State Department Spends $16.3M on Dash 8 Retrofit by TKC Aerospace, Lacking Competition
Contract Overview
Contract Amount: $16,314,880 ($16.3M)
Contractor: TKC Aerospace, Inc.
Awarding Agency: Department of State
Start Date: 2010-03-19
End Date: 2013-07-16
Contract Duration: 1,215 days
Daily Burn Rate: $13.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DASH 8 RETROFIT
Place of Performance
Location: DANIEL ISLAND, BERKELEY County, SOUTH CAROLINA, 29492
Plain-Language Summary
Department of State obligated $16.3 million to TKC AEROSPACE, INC. for work described as: DASH 8 RETROFIT Key points: 1. Significant spending on aircraft modification highlights a niche but critical area of government operations. 2. The sole-source nature of this contract raises questions about potential overspending and lack of market pressure. 3. Reliance on a single vendor for specialized services can create long-term dependencies and limit future options. 4. The engineering services sector is competitive, making the lack of competition here particularly noteworthy.
Value Assessment
Rating: questionable
The award amount of $16.3M for engineering services is difficult to benchmark without specific details on the retrofit scope. However, the lack of competition suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competitive bidding process. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive solicitation, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding for essential aircraft retrofitting services. The Department of State's reliance on a single vendor for this specific service could impact future procurement flexibility. The long duration of the contract (over 3 years) suggests a substantial and potentially costly undertaking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Specific engineering service provided
- Contract completed
Sector Analysis
The Department of State's spending on aircraft modification falls within the broader engineering services sector. Benchmarks for specialized aerospace engineering services can vary widely, but competitive procurements typically yield better value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source procurement, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price was fair and reasonable, and that adequate justification existed for foregoing competition.
Related Government Programs
- Engineering Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited small business participation
- High contract value for specialized service
Tags
engineering-services, department-of-state, sc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $16.3 million to TKC AEROSPACE, INC.. DASH 8 RETROFIT
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 $16.3 million.
What is the period of performance?
Start: 2010-03-19. End: 2013-07-16.
Was the sole-source justification for this contract robust, and were alternative competitive strategies considered?
The provided data indicates a sole-source award, suggesting that competitive strategies were not utilized or deemed feasible. A robust justification would typically detail why only one vendor could meet the specific, urgent, or unique requirements, and why competition was impracticable. Without this justification, it's difficult to assess if taxpayer funds were optimally used.
What was the specific scope of the Dash 8 retrofit, and how does the $16.3M cost compare to similar, competitively procured projects?
The data does not detail the specific scope of the Dash 8 retrofit. To assess value, a comparison with similar, competitively procured aircraft modification projects would be necessary. The absence of competition in this award makes direct value comparison challenging and raises concerns about potential cost overruns.
What is the long-term impact of relying on TKC Aerospace for this specific engineering service on the Department of State's operational capabilities?
Sole-source contracts can create vendor lock-in, potentially limiting the Department of State's flexibility and bargaining power for future needs. This reliance might also hinder the development of internal expertise or the fostering of a broader competitive market for such specialized services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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, Emerging Small Business, 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
Financial Breakdown
Contract Ceiling: $16,314,880
Exercised Options: $16,314,880
Current Obligation: $16,314,880
Parent Contract
Parent Award PIID: SAQMMA09D0025
IDV Type: IDC
Timeline
Start Date: 2010-03-19
Current End Date: 2013-07-16
Potential End Date: 2013-07-16 00:00:00
Last Modified: 2013-07-17
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