NASA awards $33.7M for aircraft maintenance, with Pinnacle Solutions, LLC securing the definitive contract
Contract Overview
Contract Amount: $33,702,646 ($33.7M)
Contractor: Pinnacle Solutions, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2014-12-21
End Date: 2018-09-30
Contract Duration: 1,379 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AIRCRAFT MAINTENANCE AND OPERATIONS SERVICES
Place of Performance
Location: WALLOPS ISLAND, ACCOMACK County, VIRGINIA, 23337
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $33.7 million to PINNACLE SOLUTIONS, LLC for work described as: AIRCRAFT MAINTENANCE AND OPERATIONS SERVICES Key points: 1. Value for money assessed against contract type and duration. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include contract type and duration. 4. Performance context is aircraft maintenance and operations. 5. Sector positioning within NASA's support activities. 6. Pinnacle Solutions, LLC is the primary contractor.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure suggests potential for cost overruns if not managed tightly. Benchmarking against similar aircraft maintenance contracts is challenging without more detailed service scope and performance data. The total award value of $33.7 million over approximately four years (2014-2018) indicates a moderate-sized contract for specialized aviation support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources,' suggesting a competitive process where multiple vendors were considered. The presence of 3 bidders (no=3) indicates a reasonable level of competition, which should theoretically drive better pricing and service quality. However, the specific 'after exclusion of sources' clause warrants further investigation into any pre-qualification or specific requirements that might have limited the pool.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better value. The fact that multiple companies vied for this contract suggests that taxpayer funds were likely used more efficiently than in a sole-source scenario.
Public Impact
The National Aeronautics and Space Administration (NASA) benefits from essential aircraft maintenance and operational support. Services delivered include maintaining and operating aircraft critical for NASA's missions. The geographic impact is likely concentrated around NASA facilities where aircraft are based. Workforce implications include employment for skilled aviation mechanics and support personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to higher costs if not rigorously managed.
- The 'after exclusion of sources' clause in the competition type requires deeper understanding to ensure full market potential was tapped.
- Limited public data on specific performance metrics makes a comprehensive value assessment difficult.
Positive Signals
- Awarded through full and open competition, indicating a structured procurement process.
- The contract duration of nearly four years suggests a stable, ongoing need for these services.
- Pinnacle Solutions, LLC is a known entity in government contracting, implying some level of established capability.
Sector Analysis
This contract falls within the aerospace and defense support services sector, specifically focusing on aircraft maintenance and operations. The market for such services is substantial, driven by government agencies like NASA and the Department of Defense. Comparable spending benchmarks would involve analyzing other large-scale aviation support contracts awarded by federal agencies, considering factors like fleet size, aircraft types, and service complexity.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (sb=false, ss=false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, there may be subcontracting opportunities for small businesses within Pinnacle Solutions, LLC's operations, depending on their subcontracting plan and the nature of the services required.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS, although detailed performance reports are often internal. The Inspector General's office at NASA would have jurisdiction over any investigations into fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Aviation Management Support
- DoD Aircraft Maintenance Contracts
- Federal Aviation Services Procurement
- Air Transportation Support Services
Risk Flags
- Cost-plus-fixed-fee contract type carries inherent cost escalation risk.
- Competition details ('after exclusion of sources') warrant further scrutiny for potential limitations.
- Lack of detailed performance metrics hinders comprehensive value-for-money assessment.
Tags
nasa, aircraft-maintenance, operations-services, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, pinnacle-solutions-llc, virginia, support-activities-for-air-transportation, federal-contracting
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $33.7 million to PINNACLE SOLUTIONS, LLC. AIRCRAFT MAINTENANCE AND OPERATIONS SERVICES
Who is the contractor on this award?
The obligated recipient is PINNACLE SOLUTIONS, 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 $33.7 million.
What is the period of performance?
Start: 2014-12-21. End: 2018-09-30.
What is the track record of Pinnacle Solutions, LLC with NASA and other federal agencies?
Pinnacle Solutions, LLC has a history of contracting with various U.S. federal agencies, including NASA. Analyzing their past performance on similar contracts is crucial. This involves reviewing contract histories for on-time delivery, quality of service, and any past performance issues or awards. For instance, understanding their experience with cost-plus-fixed-fee contracts and their ability to manage costs effectively within such structures provides insight into their reliability. Their overall federal contracting footprint, including the types of services provided and the agencies served, helps establish a baseline for assessing their capabilities and trustworthiness on the $33.7 million aircraft maintenance contract.
How does the $33.7 million award compare to similar aircraft maintenance contracts?
The $33.7 million award for aircraft maintenance and operations services over approximately four years (2014-2018) represents a moderate investment. To benchmark this value, one would compare it against contracts for similar services provided to agencies like the Department of Defense or the FAA. Key comparison points include the number and type of aircraft maintained, the scope of services (e.g., depot-level maintenance vs. line maintenance), geographic locations, and contract types. A higher per-aircraft cost or a higher total cost for a similar scope would suggest potentially lower value for money. Conversely, if this contract covered a larger or more complex fleet, the value might be considered competitive.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft maintenance?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Pinnacle Solutions, LLC, present specific risks. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the 'fixed fee' provides the contractor with a predetermined profit, the potential for cost overruns still exists, which could increase the total contract value beyond initial estimates. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear performance metrics to ensure the contractor operates efficiently and within reasonable cost parameters. Unforeseen technical issues or scope creep can significantly inflate costs under this contract type.
How effective has NASA been in managing its aviation support contracts historically?
NASA's effectiveness in managing aviation support contracts can be assessed by examining historical contract performance data, including cost variances, schedule adherence, and mission success rates related to aircraft operations. Agencies like NASA often operate complex aviation programs requiring specialized maintenance. Historical data might reveal patterns of successful contract completions, or conversely, instances of cost overruns, delays, or performance deficiencies. Analyzing the agency's procurement strategies, oversight mechanisms, and its ability to adapt to changing technological or operational needs provides insight into its overall management effectiveness in this domain.
What has been the trend in federal spending on aircraft maintenance and operations services over the past decade?
Federal spending on aircraft maintenance and operations services has generally remained substantial, driven by the needs of the Department of Defense, NASA, and other agencies operating aviation fleets. Over the past decade, spending patterns have likely been influenced by factors such as geopolitical events, budget appropriations, modernization efforts, and the retirement of older aircraft. While specific figures fluctuate annually, the overall demand for these services remains consistent due to the critical role aviation plays in national security and scientific exploration. Analyzing trends requires examining aggregate spending data across relevant agencies and contract types.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNG14446460R
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8 PARADE ST NW STE 301, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $95,017,466
Exercised Options: $70,891,189
Current Obligation: $33,702,646
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-12-21
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2021-03-19
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