Air Force awards $30.6M for F-16 SLEP kits, boosting aircraft longevity and readiness

Contract Overview

Contract Amount: $30,586,874 ($30.6M)

Contractor: Aero-Glen International LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-19

End Date: 2023-09-30

Contract Duration: 925 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNITED STATES AIR FORCE IN F-16 SERVICE LIFE EXTENSION PROGRAM (SLEP) KIT PRODUCTION

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to AERO-GLEN INTERNATIONAL LLC for work described as: UNITED STATES AIR FORCE IN F-16 SERVICE LIFE EXTENSION PROGRAM (SLEP) KIT PRODUCTION Key points: 1. Contract supports critical sustainment for a key fighter aircraft fleet. 2. Focus on extending the service life of aging F-16 aircraft. 3. Potential for follow-on work as more aircraft require SLEP. 4. Delivery order structure suggests phased execution of services. 5. Fixed-price contract aims to control costs for the Air Force. 6. Geographic concentration in Texas may indicate specialized MRO capabilities.

Value Assessment

Rating: good

The contract value of $30.6 million for F-16 Service Life Extension Program (SLEP) kits appears reasonable given the specialized nature of aircraft sustainment. While direct comparisons are difficult without knowing the exact scope of work and specific components included in the kits, the price per unit, if calculable, would be a key benchmark. The firm-fixed-price nature of the contract provides cost certainty for the Air Force, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially due to unique capabilities or prior involvement. The exact reasons for exclusion and the number of bidders considered are not detailed, making a full assessment of competition dynamics challenging. Limited competition can sometimes lead to higher prices.

Taxpayer Impact: The exclusion of certain sources limits the potential for the most competitive pricing, which could result in a less optimal outcome for taxpayers compared to a truly unrestricted full and open competition.

Public Impact

Enhances the operational readiness and lifespan of the U.S. Air Force's F-16 fighter fleet. Supports the strategic goal of maintaining a robust air combat capability. Benefits the aerospace manufacturing and maintenance sector, particularly in Texas. Ensures continued employment for skilled technicians and engineers involved in aircraft sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery.
Dependence on a single contractor for critical sustainment components.
Potential for scope creep if not managed tightly under fixed-price terms.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Supports a critical national defense asset (F-16 fleet).
Delivery order structure allows for phased funding and execution.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, stringent quality requirements, and significant government investment. Contracts for aircraft sustainment, such as SLEP kits, are crucial for maintaining the operational readiness of military fleets. This contract fits within the broader category of aircraft parts manufacturing and maintenance, a segment that requires specialized expertise and often involves long-term relationships between government and industry.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). The prime contractor, AERO-GLEN INTERNATIONAL LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor voluntarily engages small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense. As a delivery order under a larger program, it is subject to standard contract administration and performance monitoring. Transparency is facilitated by public contract databases, but detailed internal oversight mechanisms and Inspector General jurisdiction specifics are not provided in the data.

Related Government Programs

F-16 Aircraft Sustainment Programs
Air Force Materiel Command Contracts
Aerospace Parts Manufacturing
Defense Logistics Agency Support Contracts

Risk Flags

Limited competition may impact price.
Dependence on specific contractor capabilities.
Potential for supply chain disruptions affecting delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to AERO-GLEN INTERNATIONAL LLC. UNITED STATES AIR FORCE IN F-16 SERVICE LIFE EXTENSION PROGRAM (SLEP) KIT PRODUCTION

Who is the contractor on this award?

The obligated recipient is AERO-GLEN INTERNATIONAL LLC.

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 $30.6 million.

What is the period of performance?

Start: 2021-03-19. End: 2023-09-30.

What is the specific scope of work included in the F-16 Service Life Extension Program (SLEP) kits?

The provided data does not detail the specific components or services included in the F-16 Service Life Extension Program (SLEP) kits. Typically, SLEP involves structural upgrades, avionics modernization, and component replacements designed to extend the operational life of an aircraft by a significant number of flight hours or years. For the F-16, this could include reinforcing the fuselage, upgrading wiring, and replacing aging systems to meet current and future operational requirements. Understanding the precise nature of these kits is crucial for assessing their value and the contractor's performance.

How does the contract value of $30.6 million compare to historical spending on F-16 SLEP kits?

Direct historical spending comparisons for this specific contract are limited by the provided data. However, the F-16 fleet is extensive, and multiple SLEP initiatives have been undertaken over the years. The $30.6 million award represents a portion of the overall sustainment effort. To provide a robust comparison, one would need to analyze historical contract awards for similar SLEP kits, considering factors like the number of kits procured, the specific upgrades included, and inflation. Without this broader context, it's difficult to definitively state if this award represents an increase or decrease in spending trends for F-16 SLEP.

What are the key performance indicators (KPIs) used to evaluate AERO-GLEN INTERNATIONAL LLC's performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for aircraft component manufacturing and delivery, typical KPIs would likely include on-time delivery rates, adherence to quality specifications (e.g., defect rates, compliance with technical orders), cost control within the fixed-price framework, and responsiveness to Air Force inquiries or modifications. Performance would be formally assessed through contract close-out reports and potentially through contractor performance assessment reporting (CPARS) systems.

What is the potential impact of this contract on the overall readiness and operational capability of the F-16 fleet?

This contract directly supports the readiness and operational capability of the F-16 fleet by providing essential kits for Service Life Extension Programs (SLEP). By extending the service life of these aircraft, the Air Force can maintain a larger number of combat-capable platforms for longer periods, reducing the need for costly and time-consuming new aircraft procurement. This ensures that pilots and ground crews have reliable aircraft to meet training and operational mission requirements, thereby sustaining air superiority capabilities.

Were there any specific risks identified during the procurement process for this contract, and how were they mitigated?

The provided data does not explicitly list risks identified during the procurement process. However, common risks associated with aerospace manufacturing and sustainment contracts include technical challenges in production, supply chain disruptions, quality control issues, and cost overruns (though mitigated by fixed-price). The 'limited' competition aspect suggests potential risks related to price discovery and contractor dependency. Mitigation strategies would typically involve robust technical reviews, stringent quality assurance protocols, clear contract terms, and active program management by the Air Force.

How does the geographic location of the award (Texas) influence the execution or cost of this contract?

The award to a contractor located in Texas (st: TX, sn: TEXAS) suggests that the manufacturing or assembly of the F-16 SLEP kits is likely taking place within that state. This geographic concentration can influence the contract's execution through access to a skilled aerospace workforce and established supply chains within the region. From a cost perspective, it may impact logistics and transportation expenses for delivering the kits to Air Force bases. Proximity to other aerospace hubs in Texas could also facilitate collaboration or competition among suppliers.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA823218R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13751 INDEPENDENCE PKWY, FORT WORTH, TX, 76177

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,586,874

Exercised Options: $30,586,874

Current Obligation: $30,586,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA823218D0001

IDV Type: IDC

Timeline