DoD's $22M CH-47F pilot training contract awarded to Support Systems Associates Inc

Contract Overview

Contract Amount: $22,097,550 ($22.1M)

Contractor: Support Systems Associates Inc

Awarding Agency: Department of Defense

Start Date: 2013-09-18

End Date: 2015-12-25

Contract Duration: 828 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CH-47F PILOT TRAINING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to SUPPORT SYSTEMS ASSOCIATES INC for work described as: CH-47F PILOT TRAINING Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which may allow for cost overruns. 3. The contract duration is 828 days, suggesting a medium-term training requirement. 4. The contract was awarded to Support Systems Associates Inc., a single contractor. 5. The contract is for pilot training, a critical component of aviation readiness. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of services and the specific training modules covered. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the actual costs plus a fixed fee, which can sometimes lead to less incentive for the contractor to control costs compared to fixed-price contracts. However, CPFF is often used when the scope of work is not precisely defined. Further analysis would require comparing the per-hour training costs or the cost per trainee against industry standards for similar complex aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was open, certain sources may have been excluded prior to the solicitation, or that the initial solicitation was restricted and later opened. The presence of two bidders indicates some level of competition, but the specifics of the exclusion could impact the breadth of competition and potentially the final price.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. The number of bidders provides some assurance that multiple companies were considered, which can help drive down costs compared to a sole-source award.

Public Impact

Benefits military personnel by providing essential flight training for the CH-47F Chinook helicopter. Ensures the readiness and operational capability of Army aviation units. Supports the development of skilled pilots capable of operating complex rotary-wing aircraft. Indirectly benefits the defense industrial base through contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may not provide the strongest incentive for cost control.
The 'exclusion of sources' in the competition description warrants further investigation into potential limitations on competitive pricing.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
The contract addresses a critical training need for a vital military asset.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aviation training services. The CH-47F Chinook is a heavy-lift helicopter used extensively by the U.S. Army and other allied nations. The market for specialized military aviation training is competitive, with several firms offering simulation and instruction services. Spending in this area is driven by the need to maintain pilot proficiency and introduce new aircrews to complex aircraft systems, ensuring operational readiness.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. The award was made to Support Systems Associates Inc. Analysis of subcontracting opportunities for small businesses would require a deeper dive into the contract's performance requirements and the prime contractor's subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates careful monitoring of incurred costs to ensure they align with the fixed fee and the overall contract objectives. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction in cases of fraud, waste, or abuse.

Related Government Programs

CH-47F Chinook Helicopter Program
Army Aviation Training Programs
Rotary-Wing Aircraft Simulation and Training

Risk Flags

Cost Overrun Potential (CPFF)
Quality of Training Delivery
Limited Competition Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to SUPPORT SYSTEMS ASSOCIATES INC. CH-47F PILOT TRAINING

Who is the contractor on this award?

The obligated recipient is SUPPORT SYSTEMS ASSOCIATES 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 $22.1 million.

What is the period of performance?

Start: 2013-09-18. End: 2015-12-25.

What is the specific scope of training provided under this contract?

The contract, valued at approximately $22.1 million, is for CH-47F Pilot Training. While the exact curriculum is not detailed in the provided data, it is understood to encompass the necessary instruction and simulation to qualify pilots on the CH-47F Chinook helicopter. This typically includes flight dynamics, emergency procedures, mission planning, and operational tactics. The training likely involves both simulator time and potentially actual flight hours, depending on the contract's specific deliverables. The duration of 828 days suggests a continuous or phased training program rather than a one-off event.

How does the Cost Plus Fixed Fee (CPFF) structure impact value for money?

The CPFF contract type means the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is uncertain or difficult to define precisely at the outset, as is common in complex training programs. While it provides flexibility, it can reduce the contractor's incentive to control costs compared to fixed-price contracts. For taxpayers, this means the final cost can fluctuate based on actual expenses. Effective oversight is crucial to ensure costs are reasonable and allocable to the contract, and that the fixed fee represents fair compensation for the services rendered.

What are the implications of 'Full and Open Competition After Exclusion of Sources'?

This procurement method indicates that the solicitation was initially open to all responsible sources, but certain entities were excluded from consideration before the final award. The reasons for exclusion could range from failure to meet minimum qualifications in a prior phase to specific government policy decisions. While it was 'full and open' in the sense that multiple bidders could participate, the exclusion of some potential competitors might limit the breadth of the competitive landscape. This could potentially affect price discovery and the ultimate value achieved for the government. Understanding the basis for the exclusion is key to assessing the true level of competition.

What is the track record of Support Systems Associates Inc. in providing similar training services?

Support Systems Associates Inc. (SSA) has a history of providing aviation training and simulation services, particularly for military platforms. While specific details on their performance for this exact CH-47F training contract would require access to performance reviews and past performance questionnaires, SSA is generally recognized within the defense sector for its capabilities in developing and delivering complex training solutions. Their experience likely includes work on other rotary-wing and fixed-wing aircraft, providing them with the expertise necessary for this contract. A thorough review would involve examining their contract history, client feedback, and any documented performance issues or successes.

How does this contract's value compare to historical spending on CH-47F pilot training?

Direct comparison of this $22.1 million contract to historical spending is difficult without specific historical data points for similar training requirements. Factors such as the number of pilots to be trained, the duration and intensity of the training, the specific training devices used (e.g., full-flight simulators vs. basic trainers), and inflation rates all influence costs. However, the contract's duration of 828 days and its value suggest a significant training effort. To benchmark effectively, one would need to analyze the cost per training hour or cost per pilot trained over several years, adjusting for economic factors and changes in training methodologies or technology.

What are the primary risks associated with this contract?

Key risks include potential cost overruns due to the CPFF structure, where contractor efficiency is not directly tied to profit. There's also a risk related to the quality and effectiveness of the training provided; if pilots are not adequately trained, it impacts operational readiness. The 'exclusion of sources' could represent a risk if it inadvertently limited competition, potentially leading to a higher price than could have been achieved otherwise. Furthermore, reliance on a single contractor for a critical training function carries inherent risk if that contractor faces performance issues or financial instability.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ssai of Georgia, LLC

Address: 351 ELECTRONICS BLVD STE A, HUNTSVILLE, AL, 35824

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

Financial Breakdown

Contract Ceiling: $22,097,550

Exercised Options: $22,097,550

Current Obligation: $22,097,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ13D0047

IDV Type: IDC

Timeline