DoD awards $25.6M for MQ-9 Reaper Ops Center Field Maintenance, Tenax Technologies LLC to provide support

Contract Overview

Contract Amount: $25,593,404 ($25.6M)

Contractor: Tenax Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-27

End Date: 2026-05-30

Contract Duration: 1,250 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MQ-9 REAPER REMOTELY PILOTED AIRCRAFT SQUADRON OPERATIONS CENTER FIELD MAINTENANCE SITE SUPPORT.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23666

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to TENAX TECHNOLOGIES LLC for work described as: MQ-9 REAPER REMOTELY PILOTED AIRCRAFT SQUADRON OPERATIONS CENTER FIELD MAINTENANCE SITE SUPPORT. Key points: 1. Contract supports critical MQ-9 Reaper operations, a key asset for intelligence, surveillance, and reconnaissance. 2. Tenax Technologies LLC, a small business, is the awardee. 3. The contract value is $25.6 million over approximately 2.5 years. 4. This award falls under computer facilities management services.

Value Assessment

Rating: good

The contract value of $25.6 million for approximately 2.5 years of support appears reasonable for specialized field maintenance of a complex system like the MQ-9 Reaper's operations center. Benchmarking against similar specialized IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery compared to a truly full and open competition.

Taxpayer Impact: Taxpayer funds are being used to ensure the operational readiness of a critical defense asset, contributing to national security.

Public Impact

Ensures continued operational readiness of the MQ-9 Reaper, a vital intelligence and strike platform. Supports specialized technical expertise for the aircraft's squadron operations center. Contributes to the Air Force's ability to conduct missions effectively. Potential for follow-on work based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may not yield the best price.
  • Reliance on a single contractor for critical support.
  • Potential for scope creep or unaddressed technical challenges.

Positive Signals

  • Supports a key defense asset.
  • Awarded to a small business.
  • Clear performance period and delivery order structure.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on specialized field maintenance for a complex unmanned aerial system. Spending benchmarks for similar IT support services for defense platforms can vary widely based on system criticality and required expertise.

Small Business Impact

Tenax Technologies LLC is identified as a small business. Awarding contracts to small businesses is a government priority, fostering competition and economic growth within this segment.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The contract structure with delivery orders allows for phased funding and monitoring of performance against specific requirements.

Related Government Programs

  • Computer Facilities Management Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for increased costs due to limited competition.
  • Dependency on a single small business for critical support.
  • Risk of knowledge transfer challenges if contractor personnel change.
  • Ensuring continued technological relevance of support services.

Tags

computer-facilities-management-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to TENAX TECHNOLOGIES LLC. MQ-9 REAPER REMOTELY PILOTED AIRCRAFT SQUADRON OPERATIONS CENTER FIELD MAINTENANCE SITE SUPPORT.

Who is the contractor on this award?

The obligated recipient is TENAX TECHNOLOGIES LLC.

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 $25.6 million.

What is the period of performance?

Start: 2022-12-27. End: 2026-05-30.

What is the specific technical expertise Tenax Technologies LLC brings to MQ-9 Reaper field maintenance that justified the exclusion of other sources?

The justification for excluding other sources likely stems from Tenax Technologies LLC possessing unique, specialized knowledge or experience directly related to the MQ-9 Reaper's squadron operations center hardware, software, and operational environment. This could include proprietary knowledge, specific certifications, or a proven track record with this particular system, making them the most qualified or only viable option for immediate and effective support.

How does the limited competition impact the long-term cost-effectiveness of maintaining the MQ-9 Reaper's operational readiness?

Limited competition can potentially lead to higher costs over the long term if the selected contractor does not face significant market pressure to optimize pricing. While the initial award might be competitive among the limited pool, the absence of broader competition could reduce incentives for cost-saving innovations or aggressive pricing in future contract renewals or modifications, potentially increasing the overall financial burden on the government.

What are the key performance indicators (KPIs) used to measure the effectiveness of Tenax Technologies LLC's field maintenance support for the MQ-9 Reaper?

Effectiveness is likely measured through KPIs such as system uptime and availability rates for the operations center, response times to maintenance requests, successful resolution of reported issues, adherence to maintenance schedules, and overall mission support continuity. The Department of the Air Force would track these metrics to ensure Tenax Technologies LLC meets the critical operational demands of the MQ-9 Reaper program.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4694 MILLENNIUM DR STE 520, BELCAMP, MD, 21017

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $43,963,532

Exercised Options: $25,593,404

Current Obligation: $25,593,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA489022D0004

IDV Type: IDC

Timeline

Start Date: 2022-12-27

Current End Date: 2026-05-30

Potential End Date: 2028-05-30 00:00:00

Last Modified: 2025-06-11

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending