DoD awards $12.8M engineering support contract to PCI Aviation LLC for MC-130J modifications

Contract Overview

Contract Amount: $12,842,349 ($12.8M)

Contractor: PCI Aviation LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SUPPORT SERVICES FOR THE MC-130J TO SUPPORT THE SOF UNIQUE DEVELOPMENT/MODIFICATION PROGRAMS.

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to PCI AVIATION LLC for work described as: ENGINEERING SUPPORT SERVICES FOR THE MC-130J TO SUPPORT THE SOF UNIQUE DEVELOPMENT/MODIFICATION PROGRAMS. Key points: 1. Contract focuses on specialized engineering for SOF unique development and modification programs. 2. PCI Aviation LLC, the sole awardee, has a single definitive contract. 3. The contract duration is 5 years, ending September 2025. 4. Awarded as a Cost Plus Fixed Fee type, indicating potential for cost overruns. 5. The contract is not set aside for small businesses. 6. Geographic location of performance is Alabama.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and lack of publicly available comparable data. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex R&D or modification efforts, carries inherent risks of cost escalation. Without detailed breakdowns of labor categories, hours, and fixed fee percentages, a precise value-for-money assessment is difficult. However, the total award amount of $12.8 million over five years suggests a moderate investment for specialized engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the agency's needs, often due to proprietary technology, unique expertise, or urgent requirements. The lack of competition means the government did not benefit from a competitive bidding process, which could have potentially led to lower prices or more innovative solutions from multiple vendors.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to secure government contracts and may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Special Operations Forces (SOF) will benefit from enhanced capabilities of the MC-130J aircraft. Engineering services will support unique development and modification programs for critical aircraft. The contract's performance is located in Alabama, potentially impacting the local workforce. This contract directly supports national defense objectives by ensuring the readiness and effectiveness of SOF aviation assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and innovation.
Cost Plus Fixed Fee structure introduces risk of cost overruns.
Lack of publicly available performance metrics makes assessing contractor effectiveness difficult.

Positive Signals

Contract supports critical SOF aviation programs, enhancing national security.
Long-term contract (5 years) provides stability for specialized engineering support.
Performance in Alabama may stimulate local economy and specialized technical employment.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. The market for specialized engineering support for military aircraft modifications is highly technical and often dominated by a few key players with specific expertise. Benchmarking is difficult without access to proprietary data, but the scale of this award is moderate for a five-year specialized engineering effort within the defense industrial base.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a single entity, it does not directly foster small business participation through competition. The primary contractor, PCI Aviation LLC, will be responsible for all engineering services, with no explicit mechanism for small business inclusion evident in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency is limited due to the sole-source nature and specialized technical scope. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MC-130J Special Operations Aircraft Program
Special Operations Forces (SOF) Aviation Support
Aerospace Engineering Services Contracts
Department of Defense Aircraft Modification Programs

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of publicly available performance metrics hinders assessment of contractor value.
Specialized nature of services makes direct cost benchmarking difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to PCI AVIATION LLC. ENGINEERING SUPPORT SERVICES FOR THE MC-130J TO SUPPORT THE SOF UNIQUE DEVELOPMENT/MODIFICATION PROGRAMS.

Who is the contractor on this award?

The obligated recipient is PCI AVIATION 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 $12.8 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-09-28.

What is PCI Aviation LLC's track record with similar sole-source engineering support contracts for DoD aircraft modifications?

Information regarding PCI Aviation LLC's specific track record with sole-source engineering support contracts for DoD aircraft modifications is not readily available in the public domain. As this contract was awarded sole-source, it suggests a unique capability or prior relationship that may not be widely publicized. Further investigation into the Federal Procurement Data System (FPDS) or contractor past performance databases might reveal more details, but without explicit data, it's difficult to assess their specific experience in this niche. The nature of sole-source awards often implies a pre-existing justification for selecting a particular contractor based on specialized knowledge or proprietary technology.

How does the $12.8 million value compare to similar engineering support contracts for aircraft modifications?

Comparing the $12.8 million value of this contract to similar engineering support contracts for aircraft modifications is challenging without more specific details on the scope of work and the types of aircraft involved. However, for a five-year definitive contract supporting specialized development and modification programs for a platform like the MC-130J, this amount appears moderate. Contracts for major aircraft modifications or new system development can range from tens of millions to billions of dollars. This award suggests a focus on specific engineering services rather than a complete overhaul or new system integration, making direct comparisons difficult without granular data on labor rates, hours, and specific deliverables.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized engineering services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to PCI Aviation LLC, is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor for allowable costs incurred. If the project's actual costs exceed initial estimates, the government pays the higher amount, plus the fixed fee. This structure can incentivize contractors to incur higher costs if not carefully managed and overseen. For specialized engineering services, where technical challenges and unforeseen issues are common, the risk of cost escalation is significant. Robust oversight and clear definition of allowable costs are critical to mitigate this risk.

What is the expected effectiveness of these engineering services in enhancing the MC-130J's capabilities for SOF missions?

The effectiveness of these engineering services in enhancing the MC-130J's capabilities for SOF missions is directly tied to the successful execution of the 'SOF unique development/modification programs' mentioned in the contract description. The MC-130J is a critical asset for Special Operations Forces, used for infiltration, exfiltration, and resupply missions in denied environments. Enhancements could range from avionics upgrades, structural modifications for increased payload or survivability, to integration of new mission systems. The success of these modifications will depend on the technical expertise of PCI Aviation LLC and the clarity of the requirements provided by the Department of the Air Force. Positive outcomes would translate to improved mission effectiveness, safety, and operational flexibility for SOF units.

How has federal spending on engineering support services for special operations aircraft evolved over the past five years?

Analyzing the evolution of federal spending on engineering support services for special operations aircraft over the past five years requires access to comprehensive historical spending data, which is not fully detailed in the provided snippet. However, it is generally understood that spending in this area tends to be consistent, if not increasing, given the ongoing need to maintain and upgrade aging fleets and adapt aircraft to evolving mission requirements. Special Operations Forces often require highly specialized and customized solutions, driving demand for niche engineering expertise. Factors such as geopolitical conditions, technological advancements, and specific program needs influence year-over-year spending fluctuations. This particular $12.8M award represents a segment of that broader spending trend.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA850920R0017

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3022 HIGHWAY 21, ATMORE, AL, 36502

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Government, Native American Tribal Government, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,842,349

Exercised Options: $12,842,349

Current Obligation: $12,842,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline