Navy awards $28.7M for F-5N aircraft materials, with limited competition and long-term support

Contract Overview

Contract Amount: $28,746,439 ($28.7M)

Contractor: Tactical AIR Support, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-22

End Date: 2027-09-30

Contract Duration: 1,378 days

Daily Burn Rate: $20.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-5N CONV/INSP/REPAIR MATERIAL

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to TACTICAL AIR SUPPORT, INC. for work described as: F-5N CONV/INSP/REPAIR MATERIAL Key points: 1. Contract focuses on essential materials for F-5N aircraft conversion, inspection, and repair. 2. Sole-source award raises concerns about price competitiveness and potential for cost overruns. 3. Long contract duration (nearly 4 years) suggests a need for sustained support and potential for evolving requirements. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a pre-established relationship. 5. Focus on aircraft manufacturing materials highlights a critical niche within the defense industrial base. 6. The fixed-price contract type aims to control costs, but the lack of competition may undermine this. 7. The award value is significant for specialized aircraft sustainment.

Value Assessment

Rating: questionable

The contract value of $28.7 million for aircraft materials appears substantial. Without specific benchmarks for F-5N conversion/inspection/repair materials, it's difficult to definitively assess value for money. However, the sole-source nature of this award, coupled with a long performance period, suggests a potential for higher costs than if the contract had been competed. The fixed-price type offers some cost control, but the lack of competitive pressure could lead to less favorable pricing for the government.

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 solicited. This approach is typically used when only one source is capable of meeting the government's needs, often due to proprietary technology, unique capabilities, or urgent requirements. The lack of competition means the government did not benefit from a bidding process that could have driven down prices and fostered innovation among multiple potential suppliers.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competition, potentially leading to higher expenditures for taxpayers. It also reduces the incentive for contractors to offer their most competitive rates.

Public Impact

The primary beneficiaries are the U.S. Navy's aviation units that operate F-5N aircraft, ensuring their operational readiness. The contract delivers essential materials required for the conversion, inspection, and repair of these aircraft. The geographic impact is primarily centered around the contractor's facilities and Navy installations where the F-5N aircraft are maintained. Workforce implications include skilled labor in aircraft manufacturing, repair, and logistics at the contractor's site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Long contract duration may lead to scope creep or price adjustments if requirements change significantly.
Lack of competition reduces opportunities for other capable small or large businesses to secure this work.

Positive Signals

Fixed-price contract type provides a degree of cost certainty for the government.
Awarding to an existing contractor (implied by delivery order) may indicate a streamlined process and established performance.
Focus on critical aircraft sustainment ensures readiness for a specific naval aviation capability.

Sector Analysis

The contract falls within the Aircraft Manufacturing (NAICS 336411) sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high technological barriers to entry, significant R&D investment, and stringent quality control requirements. Spending in this area is often driven by defense modernization programs and sustainment needs for existing fleets. Comparable spending benchmarks would typically involve other contracts for aircraft parts, maintenance, and modification services, often awarded through competitive processes or as sole-source actions for specialized platforms.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). The award was made to TACTICAL AIR SUPPORT, INC., which is likely a large business given the contract value and industry. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract are limited unless they are direct suppliers to the prime contractor.

Oversight & Accountability

The contract is a Delivery Order, which implies it is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Oversight for such contracts typically involves the issuing agency (Department of the Navy) through contract officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

F-5 Tiger II Sustainment Programs
Naval Aviation Maintenance and Repair Contracts
Aircraft Component and Material Procurement
Defense Logistics Agency (DLA) Aviation Support

Risk Flags

Sole-source award
Potential for uncompetitive pricing
Long contract duration
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to TACTICAL AIR SUPPORT, INC.. F-5N CONV/INSP/REPAIR MATERIAL

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 $28.7 million.

What is the period of performance?

Start: 2023-12-22. End: 2027-09-30.

What is the track record of TACTICAL AIR SUPPORT, INC. with the Department of Defense, particularly regarding F-5 aircraft programs?

TACTICAL AIR SUPPORT, INC. has a significant history of supporting military aviation, particularly with legacy aircraft like the F-5. They specialize in providing services related to aircraft upgrades, maintenance, and operational support. Their involvement with the F-5 program suggests they possess specialized knowledge and capabilities essential for maintaining and enhancing these platforms. Reviewing their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget, would provide further insight into their reliability and effectiveness. Data from contract databases often shows a pattern of awards for similar services, indicating a sustained relationship and likely satisfactory performance, though specific details on past issues or commendations would require deeper analysis.

How does the pricing of this contract compare to similar F-5 aircraft material procurements or general aircraft component pricing?

Benchmarking the pricing for this $28.7 million contract is challenging without access to detailed cost breakdowns and market data for F-5N conversion/inspection/repair materials. However, the sole-source nature of the award is a significant indicator that the pricing may not be as competitive as it could be under a fully competed scenario. Typically, competitive bidding drives down prices as contractors vie for the award. While the contract is firm fixed-price, which aims to cap costs, the absence of competition means the government relies heavily on the contractor's proposed pricing without the leverage of alternative offers. A thorough value analysis would involve comparing unit costs of specific materials against industry averages or prices paid for similar components on other aircraft types, adjusted for complexity and volume.

What are the primary risks associated with a sole-source award for critical aircraft materials?

The primary risk associated with a sole-source award for critical aircraft materials is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may end up paying more than necessary for the materials and services. Another significant risk is reduced innovation; the sole provider may have less incentive to invest in process improvements or offer cost-saving solutions. Furthermore, dependence on a single supplier can create supply chain vulnerabilities. If the sole-source contractor experiences production issues, financial instability, or decides to exit the market, the government could face significant disruptions in obtaining essential materials, potentially impacting aircraft readiness and operational capabilities.

What is the expected impact of this contract on the operational readiness of the Navy's F-5N fleet?

This contract is directly aimed at enhancing the operational readiness of the Navy's F-5N fleet by ensuring the availability of necessary materials for conversion, inspection, and repair. The F-5N is often used in adversary training roles, and maintaining these aircraft is crucial for providing realistic training scenarios for frontline fighter pilots. By securing these materials, the Navy can sustain the airworthiness of its F-5N aircraft, preventing potential grounding due to lack of parts or maintenance capabilities. The long duration of the contract suggests a commitment to the continued operation and support of this specific aircraft type over the coming years, thereby bolstering overall fleet readiness.

How does this contract fit into the broader context of U.S. military aviation sustainment and modernization efforts?

This contract addresses a specific niche within military aviation sustainment: the continued support of the F-5N platform. While the F-5 is an older aircraft, it remains relevant for specific roles, particularly adversary simulation and training. This contract signifies the Navy's ongoing commitment to maintaining these assets, which are essential for realistic combat training. It highlights the reality that even as newer platforms are introduced, older, capable aircraft often require significant sustainment investments to remain operational. This spending reflects a strategy of balancing modernization with the cost-effective utilization of existing assets, ensuring a comprehensive training and operational capability across the force structure.

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: $28,746,439

Exercised Options: $28,746,439

Current Obligation: $28,746,439

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