task order represents a significant investment in the engineering expertise required to sustain the A-10 Thunderbolt II. The A-10 is an aging airframe, and its continued operational viability relies heavily on robust engineering support to address maintenance challenges, component obsolescence, and potential upgrades. By awarding this contract, the Air Force is signaling its commitment to maintaining the A-10 fleet for its intended service life. The engineering services provided will be critical in ensuring the aircraft remains safe, effective, and mission-capable, directly influencing the overall sustainment strategy and potentially delaying or shaping decisions about its eventual replacement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA822219R5007

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12030 SUNRISE VALLEY DR STE 320, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,255,313

Exercised Options: $31,255,313

Current Obligation: $31,255,313

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $534,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS321

IDV Type: IDC

Timeline