Kaman Aerospace Corporation awarded $13M contract for SH-2E(G) Upgrade Install and Test, a significant investment in naval aviation

Contract Overview

Contract Amount: $13,017,831 ($13.0M)

Contractor: Kaman Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2006-10-11

End Date: 2009-04-30

Contract Duration: 932 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SH2E(G) UPGRADE INSTALL AND TEST TAS::17 1804::TAS

Place of Performance

Location: BLOOMFIELD, HARTFORD County, CONNECTICUT, 06002, UNITED STATES OF AMERICA

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to KAMAN AEROSPACE CORPORATION for work described as: SH2E(G) UPGRADE INSTALL AND TEST TAS::17 1804::TAS Key points: 1. The contract value of $13.02 million represents a substantial investment in maintaining and upgrading critical naval aviation assets. 2. Competition dynamics for this contract appear robust, with a full and open competition process likely ensuring fair pricing. 3. The duration of the contract (932 days) suggests a complex and lengthy upgrade process, potentially involving significant technical challenges. 4. The cost-plus-fixed-fee (CPFF) contract type indicates that while the contractor's fee is fixed, the total cost is subject to variation, requiring careful oversight. 5. The contract's focus on aircraft manufacturing (NAICS 336411) places it within a specialized and high-value sector of the defense industrial base. 6. The award to Kaman Aerospace Corporation highlights their established role in supporting naval aviation platforms. 7. The contract's completion in 2009 suggests a historical data point for future upgrade contract benchmarking.

Value Assessment

Rating: good

The contract value of $13.02 million for aircraft upgrade services appears reasonable given the specialized nature of naval aviation and the complexity of upgrade installations. Benchmarking against similar, highly technical defense contracts is challenging without more specific details on the scope of work. However, the fixed-fee component of the CPFF contract type suggests an effort to control overall program costs while allowing for flexibility in execution.

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. This competitive environment is generally expected to drive better pricing and innovation. The presence of two bids (no: 2) suggests a moderate level of competition for this specialized service.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and avoids the premium often associated with sole-source procurements.

Public Impact

The primary beneficiaries are the U.S. Navy, receiving upgraded SH-2E(G) helicopters with enhanced capabilities. The services delivered include the installation and testing of upgrades, crucial for maintaining the operational readiness of naval aviation fleets. The geographic impact is likely concentrated around naval air stations and Kaman Aerospace Corporation's facilities, with potential ripple effects in the aerospace supply chain. The contract supports skilled jobs within the aerospace manufacturing and maintenance sectors, particularly in Connecticut where the awardee is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not meticulously managed, as the government bears the risk of actual costs incurred.
The limited number of bidders (2) in a full and open competition might indicate a niche market or high barriers to entry, potentially limiting future competition.
The contract's duration of 932 days necessitates robust program management to ensure timely completion and prevent schedule slippage.

Positive Signals

Awarding under full and open competition promotes a fair and transparent procurement process.
The fixed fee component of the contract provides a degree of cost certainty for the government regarding contractor profit.
The focus on upgrading existing assets like the SH-2E(G) demonstrates a commitment to maximizing the lifespan and effectiveness of naval aviation platforms.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft modification and support. The market for such specialized services is characterized by high technical barriers to entry, stringent quality requirements, and long-standing relationships between government agencies and established contractors. Spending in this sector is driven by national security needs and the continuous requirement to modernize aging fleets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale defense contract likely requiring specialized facilities and expertise, it is typical for such awards to go to larger prime contractors. However, Kaman Aerospace Corporation may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance with contract terms. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to track incurred costs and verify the reasonableness of expenditures. Transparency is generally maintained through contract reporting mechanisms, though specific details of ongoing oversight are typically not public.

Related Government Programs

Naval Aviation Maintenance
Helicopter Upgrade Programs
Defense Aircraft Manufacturing
Aerospace Component Support
Military Helicopter Modernization

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost escalations.
Limited number of bidders in a full and open competition may warrant further investigation into market dynamics.
Contract duration of over two years necessitates proactive schedule management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to KAMAN AEROSPACE CORPORATION. SH2E(G) UPGRADE INSTALL AND TEST TAS::17 1804::TAS

Who is the contractor on this award?

The obligated recipient is KAMAN AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2006-10-11. End: 2009-04-30.

What was the specific scope of the SH-2E(G) upgrade, and what capabilities did it aim to enhance?

The SH-2E(G) upgrade likely focused on modernizing avionics, improving sensor suites, enhancing communication systems, and potentially upgrading structural components or propulsion systems to extend the operational life and improve the mission effectiveness of the Kaman SH-2 Seasprite helicopter. These upgrades were crucial for maintaining the helicopter's role in maritime patrol, utility transport, and light attack missions within the U.S. Navy's fleet. Specific enhancements would have been tailored to address obsolescence in older systems and incorporate newer technologies for better situational awareness, survivability, and operational efficiency.

How does the $13.02 million contract value compare to other similar naval helicopter upgrade contracts awarded around 2006-2009?

Benchmarking this $13.02 million contract requires comparing it to similar upgrade programs for naval helicopters of comparable size and complexity during the same period. Contracts for major avionics overhauls, structural refurbishments, or system integration for platforms like the MH-60 series or older SH-60 variants could serve as comparisons. Given the specialized nature of naval aviation and the specific SH-2E(G) platform, this value appears within a reasonable range for a significant upgrade package. However, without detailed statements of work for comparable contracts, a precise value-for-money assessment is difficult. The cost-plus-fixed-fee structure also adds a layer of variability to the final cost.

What were the primary risks associated with this SH-2E(G) upgrade contract, and how were they managed?

Key risks for this contract likely included technical challenges in integrating new systems with legacy airframes, potential for schedule delays due to the complexity of the work, and cost overruns inherent in the cost-plus-fixed-fee (CPFF) contract type. Managing these risks would involve robust government oversight by the DCMA, detailed project planning, regular progress reviews, and strict adherence to technical specifications. The contractor, Kaman Aerospace, would have been responsible for managing its own supply chain and technical execution risks. The fixed fee component provided some incentive for the contractor to control costs, but the government ultimately bore the risk of actual expenses.

What is the historical spending trend for SH-2E(G) related contracts, and does this award represent a significant deviation?

Analyzing historical spending for SH-2E(G) related contracts prior to this $13.02 million award would reveal the typical investment in maintaining and upgrading this specific helicopter variant. If previous upgrades were smaller in scope or less frequent, this award might represent a significant investment aimed at extending the service life or enhancing capabilities substantially. Conversely, if the SH-2E(G) underwent regular, substantial upgrade cycles, this contract might be in line with historical spending patterns. Without access to detailed historical contract data for this specific platform, it's difficult to definitively state whether this award is a deviation or part of a trend.

What was Kaman Aerospace Corporation's track record with the U.S. Navy and similar defense contracts prior to this award?

Kaman Aerospace Corporation has a long-standing history of supporting U.S. military aviation, including extensive work with naval platforms. Prior to this 2006 award, the company was known for its manufacturing and support services for various helicopters and aerospace components. Their track record with the Navy would likely include previous contracts for maintenance, repair, overhaul (MRO), and potentially new production or significant upgrades of aircraft. A positive track record with the Navy, demonstrating reliability, technical expertise, and successful contract performance, would have been a key factor in Kaman being considered and ultimately awarded this SH-2E(G) upgrade contract.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kaman Corp (UEI: 001155225)

Address: OLD WINDSOR RD, BLOOMFIELD, CT, 06002

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,017,831

Exercised Options: $13,017,831

Current Obligation: $13,017,831

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001905D0010

IDV Type: IDC

Timeline