DoD's $41.6M JPATS Engine Maintenance Contract Awarded to IAP Worldwide Services

Contract Overview

Contract Amount: $41,568,480 ($41.6M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-05-15

End Date: 2016-05-14

Contract Duration: 365 days

Daily Burn Rate: $113.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF, JPATS: ENGINE DEPOT LEVEL MAINTENANCE FOR PT6A-68

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF, JPATS: ENGINE DEPOT LEVEL MAINTENANCE FOR PT6A-68 Key points: 1. Contract awarded for depot-level engine maintenance for PT6A-68 engines. 2. IAP Worldwide Services, Inc. is the sole contractor for this delivery order. 3. The contract duration is 365 days with a value of $41.6 million. 4. This falls under the Aircraft Manufacturing sector.

Value Assessment

Rating: fair

The contract type is Cost No Fee, which can make price assessment challenging. The awarded amount is $41.6 million for a 365-day period. Without specific performance metrics or comparable contracts, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, this specific award is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. The competitive nature of the initial IDIQ is positive for price discovery.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the specific cost-effectiveness of this delivery order requires further analysis.

Public Impact

Ensures operational readiness of critical aircraft engines for the Air Force. Supports specialized maintenance services for PT6A-68 engines. Impacts the aerospace and defense industry through service contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type can obscure true costs.
Limited visibility into the competitive landscape for this specific delivery order.

Positive Signals

Awarded under full and open competition.
Supports critical Department of Defense aviation assets.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on depot-level maintenance for a particular engine type. Spending benchmarks in this sector can vary widely based on the complexity of the aircraft and engine systems.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of the Air Force awarded this contract. Oversight would typically involve monitoring contract performance, adherence to terms, and financial reporting to ensure accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost No Fee contract type.
Potential for limited competition on specific delivery orders.
Lack of detailed performance metrics in the provided data.
Need for further analysis on cost reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF, JPATS: ENGINE DEPOT LEVEL MAINTENANCE FOR PT6A-68

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $41.6 million.

What is the period of performance?

Start: 2015-05-15. End: 2016-05-14.

What is the typical cost for depot-level maintenance of PT6A-68 engines, and how does this contract's value compare?

Determining a precise benchmark for PT6A-68 engine maintenance is complex, as costs depend on the specific services required, parts replaced, and labor rates. However, given the $41.6 million value for a year of service, it suggests a significant volume of maintenance activity. A detailed comparison would require access to specific maintenance logs and industry cost data for similar engine types and service levels.

What are the risks associated with a Cost No Fee contract for engine maintenance?

A Cost No Fee (CNF) contract presents risks primarily related to cost control and transparency. The government bears the cost of performance, and the contractor receives no fee. This structure can incentivize contractors to minimize costs, but it also means the government lacks a direct profit motive for the contractor to drive efficiency. Oversight is crucial to ensure costs remain reasonable and that the contractor performs diligently without a direct financial incentive beyond cost recovery.

How effective is full and open competition in ensuring value for specialized aircraft engine maintenance?

Full and open competition is generally effective in driving value by allowing multiple qualified vendors to bid, fostering price reductions and innovation. For specialized services like aircraft engine maintenance, its effectiveness depends on the number of capable contractors and the clarity of the solicitation requirements. If the market has few specialized providers, competition might be limited even under an 'open' solicitation, potentially impacting the ultimate value achieved.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,568,480

Exercised Options: $41,568,480

Current Obligation: $41,568,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA853008D0005

IDV Type: IDC

Timeline