DoD Awards $31.5M Contract for HMLAT 303 Aircraft Maintenance Labor to Kay and Associates
Contract Overview
Contract Amount: $31,454,619 ($31.5M)
Contractor: KAY and Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2026-03-31
Contract Duration: 1,246 days
Daily Burn Rate: $25.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR LABOR FOR MAINTENANCE FUNCTION REQUIREMENTS OF HMLAT 303 AIRCRAFT.
Place of Performance
Location: OCEANSIDE, SAN DIEGO County, CALIFORNIA, 92057
Plain-Language Summary
Department of Defense obligated $31.5 million to KAY AND ASSOCIATES, INC. for work described as: CONTRACTOR LABOR FOR MAINTENANCE FUNCTION REQUIREMENTS OF HMLAT 303 AIRCRAFT. Key points: 1. The contract value is $31.5 million, awarded by the Department of the Navy. 2. Competition was full and open after exclusion of sources, indicating a structured procurement process. 3. The contract is for aircraft maintenance labor, falling under the Aircraft Manufacturing sector. 4. The fixed-price contract type suggests cost control is a priority.
Value Assessment
Rating: fair
The contract value of $31.5 million for aircraft maintenance labor over approximately 3.5 years needs further benchmarking against similar specialized maintenance contracts. Without specific per-unit cost data, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized full and open competition after exclusion of sources, which typically allows for broad market participation. However, the exclusion of specific sources warrants scrutiny to ensure it did not unduly limit competition or impact price discovery.
Taxpayer Impact: The $31.5 million awarded represents taxpayer investment in maintaining critical military aircraft, with the goal of ensuring operational readiness and efficiency.
Public Impact
Ensures readiness of HMLAT 303 aircraft through specialized maintenance. Supports the Department of the Navy's aviation capabilities. Potential impact on the aerospace maintenance and support services market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited information on specific performance metrics.
- Potential for cost overruns if unforeseen maintenance issues arise.
- Reliance on a single contractor for specialized labor.
Positive Signals
- Fixed-price contract aims to control costs.
- Full and open competition, even with exclusions, suggests a competitive process.
- Long-term contract provides stability for maintenance operations.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized maintenance for military aircraft. Spending benchmarks in this area are highly dependent on aircraft type, age, and complexity of required maintenance.
Small Business Impact
The data indicates that Kay and Associates, Inc. is the awardee, and there is no explicit mention of small business participation or subcontracting goals. Further investigation is needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight will be crucial to ensure Kay and Associates meets all performance requirements and delivery schedules. The Department of the Navy's contracting officers will monitor compliance and manage the contract to ensure value for taxpayer money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if maintenance needs exceed initial estimates.
- Dependence on contractor's ability to retain skilled labor.
- Risk of unforeseen technical issues with aging aircraft.
- Adequacy of competition despite source exclusions.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.5 million to KAY AND ASSOCIATES, INC.. CONTRACTOR LABOR FOR MAINTENANCE FUNCTION REQUIREMENTS OF HMLAT 303 AIRCRAFT.
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 $31.5 million.
What is the period of performance?
Start: 2022-11-01. End: 2026-03-31.
What specific maintenance tasks are included in this contract, and how do they align with the operational needs of the HMLAT 303 aircraft?
The contract covers contractor labor for maintenance function requirements of HMLAT 303 aircraft. While the specific tasks are not detailed in the provided data, they are essential for ensuring the airworthiness and operational readiness of these aircraft. This likely includes scheduled inspections, component replacements, repairs, and potentially unscheduled maintenance based on operational demands.
What were the reasons for excluding certain sources in the 'full and open competition after exclusion of sources' procurement method?
Excluding sources in a full and open competition typically occurs when specific capabilities, certifications, or past performance are required that only a limited number of contractors possess. The justification for exclusion must be documented and defendable to ensure fair competition and avoid potential protests. This ensures the government procures specialized services from qualified entities.
How does the $31.5 million contract value compare to industry benchmarks for similar aircraft maintenance services?
Benchmarking this $31.5 million contract requires detailed comparison with contracts for similar specialized aircraft maintenance. Factors like aircraft model, age, complexity, labor rates, and scope of services significantly influence costs. Without access to detailed cost breakdowns and comparable contract data, a precise benchmark assessment is challenging, but the value appears substantial for specialized labor over several years.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6852022R0013
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 165 N ARLINGTON HEIGHTS RD STE 150, BUFFALO GROVE, IL, 60089
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,060,553
Exercised Options: $37,045,553
Current Obligation: $31,454,619
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6852020D0018
IDV Type: IDC
Timeline
Start Date: 2022-11-01
Current End Date: 2026-03-31
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-14
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