DoD's $14.8M ALCM Lab Test Program contract awarded to E-Spectrum Technologies for engineering and logistics support

Contract Overview

Contract Amount: $14,790,890 ($14.8M)

Contractor: E-Spectrum Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2026-12-31

Contract Duration: 2,740 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENGINEERING AND LOGISTICS SUPPORT FOR THE AIR LAUNCHED CRUISE MISSILE (ALCM) LABORATORY TEST PROGRAM

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78249

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to E-SPECTRUM TECHNOLOGIES, INC. for work described as: ENGINEERING AND LOGISTICS SUPPORT FOR THE AIR LAUNCHED CRUISE MISSILE (ALCM) LABORATORY TEST PROGRAM Key points: 1. Contract provides critical engineering and logistics support for the Air Launched Cruise Missile (ALCM) Laboratory Test Program. 2. The firm-fixed-price contract structure aims to control costs by defining the total price upfront. 3. Awarded by the Department of the Air Force, this contract supports a key defense program. 4. The duration of over 7 years suggests a long-term need for these specialized services. 5. The contract was awarded through full and open competition, indicating a broad search for qualified bidders.

Value Assessment

Rating: good

The contract value of approximately $14.8 million over its 7-year duration appears reasonable for specialized engineering and logistics support in the defense sector. Benchmarking against similar contracts for missile system support is challenging without more specific service details, but the firm-fixed-price structure suggests a degree of cost certainty for the government. The number of bids received (though not explicitly stated, implied by 'full and open competition') would further inform a precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bids received would provide further insight into the intensity of the competition and its potential impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers, which can lead to more competitive pricing and potentially better value for the government's investment.

Public Impact

The primary beneficiaries are the Department of the Air Force and the broader defense industrial base, ensuring continued support for the ALCM program. Services delivered include essential engineering and logistics support for laboratory testing of the Air Launched Cruise Missile. The geographic impact is primarily centered around the contractor's location in Texas, but the program's national security implications are far-reaching. This contract supports a specialized workforce of engineers and logistics professionals within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise, despite the firm-fixed-price structure.
Dependence on a single contractor for critical, long-term support could pose a risk if performance issues emerge.
The specialized nature of the work may limit the pool of readily available alternative contractors.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Long contract duration indicates a stable, ongoing need for these services, allowing for workforce stability.
Contractor is based in Texas, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically supporting missile systems. The market for specialized engineering and logistics support for defense programs is highly technical and often involves long-term relationships between government agencies and contractors. Comparable spending benchmarks would likely be found within other major defense procurement programs requiring similar levels of technical expertise and lifecycle support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, E-SPECTRUM TECHNOLOGIES, INC., is likely a larger entity given the contract value. There is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which ties payment to deliverables. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Air Launched Cruise Missile (ALCM) Program
Missile Defense Systems
Aerospace Engineering Services
Defense Logistics Support
Air Force Weapon Systems Support

Risk Flags

Long contract duration increases exposure to potential performance degradation or unforeseen technical challenges.
Reliance on a single contractor for critical support functions.
Specialized nature of work may limit competitive options in the future.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to E-SPECTRUM TECHNOLOGIES, INC.. ENGINEERING AND LOGISTICS SUPPORT FOR THE AIR LAUNCHED CRUISE MISSILE (ALCM) LABORATORY TEST PROGRAM

Who is the contractor on this award?

The obligated recipient is E-SPECTRUM TECHNOLOGIES, 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 $14.8 million.

What is the period of performance?

Start: 2019-07-01. End: 2026-12-31.

What is the track record of E-SPECTRUM TECHNOLOGIES, INC. in supporting similar defense programs?

Assessing the track record of E-SPECTRUM TECHNOLOGIES, INC. requires a review of their past performance on government contracts, particularly those involving engineering and logistics support for complex weapon systems. Publicly available data, such as the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS), would be crucial. A positive track record would demonstrate their capability to meet technical requirements, adhere to schedules, and manage costs effectively. Conversely, a history of performance issues, contract disputes, or cost overruns would raise concerns about their suitability for this long-term ALCM support contract. Without specific CPARS data or a detailed contract history, it is difficult to definitively assess their past performance beyond the fact they were selected through a competitive process.

How does the awarded value compare to similar engineering and logistics support contracts for missile systems?

Directly comparing the $14.8 million value of this contract to similar missile system support contracts is challenging without more granular data on the scope of services, duration, and specific technologies involved. However, the contract's duration of over seven years (approximately 2740 days) suggests an average annual value of roughly $2 million. This figure needs to be contextualized within the highly specialized and often expensive nature of defense engineering and logistics. Contracts for major weapon system sustainment can range from tens of millions to billions of dollars. To provide a robust comparison, one would need to identify contracts with comparable technical complexity, security requirements, and service levels within the missile defense or aerospace sectors. The firm-fixed-price nature also implies a degree of cost control that should be factored into any value assessment.

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

Key risks for this contract include potential technical challenges in supporting the ALCM laboratory test program, which could lead to schedule delays or cost increases despite the firm-fixed-price structure. Contractor performance degradation over the long duration is another risk. Mitigation strategies likely involve robust contract oversight by the Air Force, clear performance metrics, and potentially incentive clauses. The firm-fixed-price nature itself is a mitigation strategy against cost overruns, shifting some financial risk to the contractor. Furthermore, the initial selection through full and open competition suggests a thorough vetting of the contractor's capabilities, reducing the risk of non-performance due to lack of expertise. Regular program reviews and communication channels between the government and contractor are also crucial for early identification and resolution of issues.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific program?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are manageable. For the ALCM Laboratory Test Program, an FFP contract provides the government with cost certainty, as the total price is established upfront. This incentivizes the contractor, E-SPECTRUM TECHNOLOGIES, INC., to manage its own costs efficiently to maximize profit. However, the effectiveness hinges on the accuracy of the initial cost estimates and the government's ability to clearly define all requirements. If unforeseen technical complexities arise that were not reasonably foreseeable during the bidding process, the contractor might face significant challenges, potentially leading to requests for modification or, in extreme cases, performance issues. The long duration of this contract (over 7 years) increases the potential for such unforeseen circumstances, requiring diligent oversight from the Air Force.

What are the historical spending patterns for ALCM laboratory test program support, and how does this contract fit?

Analyzing historical spending patterns for ALCM laboratory test program support requires access to detailed historical contract data. Without specific historical figures, it's difficult to provide a precise comparison. However, this $14.8 million contract, spanning over seven years, represents a significant, long-term investment in sustaining the testing capabilities for the ALCM. It suggests a consistent and ongoing requirement for specialized engineering and logistics services. If previous support contracts were shorter-term or awarded on a different basis (e.g., cost-plus), this new FFP contract might indicate a shift towards greater cost control and predictability. Understanding the evolution of spending would involve examining prior contract awards, their values, durations, and the types of services rendered to ascertain if this award represents an increase, decrease, or stable level of investment in ALCM testing infrastructure.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA812819R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12725 SPECTRUM DR, SAN ANTONIO, TX, 78249

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,876,338

Exercised Options: $14,790,890

Current Obligation: $14,790,890

Actual Outlays: $152,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline