DoD's $41.19M contract for aircraft manufacturing support services awarded to SUPPORT SYSTEMS ASSOCIATES INC

Contract Overview

Contract Amount: $41,194,860 ($41.2M)

Contractor: Support Systems Associates Inc

Awarding Agency: Department of Defense

Start Date: 2017-01-10

End Date: 2019-09-30

Contract Duration: 993 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LSFMA IDM

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to SUPPORT SYSTEMS ASSOCIATES INC for work described as: LSFMA IDM Key points: 1. Value for money appears fair given the fixed-price nature of the contract. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration of 993 days indicates a significant, long-term need. 4. Performance context is tied to aircraft manufacturing support, a critical defense function. 5. Sector positioning is within the broader defense manufacturing and support industry.

Value Assessment

Rating: fair

The contract's total award amount of $41.19 million for aircraft manufacturing support services is difficult to benchmark without specific deliverables. However, the firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value. Comparing this to similar support contracts would require detailed analysis of the scope of work and service levels.

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 a competitive process was intended, specific sources may have been excluded initially. The presence of 2 bids suggests a moderate level of competition, which is generally favorable for price discovery.

Taxpayer Impact: A competitive process, even with exclusions, is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and terms.

Public Impact

Benefits the Department of Defense by providing essential aircraft manufacturing support. Services delivered likely include technical assistance, maintenance, or specialized manufacturing support. Geographic impact is primarily within Alabama, where the contractor is located. Workforce implications include employment opportunities for skilled labor in aircraft manufacturing support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work was not precisely defined.
Risk associated with the exclusion of certain sources in the initial competition phase.

Positive Signals

Firm fixed-price contract type shifts cost risk to the contractor.
Full and open competition, even with exclusions, aims for competitive pricing.
Contract awarded to a single entity, suggesting a focused relationship.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically supporting aircraft manufacturing. This sector is characterized by high technological complexity, significant government investment, and a focus on national security. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft support services across the Department of Defense and other military branches.

Small Business Impact

The contract was not set aside for small businesses, and the 'ss' and 'sb' fields are false, indicating no explicit small business set-aside. This means larger businesses were likely the primary bidders. Subcontracting opportunities for small businesses may exist but are not guaranteed by the contract's structure.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the relevant Department of the Army program office. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is generally provided through contract award databases like FPDS.

Related Government Programs

Aircraft Manufacturing
Defense Support Services
Aircraft Maintenance and Repair
Aerospace Manufacturing Support

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed service scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to SUPPORT SYSTEMS ASSOCIATES INC. LSFMA IDM

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 $41.2 million.

What is the period of performance?

Start: 2017-01-10. End: 2019-09-30.

What specific services were included under this aircraft manufacturing support contract?

The provided data does not detail the specific services rendered under this contract. However, given the 'Aircraft Manufacturing' NAICS code (336411) and the contractor's name, it likely encompassed technical support, specialized manufacturing processes, engineering assistance, or logistical support directly related to the production or assembly of aircraft components or systems. Further investigation into the contract's statement of work would be necessary to ascertain the precise deliverables.

How does the $41.19 million award compare to other similar aircraft manufacturing support contracts?

Benchmarking this $41.19 million award requires comparing it against contracts with similar scopes of work, durations, and service complexities within the defense aerospace sector. Without access to the detailed statement of work, it's challenging to make a direct comparison. However, for a nearly three-year contract (993 days), this amount suggests a substantial level of support, potentially involving specialized expertise or significant resource allocation. Analysis of historical contract awards for similar support functions by the Department of the Army or other branches would provide a more robust comparison.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

This award type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests that while the competition was intended to be broad, certain potential bidders were excluded from the outset. This could introduce risks if the excluded sources possessed unique capabilities or offered more competitive pricing. The primary risk is that the government might not have received the absolute best value due to a narrowed pool of competitors. It also raises questions about the justification for the exclusions and whether it limited innovation or market responsiveness.

What is the significance of the 'Aircraft Manufacturing' NAICS code (336411) in relation to this contract?

The North American Industry Classification System (NAICS) code 336411, 'Aircraft Manufacturing,' signifies that the primary business activity related to this contract is the production of aircraft, aircraft engines and engine parts, and/or other related aeronautical equipment. This contract's award under this code indicates that SUPPORT SYSTEMS ASSOCIATES INC. provided services directly supporting the manufacturing operations within this critical defense industry sector. This could range from providing specialized labor, manufacturing components, offering technical expertise, or managing specific production processes.

What does the 'DELIVERY ORDER' (aw) designation imply about the contract structure?

The 'DELIVERY ORDER' (aw) designation indicates that this contract is likely a task order or delivery order issued against a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of basic ordering agreement. This structure allows the government to procure goods or services incrementally as needed, rather than awarding a single, large contract upfront. For the government, it offers flexibility in managing requirements and budgets. For the contractor, it signifies a commitment to provide services over a period, with specific orders defining the quantity and timing of delivery.

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: FIRM FIXED PRICE (J)

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: $60,591,990

Exercised Options: $41,194,860

Current Obligation: $41,194,860

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