DoD's $35M aviation maintenance contract awarded to Management Consulting Inc. shows fair value with competitive pricing

Contract Overview

Contract Amount: $34,974,548 ($35.0M)

Contractor: Management Consulting Inc

Awarding Agency: Department of Defense

Start Date: 2015-07-16

End Date: 2019-03-31

Contract Duration: 1,354 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF FIXED PRICE TASK ORDER, BASE YEAR WITH TWO OPTION PERIODS, FOR NON-PERSONNEL INDIRECT SERVICES CONTRACT PROVIDE THE SKILLED LABOR SET (34 DIFFERENT SKILL SETS) OF PERSONNEL, SPECIFIED AS DELIVERABLE HOURS BILLABLE AT FIXED RATES, IN THE PERFORMANCE OF AVIATION UNIT MAINTENANCE/AVIATION INTERMEDIATE MAINTENANCE, FIELD AND SUSTAINMENT, FLIGHT AND MAINTENANCE RECORDS ON AIRCRAFT, AVIATION LIFE SUPPORT EQUIPMENT AND RELATED EQUIPMENT IN SUPPORT OF CORPUS CHRISTI ARMY DEPOT, TEXAS.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to MANAGEMENT CONSULTING INC for work described as: IGF::OT::IGF FIXED PRICE TASK ORDER, BASE YEAR WITH TWO OPTION PERIODS, FOR NON-PERSONNEL INDIRECT SERVICES CONTRACT PROVIDE THE SKILLED LABOR SET (34 DIFFERENT SKILL SETS) OF PERSONNEL, SPECIFIED AS DELIVERABLE HOURS BILLABLE AT FIXED RATES, IN THE PERFORMANCE OF AVIATION UNIT M… Key points: 1. The contract's firm fixed-price structure for aviation unit and intermediate maintenance services provides cost predictability. 2. Competition dynamics indicate a healthy market for logistics consulting services, potentially driving better pricing. 3. Performance risk appears manageable given the fixed-price nature and defined deliverables. 4. The contract supports critical aviation maintenance functions for the Corpus Christi Army Depot. 5. Spending aligns with the broader trend of outsourcing specialized technical support services within the defense sector.

Value Assessment

Rating: good

The contract's total value of approximately $35 million over its base and option periods appears reasonable for the scope of aviation maintenance and logistics support provided. Benchmarking against similar contracts for depot-level maintenance and repair services suggests that the firm fixed-price structure, coupled with competitive bidding, likely resulted in fair market pricing. The fixed rates for 34 different skill sets offer transparency and control over personnel costs, a key component of service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders suggests a competitive environment for these specialized logistics and maintenance services. A competitive award process generally leads to better price discovery and ensures that the government receives offers from a range of qualified contractors, fostering innovation and efficiency.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider pool of qualified service providers, ensuring value for money.

Public Impact

The primary beneficiaries are the U.S. Army's aviation units requiring maintenance and sustainment support. Services delivered include aviation unit maintenance, intermediate maintenance, field and sustainment support, and management of flight and maintenance records. The contract's geographic impact is centered on the Corpus Christi Army Depot in Texas. Workforce implications include the provision of skilled labor across 34 different skill sets, supporting specialized aviation maintenance roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'related equipment' is broadly interpreted.
Dependence on contractor's ability to maintain a consistent pool of 34 specialized skill sets.
Risk of price increases in future option periods if not adequately benchmarked.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risk for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Clear definition of 34 skill sets provides a basis for performance monitoring.

Sector Analysis

The defense logistics and maintenance sector is characterized by complex supply chains and the need for specialized technical expertise. This contract fits within the broader category of support services for military readiness, where outsourcing to specialized firms is common. The market for aviation maintenance and repair services is substantial, driven by the extensive fleets operated by the U.S. military. Comparable spending often involves multi-year contracts for depot-level support, reflecting the long lifecycle of military aircraft.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Management Consulting Inc., a presumably larger entity, suggests that the primary focus was on technical capability and price for this specific service requirement. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Performance would be monitored against the defined deliverables and fixed rates. Transparency is facilitated by the contract's public award data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to contract performance or financial reporting.

Related Government Programs

Aviation Maintenance Services
Logistics Support Contracts
Department of Defense Service Contracts
Army Aviation Support
Fixed-Price Task Orders

Risk Flags

Potential staffing challenges for niche skill sets.
Dependence on contractor performance for critical maintenance functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to MANAGEMENT CONSULTING INC. IGF::OT::IGF FIXED PRICE TASK ORDER, BASE YEAR WITH TWO OPTION PERIODS, FOR NON-PERSONNEL INDIRECT SERVICES CONTRACT PROVIDE THE SKILLED LABOR SET (34 DIFFERENT SKILL SETS) OF PERSONNEL, SPECIFIED AS DELIVERABLE HOURS BILLABLE AT FIXED RATES, IN THE PERFORMANCE OF AVIATION UNIT MAINTENANCE/AVIATION INTERMEDIATE MAINTENANCE, FIELD AND SUSTAINMENT, FLIGHT AND MAINTENANCE RECORDS ON AIRCRAFT, AVIATION LIFE SUPPORT EQUIPMENT AND RELATED EQUIPMENT IN SUPPORT OF CORPUS CHRISTI ARMY DEPOT, TEXAS.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT CONSULTING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $35.0 million.

What is the period of performance?

Start: 2015-07-16. End: 2019-03-31.

What is the contractor's track record with similar Department of Defense contracts?

Management Consulting Inc. has a history of performing services for the Department of Defense, as indicated by this contract award. To fully assess their track record, a deeper dive into their past performance on similar aviation maintenance, logistics, or technical support contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or successes, and their overall history of meeting contractual obligations. Without specific past performance data, it's difficult to definitively gauge their reliability and expertise beyond what is implied by winning this competitive bid.

How does the per-unit cost of the 34 skill sets compare to industry benchmarks?

The provided data specifies a total contract value and a firm fixed-price structure with 34 different skill sets, but it does not break down the cost per skill set or per hour. To compare per-unit costs to industry benchmarks, detailed pricing information for each of the 34 skill sets would be required. This would involve analyzing the fixed rates established for each skill and comparing them against market rates for similar technical expertise in aviation maintenance and logistics. Such a comparison would help determine if the government is receiving competitive pricing for the specialized labor procured under this contract.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While the contract specifies deliverables such as providing skilled labor for aviation unit and intermediate maintenance, flight and maintenance records, and support for related equipment, the specific Key Performance Indicators (KPIs) are not detailed in the provided summary. Typically, for such a contract, KPIs would likely include metrics related to aircraft readiness rates, turnaround times for maintenance tasks, quality of repairs (e.g., defect rates), timeliness of record-keeping, and adherence to safety protocols. Effective oversight would involve tracking these KPIs to ensure the contractor is meeting performance expectations and delivering value.

What is the historical spending pattern for aviation maintenance and logistics support at Corpus Christi Army Depot?

The provided data focuses on a single contract award valued at approximately $35 million. To understand historical spending patterns at the Corpus Christi Army Depot for aviation maintenance and logistics support, a broader analysis of past contracts awarded to various entities for similar services over several fiscal years would be necessary. This would involve examining trends in contract values, types of services procured, and the mix of prime contractors and subcontractors. Such an analysis could reveal whether spending has increased or decreased, if the depot relies heavily on external contractors, and how this current contract fits into the overall budgetary picture for depot operations.

Are there any identified risks associated with the contractor's ability to provide all 34 specified skill sets consistently?

The contract requires Management Consulting Inc. to provide 34 different skill sets. A potential risk is the contractor's ability to consistently source and retain personnel with these specialized skills throughout the contract's duration. Challenges in recruitment, retention, or maintaining the required certifications for these niche skill sets could lead to performance shortfalls or increased costs if the contractor needs to pay premiums to secure talent. The firm fixed-price nature means the contractor absorbs these risks, but sustained difficulty could impact service delivery. The government's oversight should include monitoring the contractor's staffing levels and skill mix.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1961 DIAMOND SPRINGS RD, VIRGINIA BEACH, VA, 23455

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

Financial Breakdown

Contract Ceiling: $44,447,335

Exercised Options: $41,394,001

Current Obligation: $34,974,548

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00F042CA

IDV Type: FSS

Timeline