DoD's $7.7M T700 Engine TLS contract awarded to Asia Pacific Aerospace Pty. Ltd. for 2 years

Contract Overview

Contract Amount: $7,698,066 ($7.7M)

Contractor: Asia Pacific Aerospace PTY. Ltd.

Awarding Agency: Department of Defense

Start Date: 2025-12-14

End Date: 2026-12-14

Contract Duration: 365 days

Daily Burn Rate: $21.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T700 ENGINE TLS

Plain-Language Summary

Department of Defense obligated $7.7 million to ASIA PACIFIC AEROSPACE PTY. LTD. for work described as: T700 ENGINE TLS Key points: 1. Value for money assessed against market benchmarks for similar engine support services. 2. Competition dynamics indicate a sole-source award, potentially impacting price negotiation. 3. Risk indicators include the sole-source nature and potential for limited contractor performance oversight. 4. Performance context relies on the contractor's ability to deliver specialized engine support within the specified timeframe. 5. Sector positioning places this contract within the broader aerospace and defense maintenance industry.

Value Assessment

Rating: fair

The contract value of $7.7 million for two years of T700 engine TLS services appears moderate. Benchmarking against similar engine maintenance contracts is challenging without more specific service details. However, the firm fixed-price structure provides some cost certainty. The absence of competition raises questions about whether the pricing reflects the best possible value for the government.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances like urgent needs or follow-on work. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the absence of a bidding process. This could result in a higher cost compared to what might have been achieved through open competition.

Public Impact

The primary beneficiaries are the Department of the Navy, ensuring the operational readiness of T700 engines. Services delivered include specialized support for T700 engines, crucial for aviation platforms. Geographic impact is likely concentrated where the supported aircraft operate, potentially globally. Workforce implications may involve specialized technicians for engine maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Contract duration of two years may not align with long-term strategic needs.
Lack of detailed performance metrics makes assessing contractor efficiency difficult.

Positive Signals

Firm fixed-price contract provides cost predictability.
Specific focus on T700 engine TLS addresses a critical maintenance need.
Award to a single entity may streamline support delivery if that entity is highly specialized.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on engine maintenance and support. The T700 engine is a widely used turboshaft engine in military helicopters and other aircraft. The market for specialized engine support services is competitive, but often involves niche expertise, which can lead to sole-source awards for specific platforms or technologies.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans for small businesses within the provided data. The focus on specialized engine support may limit opportunities for broad small business participation.

Oversight & Accountability

Oversight will be managed by the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance metrics.

Related Government Programs

T700 Engine Maintenance Programs
Aerospace Component Support Contracts
Department of Defense Aviation Maintenance
Naval Air Systems Command (NAVAIR) Contracts

Risk Flags

Sole-source award
Limited public performance data
Potential for price inflation due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to ASIA PACIFIC AEROSPACE PTY. LTD.. T700 ENGINE TLS

Who is the contractor on this award?

The obligated recipient is ASIA PACIFIC AEROSPACE PTY. LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2025-12-14. End: 2026-12-14.

What is the track record of Asia Pacific Aerospace Pty. Ltd. in providing T700 engine TLS?

Information regarding Asia Pacific Aerospace Pty. Ltd.'s specific track record with T700 engine TLS is not detailed in the provided data. A comprehensive assessment would require reviewing past performance on similar contracts, client feedback, and any history of contract modifications or disputes. Given the sole-source nature of this award, it is crucial for the Department of the Navy to have conducted thorough due diligence on the contractor's capabilities and past performance to ensure successful execution of this critical support function. Further investigation into their experience with military aviation engine maintenance, particularly for the T700 series, would be warranted.

How does the $7.7 million contract value compare to market rates for similar T700 engine TLS services?

Directly comparing the $7.7 million contract value to market rates for T700 engine TLS is challenging without granular data on the specific services included (e.g., number of engines, types of repairs, turnaround times, parts included). However, the firm fixed-price nature suggests a defined scope. Given the sole-source award, it's difficult to ascertain if this represents the most competitive market rate. A thorough value analysis would involve benchmarking against publicly available data for similar engine support contracts, considering factors like engine hours, complexity of maintenance, and geographic location of service. The absence of competition inherently limits the ability to confirm optimal market pricing.

What are the primary risks associated with this sole-source contract award?

The primary risks associated with this sole-source contract are related to price and performance. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to overpayment by the government. Furthermore, the lack of alternative providers can create dependency, and if the contractor underperforms or faces financial difficulties, the government may have limited recourse or face significant disruption in obtaining essential engine support. Robust oversight and clear performance metrics are critical to mitigate these risks. The government must ensure stringent monitoring of service delivery and quality to hold the contractor accountable.

What is the expected effectiveness of this contract in ensuring T700 engine readiness for the Department of the Navy?

The effectiveness of this contract hinges on the contractor's ability to deliver timely and high-quality T700 engine Technical Logistics Support (TLS) as specified. The firm fixed-price structure provides a clear financial framework, but operational effectiveness depends on the contractor's expertise, resource availability, and adherence to performance standards. The Department of the Navy's oversight will be crucial in monitoring service delivery, ensuring that engine readiness is maintained or improved. The sole-source nature necessitates a high degree of trust in the contractor's capabilities and commitment to meeting the Navy's operational requirements.

What are the historical spending patterns for T700 engine TLS by the Department of the Navy?

Historical spending patterns for T700 engine TLS by the Department of the Navy are not detailed in the provided data. To understand these patterns, one would need to analyze past contract awards for similar services, including the number of contracts, their values, durations, and the contractors involved. Examining trends in spending over several fiscal years could reveal whether this $7.7 million award is consistent with previous investments, or if it represents an increase or decrease. Such analysis would also help identify any shifts in contracting strategies, such as a move towards or away from sole-source awards for this type of support.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. For a firm fixed-price contract, especially one involving critical technical support like engine TLS, clear and measurable KPIs are essential for effective oversight and accountability. These might include metrics related to turnaround time for repairs, quality of work, parts availability, and adherence to technical specifications. The Department of the Navy would typically define these KPIs in the contract's Statement of Work (SOW) to ensure the contractor meets the required standards for T700 engine readiness. Without this information, assessing the contract's likely effectiveness is more challenging.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 750 MACARTHUR AVE CENTRAL, PINKENBA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,698,066

Exercised Options: $7,698,066

Current Obligation: $7,698,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline