DoD awards $25.6M for aviation ground equipment, with 4 bidders competing for a firm-fixed-price delivery order
Contract Overview
Contract Amount: $25,620,400 ($25.6M)
Contractor: Aviation Ground Equipment Corp
Awarding Agency: Department of Defense
Start Date: 2023-11-17
End Date: 2026-01-12
Contract Duration: 787 days
Daily Burn Rate: $32.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 72KW GPU, 144KW GPU, 144KW ULB
Place of Performance
Location: MELVILLE, SUFFOLK County, NEW YORK, 11747
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to AVIATION GROUND EQUIPMENT CORP for work described as: 72KW GPU, 144KW GPU, 144KW ULB Key points: 1. The contract value represents a significant investment in specialized aviation support equipment. 2. Firm-fixed-price terms suggest a clear understanding of scope and cost expectations. 3. The presence of 4 bidders indicates a reasonably competitive market for this type of equipment. 4. Delivery order structure implies this is part of a larger, potentially indefinite-delivery/indefinite-quantity contract. 5. The contract duration of nearly 3 years suggests a need for sustained operational support. 6. Geographic location in New York may point to specific operational bases or logistics hubs.
Value Assessment
Rating: good
Benchmarking the $25.6 million award for aviation ground equipment is challenging without specific unit details or comparable contract data. However, the firm-fixed-price structure generally indicates that the government has a clear understanding of the requirements and associated costs, which can lead to better value if the scope is well-defined. The number of bidders (4) suggests a degree of competition that should help in achieving a fair market price. Further analysis would require comparing the specific types and quantities of equipment against industry standards and other government procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with four distinct bidders participating. This level of competition is generally considered healthy, as it allows multiple capable vendors to submit proposals, fostering price discovery and potentially leading to more favorable terms for the government. The presence of four bidders suggests that the market is not overly concentrated and that there are viable alternatives available for this type of specialized equipment.
Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it increases the likelihood of obtaining the best possible price and quality for the required aviation ground equipment, preventing potential price gouging.
Public Impact
The primary beneficiaries are the U.S. Air Force units requiring specialized aviation ground support equipment for aircraft maintenance and operations. The contract will deliver essential equipment necessary for the safe and efficient functioning of aviation ground operations. The geographic impact is centered in New York, likely supporting specific Air Force bases or logistics centers within the state. Workforce implications may include manufacturing, assembly, and logistics personnel involved in producing and delivering the equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm-fixed-price contract does not adequately account for all potential contingencies.
- Risk of delivery delays impacting operational readiness if the contractor faces production or supply chain issues.
- Dependence on a single contractor for a critical piece of equipment could pose a risk if future needs arise or if performance issues emerge.
Positive Signals
- The firm-fixed-price contract provides cost certainty for the government, limiting exposure to unexpected price increases.
- Full and open competition with multiple bidders suggests a competitive pricing environment.
- The award to AVIATION GROUND EQUIPMENT CORP indicates a selection based on meeting specified requirements and potentially competitive pricing.
Sector Analysis
The aviation ground equipment sector is a critical component of military and civilian aviation infrastructure, encompassing a wide range of support machinery. This contract falls within the broader manufacturing and defense industrial base, specifically supporting the operational readiness of aviation forces. Spending in this area is often driven by fleet size, modernization programs, and the need to maintain aging equipment. Comparable spending benchmarks would typically be found within the Department of Defense's broader procurement of logistics and maintenance support systems.
Small Business Impact
There is no indication of a small business set-aside for this contract, nor is there explicit information regarding subcontracting plans for small businesses. The award to AVIATION GROUND EQUIPMENT CORP, a presumably larger entity given the contract value, suggests that small businesses may not have been the primary focus for this specific procurement. Further investigation into subcontracting opportunities would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program management within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified equipment by a certain date. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aviation Support Equipment
- Ground Support Equipment
- Military Logistics
- Air Force Procurement
- Defense Manufacturing
Risk Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Risk of equipment obsolescence if technology advances rapidly.
- Need for robust quality assurance to ensure equipment meets stringent aviation standards.
Tags
defense, department-of-defense, department-of-the-air-force, aviation-ground-equipment, delivery-order, full-and-open-competition, firm-fixed-price, new-york, motor-and-generator-manufacturing, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to AVIATION GROUND EQUIPMENT CORP. 72KW GPU, 144KW GPU, 144KW ULB
Who is the contractor on this award?
The obligated recipient is AVIATION GROUND EQUIPMENT CORP.
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 $25.6 million.
What is the period of performance?
Start: 2023-11-17. End: 2026-01-12.
What is the specific type and quantity of aviation ground equipment being procured under this contract?
The provided data does not specify the exact type or quantity of aviation ground equipment. It only indicates the contract value ($25.6 million), the contractor (AVIATION GROUND EQUIPMENT CORP), the awarding agency (Department of the Air Force), and the contract type (Delivery Order under Full and Open Competition). To understand the specific items, one would need to access the detailed contract award documents or associated technical specifications, which are not included in the abbreviated data.
How does the unit cost of this equipment compare to similar items purchased by the DoD or other federal agencies?
Without knowing the specific 'unit' of aviation ground equipment being procured (e.g., a tow tractor, a generator set, a maintenance stand), it is impossible to establish a per-unit cost for comparison. The total award of $25.6 million covers an unspecified quantity of items over a period of nearly three years. To perform a value comparison, detailed specifications of the equipment, quantities, and delivery schedules would be required, alongside data from comparable contracts for identical or similar items.
What is the track record of AVIATION GROUND EQUIPMENT CORP in fulfilling government contracts, particularly for aviation ground equipment?
The provided data identifies AVIATION GROUND EQUIPMENT CORP as the contractor but does not offer details on their past performance or track record with government contracts. A comprehensive assessment would involve reviewing their contract history, past performance evaluations (e.g., CPARS reports), and any history of contract disputes or awards. This information is typically available through specialized government contracting databases or through direct inquiry with the contracting agency.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?
The provided data does not explicitly state the key performance indicators (KPIs) for this contract. However, as a firm-fixed-price delivery order, success is primarily measured by the contractor's ability to deliver the specified aviation ground equipment on time, within budget, and meeting all technical specifications and quality standards outlined in the contract. The contracting officer and program managers would monitor adherence to these requirements throughout the contract's duration.
How does the $25.6 million expenditure compare to historical spending on aviation ground equipment by the Department of the Air Force?
The $25.6 million award represents a specific procurement action for aviation ground equipment. To compare it to historical spending, one would need to analyze the Department of the Air Force's budget allocations and actual expenditures for aviation ground equipment over several fiscal years. This would involve accessing historical procurement data, identifying similar contract vehicles, and aggregating spending trends to understand if this award is typical, higher, or lower than previous investments in this category.
Are there any identified risks associated with the contractor or the nature of the equipment being procured?
The provided data does not detail specific risks associated with AVIATION GROUND EQUIPMENT CORP or the equipment itself. However, general risks in such procurements can include potential supply chain disruptions, manufacturing delays, technical obsolescence, or the contractor's financial stability. The firm-fixed-price nature mitigates cost overrun risks for the government, but performance risks remain. A thorough risk assessment would require more in-depth information on the contractor's capabilities and the specific equipment's complexity.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 324 S SERVICE RD STE 104, MELVILLE, NY, 11747
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $25,620,400
Exercised Options: $25,620,400
Current Obligation: $25,620,400
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853223D0001
IDV Type: IDC
Timeline
Start Date: 2023-11-17
Current End Date: 2026-01-12
Potential End Date: 2026-01-12 00:00:00
Last Modified: 2024-10-09
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