Air Force awards $21.5M for F-16 modifications, highlighting Hellenic Aerospace Industry's role

Contract Overview

Contract Amount: $21,476,004 ($21.5M)

Contractor: Hellenic Aerospace Industry S.A.

Awarding Agency: Department of Defense

Start Date: 2007-11-16

End Date: 2011-11-15

Contract Duration: 1,460 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-16 CCIP/FALCON-STAR MODIFICATION BLOCK 40/50 USAFE

Plain-Language Summary

Department of Defense obligated $21.5 million to HELLENIC AEROSPACE INDUSTRY S.A. for work described as: F-16 CCIP/FALCON-STAR MODIFICATION BLOCK 40/50 USAFE Key points: 1. Contract value represents a significant investment in maintaining and upgrading the F-16 fleet. 2. The modification block suggests enhancements to avionics, weapons systems, or structural integrity. 3. Full and open competition indicates a broad market search for the best value. 4. The contract duration of 4 years suggests a phased approach to the modifications. 5. Fixed-price contract type shifts performance risk to the contractor. 6. This award contributes to the operational readiness of allied air forces utilizing F-16s.

Value Assessment

Rating: good

Benchmarking this specific modification contract is challenging without detailed technical specifications and comparable upgrade projects. However, the $21.5 million award for a 4-year period suggests a moderate per-year expenditure. The firm fixed-price nature implies that the contractor is responsible for cost overruns, which can be a positive indicator of value if managed effectively. Further analysis would require comparing the scope of work and pricing against similar F-16 upgrade programs or other aircraft modernization efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors were solicited and had the opportunity to bid. The presence of two bidders (no) indicates a degree of competition, though the specific number of proposals received and the evaluation process are not detailed here. This competitive environment is generally expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential suppliers to offer their services, leading to potentially lower prices and better quality through market forces.

Public Impact

The primary beneficiaries are the Hellenic Aerospace Industry (HAI) as the contractor, and the U.S. Air Force in Europe (USAFE) through enhanced F-16 capabilities. Services delivered include modifications and upgrades to F-16 aircraft, specifically targeting Block 40/50 configurations. The geographic impact is primarily within the operational theater of USAFE, potentially enhancing regional security. Workforce implications include employment opportunities at HAI for skilled aerospace technicians and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if modification requirements are not clearly defined.
Dependency on contractor's technical expertise and timely delivery.
Risk of unforeseen technical challenges during the modification process.

Positive Signals

Firm fixed-price contract mitigates cost uncertainty for the government.
Full and open competition suggests a robust selection process.
Award to a specialized aerospace company indicates relevant expertise.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance, repair, and overhaul (MRO) services. The market for aircraft modifications is substantial, driven by the need to extend the service life of existing platforms and incorporate new technologies. Spending benchmarks for such modifications vary widely based on aircraft type, complexity of upgrades, and the number of units affected. This contract represents a specific investment in the F-16 platform, a widely used fighter jet.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition award to Hellenic Aerospace Industry S.A., it is unlikely that small businesses were the primary focus, unless they were part of a subcontracting plan. Further investigation into subcontracting opportunities would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified modifications within the agreed budget and timeline. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-16 Fighting Falcon Sustainment Programs
Air Force Materiel Command Aircraft Modernization
Foreign Military Sales Support (if applicable)
Aerospace Component Manufacturing and Integration

Risk Flags

Potential for cost overruns if not managed tightly by the contractor.
Risk of schedule delays impacting operational readiness.
Ensuring compatibility and seamless integration of new modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to HELLENIC AEROSPACE INDUSTRY S.A.. F-16 CCIP/FALCON-STAR MODIFICATION BLOCK 40/50 USAFE

Who is the contractor on this award?

The obligated recipient is HELLENIC AEROSPACE INDUSTRY S.A..

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 $21.5 million.

What is the period of performance?

Start: 2007-11-16. End: 2011-11-15.

What is the specific technical scope of the F-16 CCIP/FALCON-STAR MODIFICATION BLOCK 40/50?

The specific technical scope of the F-16 CCIP/FALCON-STAR MODIFICATION BLOCK 40/50 involves upgrades to avionics, software, and potentially structural components of the F-16 aircraft. Block 40/50 upgrades typically enhance capabilities such as navigation, targeting, electronic warfare, and weapons integration. These modifications are crucial for maintaining the operational relevance and effectiveness of the F-16 fleet against evolving threats. The FALCON-STAR program, in particular, often refers to enhancements aimed at improving the aircraft's reliability, maintainability, and overall performance. The exact nature of the modifications under this specific contract would be detailed in the Statement of Work (SOW) and associated technical exhibits.

How does the $21.5 million award compare to typical F-16 modification costs?

Comparing the $21.5 million award for F-16 modifications requires context regarding the scope and number of aircraft involved. If this award covers a significant upgrade package for a squadron or a fleet of aircraft, it could be considered within a reasonable range. However, if it's for a smaller number of aircraft or less complex modifications, it might warrant further scrutiny. Historically, major avionics and structural upgrades for fighter aircraft can range from several million to tens of millions of dollars per aircraft, depending on the technological advancements incorporated. Without knowing the exact number of aircraft and the specific modifications, a precise benchmark is difficult, but the total value suggests a substantial upgrade effort.

What are the key performance risks associated with this contract for Hellenic Aerospace Industry S.A.?

The primary performance risks for Hellenic Aerospace Industry S.A. (HAI) under this firm fixed-price contract revolve around technical execution and schedule adherence. HAI must successfully implement the specified modifications within the defined budget and timeframe. Risks include potential technical challenges in integrating new systems with existing F-16 architecture, unforeseen issues discovered during the modification process, and the availability of specialized parts or expertise. Delays in delivery or failure to meet performance specifications could lead to financial penalties or reputational damage. Furthermore, ensuring the quality and reliability of the modifications is paramount to meet the U.S. Air Force's operational requirements.

What is the historical spending pattern for F-16 modifications by the Department of the Air Force?

The Department of the Air Force has a long history of investing in F-16 modifications to sustain and modernize its fleet. Spending patterns vary significantly year-to-year and are influenced by strategic priorities, budget allocations, and the lifecycle of the aircraft. Major upgrade programs, such as avionics modernization (e.g., AMP), structural enhancements, and integration of new weapon systems, represent substantial investments. Historical data would likely show consistent, albeit fluctuating, spending on sustainment and upgrade efforts for the F-16, reflecting its role as a workhorse fighter jet. This specific $21.5 million award fits within the broader context of ongoing efforts to keep the F-16 fleet operationally relevant.

What is the significance of awarding this contract to Hellenic Aerospace Industry S.A.?

Awarding this contract to Hellenic Aerospace Industry S.A. (HAI) signifies a strategic decision by the Department of the Air Force, potentially leveraging international partnerships and specialized expertise. HAI is a known entity in the aerospace sector, with experience in aircraft maintenance and modification. This award could reflect HAI's competitive proposal, its established capabilities, or a desire to foster relationships with allied nations' aerospace industries. It also suggests that HAI possesses the necessary certifications, infrastructure, and technical proficiency to undertake complex F-16 modifications, contributing to the global sustainment of the F-16 platform.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

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

Address: TANAGRA, SCHIMATARI

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,476,004

Exercised Options: $21,476,004

Current Obligation: $21,476,004

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA823207D0003

IDV Type: IDC

Timeline