Air Force awards $3.6M contract for aircraft support, highlighting potential value in specialized engineering services

Contract Overview

Contract Amount: $3,647,076 ($3.6M)

Contractor: Sabena Aerospace Engineering

Awarding Agency: Department of Defense

Start Date: 2025-01-22

End Date: 2026-09-10

Contract Duration: 596 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USAFE DEPOT AIRCRAFT 88-0525

Plain-Language Summary

Department of Defense obligated $3.6 million to SABENA AEROSPACE ENGINEERING for work described as: USAFE DEPOT AIRCRAFT 88-0525 Key points: 1. Contract value appears moderate for specialized aerospace engineering support. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Performance period spans over a year, indicating a need for sustained support. 4. Fixed-price contract type may offer cost certainty for the government. 5. The specific nature of the support could indicate niche market dynamics.

Value Assessment

Rating: good

The contract value of approximately $3.6 million for a period of 596 days (roughly 20 months) suggests a reasonable investment for specialized aircraft support. Benchmarking against similar contracts for depot-level aircraft maintenance or engineering services would be necessary for a definitive value assessment. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders identified, the competition level appears moderate. This suggests that while there was some interest, the market for this specific service might be limited, or other potential bidders chose not to participate. Moderate competition can lead to reasonable pricing, but a higher number of bidders would typically drive prices down further.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to vie for the contract, potentially leading to more competitive pricing than a sole-source award.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving essential support for its aircraft. Services delivered likely include specialized engineering, maintenance planning, or technical support for aircraft. Geographic impact is likely concentrated around the Air Force units or depots utilizing the supported aircraft. Workforce implications may involve skilled aerospace engineers and technicians employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited contractor pool impacting future competition.
Need to ensure clear performance metrics are defined for this specialized service.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type offers cost control.
Contract duration allows for sustained, focused support.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft support services. The market for specialized aircraft engineering and depot-level support is often characterized by a limited number of highly skilled firms capable of meeting stringent military requirements. Spending in this area is critical for maintaining fleet readiness and operational capability. Comparable spending benchmarks would typically be found within broader defense logistics and maintenance contracts.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Sabena Aerospace Engineering, chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, which shifts cost risk to the contractor. Transparency is generally maintained through contract award databases, though specific performance details and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Aerospace Engineering Support
Defense Logistics Contracts
Air Force Depot Operations
Military Aircraft Sustainment

Risk Flags

Potential for limited competition in specialized aerospace niche.
Need for robust quality assurance due to fixed-price nature.
Contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to SABENA AEROSPACE ENGINEERING. USAFE DEPOT AIRCRAFT 88-0525

Who is the contractor on this award?

The obligated recipient is SABENA AEROSPACE ENGINEERING.

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 $3.6 million.

What is the period of performance?

Start: 2025-01-22. End: 2026-09-10.

What is the track record of Sabena Aerospace Engineering with the Department of Defense?

Sabena Aerospace Engineering has a history of performing contracts with the Department of Defense, though the scale and nature of past awards would require detailed analysis. Reviewing their contract history would involve examining past performance evaluations, any documented disputes or contract modifications, and the types of services they have previously provided. Understanding their experience with similar aircraft types or support functions is crucial for assessing their capability to successfully execute this current contract. A review of their financial stability and past performance metrics would provide a clearer picture of their reliability as a contractor.

How does the per-unit cost of this contract compare to similar Air Force aircraft support contracts?

Determining a precise per-unit cost benchmark for this contract is challenging without more specific data on the units of service provided (e.g., hours of engineering support, number of aircraft serviced, specific tasks completed). The total contract value is $3,647,076.27 over 596 days. If we were to approximate a daily rate, it would be around $6,119 per day. However, this is a broad average and doesn't account for the intensity or complexity of the work performed on any given day. A true comparison would require access to detailed cost breakdowns and performance metrics from similar contracts awarded by the Air Force for comparable aircraft support activities, ideally with the same level of service detail.

What are the primary risks associated with this firm fixed-price contract for aircraft support?

The primary risk with a firm fixed-price contract, from the government's perspective, is that the contractor may cut corners on quality or scope to maintain profitability if their cost estimates were too low or unforeseen issues arise. For Sabena Aerospace Engineering, the risk lies in underestimating the complexity or duration of the required support, leading to potential cost overruns that they must absorb. There's also a risk that the defined scope of work might not fully capture all necessary tasks, leading to potential disputes or change orders. Ensuring robust quality assurance and performance monitoring by the Air Force is critical to mitigate these risks and ensure the required level of support is delivered.

How effective is full and open competition in ensuring value for money in specialized aerospace engineering contracts?

Full and open competition is generally considered the most effective method for ensuring value for money, as it theoretically allows the widest possible pool of qualified contractors to bid, driving down prices through market forces. In specialized fields like aerospace engineering, however, the number of capable contractors may be limited, potentially reducing the competitive pressure. While this contract was awarded under full and open competition, only two bidders participated. This suggests that while the process was followed, the market dynamics for this specific niche might inherently limit the degree of price competition achievable compared to more commoditized services. The firm fixed-price structure further aids value by capping government expenditure.

What is the historical spending trend for 'Other Support Activities for Air Transportation' within the Department of the Air Force?

Analyzing historical spending trends for the 'Other Support Activities for Air Transportation' (NAICS code 488190) within the Department of the Air Force requires access to comprehensive federal procurement data over multiple fiscal years. This specific NAICS code encompasses a broad range of services, including airport operations, air traffic control support, and aircraft maintenance services not elsewhere classified. Without direct access to historical spending databases filtered by agency and NAICS code, it's difficult to provide precise figures. However, generally, spending in this category tends to fluctuate based on operational tempo, fleet modernization programs, and specific support requirements for deployed or training aircraft. Significant investments are often made during periods of increased global operations or when new aircraft platforms are introduced.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AVENUE EMMANUEL MOUNIER, 2, WOLUWE SAINT LAMBERT

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,651,717

Exercised Options: $3,651,717

Current Obligation: $3,647,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA823222D0008

IDV Type: IDC

Timeline