DoD's $34.8M UH-60 Technical Supply Package contract awarded to Science and Engineering Services, LLC

Contract Overview

Contract Amount: $34,862,398 ($34.9M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2016-02-10

End Date: 2021-07-30

Contract Duration: 1,997 days

Daily Burn Rate: $17.5K/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: UH-60 FMS TECHNICAL SUPPLY TO REPEATEDLY PROVIDE TECH SUPPLY PACKAGE (TSP) SUPPORT TO UH-60A/L/M FOREIGN MILITARY SALES (FMS) CUSTOMERS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: UH-60 FMS TECHNICAL SUPPLY TO REPEATEDLY PROVIDE TECH SUPPLY PACKAGE (TSP) SUPPORT TO UH-60A/L/M FOREIGN MILITARY SALES (FMS) CUSTOMERS. Key points: 1. The contract focuses on providing technical supply package support for UH-60 aircraft to foreign military sales customers. 2. Awarded through full and open competition after exclusion of sources, indicating a competitive process. 3. The contract duration spans over 1997 days, suggesting a long-term need for these services. 4. The primary service involves technical supply support, crucial for maintaining operational readiness of military aircraft. 5. The contract's value of approximately $34.8 million over its period indicates a significant investment in foreign military sales support. 6. The contractor, Science and Engineering Services, LLC, has been awarded this significant contract by the Department of the Army.

Value Assessment

Rating: good

The contract value of $34.8 million over nearly 2000 days suggests a moderate annual spend. Benchmarking this against similar technical support contracts for major aircraft platforms would provide a clearer picture of value for money. The cost-plus-fixed-fee (CPFF) pricing structure means that while the contractor's costs are reimbursed, there is a fixed fee for their effort, which can incentivize efficiency. However, without detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be open, certain sources may have been excluded for specific reasons, possibly related to technical capabilities or prior performance. The presence of two bidders suggests a degree of competition, but the exclusion of other potential bidders might have limited the full breadth of market engagement and potentially impacted price discovery.

Taxpayer Impact: The limited competition, while potentially justified by specific requirements, may have resulted in a higher price for taxpayers compared to a truly unrestricted full and open competition with a larger pool of bidders.

Public Impact

Foreign military sales customers of the UH-60 Black Hawk helicopter benefit from continued technical supply support, enhancing their aircraft's operational readiness. The services delivered ensure the availability of critical technical documentation and supply chain management for a key military asset. The contract supports the U.S. government's foreign policy objectives by providing essential sustainment for allied and partner nations' defense capabilities. The contract has implications for the aerospace and defense supply chain, ensuring components and technical data flow to international users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored, requiring robust oversight.
Reliance on a single contractor for critical technical supply packages could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

The contract was awarded through a competitive process, even with exclusions, suggesting some level of market vetting.
The long duration of the contract indicates a sustained demand and likely a stable, ongoing requirement for these services.
The focus on foreign military sales aligns with U.S. strategic partnerships and defense cooperation objectives.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically supporting aircraft sustainment and logistics. The North American Industry Classification System (NAICS) code 336411 (Aircraft Manufacturing) is broadly associated, though the service component is key. The market for technical support and supply chain management for major military platforms like the UH-60 is specialized, often involving a limited number of experienced contractors. Spending in this area is driven by defense modernization, foreign military sales, and the lifecycle management of existing fleets.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business set-aside' field is false. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the prime contractor is likely a larger entity, and opportunities for small businesses may be limited unless they are direct suppliers or subcontractors to the prime, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is generally facilitated through contract award databases, but detailed performance metrics and cost audits are usually internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

UH-60 Black Hawk Helicopter Procurement
Foreign Military Sales Program
Aerospace Technical Support Services
Aircraft Logistics and Sustainment
Defense Supply Chain Management

Risk Flags

Competition Method: 'Exclusion of Sources' requires scrutiny.
Contract Type: CPFF necessitates diligent cost oversight.
Sole Source Potential: If exclusions were overly broad, it might approach sole-source characteristics.
Foreign Military Sales Dependency: Reliance on FMS can be subject to geopolitical shifts and partner nation funding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to SCIENCE AND ENGINEERING SERVICES, LLC. UH-60 FMS TECHNICAL SUPPLY TO REPEATEDLY PROVIDE TECH SUPPLY PACKAGE (TSP) SUPPORT TO UH-60A/L/M FOREIGN MILITARY SALES (FMS) CUSTOMERS.

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $34.9 million.

What is the period of performance?

Start: 2016-02-10. End: 2021-07-30.

What is the specific nature of the 'Technical Supply Package (TSP)' support provided under this contract?

The Technical Supply Package (TSP) support likely encompasses a range of services critical for the sustainment of UH-60 aircraft for Foreign Military Sales (FMS) customers. This typically includes the provision, management, and tracking of spare parts, repair components, technical manuals, engineering data, and potentially specialized tools required for the maintenance and operation of the helicopters. The goal is to ensure that FMS customers have timely access to the necessary logistical and technical resources to keep their UH-60 fleets mission-capable, thereby supporting their defense readiness and interoperability with U.S. forces.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method differ from standard full and open competition?

Standard 'Full and Open Competition' allows all responsible sources to submit offers. 'Full and Open Competition After Exclusion of Sources' implies that while the intent was broad competition, specific sources were intentionally excluded from the bidding process. This exclusion is typically based on predefined criteria, such as unique capabilities, prior performance on related systems, or specific security requirements that only a limited number of entities can meet. While it aims for competition among the remaining eligible sources, it inherently restricts the pool of potential offerors compared to a completely unrestricted process, which could influence pricing and innovation.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs incurred while performing the contract, plus a predetermined fixed fee representing profit. A key risk is that the contractor may have less incentive to control costs rigorously, as cost overruns are generally covered, provided they are allowable. This necessitates robust government oversight to scrutinize costs and ensure they are reasonable and allocable to the contract. If oversight is insufficient, costs could escalate beyond initial expectations, impacting the overall value delivered to the government, although the fixed fee itself provides some predictability.

Can the performance history of Science and Engineering Services, LLC on similar contracts be assessed to gauge reliability?

Assessing the performance history of Science and Engineering Services, LLC (SES) on similar contracts is crucial for understanding their reliability in fulfilling complex technical support requirements. While this specific contract award notice doesn't detail past performance, publicly available contract databases and federal procurement records can often provide insights. Reviewing past contract awards, modifications, termination history, and any reported performance issues or accolades for SES, particularly in aerospace sustainment or FMS logistics, would offer a data-driven perspective on their capabilities and track record.

What is the significance of the North American Industry Classification System (NAICS) code 336411 in relation to this contract?

The NAICS code 336411, 'Aircraft Manufacturing,' is assigned to establishments primarily engaged in manufacturing aircraft, aircraft engines, and parts. While this contract is for 'Technical Supply Package Support' rather than direct manufacturing, the code is relevant because the services provided are intrinsically linked to the lifecycle management and sustainment of aircraft. Companies involved in manufacturing often possess the deep technical knowledge and established supply chains necessary to offer comprehensive support services for the products they produce or similar complex aerospace systems.

How does the geographic location of the contract performance (Alabama) potentially influence the execution of this FMS support contract?

The contract indicates performance or award location in Alabama (ST: AL, SN: ALABAMA). For a contract supporting Foreign Military Sales (FMS) technical supply, this location could be significant if it hosts major Army aviation depots, logistics hubs, or facilities associated with the UH-60 program. Proximity to these operational or logistical centers can streamline the flow of technical data, parts, and support personnel, potentially reducing lead times and transportation costs. It may also indicate that Science and Engineering Services, LLC has a strong presence or operational base within a key defense industrial corridor in Alabama.

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

Address: 248 DUNLOP BLVD, HUNTSVILLE, AL, 35824

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,547,098

Exercised Options: $34,862,398

Current Obligation: $34,862,398

Subaward Activity

Number of Subawards: 84

Total Subaward Amount: $34,375,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ13D0048

IDV Type: IDC

Timeline