NASA's $63.8M Aircraft Maintenance Program Awarded to PAE Applied Technologies Without Competition
Contract Overview
Contract Amount: $63,844,142 ($63.8M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2009-09-01
End Date: 2013-06-30
Contract Duration: 1,398 days
Daily Burn Rate: $45.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: AIRCRAFT MAINTENANCE AND MODIFICATION PROGRAM (AMMP)
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $63.8 million to PAE APPLIED TECHNOLOGIES LLC for work described as: AIRCRAFT MAINTENANCE AND MODIFICATION PROGRAM (AMMP) Key points: 1. Significant contract value of $63.8 million for aircraft maintenance. 2. PAE Applied Technologies LLC is the sole awardee, indicating a lack of competition. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs. 4. The sector is Other Support Activities for Air Transportation, a specialized area.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure allows for performance incentives but lacks a fixed price ceiling, potentially leading to costs exceeding initial estimates. Benchmarking is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning there was no open bidding process. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in the government paying more than it would have under a competitive procurement, impacting taxpayer value.
Public Impact
Taxpayers may have paid a premium due to the absence of competitive bidding. The long duration of the contract (nearly 4 years) means sustained potential for overspending. Lack of transparency in the sole-source award process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Awarded to an established company (PAE Applied Technologies LLC)
- Contract supports critical NASA operations
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation,' a niche sector. Spending in this area is often driven by specific agency needs for specialized maintenance and support services, making direct comparisons challenging.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the justification for not competing was robust and that the pricing is reasonable. Further oversight is needed to confirm value for money.
Related Government Programs
- Other Support Activities for Air Transportation
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competition
- Cost Plus Award Fee structure
- Potential for cost overruns
- Limited transparency in award process
Tags
other-support-activities-for-air-transpo, national-aeronautics-and-space-administr, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $63.8 million to PAE APPLIED TECHNOLOGIES LLC. AIRCRAFT MAINTENANCE AND MODIFICATION PROGRAM (AMMP)
Who is the contractor on this award?
The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $63.8 million.
What is the period of performance?
Start: 2009-09-01. End: 2013-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED' and lists the contract type as 'sole-source' in the 'ca' section. A thorough review of NASA's procurement records would be necessary to ascertain the specific justification, such as a unique capability or urgent need, and to verify that all required documentation and approvals were obtained according to federal acquisition regulations.
How does the Cost Plus Award Fee structure impact the final cost and performance compared to other contract types for similar services?
Cost Plus Award Fee (CPAF) contracts reimburse the contractor for allowable costs and provide a base fee plus an award amount based on performance against defined criteria. While CPAF can incentivize high performance, it lacks a definitive cost ceiling, potentially leading to higher final costs than fixed-price contracts if not managed closely. Benchmarking against similar CPAF contracts for aircraft maintenance is crucial to assess value.
What is the potential risk of cost overruns or inefficiencies given the lack of competition and the CPAF structure?
The combination of a sole-source award and a CPAF structure presents a heightened risk of cost overruns and inefficiencies. Without competitive pressure, the contractor may have less incentive to control costs aggressively. The CPAF's performance incentives, while positive, are layered on top of cost reimbursement, meaning the government bears the cost risk. Robust oversight and clear performance metrics are essential to mitigate these risks.
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 COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNJ08247027R
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 6500 WEST FREEWAY STE 600, FORT WORTH, TX, 90
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,299,723
Exercised Options: $74,366,675
Current Obligation: $63,844,142
Parent Contract
Parent Award PIID: NNJ09JE44C
IDV Type: IDC
Timeline
Start Date: 2009-09-01
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2013-08-22
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