Air Force awards $14M contract for B-2 bomber structural maintenance to Strategic Technology Institute Inc

Contract Overview

Contract Amount: $13,968,552 ($14.0M)

Contractor: Strategic Technology Institute Inc

Awarding Agency: Department of Defense

Start Date: 2023-02-22

End Date: 2026-02-06

Contract Duration: 1,080 days

Daily Burn Rate: $12.9K/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: B-2 LOW OBSERVABLE AIRCRAFT STRUCTURAL MAINTENANCE (LOASM) AT WHITEMAN AFB, MO.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to STRATEGIC TECHNOLOGY INSTITUTE INC for work described as: B-2 LOW OBSERVABLE AIRCRAFT STRUCTURAL MAINTENANCE (LOASM) AT WHITEMAN AFB, MO. Key points: 1. Contract focuses on critical structural maintenance for the B-2 stealth bomber fleet. 2. Strategic Technology Institute Inc. is the sole awardee for this specific maintenance requirement. 3. The contract duration extends over 3 years, indicating a sustained need for these services. 4. Fixed-price contract type suggests a defined scope and potential for cost predictability. 5. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. Maintenance is crucial for maintaining the operational readiness and longevity of the B-2 fleet.

Value Assessment

Rating: good

The contract value of approximately $14 million over three years for specialized aircraft structural maintenance appears reasonable given the complexity and criticality of the B-2 bomber. Benchmarking against similar specialized aerospace maintenance contracts would provide a more precise value-for-money assessment. However, the firm-fixed-price nature of the award suggests that the government has negotiated a set price for the defined scope of work, which is generally a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific exclusions were made, potentially limiting the pool of eligible bidders. The presence of 5 bidders suggests a degree of competition, but the 'exclusion of sources' clause warrants further investigation to understand the rationale and its impact on the final price and selection.

Taxpayer Impact: The limited competition, despite multiple bidders, may have resulted in a higher price than if all potential sources were allowed to compete. Taxpayers benefit from the selection of a qualified vendor, but the full extent of cost savings from robust competition might not have been realized.

Public Impact

The primary beneficiaries are the U.S. Air Force and the operational readiness of the B-2 Spirit bomber fleet. Services delivered include essential structural maintenance and repair to ensure the airworthiness of these advanced aircraft. The geographic impact is centered around Whiteman Air Force Base, Missouri, where the B-2 fleet is primarily stationed. This contract supports specialized technical jobs within the aerospace maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on a single contractor for critical structural maintenance could pose a risk if performance issues arise.
The specialized nature of B-2 maintenance may limit the pool of qualified contractors.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Multiple bidders (5) indicate some level of market interest and capability.
The contract duration suggests a stable, long-term need for these essential services.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft maintenance and repair. The B-2 bomber is a highly specialized and technologically advanced platform, requiring unique expertise for its structural integrity. Spending in this niche area is driven by the defense budget and the operational requirements of the Air Force's strategic bomber fleet. Comparable spending benchmarks would likely involve other high-value, low-volume aircraft maintenance contracts for advanced military platforms.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary consideration for this specific award, nor was it a small business set-aside. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this particular contract appears minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

B-2 Bomber Sustainment Programs
Air Force Aircraft Maintenance Contracts
Strategic Aircraft Fleet Support
Aerospace Structural Repair Services

Risk Flags

Limited competition due to 'exclusion of sources'.
Potential for contractor performance issues on critical maintenance.
High cost associated with specialized, low-observable aircraft maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to STRATEGIC TECHNOLOGY INSTITUTE INC. B-2 LOW OBSERVABLE AIRCRAFT STRUCTURAL MAINTENANCE (LOASM) AT WHITEMAN AFB, MO.

Who is the contractor on this award?

The obligated recipient is STRATEGIC TECHNOLOGY INSTITUTE 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 $14.0 million.

What is the period of performance?

Start: 2023-02-22. End: 2026-02-06.

What is the track record of Strategic Technology Institute Inc. with similar defense maintenance contracts?

A review of public contract databases indicates that Strategic Technology Institute Inc. has a history of performing various defense-related services, including maintenance and technical support. While specific details on their track record with B-2 structural maintenance are not immediately available in summary data, their past awards suggest experience in the defense sector. Further analysis would involve examining their performance history on comparable contracts, including any past performance evaluations or awards/debarments, to assess their reliability and capability for this critical B-2 LOASM contract.

How does the awarded price compare to similar B-2 maintenance contracts or industry benchmarks?

Direct comparison of the $14 million contract value to identical B-2 structural maintenance contracts is challenging due to the specialized and often classified nature of such work. However, the value appears consistent with the high cost associated with maintaining advanced, low-observable aircraft. Benchmarking against other firm-fixed-price contracts for specialized military aircraft structural maintenance, particularly for other bomber or fighter platforms, would provide a more robust comparison. The 'Aircraft Manufacturing' NAICS code (336411) encompasses a broad range of activities, making precise per-unit cost comparisons difficult without detailed scope information.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance deficiencies by the contractor, leading to delays or compromised structural integrity of the B-2 aircraft. Another risk is the limited competition aspect, which could impact price competitiveness. Mitigation strategies likely involve stringent performance monitoring by the Air Force, adherence to the firm-fixed-price terms, and potentially robust quality assurance surveillance plans. The 'exclusion of sources' clause, if not fully justified, could also represent a risk to achieving optimal value for taxpayer dollars.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for this type of specialized maintenance?

This contracting approach aims to balance the need for broad competition with specific requirements that may limit the eligible vendor pool. For highly specialized maintenance like that required for the B-2's low-observable structures, certain technical capabilities or security clearances might necessitate excluding some potential sources. The effectiveness hinges on whether the exclusions were justified and if the resulting competition among the remaining qualified bidders still yielded fair and reasonable pricing. The fact that five bids were received suggests a viable, albeit narrowed, competitive field.

What is the historical spending trend for B-2 structural maintenance, and how does this award fit?

Historical spending data for B-2 structural maintenance would reveal trends in the Air Force's investment in sustaining this aging fleet. This $14 million award represents a specific delivery order under a potentially larger IDIQ contract, suggesting ongoing, cyclical maintenance needs. Analyzing past years' spending on similar B-2 maintenance contracts would indicate whether this award is consistent with historical investment levels or represents a significant increase or decrease, potentially signaling changes in fleet readiness requirements or maintenance strategies.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: 6000 EXECUTIVE BLVD STE 205, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,842,797

Exercised Options: $13,968,552

Current Obligation: $13,968,552

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0006

IDV Type: IDC

Timeline