DoD Awards $91.8M F/A-18 Labor Contract to AVMAC LLC Under Full and Open Competition

Contract Overview

Contract Amount: $91,822,908 ($91.8M)

Contractor: Avmac LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-04-30

Contract Duration: 759 days

Daily Burn Rate: $121.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F/A-18 LABOR-FRD

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $91.8 million to AVMAC LLC for work described as: F/A-18 LABOR-FRD Key points: 1. Contract value of $91.8M for F/A-18 labor services. 2. AVMAC LLC is the sole awardee. 3. Competition method is 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Aircraft Manufacturing (NAICS 336411). 5. Contract type is Firm Fixed Price.

Value Assessment

Rating: good

The contract value of $91.8M appears reasonable for specialized aircraft labor services. Benchmarking against similar F/A-18 maintenance or manufacturing contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process was initiated. This method aims to ensure fair pricing through market solicitation.

Taxpayer Impact: The competitive award process is expected to yield fair market pricing, maximizing taxpayer value for essential defense services.

Public Impact

Ensures continued readiness and maintenance of the F/A-18 fleet. Supports specialized labor in the aerospace manufacturing sector. Contributes to the Department of Defense's aviation capabilities. Potential for job creation within AVMAC LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited detail on specific labor categories and rates.
Potential for cost overruns if scope expands beyond initial estimates.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a robust market response.
Long-term contract duration supports program stability.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically supporting the F/A-18 aircraft. Spending in this sector is critical for national defense and technological advancement, with significant government investment typically seen in aircraft procurement and sustainment.

Small Business Impact

The data indicates that AVMAC LLC is the awardee, and it is noted that small business participation is false (ss: false, sb: false). This suggests that the prime contractor is not a small business, and there is no explicit mention of small business subcontracting goals in this award notice.

Oversight & Accountability

The Department of Defense's contracting processes are subject to various oversight mechanisms, including the Federal Acquisition Regulation (FAR) and agency-specific policies. The 'Full and Open Competition After Exclusion of Sources' method implies a structured approach to market engagement and award.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract awarded to a single entity.
Potential for limited competition if source exclusion was not fully justified.
Lack of explicit small business subcontracting information.
Need for detailed labor rate analysis to confirm value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.8 million to AVMAC LLC. F/A-18 LABOR-FRD

Who is the contractor on this award?

The obligated recipient is AVMAC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $91.8 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-04-30.

What specific labor categories and skill sets are covered under this contract, and how do their rates compare to industry benchmarks?

The provided data does not detail specific labor categories or skill sets. A comprehensive analysis would require access to the contract's statement of work and detailed pricing breakdowns. Benchmarking these rates against similar roles in the aerospace industry, considering experience and location, would be crucial for assessing true value and ensuring fair pricing for taxpayer funds.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' method, particularly concerning price discovery?

While this method implies competition, excluding specific sources might limit the pool of potential bidders, potentially impacting the breadth of price discovery. If the exclusion was not justified by unique capabilities or past performance, it could lead to less competitive pricing than a truly unrestricted full and open competition. Monitoring contract performance and future solicitations is key.

How does the firm fixed price structure mitigate risks related to cost overruns for the government?

A Firm Fixed Price (FFP) contract shifts most of the cost risk to the contractor. AVMAC LLC is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This structure provides significant cost certainty for the Department of Defense, protecting against unexpected increases in labor or material costs, provided the scope of work is well-defined.

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: N0042120R0105

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 516 INNOVATION DR STE 201, CHESAPEAKE, VA, 23320

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $182,876,249

Exercised Options: $91,822,908

Current Obligation: $91,822,908

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,378,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6852020D0012

IDV Type: IDC

Timeline