DoD's $160M R&D contract for maritime patrol aircraft awarded to MANTECH TSG-2 JOINT VENTURE

Contract Overview

Contract Amount: $160,227,164 ($160.2M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2020-09-21

End Date: 2026-03-31

Contract Duration: 2,017 days

Daily Burn Rate: $79.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RESEARCH, DEVELOPMENT, TEST, AND EVALUATION OF MARITIME PATROL AND RECONNAISSANCE AIRCRAFT FOR NAVAL AIR SYSTEMS COMMAND AIRBORNE MULTI INTELLIGENCE SPECIAL MISSIONS PROGRAM OFFICE 290

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $160.2 million to MANTECH TSG-2 JOINT VENTURE for work described as: RESEARCH, DEVELOPMENT, TEST, AND EVALUATION OF MARITIME PATROL AND RECONNAISSANCE AIRCRAFT FOR NAVAL AIR SYSTEMS COMMAND AIRBORNE MULTI INTELLIGENCE SPECIAL MISSIONS PROGRAM OFFICE 290 Key points: 1. Contract focuses on advanced research and development for critical naval intelligence capabilities. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type (Cost Plus Fixed Fee) can present cost control challenges. 4. Performance period extends through March 2026, indicating a long-term development effort. 5. The specific NAICS code (541715) points to a specialized R&D sector. 6. This contract supports the Naval Air Systems Command's intelligence gathering mission.

Value Assessment

Rating: fair

The contract's value of approximately $160 million for R&D in maritime patrol and reconnaissance aircraft is substantial. Benchmarking this against similar, highly specialized R&D efforts is challenging due to the unique nature of military intelligence platforms. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, can lead to higher overall costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns and comparisons to industry standards for similar R&D phases, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach is generally favored for maximizing competition and potentially achieving better pricing and innovation. The presence of multiple bidders suggests that the market for such specialized R&D services is not overly concentrated, allowing the government to select from a range of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives a more competitive bidding process, which can lead to lower prices and better value for the government's investment in critical defense technologies.

Public Impact

The primary beneficiaries are the U.S. Navy and its intelligence operations, enhancing maritime surveillance capabilities. Services delivered include research, development, testing, and evaluation of advanced aircraft systems. The geographic impact is primarily within the defense sector, with potential implications for aerospace industry hubs. Workforce implications include specialized engineering, research, and technical roles within the contractor's organization and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
The long performance period requires sustained oversight to ensure milestones are met efficiently.
Specialized R&D can be prone to scope creep and unforeseen technical challenges.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Supports a critical national security mission for naval intelligence.
The contractor is a joint venture, potentially bringing diverse expertise.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research and development for advanced military aircraft. The market for specialized intelligence, surveillance, and reconnaissance (ISR) platforms is highly technical and often dominated by a few key players. Spending in this area is driven by evolving geopolitical threats and the need for technological superiority. Comparable spending benchmarks would typically be found within other large-scale defense R&D programs for aircraft or advanced sensor systems.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While the prime contractor is a joint venture, the extent of small business subcontracting is not specified. This contract's value and technical complexity may limit direct participation by small businesses unless they possess highly specialized capabilities or are brought in as subcontractors by the prime.

Oversight & Accountability

Oversight for this contract would primarily reside with the Naval Air Systems Command (NAVAIR) and potentially the Department of Defense's Inspector General. Accountability measures would be tied to contract milestones, deliverables, and adherence to the Cost Plus Fixed Fee structure. Transparency is generally limited for classified or sensitive defense R&D projects, but contract awards and basic performance reporting are typically public.

Related Government Programs

Naval Air Systems Command Programs
Maritime Patrol Aircraft Programs
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Research and Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires vigilant oversight to manage potential cost escalations.
Long contract duration necessitates sustained monitoring of progress and performance.
The specialized nature of defense R&D introduces inherent technical and schedule risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $160.2 million to MANTECH TSG-2 JOINT VENTURE. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION OF MARITIME PATROL AND RECONNAISSANCE AIRCRAFT FOR NAVAL AIR SYSTEMS COMMAND AIRBORNE MULTI INTELLIGENCE SPECIAL MISSIONS PROGRAM OFFICE 290

Who is the contractor on this award?

The obligated recipient is MANTECH TSG-2 JOINT VENTURE.

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 $160.2 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-03-31.

What is the track record of MANTECH TSG-2 JOINT VENTURE in delivering complex R&D projects for the Department of Defense?

MANTECH TSG-2 JOINT VENTURE is a joint venture, suggesting a collaborative effort between established entities. Specific historical performance data for this particular joint venture entity might be limited if it's newly formed for this contract. However, the performance of its constituent companies, if known, would be a key indicator. For DoD R&D contracts, especially those involving advanced technology like maritime patrol aircraft, a strong history of successful project completion, adherence to budget, and technical innovation is crucial. Assessing past performance would involve reviewing contract databases for similar projects awarded to the JV or its parent companies, looking for metrics like on-time delivery, cost performance, and technical success rates. Any past issues with cost overruns, schedule delays, or technical failures on similar projects would be significant red flags.

How does the $160 million value compare to similar R&D contracts for advanced maritime surveillance aircraft?

The $160 million value for research, development, testing, and evaluation of maritime patrol and reconnaissance aircraft is significant but falls within the typical range for advanced defense R&D programs. Programs involving the development of entirely new platforms or major upgrades to existing ones can easily run into hundreds of millions or even billions of dollars over their lifecycle. This specific contract appears to cover a defined R&D phase rather than full-scale production. To provide a precise comparison, one would need to identify contracts with similar objectives (e.g., developing new ISR capabilities, advanced sensor integration, or next-generation airframes for maritime roles) awarded within the last few years. Factors like the specific technological advancements sought, the maturity of the technology, and the number of competitors influence pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns, even though the contractor's profit (the 'fee') is fixed. In a CPFF structure, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. If the R&D effort encounters unforeseen technical challenges, requires more resources than initially estimated, or if cost estimation is inaccurate, the total cost to the government can escalate significantly beyond initial projections. While the contractor has less incentive to inflate costs compared to a pure cost-plus contract (due to the fixed fee), they may still face challenges in accurately estimating and controlling costs in a highly uncertain R&D environment. Effective government oversight is critical to scrutinize allowable costs and ensure efficient resource utilization.

How effective is the 'full and open competition' strategy likely to be in ensuring value for this specialized R&D contract?

Full and open competition is generally the most effective strategy for ensuring value in government contracting, including specialized R&D. By soliciting proposals from all responsible sources, the government maximizes the pool of potential bidders, fostering a competitive environment that can drive down prices and spur innovation. For a contract like this, focused on advanced maritime patrol and reconnaissance aircraft, full and open competition suggests that multiple firms possess the necessary technical expertise and capacity. This allows the government to compare different technical approaches, assess a wider range of pricing structures, and select the offer that provides the best overall value, balancing technical merit, cost, and risk. The success hinges on clear requirements and a robust evaluation process.

What are the potential implications of this contract on the future capabilities of the U.S. Navy's airborne intelligence gathering?

This contract is directly aimed at enhancing the U.S. Navy's airborne intelligence, surveillance, and reconnaissance (ISR) capabilities. The research, development, testing, and evaluation of new maritime patrol and reconnaissance aircraft systems are critical for maintaining situational awareness in complex maritime environments, tracking potential adversaries, and supporting naval operations. Successful outcomes from this R&D effort could lead to aircraft with improved range, endurance, sensor technology (e.g., radar, electro-optical/infrared, signals intelligence), data processing, and communication systems. These advancements would bolster the Navy's ability to conduct persistent surveillance, gather critical intelligence, and respond effectively to threats, thereby strengthening national security.

Are there any historical spending patterns or trends related to maritime patrol and reconnaissance aircraft R&D that this contract aligns with?

Spending on maritime patrol and reconnaissance aircraft R&D typically follows cycles driven by technological advancements, evolving threats, and the lifecycle of existing platforms. Historically, the U.S. Navy has invested heavily in maintaining and upgrading its maritime ISR capabilities, often through programs like the P-8 Poseidon (which replaced the P-3 Orion). This contract likely represents a continuation of that investment, focusing on the next generation of capabilities or specific technological enhancements. Trends often include integrating more advanced sensors, improving networking and data fusion, enhancing electronic warfare capabilities, and increasing platform autonomy or endurance. This contract aligns with the ongoing need to modernize and adapt these critical assets to contemporary and future operational requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12015 LEE JACKSON HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $165,086,017

Exercised Options: $165,086,017

Current Obligation: $160,227,164

Actual Outlays: $11,907,754

Subaward Activity

Number of Subawards: 195

Total Subaward Amount: $160,823,462

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0011

IDV Type: IDC

Timeline