State Department awards $25.4M for aircraft manufacturing to TKC Aerospace, Inc. with limited competition
Contract Overview
Contract Amount: $25,433,484 ($25.4M)
Contractor: TKC Aerospace, Inc.
Awarding Agency: Department of State
Start Date: 2009-06-10
End Date: 2013-05-29
Contract Duration: 1,449 days
Daily Burn Rate: $17.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: OVERSEAS CONTRACT
Place of Performance
Location: DANIEL ISLAND, BERKELEY County, SOUTH CAROLINA, 29492
Plain-Language Summary
Department of State obligated $25.4 million to TKC AEROSPACE, INC. for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded under a limited competition, raising questions about potential price efficiencies. 2. The duration of the contract (1449 days) suggests a significant, ongoing need for aircraft manufacturing services. 3. The 'SC' status code indicates a service contract, which may involve ongoing maintenance or support. 4. The award to TKC Aerospace, Inc. represents a substantial investment in a specialized manufacturing capability. 5. Lack of detailed pricing information makes a direct value-for-money assessment challenging. 6. The contract's geographic scope is not explicitly detailed, but the award notice mentions 'OVERSEAS CONTRACT'.
Value Assessment
Rating: fair
Benchmarking the value of this contract is difficult without more detailed cost breakdowns or comparisons to similar aircraft manufacturing services. The raw dollar amount of $25.4 million over approximately four years indicates a significant expenditure. However, the absence of specific performance metrics or unit costs prevents a definitive assessment of whether this represents excellent value for money. Further analysis would require understanding the specific aircraft models, the scope of manufacturing, and the prevailing market rates for such specialized services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under limited competition, meaning that not all potential offerors were solicited. The specific reasons for this limitation are not detailed in the provided data. Limited competition can sometimes lead to higher prices compared to full and open competition, as the pool of bidders is restricted. The fact that only one bid was received (no: 1) further suggests a lack of robust competition for this requirement.
Taxpayer Impact: Limited competition can potentially result in higher costs for taxpayers if the limited solicitation process does not drive down prices effectively. The absence of a wider range of bids may mean the government did not secure the most cost-effective solution available in the market.
Public Impact
The primary beneficiary is likely the Department of State, which requires aircraft manufacturing services for its operations, potentially for overseas missions. The services delivered include aircraft manufacturing, which could encompass production, modification, or specialized assembly of aircraft. The geographic impact is implied to be overseas, suggesting support for diplomatic or operational needs in foreign locations. Workforce implications could include employment opportunities within TKC Aerospace, Inc. and its supply chain, particularly in South Carolina where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have restricted price discovery and potentially led to a higher cost for taxpayers.
- Lack of detailed performance metrics or unit costs makes it difficult to assess the true value for money.
- The 'OVERSEAS CONTRACT' designation implies potential logistical complexities and risks associated with international operations.
Positive Signals
- The award to a specific contractor (TKC Aerospace, Inc.) suggests a recognized capability in aircraft manufacturing.
- The contract duration indicates a sustained need and a commitment to a particular solution.
- The award notice specifies 'Aircraft Manufacturing' (nd: 'Aircraft Manufacturing'), indicating a clear and defined scope of work.
Sector Analysis
The aircraft manufacturing sector is a highly specialized and capital-intensive industry. This contract falls within the broader aerospace and defense industry, which is characterized by complex supply chains, stringent quality requirements, and significant government procurement. The market size for specialized aircraft manufacturing services can vary widely depending on the type of aircraft and the specific modifications or production runs required. Comparable spending benchmarks would typically involve analyzing other government contracts for similar aircraft production or modification services, as well as private sector market rates.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, TKC Aerospace, Inc., is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that larger businesses were eligible to compete, and the primary focus was likely on capability and price rather than small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of State's contracting and program management offices. Accountability measures would be defined within the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award notices, but detailed oversight reports or Inspector General jurisdiction specific to this contract are not provided in the data. The contract's duration and value suggest that ongoing monitoring of performance and expenditures would be expected.
Related Government Programs
- Department of Defense Aircraft Procurement
- Federal Aviation Administration Aircraft Certification
- General Services Administration Fleet Management
Risk Flags
- Limited competition may lead to higher costs.
- Lack of detailed performance metrics hinders value assessment.
- Potential logistical complexities due to 'OVERSEAS CONTRACT' designation.
Tags
aircraft-manufacturing, department-of-state, limited-competition, overseas-contract, tkc-aerospace-inc, defense-sector, specialized-manufacturing, large-contract, service-contract, south-carolina
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $25.4 million to TKC AEROSPACE, INC.. OVERSEAS CONTRACT
Who is the contractor on this award?
The obligated recipient is TKC AEROSPACE, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $25.4 million.
What is the period of performance?
Start: 2009-06-10. End: 2013-05-29.
What specific types of aircraft are being manufactured or modified under this contract?
The provided data indicates the contract is for 'Aircraft Manufacturing' (nd: 'Aircraft Manufacturing') but does not specify the exact types of aircraft. This could range from small unmanned aerial vehicles (UAVs) to larger fixed-wing or rotary-wing aircraft, or components thereof. Understanding the specific aircraft is crucial for assessing the technical requirements, associated risks, and the relevance of the contractor's expertise. Without this detail, it's challenging to benchmark against other manufacturing contracts or evaluate the complexity of the work.
What is the historical spending pattern for aircraft manufacturing services by the Department of State?
The provided data only includes a single contract award of $25.4 million to TKC Aerospace, Inc. It does not offer a historical view of the Department of State's spending on aircraft manufacturing. To establish a pattern, one would need to analyze contract databases for previous awards related to aircraft manufacturing, including the number of contracts, their values, the contractors involved, and the duration of those contracts. This would help determine if this award is an outlier, a continuation of previous support, or part of a larger strategic investment in aircraft manufacturing capabilities for the department.
What are the specific performance metrics and quality standards required for this aircraft manufacturing contract?
The provided data does not detail the specific performance metrics or quality standards for this contract. In aircraft manufacturing, these are typically stringent and would include aspects like adherence to design specifications, material quality, manufacturing tolerances, safety standards (e.g., FAA or military specifications), and delivery timelines. The absence of this information makes it difficult to assess the contractor's performance objectively or to determine if the government is receiving high-quality products and services that meet its operational needs. A thorough review of the contract's statement of work would be necessary to identify these critical elements.
What is the geographic location of the manufacturing work, and what are the associated logistical challenges?
The award notice specifies 'OVERSEAS CONTRACT', implying that the manufacturing work or its intended use is related to overseas operations. However, the exact location of the manufacturing facility is not specified, though the contractor's state is listed as South Carolina (sn: 'SOUTH CAROLINA'). If manufacturing occurs overseas, it introduces significant logistical challenges related to supply chain management, quality control, transportation, and potentially different regulatory environments. If manufacturing is in South Carolina but the end-use is overseas, the logistical challenges shift to deployment and support in foreign territories.
How does the pricing of this contract compare to industry benchmarks for similar aircraft manufacturing services?
Directly comparing the pricing of this $25.4 million contract to industry benchmarks is challenging without knowing the specific aircraft models, the scope of work (e.g., new production vs. modification vs. repair), and the quantities involved. Aircraft manufacturing is highly variable. However, the fact that it was awarded under limited competition and received only one bid (no: 1) raises a flag that the price might not be as competitive as it could be under a fully open solicitation. A detailed cost analysis, including labor rates, material costs, and overhead, would be needed to perform a robust benchmark comparison.
What is the track record of TKC Aerospace, Inc. in fulfilling government contracts, particularly in aircraft manufacturing?
The provided data identifies TKC Aerospace, Inc. as the contractor but does not offer details on their track record. To assess their reliability and past performance, one would need to consult government contract databases (like FPDS or SAM.gov) for previous awards, contract performance evaluations (e.g., CPARS reports), and any history of disputes or contract terminations. A strong track record in similar aircraft manufacturing projects would increase confidence in their ability to successfully execute this contract, while a history of issues would represent a significant risk.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Kuskokwim Corporation (UEI: 055665624)
Address: 1183 DANIEL ISLAND DR, CHARLESTON, SC, 06
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,433,484
Exercised Options: $25,433,484
Current Obligation: $25,433,484
Timeline
Start Date: 2009-06-10
Current End Date: 2013-05-29
Potential End Date: 2013-05-29 00:00:00
Last Modified: 2013-10-12
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