DoD Awards Kay and Associates $342M for Air Transportation Support
Contract Overview
Contract Amount: $342,310,070 ($342.3M)
Contractor: KAY and Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-12-23
End Date: 2026-01-31
Contract Duration: 1,500 days
Daily Burn Rate: $228.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWARD CMSS
Plain-Language Summary
Department of Defense obligated $342.3 million to KAY AND ASSOCIATES, INC. for work described as: AWARD CMSS Key points: 1. Significant contract value of $342.3M awarded to Kay and Associates. 2. No small business participation noted in this award. 3. Contract type is Cost Plus Fixed Fee, which can carry higher risk. 4. The 'Other Support Activities for Air Transportation' sector is critical for military operations.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a lack of readily available benchmark data for this specific service, raises concerns about cost control and potential for overruns. The fixed fee component may not adequately incentivize efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection process. This lack of competition may have hindered price discovery and potentially led to a less favorable price for the government.
Taxpayer Impact: The absence of competitive bidding for a contract of this magnitude suggests taxpayers may not have received the best possible value, as alternative, potentially more cost-effective solutions were not explored.
Public Impact
Impacts military readiness and operational capabilities reliant on air transportation. Potential for increased costs to taxpayers due to non-competitive award. Limited visibility into the specific services provided under 'Other Support Activities'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost Plus Fixed Fee contract type
- No small business participation
Positive Signals
- Essential support for air transportation
- Long-term contract duration
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which is vital for maintaining military aviation readiness. Spending in this area can fluctuate based on operational tempo and specific mission requirements.
Small Business Impact
The contract was awarded without any small business participation. This represents a missed opportunity to support small businesses and leverage their specialized capabilities within the defense sector.
Oversight & Accountability
Further oversight is needed to ensure cost efficiency and performance under this non-competitive, Cost Plus Fixed Fee contract. Accountability for meeting performance metrics and managing costs effectively is crucial.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- No small business participation
- Limited transparency on justification for sole-source
Tags
other-support-activities-for-air-transpo, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $342.3 million to KAY AND ASSOCIATES, INC.. AWARD CMSS
Who is the contractor on this award?
The obligated recipient is KAY AND ASSOCIATES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $342.3 million.
What is the period of performance?
Start: 2021-12-23. End: 2026-01-31.
What specific factors justified the 'not available for competition' determination for this significant contract?
The justification for a 'not available for competition' award typically stems from unique capabilities, urgent needs, or proprietary technology held by a single source. Without further documentation, it's difficult to ascertain the precise rationale. However, such determinations warrant scrutiny to ensure they are genuinely necessary and not a result of inadequate market research or planning.
How will the government ensure cost control and prevent overruns with a Cost Plus Fixed Fee contract in this service area?
Effective cost control for CPFF contracts relies on robust government oversight, detailed performance metrics, and clear milestones. The government must actively monitor expenditures, validate costs, and ensure the contractor is operating efficiently within the agreed-upon fixed fee parameters. Regular audits and performance reviews are essential to identify and address any potential cost escalations proactively.
What is the expected impact of this contract on the overall efficiency and cost-effectiveness of the Department of the Navy's air transportation support?
The impact on efficiency and cost-effectiveness is uncertain due to the non-competitive nature and CPFF structure. While the contract ensures dedicated support, the lack of competition may mean higher costs than a competitive bid. The government's ability to manage the contract effectively through stringent oversight will be the primary determinant of its overall value and efficiency.
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
Solicitation ID: N0042121R0106
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 165 N ARLINGTON HEIGHTS RD STE 150, BUFFALO GROVE, IL, 60089
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $749,773,017
Exercised Options: $500,869,812
Current Obligation: $342,310,070
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,957,957
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-12-23
Current End Date: 2026-01-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2025-12-01
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