Air Force contract for aircraft structural component repair awarded at $11.67M, highlighting maintenance needs

Contract Overview

Contract Amount: $11,671,401 ($11.7M)

Contractor: CAE USA Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-15

End Date: 2007-09-30

Contract Duration: 564 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200606!000141!5700!FA8106!OC-ALC/LAD CLS !F0561100DM003 !A!N! !Y!SD04 ! !20060315!20070330!018339952!018339952!018339952!N!DOSS AVIATION, INC !3320 W CAREFREE CIR !COLORADO SPRIN !CO!80917!79545!041!08!UNITED STATES AIR FO!EL PASO !COLORADO !+000002578300!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !5!A!S! ! ! !99990909!B! ! !A! !A!N!J!2!002!B! !C!N!Z! ! !Y!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80917

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to CAE USA INC. for work described as: 200606!000141!5700!FA8106!OC-ALC/LAD CLS !F0561100DM003 !A!N! !Y!SD04 ! !20060315!20070330!018339952!018339952!018339952!N!DOSS AVIATION, INC !3320 W CAREFREE CIR !COLORADO SPRIN !CO!80917!79545!041!08!UNITED STATES AIR FO!EL P… Key points: 1. Contract focuses on essential maintenance and repair of aircraft structural components, indicating a need for ongoing fleet upkeep. 2. The award value suggests a significant investment in ensuring the structural integrity and operational readiness of Air Force aircraft. 3. Fixed-price contract type implies that the government has a clear understanding of costs, transferring some risk to the contractor. 4. The duration of the contract points to a sustained requirement for these specialized repair services. 5. The geographic location of the contractor in Colorado may influence logistics and response times for certain Air Force bases.

Value Assessment

Rating: good

The contract value of $11.67 million for aircraft structural component repair appears reasonable given the specialized nature of the services. Benchmarking against similar maintenance contracts for Air Force aircraft would provide a more precise value-for-money assessment. The firm fixed-price structure suggests a degree of cost certainty for the government, though the final cost could vary based on the extent of repairs needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of securing the best possible price and quality for services rendered.

Public Impact

The primary beneficiaries are the United States Air Force, which receives critical maintenance services to ensure aircraft readiness. Services delivered include the repair of aircraft structural components, vital for flight safety and operational capability. The geographic impact is primarily centered around the Air Force bases served by the contractor, with potential national implications for fleet readiness. Workforce implications include employment opportunities for skilled technicians and support staff involved in aircraft repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise beyond the initial scope.
Dependence on contractor's specialized expertise and availability of skilled labor.
Risk of delays if supply chain issues impact the availability of necessary parts or materials.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
Contractor's location may offer logistical advantages for certain Air Force installations.

Sector Analysis

The aerospace and defense industry is characterized by high technological demands and stringent quality requirements. Contracts for aircraft maintenance and repair are a significant segment, supporting the operational readiness of military fleets. This contract fits within the broader category of aviation services, where specialized firms provide essential upkeep for complex machinery. Comparable spending benchmarks would involve analyzing other contracts for structural repair and component maintenance across different military branches.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The prime contractor, DOSS AVIATION, INC., is listed with a Cage code, suggesting it is a registered entity. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within this contract's scope.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and quality standards. Accountability measures are inherent in the firm fixed-price structure, with performance metrics likely tied to delivery schedules and repair quality. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

Aircraft Maintenance and Repair Services
Air Force Fleet Readiness Programs
Aviation Structural Component Services
Defense Logistics and Sustainment

Risk Flags

Potential for scope creep if unforeseen structural issues are discovered.
Contractor performance risk related to specialized repair expertise.
Supply chain vulnerability for critical aircraft components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to CAE USA INC.. 200606!000141!5700!FA8106!OC-ALC/LAD CLS !F0561100DM003 !A!N! !Y!SD04 ! !20060315!20070330!018339952!018339952!018339952!N!DOSS AVIATION, INC !3320 W CAREFREE CIR !COLORADO SPRIN !CO!80917!79545!041!08!UNITED STATES AIR FO!EL PASO !COLORADO !+000002578300!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !5!A!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is CAE USA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2006-03-15. End: 2007-09-30.

What is the track record of DOSS AVIATION, INC. in performing similar aircraft structural repair contracts for the Department of Defense?

Information regarding DOSS AVIATION, INC.'s specific track record on similar contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations, contract history with the DoD, and any reported issues or successes on previous maintenance and repair awards. This would involve searching databases like the Federal Procurement Data System (FPDS) or agency-specific performance management systems to gauge their reliability, quality of work, and adherence to schedules and budgets on comparable projects. Understanding their experience with specific aircraft types and structural components relevant to this contract would also be crucial.

How does the awarded price of $11.67 million compare to market rates for similar aircraft structural component repair services?

Directly comparing the $11.67 million award to precise market rates is challenging without detailed cost breakdowns and specific service scopes. However, the firm fixed-price nature of the contract suggests the government aimed for cost certainty. To benchmark, one would analyze historical data for similar DoD contracts, considering factors like aircraft type, complexity of repairs, labor rates, and material costs. Industry reports on aviation MRO (Maintenance, Repair, and Overhaul) services could also provide general cost indicators. The fact that it was competitively bid suggests the price is likely within a reasonable range, but a deeper dive into the contractor's bid and the government's cost estimates would be necessary for a definitive value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if unforeseen structural damage requires more extensive repairs than initially scoped, delays due to supply chain disruptions for specialized parts, and performance issues if the contractor lacks the necessary expertise or resources. Mitigation strategies likely involve the firm fixed-price structure, which shifts some cost risk to the contractor. The government would also employ oversight through the Defense Contract Management Agency (DCMA) to monitor progress, quality, and adherence to specifications. Pre-qualification of bidders and clear performance standards in the contract also serve to mitigate performance risks. Contingency planning for supply chain issues might also be part of the contractor's operational strategy.

How effective is the firm fixed-price contract type in ensuring value for money for this specific type of service?

The firm fixed-price (FFP) contract type is generally effective for services where the scope of work is well-defined and risks are manageable. For aircraft structural repairs, FFP provides cost predictability for the government, incentivizing the contractor to control costs efficiently. However, if unforeseen complexities arise during repairs, the contractor might face financial strain, potentially leading to disputes or a reluctance to perform beyond the minimum scope. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to accurately estimate costs. In this case, with two bidders, the competitive pressure likely helped establish a fair price, enhancing the value proposition.

What is the historical spending trend for aircraft structural component repair within the Department of Defense?

Historical spending on aircraft structural component repair within the Department of Defense is substantial and generally consistent, reflecting the continuous need to maintain aging fleets and ensure operational readiness. While specific figures for this contract's category are not provided, the DoD consistently allocates significant portions of its budget to maintenance, repair, and overhaul (MRO) services. Spending trends are influenced by factors such as the age of aircraft, operational tempo, new technology integration, and evolving threat landscapes. Analyzing broader DoD spending patterns on aviation MRO over the past decade would reveal trends in investment, potentially showing increases due to fleet modernization programs or sustained spending to support legacy aircraft.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trident Maritime Systems, Inc. (UEI: 164549151)

Address: 3320 CAREFREE CIRCLE WEST, COLORADO SPRIN, CO

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: F0561100DM003

IDV Type: IDC

Timeline