DoD awards $85M for KC-46 initial spare parts, with 11 bidders vying for the contract

Contract Overview

Contract Amount: $85,093,215 ($85.1M)

Contractor: Davenport Aviation Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-20

End Date: 2027-06-30

Contract Duration: 771 days

Daily Burn Rate: $110.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM.

Place of Performance

Location: BLACKSTONE, NOTTOWAY County, VIRGINIA, 23824

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $85.1 million to DAVENPORT AVIATION INC for work described as: KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM. Key points: 1. The contract value of $85 million for initial spare parts suggests a significant investment in maintaining the operational readiness of the KC-46 fleet. 2. With 11 bidders participating, the competition dynamics indicate a healthy market for KC-46 spare parts, potentially driving competitive pricing. 3. The firm-fixed-price contract type aims to transfer cost risk to the contractor, Davenport Aviation Inc., providing budget certainty. 4. The delivery order placed off the KIS Multiple Award Program suggests a streamlined procurement process for essential aircraft components. 5. The contract duration of approximately two years aligns with the need for timely replenishment of critical spare parts. 6. The absence of small business set-aside indicates that the contract was awarded based on best value without specific socio-economic preferences.

Value Assessment

Rating: good

The contract value of $85 million for initial spare parts for the KC-46 program appears reasonable given the complexity and criticality of military aircraft components. Benchmarking against similar large-scale spare parts procurements for advanced aircraft would provide further context, but the presence of 11 bidders suggests a competitive environment that likely influenced pricing favorably. The firm-fixed-price structure also contributes to value by capping potential cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 11 distinct bidders vying for the opportunity. This high level of participation is a positive indicator of a robust and competitive market for KC-46 initial spare parts. The diverse bidder pool suggests that multiple companies possess the capability and capacity to supply these specialized components, which generally leads to more favorable pricing and better quality outcomes for the government.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are being used efficiently, as the government is likely to receive competitive pricing and high-quality parts due to the multiple offers received.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the KC-46 Pegasus tanker aircraft, ensuring their operational readiness and mission capability. The contract will deliver essential spare parts required for the maintenance and repair of the KC-46 fleet, preventing mission delays and ensuring aircraft availability. The geographic impact is primarily centered around Tinker Air Force Base, which is listed as a recipient, and potentially other locations where KC-46 aircraft are stationed or maintained. The contract supports the aerospace manufacturing and supply chain sector, potentially creating or sustaining jobs within companies specializing in aircraft parts and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines for critical spare parts.
Risk of obsolescence for certain spare parts if not managed proactively throughout the contract lifecycle.
Ensuring consistent quality control across all delivered spare parts from various manufacturers.

Positive Signals

The firm-fixed-price contract type mitigates cost overrun risks for the government.
A high number of bidders (11) indicates a competitive market, likely leading to better pricing and quality.
Awarding off an existing Multiple Award Program streamlines procurement and leverages pre-vetted capabilities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for military aircraft spare parts is substantial, driven by the need to maintain aging fleets and introduce new platforms like the KC-46. Spending in this area is critical for national defense readiness. Comparable spending benchmarks would involve analyzing other large spare parts procurements for major military aircraft programs, which often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The contract was not set aside for small businesses, indicating that the competition was open to all responsible sources. While this maximizes the pool of potential offerors and competition, it means that direct opportunities for small businesses through this specific award are limited unless they are subcontractors. The prime contractor, Davenport Aviation Inc., will determine subcontracting opportunities, and their subcontracting plan (if any) will dictate the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices responsible for the KC-46 program. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified parts by a certain date. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available. The Inspector General's office may conduct audits or investigations if performance issues or fraud are suspected.

Related Government Programs

KC-46 Pegasus Program
Air Mobility Command Aircraft Procurement
Defense Logistics Agency Spare Parts Management
Air Force Sustainment Center Operations

Risk Flags

Supply Chain Risk
Quality Assurance Risk
Delivery Schedule Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.1 million to DAVENPORT AVIATION INC. KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM.

Who is the contractor on this award?

The obligated recipient is DAVENPORT AVIATION INC.

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 $85.1 million.

What is the period of performance?

Start: 2025-05-20. End: 2027-06-30.

What is the historical spending trend for KC-46 initial spare parts?

Historical spending data for 'initial spare parts' specifically for the KC-46 program prior to this award is not readily available in the provided data. However, the total contract value of $85,093,215 suggests a significant initial investment. Typically, initial spare parts procurements occur early in an aircraft program's lifecycle to support initial fielding and training. Subsequent spending would likely involve sustainment spares. Analyzing broader spending on KC-46 sustainment and modifications over the years would provide a larger context for the program's overall financial trajectory.

How does the number of bidders compare to similar large aircraft parts contracts?

With 11 bidders, this contract demonstrates a healthy level of competition, which is generally considered good for a specialized defense procurement. For large, complex aircraft spare parts contracts, the number of bidders can vary significantly. Contracts for highly specialized or proprietary components might see fewer bidders, while more standardized parts could attract more. An 11-bidder scenario for initial spares of a major platform like the KC-46 suggests a competitive market exists, which is favorable compared to procurements with only one or two offers.

What are the primary risks associated with this contract for Davenport Aviation Inc.?

For Davenport Aviation Inc., the primary risks revolve around meeting the stringent quality and delivery requirements of the firm-fixed-price contract. Failure to deliver conforming parts on time could result in penalties or contract termination. Managing the supply chain for potentially complex or long-lead-time components is another significant risk. Furthermore, accurately forecasting demand and managing inventory to fulfill the delivery order efficiently, while maintaining profitability under a fixed price, presents financial risks. Ensuring compliance with all government specifications and regulations is also a critical risk area.

What is the expected impact on the KC-46 program's operational readiness?

The timely delivery of these initial spare parts is crucial for the operational readiness of the KC-46 Pegasus fleet. Having adequate spare parts available prevents aircraft from being grounded due to maintenance needs, ensuring that the Air Force can deploy these critical refueling and strategic airlift assets as required. This contract directly supports the sustainment of the fleet, enabling pilots and crews to train effectively and allowing the aircraft to perform its intended missions, thereby enhancing overall military capability.

Are there any performance metrics publicly available for Davenport Aviation Inc. on previous contracts?

Publicly available performance metrics for Davenport Aviation Inc. on previous contracts are not detailed in the provided data. However, the fact that they were awarded this significant contract, especially under full and open competition with multiple bidders, suggests a positive track record or strong proposal. Government contract performance is often evaluated through systems like the Contractor Performance Assessment Reporting System (CPARS), but detailed CPARS reports are typically not made public. Further research into federal procurement databases or company profiles might yield more specific performance insights.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1279 W 10TH ST STE 107, BLACKSTONE, VA, 23824

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $85,093,215

Exercised Options: $85,093,215

Current Obligation: $85,093,215

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA860922DB005

IDV Type: IDC

Timeline