DoD's $21.7M contract for SAMS ESA system on EC-130J awarded to IAP Worldwide Services, Inc

Contract Overview

Contract Amount: $21,770,035 ($21.8M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-05-17

End Date: 2018-05-20

Contract Duration: 1,829 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF MODIFICATION AND ICS TO INSTALL AND SUPPORT SAMS ESA SYSTEM ON EC-130J.

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF MODIFICATION AND ICS TO INSTALL AND SUPPORT SAMS ESA SYSTEM ON EC-130J. Key points: 1. Contract value represents a significant investment in specialized aircraft systems. 2. The firm-fixed-price structure aims to control costs for the government. 3. Sole awardee suggests potential for limited competition or specialized capabilities. 4. Contract duration of 5 years indicates a long-term need for support. 5. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a high-value sector. 6. Awarded by the Defense Contract Management Agency, indicating robust oversight.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the SAMS ESA system's scope and the EC-130J's unique requirements. However, the total contract value of over $21 million for system installation and support over five years suggests a moderate per-year expenditure. Comparing this to other complex avionics system integration contracts would provide a clearer picture of value for money. The firm-fixed-price nature is a positive indicator for cost control, but the ultimate value depends on the system's performance and longevity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The fact that only one award was made suggests that IAP Worldwide Services, Inc. was the most advantageous offer, potentially due to specialized expertise, technical solution, or pricing. The level of competition, while initially broad, resulted in a single award, which warrants further examination to ensure optimal price discovery.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of offers and can lead to more competitive pricing. However, a single award from such a competition might indicate a highly specialized requirement where only a few entities possess the necessary capabilities.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the EC-130J aircraft, gaining enhanced situational awareness and mission capabilities. The contract delivers installation and ongoing support for the SAMS ESA system, crucial for modern military operations. The geographic impact is primarily within the United States, where the EC-130J fleet is based and maintained. Workforce implications include specialized technical roles for installation, maintenance, and support of advanced avionics systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during installation or support.
Dependence on a single contractor for critical system functionality could pose a risk if performance degrades.
The long-term sustainment costs beyond the initial contract period are not detailed here.

Positive Signals

Firm-fixed-price contract structure helps mitigate cost uncertainty for the government.
Award to an established company like IAP Worldwide Services, Inc. suggests a degree of reliability.
The system's integration into the EC-130J platform is expected to enhance operational effectiveness.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft systems and avionics. The market for such specialized systems is characterized by high barriers to entry due to technological complexity and stringent regulatory requirements. Comparable spending benchmarks would involve other major avionics upgrades or system integrations for military aircraft, which often run into tens of millions of dollars depending on the scope and platform.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the specialized nature of avionics integration and support for military aircraft, it is common for prime contracts to be awarded to large, established defense contractors. Subcontracting opportunities for small businesses may exist within the supply chain for components or specialized services, but this is not explicitly detailed in the provided data.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions, and monitoring performance. The firm-fixed-price contract type provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed financial reporting may be internal to the agency and contractor.

Related Government Programs

EC-130J "Commando Solo" Program
Avionics Modernization Programs
Special Operations Forces Support Systems
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Sole awardee from full and open competition
Long-term contract duration requires ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF MODIFICATION AND ICS TO INSTALL AND SUPPORT SAMS ESA SYSTEM ON EC-130J.

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $21.8 million.

What is the period of performance?

Start: 2013-05-17. End: 2018-05-20.

What is the specific functionality and operational advantage provided by the SAMS ESA system on the EC-130J?

The SAMS ESA (Situational Awareness and Mission Support - Electronic Support Array) system is designed to enhance the operational capabilities of the EC-130J aircraft. While specific details are often classified, such systems typically provide advanced intelligence, surveillance, and reconnaissance (ISR) capabilities, improved electronic warfare (EW) functions, and enhanced communication and navigation systems. The 'Electronic Support Array' component suggests a focus on detecting, identifying, and potentially countering enemy electronic emissions. For the EC-130J, which is often used for psychological operations and information warfare, the SAMS ESA likely provides critical real-time data and electronic countermeasures to ensure mission success and crew safety in contested environments. This leads to improved situational awareness, better targeting, and increased survivability.

How does the $21.7 million contract value compare to similar avionics upgrade contracts for military aircraft?

The $21.7 million contract value for the SAMS ESA system installation and support on the EC-130J is within the typical range for significant avionics modernization efforts on specialized military platforms. Major upgrades to communication, navigation, sensor, or electronic warfare suites for aircraft like fighters, bombers, or specialized mission aircraft can easily range from tens to hundreds of millions of dollars. For instance, a full suite upgrade for a fighter jet could exceed $50 million, while a comprehensive modernization of a large transport or bomber could reach several hundred million. The EC-130J is a specialized variant, and the SAMS ESA appears to be a targeted enhancement rather than a complete platform overhaul. Therefore, $21.7 million for system integration and initial support over five years represents a substantial but not exceptionally high investment in this context.

What are the potential risks associated with a sole awardee for this type of specialized system?

Awarding a contract to a single entity, even after full and open competition, introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily reliant on one provider for critical system maintenance, upgrades, and support. This can limit future flexibility and potentially lead to higher prices in subsequent contract actions if competition is not re-established. Secondly, if the sole awardee experiences financial difficulties, operational issues, or goes out of business, the government could face significant disruption in system support, potentially grounding the affected aircraft. Lastly, without ongoing competitive pressure, the incentive for the sole awardee to innovate or provide exceptional service might be reduced compared to a more competitive environment.

What is the track record of IAP Worldwide Services, Inc. in supporting complex defense systems?

IAP Worldwide Services, Inc. has a significant history of providing services to the U.S. military and government agencies, often in complex and challenging environments. Their portfolio includes logistics, base operations support, aviation services, and facility management. While specific details on their involvement with SAMS ESA or similar advanced avionics systems are not immediately apparent from the provided data, their extensive experience in defense contracting suggests a capability to manage large-scale projects and meet stringent performance requirements. Their track record generally indicates an ability to deliver services, though the success of this particular contract would depend on the specific technical expertise applied to the SAMS ESA system.

How has spending on aircraft manufacturing and related systems evolved within the Department of Defense?

Spending within the Department of Defense (DoD) on aircraft manufacturing and related systems has historically been a major component of the defense budget. This includes funding for the procurement of new aircraft, modernization of existing fleets, research and development of next-generation aviation technologies, and sustainment/support services. Over the years, there has been a trend towards more technologically advanced and networked systems, requiring significant investment in avionics, sensors, and communication suites, as exemplified by this SAMS ESA contract. While overall defense spending fluctuates based on geopolitical conditions and national priorities, investment in maintaining air superiority and modernizing air assets remains a consistent priority, driving substantial and ongoing expenditure in this sector.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $22,509,860

Exercised Options: $22,509,860

Current Obligation: $21,770,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA853008D0005

IDV Type: IDC

Timeline