Navy Awards $49.5M for F-5N Aircraft Repair, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $49,451,389 ($49.5M)
Contractor: Tactical AIR Support, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-01
End Date: 2024-12-31
Contract Duration: 914 days
Daily Burn Rate: $54.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-5N CONV/INSP/REPAIR LABOR
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32221
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $49.5 million to TACTICAL AIR SUPPORT, INC. for work described as: F-5N CONV/INSP/REPAIR LABOR Key points: 1. Significant contract value for specialized aircraft maintenance. 2. Sole-source award limits competitive pricing and potential innovation. 3. Risk of inflated costs due to lack of competition. 4. Sector focus on defense aviation manufacturing and repair.
Value Assessment
Rating: questionable
The contract's value of $49.5 million for F-5N conversion, inspection, and repair labor is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to industry benchmarks for similar specialized aircraft maintenance services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, TACTICAL AIR SUPPORT, INC., was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these specialized aircraft repair services.
Public Impact
Taxpayers may be overpaying for critical F-5N aircraft maintenance due to the absence of competitive bidding. The Department of the Navy relies on a single contractor for essential F-5N support, creating a potential single point of failure. Limited transparency in pricing for specialized defense aviation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Essential defense capability supported
- Contract awarded to a specialized provider
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing (NAICS 336411). Spending in this area is critical for national security, but often involves complex, specialized services where competition can be challenging.
Small Business Impact
The contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to participate in this segment of defense contracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services at a fair and reasonable price, despite the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs.
- Lack of transparency in pricing.
- Dependency on a single contractor.
- No small business participation.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.5 million to TACTICAL AIR SUPPORT, INC.. F-5N CONV/INSP/REPAIR LABOR
Who is the contractor on this award?
The obligated recipient is TACTICAL AIR SUPPORT, 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 $49.5 million.
What is the period of performance?
Start: 2022-07-01. End: 2024-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. The Department of the Navy should provide detailed documentation supporting this decision. Oversight mechanisms, such as independent cost analyses or benchmarking against similar sole-source contracts, are crucial to ensure fair pricing and prevent potential overspending by taxpayers.
What are the risks associated with relying on a single contractor for F-5N aircraft maintenance, particularly concerning delivery timelines and quality?
Relying on a single contractor creates significant risks, including potential delays if the contractor faces operational issues, labor shortages, or supply chain disruptions. Quality control can also be a concern without competitive pressure. The Navy must have robust performance monitoring and contingency plans in place to mitigate these risks and ensure the continued readiness of the F-5N fleet.
How does the pricing of this sole-source contract compare to historical data or industry benchmarks for similar aircraft maintenance services?
Without access to proprietary pricing data or detailed industry benchmarks for highly specialized F-5N maintenance, a direct comparison is difficult. However, the absence of competition inherently raises a red flag regarding potential price inflation. The government should conduct an internal review or engage an independent auditor to assess the reasonableness of the labor rates and overall contract cost against available data.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042121R0139
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13401 AEROSPACE WAY HNGR 945, JACKSONVILLE, FL, 32221
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,451,389
Exercised Options: $49,451,389
Current Obligation: $49,451,389
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042122D0095
IDV Type: IDC
Timeline
Start Date: 2022-07-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-09-09
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