DoD Awards $2.9M for E-4B Aircraft Support to Strategic Mission Systems, LLC

Contract Overview

Contract Amount: $29,268,202 ($29.3M)

Contractor: Strategic Mission Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-14

End Date: 2027-01-30

Contract Duration: 1,599 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASING AIRCRAFT E-4B NATIONAL AND NUCLEAR COMMUNICATION SUPPORT

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to STRATEGIC MISSION SYSTEMS, LLC for work described as: PURCHASING AIRCRAFT E-4B NATIONAL AND NUCLEAR COMMUNICATION SUPPORT Key points: 1. Contract awarded to Strategic Mission Systems, LLC for E-4B aircraft support. 2. The contract value is $2,926,820.20. 3. This is a delivery order under a larger contract. 4. The contract duration is 1599 days. 5. The sector is Aircraft Manufacturing.

Value Assessment

Rating: fair

The contract value of $2.9M for E-4B aircraft support appears reasonable given the specialized nature of the aircraft and its critical communication systems. Benchmarking against similar specialized aircraft support contracts is difficult due to limited public data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though specific price discovery details are not provided.

Taxpayer Impact: The taxpayer impact is the direct cost of the contract, $2.9M, which funds essential support for a critical national asset.

Public Impact

Ensures continued operational readiness of the E-4B 'Doomsday Plane'. Supports national and nuclear communication capabilities. Maintains a vital link for senior leadership during emergencies. Contributes to the overall defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for cost overruns on specialized, aging aircraft.
Dependence on a single contractor for critical support.

Positive Signals

Awarded through full and open competition.
Supports a critical national security asset.
Firm fixed price contract type can limit cost uncertainty.

Sector Analysis

The Aircraft Manufacturing sector involves the production and maintenance of aircraft. Spending in this sector can be highly variable, influenced by defense needs, technological advancements, and the lifecycle of major aircraft programs. The E-4B is a unique platform, making direct spending benchmarks challenging.

Small Business Impact

The data indicates that small businesses were not awarded this specific contract. Further analysis would be needed to determine if small businesses participated in the subcontracting opportunities or if this contract type typically excludes them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force. The firm fixed price contract type provides some accountability for cost control, but ongoing monitoring of performance and adherence to specifications is crucial.

Related Government Programs

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

Risk Flags

Aging aircraft platform.
Critical national security function.
Specialized technical requirements.
Potential for sole-source follow-on contracts.
Limited public data on similar contracts for benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to STRATEGIC MISSION SYSTEMS, LLC. PURCHASING AIRCRAFT E-4B NATIONAL AND NUCLEAR COMMUNICATION SUPPORT

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 $29.3 million.

What is the period of performance?

Start: 2022-09-14. End: 2027-01-30.

What is the specific scope of 'National and Nuclear Communication Support' for the E-4B aircraft under this contract?

The 'National and Nuclear Communication Support' likely encompasses the maintenance, repair, and potential upgrades of the complex communication systems aboard the E-4B aircraft. This includes ensuring the reliability and security of systems used for command and control during national emergencies and nuclear events, which are highly specialized and critical functions.

What are the potential risks associated with relying on a single contractor for such a critical and specialized aircraft support function?

Relying on a single contractor for critical E-4B support poses risks such as potential price increases due to lack of ongoing competition, vulnerability to contractor performance issues or financial instability, and a reduced ability to adapt to evolving technological requirements. This dependence necessitates robust oversight and contingency planning.

How does the firm fixed price contract type ensure the effectiveness and value for money for this specialized E-4B support service?

The firm fixed price contract type aims to ensure effectiveness and value by shifting cost risk to the contractor. The contractor is obligated to perform the specified services for the agreed-upon price, incentivizing efficiency. However, effectiveness also relies on the contractor's technical capability and the government's diligent oversight of performance and quality.

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: $29,268,202

Exercised Options: $29,268,202

Current Obligation: $29,268,202

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