DoD awards $20.4M contract to Strategic Technology Institute for aircraft manufacturing support

Contract Overview

Contract Amount: $20,430,917 ($20.4M)

Contractor: Strategic Technology Institute Inc

Awarding Agency: Department of Defense

Start Date: 2024-05-31

End Date: 2026-05-30

Contract Duration: 729 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 1106TH THEATER AVIATION SUSTAINMENT MAINTENANCE GROUP (TASMG) FRESNO, CA CLINS/SLINS X002, X003, X004, AND X005 TO BE INCLUDED VIA FUTURE MODS WHEN NEED ARISES.

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to STRATEGIC TECHNOLOGY INSTITUTE INC for work described as: 1106TH THEATER AVIATION SUSTAINMENT MAINTENANCE GROUP (TASMG) FRESNO, CA CLINS/SLINS X002, X003, X004, AND X005 TO BE INCLUDED VIA FUTURE MODS WHEN NEED ARISES. Key points: 1. Contract awarded to Strategic Technology Institute Inc. for aircraft manufacturing. 2. The contract has a duration of 729 days, ending May 30, 2026. 3. This is a Firm Fixed Price contract, indicating a set price for the work. 4. The procurement method was Full and Open Competition after Exclusion of Sources.

Value Assessment

Rating: fair

The contract value of $20.4 million for aircraft manufacturing support appears reasonable given the duration and scope. Benchmarking against similar contracts for specialized aviation maintenance and manufacturing services would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using Full and Open Competition after Exclusion of Sources, suggesting an attempt to broaden the competitive pool while acknowledging specific source limitations. The pricing impact of this method is unclear without further details on the exclusion criteria.

Taxpayer Impact: Taxpayer funds are being used for aircraft manufacturing support, with the final cost determined through a competitive process.

Public Impact

Supports the Department of the Air Force's aviation sustainment and maintenance capabilities. Ensures readiness and operational effectiveness of aircraft through specialized manufacturing services. Potential for job creation and economic activity within the aerospace sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Clarity on the 'Exclusion of Sources' rationale is needed.
Potential for cost overruns if scope expands beyond initial CLINS/SLINS.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Competition, even with exclusions, can drive efficiency.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, which is a critical component of national defense and aerospace. Spending in this sector is often high due to the complexity and specialized nature of the products and services required.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses, nor does it mention subcontracting goals. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the Department of the Air Force. Oversight will focus on ensuring timely delivery, adherence to specifications, and cost control throughout the contract period.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for scope creep due to future modifications.
Lack of clarity on the 'Exclusion of Sources' justification.
No explicit small business participation noted.
Limited detail on specific performance metrics or KPIs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to STRATEGIC TECHNOLOGY INSTITUTE INC. 1106TH THEATER AVIATION SUSTAINMENT MAINTENANCE GROUP (TASMG) FRESNO, CA CLINS/SLINS X002, X003, X004, AND X005 TO BE INCLUDED VIA FUTURE MODS WHEN NEED ARISES.

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 $20.4 million.

What is the period of performance?

Start: 2024-05-31. End: 2026-05-30.

What specific aircraft manufacturing capabilities does Strategic Technology Institute Inc. possess that led to this award?

The provided data does not detail the specific capabilities of Strategic Technology Institute Inc. Further investigation into the company's past performance, technical expertise, and certifications related to aircraft manufacturing would be necessary to understand why they were selected for this contract. This information is crucial for assessing the technical merit and potential success of the award.

What are the risks associated with the 'Full and Open Competition after Exclusion of Sources' method for this contract?

The primary risk lies in the potential for reduced competition if the exclusion criteria are overly restrictive or not well-justified, potentially leading to higher prices or less innovative solutions. It also raises questions about whether all qualified sources were genuinely considered, impacting overall value for taxpayer money and potentially limiting access to the best available technology or services.

How will the future inclusion of CLINS/SLINS via modification impact the overall cost and scope of this contract?

The future inclusion of additional CLINs/SLINS via modifications introduces uncertainty regarding the final contract value and scope. While flexibility is often necessary, it necessitates robust oversight to ensure that any added work is justified, competitively priced, and aligns with the original strategic objectives. Uncontrolled modifications could lead to cost overruns and scope creep.

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: 2

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: $30,740,785

Exercised Options: $20,430,917

Current Obligation: $20,430,917

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