Air Force awards $5.3M for cold spray repair services, highlighting engineering solutions

Contract Overview

Contract Amount: $5,341,737 ($5.3M)

Contractor: Engineering and Software System Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-30

End Date: 2029-02-28

Contract Duration: 2,009 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COLD SPRAY REPAIR SERVICES IAW PWS

Place of Performance

Location: DYESS AFB, TAYLOR County, TEXAS, 79607

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. for work described as: COLD SPRAY REPAIR SERVICES IAW PWS Key points: 1. Contract value appears reasonable for specialized engineering and repair services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration extends over five years, indicating a long-term need. 4. The contract is a definitive contract, typically used for specific requirements. 5. Fixed-price contract type helps manage cost certainty for the government. 6. The awardee has experience in engineering and software solutions.

Value Assessment

Rating: good

The contract value of $5.34 million for cold spray repair services over approximately five years appears to be within a reasonable range for specialized engineering support. Benchmarking against similar contracts for depot-level maintenance or specialized repair services would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the pool of bidders. Further details on the reasons for exclusion would be necessary to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The exclusion of certain sources, even in an otherwise open competition, could potentially lead to less aggressive pricing than a truly unrestricted full and open competition. Taxpayers benefit from competition, but the extent of this benefit is moderated by the source exclusions.

Public Impact

The Department of the Air Force benefits from specialized repair capabilities for its assets. Cold spray repair services are delivered, potentially extending the life of critical components. The contract is being performed in Texas, impacting the local economy and workforce. Engineering and Software System Solutions, Inc. will provide the services, leveraging their technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Long contract duration could lead to price increases if not managed effectively.
Reliance on a single contractor for specialized services may pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awardee has a track record in engineering and software solutions.
The contract supports critical Air Force maintenance and repair needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering services for various applications, including defense. The market for specialized repair technologies like cold spray is growing, driven by the need for efficient and effective maintenance of complex military equipment. The total contract value is modest within the broader defense engineering services market.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC., is likely a larger entity. There is no explicit indication of subcontracting requirements for small businesses within the provided data, suggesting limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

The contract is a definitive contract with a firm fixed-price structure, which inherently provides some level of cost oversight. The Department of the Air Force is responsible for monitoring performance and ensuring compliance with the PWS. Further oversight details, such as specific reporting requirements or the involvement of an Inspector General, are not detailed in the provided data.

Related Government Programs

Aircraft Maintenance and Repair
Depot Maintenance Services
Engineering and Technical Services
Defense Logistics Agency Contracts

Risk Flags

Limited competition due to source exclusion.
Long contract duration requires ongoing performance monitoring.
Potential for uncaptured scope creep over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC.. COLD SPRAY REPAIR SERVICES IAW PWS

Who is the contractor on this award?

The obligated recipient is ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2023-08-30. End: 2029-02-28.

What is the specific nature of the 'cold spray repair services' and why are they critical for the Air Force?

Cold spray is an additive manufacturing process that utilizes a high-velocity jet of heated gas to propel metallic particles onto a surface, forming a dense, strongly bonded coating. For the Air Force, these services are critical for repairing worn or damaged components on aircraft, engines, and other complex systems. This technology can restore parts to their original specifications, extend their service life, and avoid the need for costly replacements or traditional, more time-consuming repair methods. Its ability to repair without significant heat input is also advantageous for sensitive materials. The specific PWS (Performance Work Statement) would detail the exact components and types of repairs covered under this contract.

How does the 'Full and Open Competition After Exclusion of Sources' mechanism compare to standard full and open competition?

Standard 'Full and Open Competition' requires the government to solicit offers from all responsible sources and to award the contract to the source whose offer is most advantageous to the government, price and other factors considered. 'Full and Open Competition After Exclusion of Sources' is a deviation where the agency excludes specific sources from the competition. This is typically done when there's a justifiable reason, such as national security concerns, proprietary data limitations, or when only a limited number of sources possess the necessary capabilities. While it aims for broad competition, the exclusion inherently narrows the field compared to a truly unrestricted process, potentially impacting the level of price competition and the range of innovative solutions considered.

What are the potential risks associated with a five-year definitive contract for specialized repair services?

A significant risk with a long-term definitive contract like this is the potential for scope creep or evolving requirements that may not be adequately captured in the initial PWS, leading to potential cost increases or disputes. Another risk is contractor performance; if ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. underperforms, it could impact Air Force readiness. Furthermore, the exclusion of sources in the competition might mean that the government is not getting the absolute best price or technology available if other capable vendors were excluded without sufficient justification. Finally, over the five-year period, market prices for materials and labor could fluctuate, and the firm fixed-price nature means the contractor bears this risk, but it could also lead to pressure on the contractor to cut corners if not properly monitored.

Can we assess the contractor's track record based on the provided data?

The provided data identifies the contractor as 'ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC.' and indicates the contract type is 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' structure. It also notes the contract's start and end dates, suggesting a multi-year engagement. While the data confirms the contractor's existence and its ability to secure this specific contract, it does not offer details about their past performance, project history, client satisfaction, or specific expertise in cold spray technology beyond what is implied by their company name and the contract award itself. A comprehensive assessment of their track record would require reviewing past performance evaluations, other contracts they have held, and potentially their financial stability.

How does the contract's geographic location (Texas) influence its impact?

The contract's performance location in Texas (ST: TX, SN: TEXAS) means that the economic benefits, such as job creation and spending, will primarily accrue to that state. This includes employment opportunities for skilled technicians, engineers, and support staff within the region. Local businesses may also benefit indirectly through supply chains and services supporting the contractor's operations. For the Air Force, having a service provider located in Texas might offer logistical advantages depending on the proximity to relevant Air Force installations or depots, potentially reducing transit times for components needing repair or facilitating easier oversight.

What does the contract value of $5.34 million suggest about the scale of the services provided?

A contract value of $5.34 million spread over approximately five years (from August 2023 to February 2029) suggests a moderate but consistent demand for specialized cold spray repair services. This value indicates that the scope of work likely involves a defined set of components or repair tasks rather than a broad, open-ended maintenance program. It implies a need for ongoing, but not necessarily continuous, application of these repair techniques. The average annual value is roughly $1 million, which is substantial enough to warrant a competitive bidding process but not so large as to indicate a massive, enterprise-wide overhaul or sustainment effort.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA466123R0012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 98 IGNICO DR, WARNER ROBINS, GA, 31093

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,584,006

Exercised Options: $5,341,737

Current Obligation: $5,341,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline