DoD awards $12.8M for E-4B platform modifications to Strategic Mission Systems, LLC

Contract Overview

Contract Amount: $12,810,946 ($12.8M)

Contractor: Strategic Mission Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2029-04-30

Contract Duration: 3,135 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODIFICATION FOR E-4B PLATFORM

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to STRATEGIC MISSION SYSTEMS, LLC for work described as: MODIFICATION FOR E-4B PLATFORM Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The duration of the contract extends nearly a decade, suggesting a long-term need for these modifications. 4. The firm-fixed-price contract type aims to control costs by establishing a set price. 5. The primary focus is on modifications for the E-4B platform, a critical national security asset. 6. The contractor, Strategic Mission Systems, LLC, is based in Oklahoma.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of the E-4B modifications and the specific services provided by Strategic Mission Systems, LLC. The firm-fixed-price structure is a positive indicator for cost control. However, without comparable contract data for similar E-4B modifications or a breakdown of the work involved, a definitive value-for-money assessment is difficult. The total award amount of $12.8 million over nearly ten years suggests a moderate annual expenditure.

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 bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Air Force's choice to use full and open competition indicates confidence in the market's ability to provide suitable solutions for the E-4B platform modifications.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a robust bidding process, potentially driving down costs.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive critical modifications to the E-4B aircraft. These modifications are essential for maintaining the operational readiness and survivability of the E-4B, which serves as a national airborne command post. The geographic impact is primarily within the operational sphere of the U.S. Air Force, likely involving maintenance and modification facilities. Workforce implications may include specialized technical and engineering roles required for aircraft modification, potentially benefiting skilled labor in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'modifications' makes it difficult to assess the true value and necessity.
The long contract duration (nearly 10 years) could lead to cost overruns if not managed tightly, despite the FFP structure.
Reliance on a single delivery order under a potential IDIQ could limit future competition if not structured for further competition.
The E-4B platform is aging, and the long-term viability and cost-effectiveness of extensive modifications versus replacement should be considered.

Positive Signals

Awarded through full and open competition, indicating a competitive process to secure the best offer.
Firm-fixed-price contract type helps to establish cost certainty and mitigate budget risks.
The E-4B is a critical national asset, and ensuring its modernization is a positive step for national security.
The contract duration suggests a stable, long-term commitment to maintaining this vital platform.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Contracts for aircraft modification, especially for specialized platforms like the E-4B, are typical within this sector. Spending in this area is driven by national security requirements and the need to maintain the effectiveness of aging fleets. Comparable spending benchmarks would involve other major aircraft modification programs, which can range from tens of millions to billions of dollars depending on the scope and platform.

Small Business Impact

The data indicates that small business participation (sb) is false for this contract. This suggests that the prime contract was not set aside for small businesses, nor does it appear to have specific subcontracting goals mandated for small businesses within the provided data. Consequently, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the contract award notice, which is publicly available. Further oversight could be provided by the Government Accountability Office (GAO) through bid protests or audits, and potentially by the Department of Defense Inspector General if specific concerns arise regarding performance or financial management.

Related Government Programs

E-4B National Airborne Operations Center
Airborne Command Post Modernization
Strategic Communications Aircraft Programs
Aerospace Modification Contracts
Department of Defense Aircraft Sustainment

Risk Flags

Potential for scope creep if modifications are not precisely defined.
Risk of technical obsolescence if modifications do not anticipate future needs.
Dependency on contractor's specialized expertise for a unique platform.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to STRATEGIC MISSION SYSTEMS, LLC. MODIFICATION FOR E-4B PLATFORM

Who is the contractor on this award?

The obligated recipient is STRATEGIC MISSION SYSTEMS, LLC.

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 $12.8 million.

What is the period of performance?

Start: 2020-09-29. End: 2029-04-30.

What is the specific nature of the 'modifications' for the E-4B platform being undertaken by Strategic Mission Systems, LLC?

The provided data does not detail the specific modifications. However, the E-4B 'Nightwatch' is a highly specialized aircraft serving as a national airborne command post. Modifications typically focus on enhancing its survivability, communication capabilities, command and control systems, and ensuring compliance with evolving technological standards and security requirements. Given the platform's age and critical mission, these modifications likely involve upgrades to avionics, communication suites, power systems, and potentially structural enhancements to withstand electromagnetic pulse (EMP) or other threats. Further details would require access to the contract's statement of work or technical exhibits.

How does the $12.8 million award compare to historical spending on E-4B modifications or similar platforms?

Direct comparison is difficult without specific historical data on E-4B modification contracts. However, $12.8 million spread over nearly 10 years (approximately $1.3 million per year) appears to be a moderate amount for specialized aircraft modifications. Major platform upgrades or sustainment programs for similar strategic assets can often run into hundreds of millions or even billions of dollars over their lifecycle. This award might represent a specific set of modifications or ongoing sustainment tasks rather than a comprehensive overhaul. Benchmarking requires access to detailed cost breakdowns and scope of work for comparable projects.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

The provided data does not specify the KPIs for this contract. Typically, for modification contracts, success is measured by adherence to schedule, meeting technical specifications and performance requirements, quality of work (e.g., defect rates), and staying within the firm-fixed-price budget. For the E-4B, operational readiness and the successful integration of new systems would be critical performance indicators. The contracting officer's representative (COR) and program managers would monitor progress against the contract's statement of work and milestones.

What is the track record of Strategic Mission Systems, LLC in performing similar defense modification contracts?

Information on the specific track record of Strategic Mission Systems, LLC for E-4B modifications is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other relevant contracts they have held, and their demonstrated expertise in complex aerospace systems. Their ability to secure this contract under full and open competition suggests they met the initial qualifications, but their historical performance on similar projects would be a key factor in evaluating their reliability for this task.

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

Potential risks include technical challenges in modifying an aging platform, potential cost growth if the scope is not well-defined (though mitigated by FFP), schedule delays due to the complexity of the work or supply chain issues, and ensuring the modifications do not negatively impact other critical systems. Mitigation strategies likely involve robust program management, detailed technical reviews, phased implementation, contingency planning, and close oversight by the Air Force. The firm-fixed-price structure inherently shifts some cost risk to the contractor.

How does this contract align with the broader modernization strategy for the E-4B fleet or the Air Force's overall strategic aircraft portfolio?

This contract appears to align with the Air Force's ongoing efforts to sustain and modernize its critical airborne command and control platforms, including the E-4B. The E-4B is a vital asset for national security, and continuous upgrades are necessary to maintain its effectiveness against evolving threats and technological advancements. The specific modifications awarded would indicate how they fit into the larger picture, whether addressing immediate operational needs, enhancing specific capabilities, or extending the platform's service life as part of a longer-term strategy, potentially in conjunction with future platform replacements.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2501 LIBERTY PKWY STE 200, MIDWEST CITY, OK, 73110

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,810,946

Exercised Options: $12,810,946

Current Obligation: $12,810,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810617D0006

IDV Type: IDC

Timeline