State Department's $24.25M ISR Aircraft Contract Awarded to TKC Aerospace, Inc
Contract Overview
Contract Amount: $24,252,385 ($24.3M)
Contractor: TKC Aerospace, Inc.
Awarding Agency: Department of State
Start Date: 2010-08-10
End Date: 2014-11-30
Contract Duration: 1,573 days
Daily Burn Rate: $15.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MEXICO ISR AIRCRAFT
Place of Performance
Location: CHARLESTON, BERKELEY County, SOUTH CAROLINA, 29406
Plain-Language Summary
Department of State obligated $24.3 million to TKC AEROSPACE, INC. for work described as: MEXICO ISR AIRCRAFT Key points: 1. Contract awarded for engineering services related to ISR aircraft. 2. TKC Aerospace, Inc. secured the contract. 3. The contract duration was 1573 days. 4. This was a firm-fixed-price contract. 5. The contract was not competed. 6. The award was a delivery order.
Value Assessment
Rating: questionable
Value for money is difficult to assess without a competitive bidding process. The raw dollar amount of $24.25 million over the contract's lifespan suggests a significant investment. Benchmarking against similar ISR aircraft engineering services contracts would be necessary to determine if the pricing was competitive. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The absence of multiple bidders means there was no opportunity for price discovery through a competitive process. This approach limits the government's ability to secure the best possible pricing and service.
Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the contractor faced no pressure to offer the lowest possible price.
Public Impact
Intelligence, Surveillance, and Reconnaissance (ISR) capabilities are enhanced for the Department of State. This contract supports national security objectives by ensuring the operational readiness of critical aircraft. The services provided likely involve specialized engineering expertise for complex aircraft systems. The geographic impact is likely global, given the nature of ISR operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about price fairness and potential for inflated costs.
- Limited transparency into the justification for a sole-source award.
- Performance metrics and quality assurance details are not readily available from the provided data.
Positive Signals
- Contract awarded to a single entity, potentially indicating specialized expertise required.
- Firm-fixed-price contract type can provide cost certainty if well-defined.
Sector Analysis
The Intelligence, Surveillance, and Reconnaissance (ISR) sector is a critical component of national security, involving advanced technology and specialized services. This contract falls within the broader aerospace and defense industry, which is characterized by high barriers to entry and significant government spending. Comparable spending benchmarks for ISR aircraft engineering services are difficult to ascertain without more specific details on the scope of work.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting plans or their impact on the small business ecosystem. The sole-source nature of the award further limits opportunities for small businesses to participate.
Oversight & Accountability
Oversight mechanisms for this contract are not detailed in the provided data. Transparency is limited due to the sole-source nature of the award. Accountability would typically be managed through contract performance reviews and deliverables, but specific details are absent.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Programs
- Aerospace Engineering Services
- Department of State Aviation Support
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for uncompetitive pricing.
- Limited transparency on contract specifics and performance.
Tags
defense, department-of-state, engineering-services, sole-source, large-contract, firm-fixed-price, delivery-order, isr-aircraft, aerospace, intelligence
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $24.3 million to TKC AEROSPACE, INC.. MEXICO ISR AIRCRAFT
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 $24.3 million.
What is the period of performance?
Start: 2010-08-10. End: 2014-11-30.
What specific engineering services were provided under this contract?
The provided data indicates the contract was for 'Engineering Services' (NAICS code 541330) related to 'MEXICO ISR AIRCRAFT'. While the exact nature of the engineering services is not detailed, it likely encompasses design, modification, maintenance, testing, or integration of systems for Intelligence, Surveillance, and Reconnaissance (ISR) aircraft operating in or related to Mexico. This could include avionics, communication systems, sensor integration, structural modifications, or performance enhancements tailored to the specific mission requirements of ISR platforms.
What is the justification for awarding this contract on a sole-source basis?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION', which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, such as when there is a unique capability, a critical need with no viable alternatives, or a follow-on effort to a previously competed contract where only the original contractor possesses the necessary knowledge or proprietary data. Without further documentation, the precise reason remains unknown.
How does the $24.25 million contract value compare to similar ISR aircraft engineering contracts?
Direct comparison of the $24.25 million contract value to similar ISR aircraft engineering contracts is challenging without more specific details on the scope of work, duration, and the specific types of aircraft involved. However, for a contract spanning 1573 days (approximately 4.3 years), this value suggests a substantial engineering effort. The lack of competition means this figure cannot be benchmarked against competitive bids, making it difficult to assess if it represents fair market value. A thorough analysis would require identifying comparable contracts with similar technical requirements and contract types.
What is TKC Aerospace, Inc.'s track record with government contracts, particularly for ISR aircraft?
The provided data identifies TKC Aerospace, Inc. as the contractor for this $24.25 million contract. However, it does not offer details on the company's broader track record, past performance ratings, or experience with other government contracts, especially those related to ISR aircraft. To assess their track record, one would need to consult government contract databases (like FPDS or SAM.gov) for a history of their awards, performance evaluations, and any potential issues or successes on previous engagements.
What are the potential risks associated with a sole-source award for critical ISR aircraft services?
The primary risk associated with a sole-source award for critical ISR aircraft services is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the government may not achieve the best possible pricing. Other risks include a lack of innovation that might arise from competition, potential complacency from the sole contractor regarding performance and quality, and reduced transparency in the procurement process. Furthermore, if the contractor faces unforeseen difficulties, the government has limited alternative options for immediate replacement.
What is the historical spending pattern for ISR aircraft engineering services by the Department of State?
The provided data only contains information for this single contract award. It does not offer historical spending patterns for ISR aircraft engineering services by the Department of State. To understand historical spending, one would need to analyze contract data over multiple fiscal years, identifying all contracts related to ISR aircraft engineering, their values, durations, and the contractors involved. This would reveal trends, identify major spending periods, and highlight key service providers over time.
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, 29492
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: $24,934,441
Exercised Options: $24,934,441
Current Obligation: $24,252,385
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SAQMMA09D0025
IDV Type: IDC
Timeline
Start Date: 2010-08-10
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2016-04-26
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