DoD's $27.9M CH-47F training contract awarded to Support Systems Associates Inc. shows fair value

Contract Overview

Contract Amount: $27,917,958 ($27.9M)

Contractor: Support Systems Associates Inc

Awarding Agency: Department of Defense

Start Date: 2015-12-15

End Date: 2019-12-31

Contract Duration: 1,477 days

Daily Burn Rate: $18.9K/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 NEW EQUIPMENT TRAINING AND TECHNICAL SUPPORT IGF::CT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to SUPPORT SYSTEMS ASSOCIATES INC for work described as: CH-47F NEW EQUIPMENT TRAINING AND TECHNICAL SUPPORT IGF::CT::IGF Key points: 1. The contract demonstrates a reasonable value for specialized aviation training and technical support. 2. Competition was robust, indicating a healthy market for these services. 3. Performance risks appear manageable given the contractor's experience. 4. The contract's duration aligns with the lifecycle of new equipment fielding. 5. This falls within the broader Defense sector's spending on aviation sustainment. 6. The contract was awarded under full and open competition after exclusion of sources, suggesting a deliberate decision to seek broader market participation.

Value Assessment

Rating: good

The contract's total value of $27.9 million over approximately four years for specialized CH-47F helicopter training and technical support appears reasonable when benchmarked against similar complex aviation support services. While specific per-unit costs for training modules or technical hours are not detailed, the overall price reflects the high-skill labor and specialized knowledge required for advanced military aircraft. The cost-plus-fixed-fee (CPFF) structure allows for flexibility while providing the government with a defined fee, though it necessitates careful oversight to manage costs effectively.

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,' indicating that while the initial solicitation might have had some exclusions, the final award was made after a broad competitive process. The presence of two bidders suggests a moderate level of competition for this specialized service. This approach aims to ensure that the government receives competitive pricing and the best value by allowing multiple qualified vendors to propose solutions.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs compared to a sole-source procurement and ensured that the selected contractor offered a strong value proposition.

Public Impact

U.S. Army aviation personnel benefit from enhanced training and technical expertise for the CH-47F Chinook helicopter. Services delivered include critical training programs and ongoing technical support essential for operational readiness. The contract's impact is primarily within military aviation units, ensuring the effective operation and maintenance of a key rotary-wing asset. Workforce implications include the need for highly skilled instructors and technical specialists, potentially supporting jobs in specialized aerospace services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
Reliance on specialized support could create vendor lock-in if not managed proactively.
The 'exclusion of sources' clause warrants understanding the rationale to ensure full market potential was tapped.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
Contract duration aligns with equipment fielding cycles, suggesting strategic planning.
Support for a critical military asset like the CH-47F enhances national defense capabilities.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex contracts often involving specialized technology and services. Spending on aircraft training and technical support is a significant component of defense budgets, aimed at ensuring operational readiness and maximizing the lifespan of expensive assets. This contract fits within the broader category of aviation sustainment and readiness support, where companies with specific expertise in military platforms are essential. Benchmarks for similar training and support contracts can vary widely based on aircraft type, complexity, and duration.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests the contract was awarded based on overall best value rather than specific small business goals. While direct subcontracting opportunities for small businesses are not detailed, large prime contractors in the defense sector often utilize small businesses for various support roles, though the extent of this contract's impact on the small business ecosystem remains to be seen without further subcontracting data.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures would include regular performance reviews, audits of costs incurred, and adherence to training schedules and technical support deliverables. Transparency is facilitated through contract reporting mechanisms, though detailed public access to performance metrics or cost breakdowns may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CH-47 Chinook Helicopter Program
Aviation Training Services
Technical Support Contracts
Department of Defense Readiness Programs
Aircraft Maintenance and Sustainment

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight.
Potential for vendor lock-in with specialized support services.
Need to understand rationale behind 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to SUPPORT SYSTEMS ASSOCIATES INC. CH-47F NEW EQUIPMENT TRAINING AND TECHNICAL SUPPORT IGF::CT::IGF

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 $27.9 million.

What is the period of performance?

Start: 2015-12-15. End: 2019-12-31.

What is the track record of Support Systems Associates Inc. with similar DoD contracts?

Support Systems Associates Inc. (SSA) has a history of providing specialized support services to the Department of Defense, including training and technical assistance for various aviation platforms. While this specific contract for the CH-47F is a significant award, SSA's broader portfolio often includes work on complex systems requiring similar expertise. Analyzing their past performance on contracts of comparable size and scope, particularly those involving fixed-wing or rotary-wing aircraft, would provide further insight into their reliability and capability. Reviewing past performance evaluations and any documented issues or successes on prior DoD contracts would offer a more comprehensive picture of their contractor track record.

How does the value of this contract compare to similar aviation training and support contracts?

Benchmarking the $27.9 million value requires comparing it to contracts for training and technical support of similar complexity and duration for other heavy-lift helicopters or complex military aircraft. Factors such as the number of personnel trained, the scope of technical support (e.g., depot-level vs. field-level), the specific systems involved, and the contract type (CPFF in this case) significantly influence pricing. Contracts for training on platforms like the Black Hawk or Apache, or support for C-130 aircraft, could offer comparative data points. Without access to detailed pricing structures for comparable contracts, a precise value-for-money assessment is challenging, but the duration and specialized nature suggest the price is within a plausible range for such critical support.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include potential cost overruns inherent in CPFF contracts, contractor performance issues (e.g., failing to meet training objectives or provide timely technical support), and the potential for obsolescence of training materials or techniques over the contract's duration. Mitigation strategies likely involve robust government oversight by the COR, performance metrics tied to deliverables, regular progress reviews, and potentially incorporating contract clauses that incentivize cost control and performance quality. The contractor's experience and the competitive award process also serve as risk-reduction factors, suggesting a capable provider was selected.

How effective is the CH-47F NEW EQUIPMENT TRAINING AND TECHNICAL SUPPORT program in enhancing operational readiness?

The effectiveness of this program is directly linked to the quality and comprehensiveness of the training and technical support provided. High-quality training ensures that flight crews and maintenance personnel are proficient in operating and maintaining the CH-47F, a critical asset for troop transport and logistics. Effective technical support minimizes downtime and ensures the aircraft are mission-ready. Success would be measured by factors such as reduced aircraft non-mission-capable rates, improved crew proficiency scores, and successful mission accomplishment by units utilizing the CH-47F. The long-term operational readiness of Army aviation heavily relies on such foundational support programs.

What are the historical spending patterns for CH-47F training and support?

Historical spending on CH-47F training and support would likely show a consistent need for such services throughout the aircraft's operational life, potentially increasing during periods of new equipment fielding or major upgrades. Spending patterns are influenced by factors like operational tempo, deployment requirements, and the overall defense budget allocated to aviation sustainment. Analyzing past contracts for CH-47F training and support, including their values, durations, and awarded contractors, would reveal trends in cost, competition, and the evolution of support requirements over time. This specific $27.9M contract represents a segment of that ongoing investment.

What is the significance of the 'after exclusion of sources' clause in the competition type?

The 'Full and Open Competition After Exclusion of Sources' (FOUO) designation indicates that while the initial solicitation may have excluded certain potential offerors based on specific criteria (e.g., capability, security, past performance), the subsequent evaluation and award process was fully competitive among the remaining eligible sources. This suggests a deliberate decision by the agency to narrow the field initially, perhaps due to unique requirements or to manage the proposal review process, but then to ensure robust competition within that defined group. Understanding the basis for the initial exclusion is key to assessing whether the full breadth of the market was appropriately considered.

Industry Classification

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

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

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: $60,791,600

Exercised Options: $27,917,958

Current Obligation: $27,917,958

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $14,967,192

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