DoD's $32.7M E-4B Network Refresh Contract Awarded to Strategic Mission Systems, LLC

Contract Overview

Contract Amount: $32,689,562 ($32.7M)

Contractor: Strategic Mission Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-14

End Date: 2029-12-31

Contract Duration: 3,030 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENHANCED NETWORK DISTRIBUTION SYSTEM (ENDS) DATA ACCESS PANEL (DAP) TECHNICAL REFRESH FOR E-4B

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to STRATEGIC MISSION SYSTEMS, LLC for work described as: ENHANCED NETWORK DISTRIBUTION SYSTEM (ENDS) DATA ACCESS PANEL (DAP) TECHNICAL REFRESH FOR E-4B Key points: 1. Contract awarded for critical E-4B aircraft network component. 2. Strategic Mission Systems, LLC secured the deal. 3. Full and open competition was utilized. 4. Potential risks include long performance period and specialized equipment.

Value Assessment

Rating: fair

The contract value of $32.7M over approximately 8 years suggests a moderate annual spend. Benchmarking against similar specialized aircraft component refresh contracts is difficult without more granular data, but the duration implies significant integration and support costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayer funds are being used for essential defense system upgrades, aiming for improved operational capability and longevity of the E-4B fleet.

Public Impact

Ensures continued operational readiness of the E-4B National Airborne Operations Center. Supports critical communication and data access for national command authorities. Modernizes aging infrastructure to meet current and future threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (approx. 8 years) could lead to cost overruns or obsolescence.
Lack of small business participation noted.
Specialized nature of the equipment may limit future competition.
Dependence on a single contractor for a critical system.

Positive Signals

Awarded via full and open competition.
Firm fixed price contract type provides cost certainty.
Addresses a critical need for the E-4B platform.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft component manufacturing and integration. Spending benchmarks for such specialized technical refreshes are highly variable due to unique requirements and limited market size.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award. Given the specialized nature of the work, opportunities for small businesses may be limited, or they may not have been prime contractors.

Oversight & Accountability

The Department of the Air Force is the awarding agency, responsible for oversight. The firm fixed price contract type provides some level of cost control, but the long duration necessitates ongoing monitoring for performance and potential scope creep.

Related Government Programs

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

Risk Flags

Long performance period increases risk of obsolescence.
Lack of small business participation.
Specialized equipment may limit future competition.
Potential for cost growth if initial estimates are inaccurate.
Dependence on a single vendor for critical system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to STRATEGIC MISSION SYSTEMS, LLC. ENHANCED NETWORK DISTRIBUTION SYSTEM (ENDS) DATA ACCESS PANEL (DAP) TECHNICAL REFRESH FOR E-4B

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 $32.7 million.

What is the period of performance?

Start: 2021-09-14. End: 2029-12-31.

What is the projected return on investment for this network refresh in terms of enhanced operational capability and extended E-4B platform life?

The ROI is primarily measured in enhanced operational readiness and extended platform life for the E-4B. By modernizing the network, the system can better handle current and future communication needs, ensuring the platform remains viable for its intended mission duration. Quantifying this in monetary terms is challenging but crucial for long-term strategic planning.

What are the specific risks associated with the long performance period and the potential for technological obsolescence?

The primary risks of a long performance period (approx. 8 years) include the rapid pace of technological advancement rendering the 'refreshed' components obsolete before the contract ends, and potential cost increases due to unforeseen market shifts. Mitigation strategies could involve phased upgrades, incorporating flexibility clauses, and rigorous technology insertion planning.

How effectively does the firm fixed price contract type manage the risks of cost overruns given the complexity and duration of the project?

A firm fixed price contract provides a defined cost ceiling, which is beneficial for managing taxpayer exposure. However, for complex, long-duration projects like this, the initial price must accurately reflect anticipated costs and risks. If the contractor underestimated complexity or faced unforeseen challenges, they might absorb losses, potentially impacting future bids or performance, or seek change orders.

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: $32,689,562

Exercised Options: $32,689,562

Current Obligation: $32,689,562

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