DoD awards $4.7M aviation maintenance contract to Cherokee Nation Armored Solutions, raising questions about competition

Contract Overview

Contract Amount: $4,739,376 ($4.7M)

Contractor: Cherokee Nation Armored Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-12

End Date: 2026-10-31

Contract Duration: 1,388 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AVIATION MAINTENANCE SUPPORT SERVICE CONTRACT, BASE PLUS 3 OPTION YEARS, 24 JANUARY 23-23 JANUARY 2027.

Place of Performance

Location: ANNVILLE, LEBANON County, PENNSYLVANIA, 17003

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $4.7 million to CHEROKEE NATION ARMORED SOLUTIONS, LLC for work described as: AVIATION MAINTENANCE SUPPORT SERVICE CONTRACT, BASE PLUS 3 OPTION YEARS, 24 JANUARY 23-23 JANUARY 2027. Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract duration is over three years, indicating a need for sustained support. 3. Awarded to a single contractor, suggesting potential limitations in market competition. 4. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 5. The contract is a definitive contract, implying a clear scope of work and terms. 6. The base contract is supplemented by three option years, allowing for flexibility and extended service.

Value Assessment

Rating: fair

The contract's value of approximately $4.7 million over three years for aviation maintenance support appears reasonable given the scope. However, without direct benchmarks for similar, specifically competed aviation maintenance contracts, a precise value-for-money assessment is challenging. The firm-fixed-price structure helps control costs, but the lack of competitive bidding limits the ability to definitively benchmark pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can fulfill the requirement. The limited competition means the government did not benefit from a bidding process that could drive down prices or foster innovation among multiple potential providers.

Taxpayer Impact: The sole-source award means taxpayers may not have received the best possible price, as competitive pressures were absent. This could lead to higher costs compared to a scenario with multiple bidders.

Public Impact

The Department of the Army benefits from sustained aviation maintenance support services. The contract ensures the operational readiness of aviation assets critical to military operations. Services are likely to be performed in Pennsylvania, based on the contract's location. The contract supports specialized maintenance activities within the air transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit opportunities for other qualified businesses.
Potential for complacency from the contractor due to lack of competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration allows for stable, long-term support.
Award to Cherokee Nation Armored Solutions, LLC, a Native American-owned business, may align with socio-economic goals.

Sector Analysis

The aviation maintenance sector is a critical component of the broader aerospace and defense industry. This contract falls under support activities for air transportation, which includes services like repair, overhaul, and maintenance of aircraft and aircraft parts. The market for these services is substantial, driven by both commercial airlines and government entities. Benchmarking this contract's value is difficult without knowing the specific nature of the aviation assets supported and the complexity of the maintenance required.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless Cherokee Nation Armored Solutions, LLC voluntarily engages small businesses in its supply chain. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

The contract is a definitive contract with a firm-fixed-price structure, which inherently provides a degree of oversight through defined terms and pricing. Accountability will be managed through contract performance monitoring by the Department of the Army. Transparency is limited due to the sole-source nature of the award, and specific Inspector General jurisdiction would depend on the nature of any potential issues arising from contract performance.

Related Government Programs

Aviation Maintenance Services
Air Transportation Support
Department of Defense Contracts
Firm Fixed Price Contracts
Sole Source Contracts

Risk Flags

Sole-source award limits price competition.
Lack of detailed performance metrics in provided data.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.7 million to CHEROKEE NATION ARMORED SOLUTIONS, LLC. AVIATION MAINTENANCE SUPPORT SERVICE CONTRACT, BASE PLUS 3 OPTION YEARS, 24 JANUARY 23-23 JANUARY 2027.

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION ARMORED SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2023-01-12. End: 2026-10-31.

What is the specific type of aviation maintenance being provided under this contract?

The contract is categorized under NAICS code 488190, which covers 'Other Support Activities for Air Transportation.' This typically includes services such as the repair, maintenance, and overhaul of aircraft and aircraft components. While the contract doesn't specify the exact types of aircraft or the detailed maintenance procedures, it implies a broad range of support activities necessary to keep aviation assets operational. The firm-fixed-price nature suggests that the scope of work, while potentially complex, is defined enough to allow for a set price.

How does the pricing of this contract compare to similar aviation maintenance contracts awarded by the DoD?

A direct comparison of pricing is challenging due to the sole-source nature of this award and the lack of detailed public information on the specific services rendered. Typically, competitive bidding allows for robust price benchmarking. Without knowing the exact maintenance tasks, aircraft types, and labor rates involved, it's difficult to ascertain if $4.7 million over three years is high or low. Future analysis could involve seeking data on other sole-source aviation maintenance contracts or comparing it to publicly available cost data for similar services if such data exists.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to less value for taxpayer money. Additionally, it limits opportunities for other qualified contractors to compete for the work, potentially stifling innovation and reducing the pool of available service providers in the future. There's also a risk of contractor complacency if performance standards are not rigorously monitored, as there is no immediate threat of losing the contract to a competitor.

What is the track record of Cherokee Nation Armored Solutions, LLC in performing government contracts, particularly in aviation maintenance?

Information regarding Cherokee Nation Armored Solutions, LLC's specific track record in aviation maintenance is not readily available within the provided data. As a sole-source award, the justification for selecting this contractor would typically include their unique qualifications or existing relationship with the agency. Further research into the contractor's past performance, especially on similar defense contracts, would be necessary to fully assess their capabilities and reliability for this aviation maintenance support service contract.

What are the historical spending patterns for aviation maintenance support within the Department of the Army?

Historical spending patterns for aviation maintenance support within the Department of the Army are not detailed in the provided data. However, it is generally understood that the DoD, including the Army, allocates significant resources to maintaining its vast fleet of aircraft. This spending is influenced by factors such as the number and type of aircraft in operation, operational tempo, and the age of the fleet. Analyzing past budgets and contract awards for similar services would provide context for the $4.7 million awarded here.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912KC23R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST STE 220-O, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,772,355

Exercised Options: $4,739,376

Current Obligation: $4,739,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline