DoD's $14.9M C-130 Propeller Repair Contract Awarded to PPI Technical Services LLC

Contract Overview

Contract Amount: $14,888,172 ($14.9M)

Contractor: PPI Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-12

End Date: 2026-12-11

Contract Duration: 1,460 days

Daily Burn Rate: $10.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130 PHILIPPINES PROPELLER REPAIR SHOP (PRS)

Place of Performance

Location: KENT, KING County, WASHINGTON, 98032

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to PPI TECHNICAL SERVICES LLC for work described as: C-130 PHILIPPINES PROPELLER REPAIR SHOP (PRS) Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Long duration of 4 years may indicate a need for sustained support. 4. The contract is for propeller repair services, a critical component for aircraft. 5. No small business set-aside, potentially impacting small business participation. 6. The award value of approximately $14.9 million over four years warrants value analysis.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of propeller repairs and the number of units involved. The firm fixed price structure provides some cost predictability. However, the lack of competition raises concerns about whether the government secured the best possible price. Comparing this to similar sole-source contracts for specialized aircraft component repair would be necessary for a more definitive value assessment. The contract's duration suggests a significant need for ongoing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the government did not solicit bids from multiple sources. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the taxpayer compared to a competitively bid contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, which can result in less favorable pricing for taxpayers.

Public Impact

The U.S. Department of the Air Force benefits from sustained maintenance for its C-130 aircraft fleet. This contract ensures the operational readiness of C-130 aircraft through essential propeller repair services. The services are likely to be performed in Washington state, where the contractor is located. The contract supports specialized technical jobs within the aerospace maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Long contract duration may not be optimal if requirements change or technology advances.
Lack of small business set-aside could limit opportunities for smaller specialized firms.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract addresses a critical maintenance need for a vital military aircraft.
Contractor is likely specialized in C-130 propeller repair, ensuring technical expertise.

Sector Analysis

This contract falls within the aerospace manufacturing and maintenance sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized aircraft component repair is often characterized by high technical barriers to entry and a limited number of qualified providers. The Department of Defense is a significant customer for such services, with spending often concentrated on maintaining aging fleets and ensuring operational readiness. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition contracts for similar specialized repair services on military aircraft.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited unless they are the prime contractor or are subcontracted by the prime. The absence of a small business set-aside may not significantly impact the broader small business ecosystem unless this represents a pattern of excluding small businesses from critical maintenance contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

C-130 Hercules Aircraft Maintenance
Aerospace Component Repair Services
Department of Defense Aircraft Parts Procurement
Military Aircraft Fleet Sustainment

Risk Flags

Sole-source award limits competition.
Lack of performance metrics in summary data.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to PPI TECHNICAL SERVICES LLC. C-130 PHILIPPINES PROPELLER REPAIR SHOP (PRS)

Who is the contractor on this award?

The obligated recipient is PPI TECHNICAL SERVICES 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 $14.9 million.

What is the period of performance?

Start: 2022-12-12. End: 2026-12-11.

What is the specific scope of 'propeller repair' covered under this contract, and how many C-130 propellers are anticipated to be serviced annually?

The provided data does not detail the specific scope of 'propeller repair' or the anticipated volume of propellers to be serviced. This information is crucial for a thorough value assessment. Typically, propeller repair can encompass a range of services from routine maintenance and inspection to component replacement and overhaul. Understanding the quantity and type of repairs will allow for a more accurate comparison against industry benchmarks and historical spending. Without this granular detail, it's difficult to ascertain if the $14.9 million award represents a fair price for the expected work over the four-year period.

Why was this contract awarded on a sole-source basis, and what efforts were made to explore competitive options?

The contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis. This designation typically implies that the contracting agency determined that only one responsible source could provide the required services. Reasons for sole-source awards often include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the services are a continuation of a previous contract where only the incumbent possesses the necessary knowledge and infrastructure. The specific justification for this sole-source award would be documented in the contract file, but it was not provided in the summary data. Without this justification, it's impossible to assess if competitive options were adequately explored or if the sole-source determination was appropriate.

How does the annual value of this contract compare to historical spending on C-130 propeller repair by the Department of Defense?

The total contract value is approximately $14.9 million over four years, averaging about $3.725 million per year. To compare this to historical spending, one would need access to historical contract data for C-130 propeller repair services, ideally from the same or similar agencies within the Department of Defense. This historical data would reveal trends in pricing, volume, and the types of contractors previously used. If historical annual spending was significantly lower or higher, it could indicate changes in market prices, service requirements, or the scope of work. Without this historical context, it is difficult to determine if the current award represents an increase or decrease in cost efficiency.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure performance and quality?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a Firm Fixed Price contract for specialized services like propeller repair, KPIs and SLAs are critical for ensuring the contractor meets performance expectations and quality standards. These might include metrics such as turnaround time for repairs, defect rates, adherence to technical specifications, and on-time delivery. The absence of this information in the summary data means that the effectiveness of performance monitoring and quality assurance mechanisms cannot be assessed from this overview alone. These details would typically be found in the contract's statement of work or performance requirements.

What is the track record of PPI Technical Services LLC in performing similar aircraft component repair contracts for the government?

The provided data identifies PPI Technical Services LLC as the contractor but does not offer details on their specific track record or past performance on similar government contracts. To assess their reliability and capability for this C-130 propeller repair work, a review of their contract history would be necessary. This would involve examining previous awards, contract values, performance evaluations (if available), and any history of contract disputes or terminations. A strong track record with successful completion of similar, complex repair services would increase confidence in their ability to meet the requirements of this new contract. Conversely, a history of performance issues could be a significant risk indicator.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA855322R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5103 D ST NW, AUBURN, WA, 98001

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,325,463

Exercised Options: $14,888,172

Current Obligation: $14,888,172

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline