Dod's $65.5M Marss Flight Operations Contract Awarded to Adams Communication & Engineering Technology, Inc

Contract Overview

Contract Amount: $65,462,697 ($65.5M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-30

End Date: 2022-09-30

Contract Duration: 2,557 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF MULTI-SENSOR AIRBORNE RECONNAISSANCE AND SURVEILLANCE SYSTEMS (MARSS) FLIGHT OPERATIONS AND PILOT SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $65.5 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: IGF::OT::IGF MULTI-SENSOR AIRBORNE RECONNAISSANCE AND SURVEILLANCE SYSTEMS (MARSS) FLIGHT OPERATIONS AND PILOT SUPPORT Key points: 1. Contract provides critical multi-sensor airborne reconnaissance and surveillance systems flight operations and pilot support. 2. The contract duration of approximately 7 years suggests a long-term need for these specialized services. 3. Awarded under full and open competition, indicating a broad market search for qualified contractors. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. The agency's reliance on a single award for this significant duration warrants scrutiny of performance and pricing. 6. Geographic focus on Virginia for operations may indicate specific training or deployment needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can lead to cost overruns if not managed diligently. The total award amount of $65.5 million over approximately seven years suggests a substantial investment. Further analysis would require comparing the unit costs of flight hours or specific sensor operations against industry standards or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 6 bidders indicates a competitive landscape for these specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. However, the specific details of the evaluation criteria and the final award decision would provide a clearer picture of how effectively competition translated into value.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

Provides essential intelligence, surveillance, and reconnaissance (ISR) capabilities for Department of Defense operations. Supports military readiness and operational effectiveness through continuous flight operations and pilot expertise. Likely impacts military personnel and civilian contractors involved in aviation and sensor operations. Geographic impact is centered in Virginia, potentially supporting regional training or operational deployments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to prevent cost creep and ensure value for money.
The long duration of the contract could lead to vendor lock-in if not managed proactively.
Lack of specific performance metrics in the provided data makes it difficult to assess true value and efficiency.

Positive Signals

Awarded through full and open competition, indicating a robust market search.
Multiple bidders (6) suggest a healthy level of interest and capability in the market.
The contract supports critical national security functions, aligning with core government missions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to specialized aerospace and defense technology. The market for airborne reconnaissance and surveillance systems is highly specialized, dominated by a few key players capable of meeting stringent government requirements. Spending in this area is driven by national security needs and technological advancements in sensor and platform integration. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar ISR platforms and operational support services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of specialized services within the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Army's contracting officers and program managers. They are responsible for monitoring costs, ensuring performance standards are met, and approving reimbursements. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Airborne Surveillance Programs
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
Aerospace Engineering Services
Defense Aviation Support Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent cost oversight.
Long contract duration necessitates performance monitoring to ensure continued value.
Specialized nature of services requires highly skilled personnel and reliable equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.5 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. IGF::OT::IGF MULTI-SENSOR AIRBORNE RECONNAISSANCE AND SURVEILLANCE SYSTEMS (MARSS) FLIGHT OPERATIONS AND PILOT SUPPORT

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, 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 $65.5 million.

What is the period of performance?

Start: 2015-09-30. End: 2022-09-30.

What is the historical spending trend for MARSS flight operations and pilot support by the Department of the Army?

Analyzing historical spending for MARSS flight operations and pilot support requires access to detailed contract databases and budget allocations over several fiscal years. Without specific historical data for this particular contract vehicle or similar predecessor contracts, it is difficult to establish a precise trend. However, generally, spending in defense aviation and ISR capabilities tends to fluctuate based on geopolitical events, evolving threats, and technological modernization priorities. Sustained operations like those implied by this contract suggest a consistent, long-term requirement, likely indicating stable or increasing budgetary allocation for such services, barring significant shifts in defense strategy or technological obsolescence.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar government contracts for airborne ISR services?

Cost Plus Fixed Fee (CPFF) contracts are common for complex services where the scope of work may evolve or is difficult to define precisely upfront, such as advanced engineering or R&D. In the realm of airborne ISR services, CPFF allows the government to leverage contractor expertise while providing flexibility. However, it places a greater emphasis on robust oversight to manage costs effectively. Compared to fixed-price contracts, CPFF can be more expensive if costs are not well-controlled, but it offers greater adaptability. Other similar contracts might utilize Firm-Fixed-Price (FFP) for well-defined services or Cost-Plus-Incentive Fee (CPIF) to incentivize performance. The choice of CPFF here suggests the agency prioritized flexibility and access to specialized skills over strict cost certainty at the outset.

What are the key performance indicators (KPIs) used to evaluate the performance of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for airborne reconnaissance and surveillance flight operations and pilot support, typical KPIs would likely include metrics related to flight hours completed, mission success rates, aircraft availability and readiness, on-time performance for flight schedules, pilot proficiency and certification levels, sensor system uptime and performance, and adherence to safety protocols. The Cost Plus Fixed Fee structure necessitates diligent monitoring of these operational metrics alongside financial expenditures to ensure the contractor is delivering the required capabilities effectively and efficiently within the agreed-upon fee structure.

What is the potential impact of this contract on the broader aerospace and defense market, particularly for competitors?

The award of this significant $65.5 million contract to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. has several implications for the broader aerospace and defense market. Firstly, it validates the contractor's capabilities in providing specialized ISR flight operations and pilot support, potentially enhancing their market position and reputation. For competitors, it signifies a substantial contract that was competed, indicating opportunities exist but also highlighting the capabilities required to win such awards. The full and open competition suggests that other firms with similar expertise were aware of and likely bid on this opportunity. The long duration of the contract means that competitors will need to focus on other opportunities or await future recompetes, while also potentially seeking to partner with or supply the incumbent.

Are there any identified risks associated with the contractor's track record or the nature of the services provided?

Without access to detailed contractor performance evaluations or past performance reviews, it's challenging to definitively assess risks associated with ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.'s track record for this specific contract. However, general risks associated with Cost Plus Fixed Fee contracts include potential for cost overruns if not managed diligently, and the need for strong government oversight to ensure value. For airborne ISR services, risks can also include operational safety, equipment reliability, and the ability to adapt to evolving technological requirements and threat landscapes. The fact that the contract was competed and awarded suggests that the contractor met the necessary qualifications and demonstrated capability, but ongoing monitoring is crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10740 PARKRIDGE BLVD STE 700, RESTON, VA, 20191

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $73,106,812

Exercised Options: $73,106,812

Current Obligation: $65,462,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD420

IDV Type: IDC

Timeline