DCA awarded $11.5M contract for C-17 aircraft maintenance and supply areas at HAFB

Contract Overview

Contract Amount: $11,524,687 ($11.5M)

Contractor: NAN Inc

Awarding Agency: Department of Defense

Start Date: 2007-02-21

End Date: 2010-02-16

Contract Duration: 1,091 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY05 C-17 ALTER MAINT/SUPPLY AREAS HAFB

Place of Performance

Location: HICKAM AFB, HONOLULU County, HAWAII, 96853

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to NAN INC for work described as: FY05 C-17 ALTER MAINT/SUPPLY AREAS HAFB Key points: 1. Contract value appears reasonable given the duration and scope of aircraft maintenance and supply area support. 2. Full and open competition suggests a competitive bidding process, likely leading to favorable pricing. 3. The contract duration of approximately three years indicates a stable, long-term need for these services. 4. Fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 5. The services provided are critical for maintaining the operational readiness of C-17 aircraft. 6. Geographic location in Hawaii may influence costs due to logistical considerations.

Value Assessment

Rating: good

The contract value of $11.5 million over three years for aircraft maintenance and supply areas is within a reasonable range for specialized support services. Benchmarking against similar contracts for large aircraft fleet support would provide a more precise value assessment. The firm fixed-price structure suggests the contractor bears cost overruns, which is generally favorable for the government if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders, the competition level suggests a healthy market for these services, which typically drives down prices and encourages innovation. The presence of multiple bidders allows for price discovery and selection of the most advantageous offer for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the funds expended on critical aircraft support.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating C-17 aircraft, ensuring their readiness. Services include maintenance and supply support for specialized areas related to C-17 operations. The geographic impact is localized to Hickam Air Force Base (HAFB) in Hawaii. Workforce implications include potential employment opportunities for skilled maintenance and logistics personnel in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise, though mitigated by fixed-price.
Dependence on contractor's ability to maintain a skilled workforce for specialized tasks.
Geographic isolation of Hawaii could lead to supply chain disruptions or increased logistical costs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market and competitive pricing.
Long-term contract duration allows for stable planning and execution of services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and logistics. The market for aircraft maintenance, repair, and overhaul (MRO) services is substantial, with significant government spending allocated to maintaining fleet readiness. This contract represents a portion of that broader spending, supporting the operational capabilities of a key strategic airlift asset, the C-17 Globemaster III.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. The primary contractor, NAN INC, is not identified by size, but the nature of the work suggests it may be a larger entity. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is subject to standard government oversight mechanisms for defense contracts, including performance monitoring and compliance checks. The firm fixed-price nature provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-17 Globemaster III Sustainment Program
Air Mobility Command Logistics Support Contracts
Department of Defense Aircraft Maintenance Services
Base Operations Support Contracts

Risk Flags

Potential for contractor performance issues.
Risk of cost escalation despite fixed-price structure.
Dependence on specialized workforce availability.
Logistical challenges due to remote location.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to NAN INC. FY05 C-17 ALTER MAINT/SUPPLY AREAS HAFB

Who is the contractor on this award?

The obligated recipient is NAN 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 $11.5 million.

What is the period of performance?

Start: 2007-02-21. End: 2010-02-16.

What is the track record of NAN INC in performing similar aircraft maintenance and supply contracts for the Department of Defense?

Information regarding NAN INC's specific track record for similar contracts is not provided in the given data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous DoD engagements. Without this data, it's difficult to definitively assess their capability and reliability for this specific C-17 support role. Further research into federal procurement databases and past performance databases would be necessary to provide a detailed answer.

How does the awarded amount of $11.5 million compare to the estimated value or budget for this type of C-17 support at Hickam AFB?

The provided data does not include the estimated value or budget for this specific contract. Therefore, a direct comparison is not possible. However, the contract was awarded under full and open competition with three bidders, suggesting that the final negotiated price was considered competitive. To assess value, one would typically compare the awarded amount against independent government cost estimates, historical spending for similar services at HAFB, or benchmark data from comparable contracts for C-17 sustainment at other installations. The duration of the contract (approx. 3 years) and the firm fixed-price structure are positive indicators for cost control.

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

Key risks include potential cost overruns if unforeseen maintenance issues arise, although the firm fixed-price structure shifts this risk primarily to the contractor. Another risk is the contractor's ability to maintain a sufficiently skilled workforce, especially for specialized C-17 systems. The geographic isolation of Hawaii presents logistical challenges for parts and personnel, potentially impacting timelines and costs. Mitigation strategies include robust performance monitoring by the government, clear contract requirements, and the contractor's own risk management processes. The competitive nature of the award also incentivizes the contractor to manage risks effectively to ensure profitability.

What is the expected program effectiveness or impact of this contract on C-17 operational readiness?

This contract is expected to directly contribute to the operational readiness of the C-17 fleet stationed at or operating through Hickam Air Force Base. By ensuring the maintenance and supply areas are adequately supported, the contract facilitates timely repairs, component replacements, and overall upkeep of the aircraft. Effective execution of these services should minimize aircraft downtime, improve mission capability rates, and ensure the C-17s are available for their strategic airlift missions. The contract's duration suggests a sustained level of support critical for maintaining a high operational tempo.

What have been the historical spending patterns for C-17 maintenance and supply support at Hickam AFB or similar installations?

The provided data only details this specific contract award of $11.5 million from FY05. It does not offer historical spending patterns for C-17 maintenance and supply support at Hickam AFB or other installations. To analyze historical trends, one would need to examine contract awards for similar services over multiple fiscal years, identify the total spending on C-17 sustainment, and track any fluctuations in cost or contract volume. This would help determine if the current contract represents an increase, decrease, or stable level of investment in this capability.

How does the competition level (3 bidders) influence the value and pricing for this contract?

A competition level of three bidders under a full and open solicitation generally indicates a healthy market for the services required. This level of competition typically drives down prices as contractors vie to win the contract by offering competitive bids. It allows the government to benefit from price discovery, meaning the market effectively determines a fair price. While more bidders could potentially lead to even lower prices, three bidders suggest that the government likely secured a reasonably competitive price, balancing cost against the specialized nature of the services and the contractor's ability to meet requirements.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9128A06R0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 636 LAUMAKA ST, HONOLULU, HI, 01

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,524,687

Exercised Options: $11,524,687

Current Obligation: $11,524,687

Contract Characteristics

Cost or Pricing Data: NO

Timeline