DoD's $35.8M C-21 Avionics Upgrade Program contract awarded to Global Aviation Technologies LLC

Contract Overview

Contract Amount: $35,802,158 ($35.8M)

Contractor: Global Aviation Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2017-05-18

End Date: 2021-12-31

Contract Duration: 1,688 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-21 AVIONICS UPGRADE PROGRAM (AUP)MODIFICATION

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67209

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to GLOBAL AVIATION TECHNOLOGIES LLC for work described as: C-21 AVIONICS UPGRADE PROGRAM (AUP)MODIFICATION Key points: 1. Contract awarded for avionics upgrades to C-21 aircraft, enhancing operational capabilities. 2. The contract was competed fully open after excluding sources, suggesting a competitive process. 3. A firm-fixed-price contract type indicates predictable costs for the government. 4. The duration of the contract is substantial, spanning over 4 years. 5. The awardee, Global Aviation Technologies LLC, is positioned within the aircraft parts manufacturing sector. 6. The contract value is moderate within the context of defense procurement.

Value Assessment

Rating: good

The contract value of approximately $35.8 million for avionics upgrades appears reasonable given the scope of work involving aircraft modifications. Benchmarking against similar large-scale avionics upgrade programs for military aircraft suggests that this price falls within expected ranges. The firm-fixed-price structure helps mitigate cost overrun risks for the Department of Defense. Further analysis would require detailed cost breakdowns and comparison to specific upgrade packages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, certain sources were excluded. This suggests that the initial solicitation may have had specific requirements that narrowed the field of potential bidders. With 5 offers received, the competition level was moderate, which can still lead to price discovery but might not be as robust as a completely unrestricted open competition.

Taxpayer Impact: The exclusion of sources could potentially limit the most competitive pricing if it inadvertently excluded highly capable and cost-effective providers. However, with five offers, taxpayers likely benefited from some level of price negotiation.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who will operate the upgraded C-21 aircraft, benefiting from enhanced safety and performance. The services delivered include the modernization of avionics systems, crucial for navigation, communication, and operational efficiency. The geographic impact is primarily within the operational theaters of the U.S. Air Force, wherever C-21 aircraft are deployed. Workforce implications include specialized technical roles for installation, testing, and maintenance of the new avionics systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion.
Risk of technology obsolescence if upgrade is not future-proofed.
Dependence on a single contractor for specialized avionics expertise.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awardee is in a relevant manufacturing sector.
Multiple offers received indicate some level of market interest.

Sector Analysis

The defense avionics market is a specialized segment within the broader aerospace and defense industry, characterized by high technological requirements and stringent regulatory oversight. Companies in this sector focus on developing and integrating advanced electronic systems for aircraft. The C-21 Avionics Upgrade Program fits within this sector by addressing the need for modernization of existing military transport aircraft to maintain operational relevance and safety standards. Comparable spending benchmarks would involve other military aircraft modernization programs, which can range from tens to hundreds of millions of dollars depending on the aircraft type and scope of upgrades.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Global Aviation Technologies LLC, is likely a larger entity, and the contract may not have significant direct implications for the small business ecosystem unless they are utilized as subcontractors without specific set-aside requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contract compliance and performance. Accountability measures are embedded in the firm-fixed-price contract type, which incentivizes the contractor to meet specifications within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of performance and cost breakdowns may be limited to government and contractor personnel.

Related Government Programs

C-130 Avionics Modernization Program
Air Force Special Operations Command (AFSOC) aircraft upgrades
Military transport aircraft sustainment programs
Defense aviation electronics manufacturing

Risk Flags

Limited competition due to source exclusion.
Potential for schedule delays in complex integration projects.
Risk of technology obsolescence if not future-proofed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to GLOBAL AVIATION TECHNOLOGIES LLC. C-21 AVIONICS UPGRADE PROGRAM (AUP)MODIFICATION

Who is the contractor on this award?

The obligated recipient is GLOBAL AVIATION TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2017-05-18. End: 2021-12-31.

What is the track record of Global Aviation Technologies LLC with Department of Defense contracts?

A review of public contract databases indicates that Global Aviation Technologies LLC has been awarded multiple contracts with the Department of Defense, primarily in the realm of aircraft parts and modification services. While specific performance metrics for past contracts are not readily available in this summary, the recurring awards suggest a level of capability and reliability that meets DoD requirements. Further investigation into contract performance reports and any past performance evaluations would provide a more comprehensive understanding of their track record. The company's specialization in 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' aligns with the nature of the C-21 AUP contract.

How does the cost per aircraft for this avionics upgrade compare to similar programs?

Without knowing the exact number of C-21 aircraft being upgraded under this $35.8 million contract, a precise per-aircraft cost comparison is difficult. However, large-scale avionics modernization programs for military aircraft can range significantly. For example, upgrades for larger aircraft like the C-130 or specialized platforms can cost several million dollars per aircraft, encompassing new navigation systems, communication suites, and cockpit displays. Given the C-21 is a smaller transport aircraft, the cost per unit is likely within a reasonable range for such a comprehensive upgrade, assuming a moderate number of aircraft are included. A more accurate benchmark would require knowing the total number of aircraft affected and the specific avionics components being replaced or added.

What are the primary risks associated with this avionics upgrade program?

Key risks for this avionics upgrade program include potential technical challenges during integration, as new systems must be compatible with existing aircraft structures and power systems. There's also a risk of schedule delays, which can occur due to unforeseen technical issues, supply chain disruptions for specialized components, or changes in government requirements. Furthermore, the exclusion of certain sources in the competition phase could indicate a limited pool of qualified vendors, potentially increasing reliance on a few key suppliers and raising concerns about long-term supportability or future cost increases if the primary contractor faces difficulties. Ensuring the chosen avionics are future-proofed against rapid technological advancements is another consideration.

What is the expected impact of these upgrades on the C-21 aircraft's operational effectiveness?

The avionics upgrade program is expected to significantly enhance the operational effectiveness of the C-21 aircraft. Modernized avionics typically improve navigation accuracy, communication reliability, and situational awareness for the flight crew. This can lead to increased mission success rates, improved safety margins, and potentially reduced flight times or fuel efficiency. For a transport aircraft like the C-21, these upgrades are crucial for maintaining its utility in current and future operational environments, ensuring it can meet evolving mission requirements and operate effectively alongside more modern platforms.

How has spending on C-21 aircraft sustainment and upgrades evolved over time?

Historical spending data specifically for C-21 aircraft sustainment and upgrades prior to this $35.8 million contract would require a detailed analysis of past DoD procurement and maintenance budgets. However, it is common for aging military aircraft fleets to undergo periodic modernization programs to extend their service life and incorporate new technologies. Such programs are often significant investments, reflecting the ongoing need to maintain readiness and capability. Without specific historical figures, it can be inferred that this contract represents a substantial, targeted investment in the C-21 fleet's future operational viability, likely following a period of routine maintenance and smaller component upgrades.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA810616R0003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1704 S BAEHR ST, WICHITA, KS, 67209

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $64,429,386

Exercised Options: $35,802,158

Current Obligation: $35,802,158

Actual Outlays: $1,125,845

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline