Air Force awards $24.6M engineering contract to ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. for C-5 aircraft support

Contract Overview

Contract Amount: $24,604,122 ($24.6M)

Contractor: Engineering and Software System Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-23

End Date: 2028-12-28

Contract Duration: 2,288 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-5 BOGIE REDESIGN IN SUPPORT OF THE 417TH

Place of Performance

Location: CLEARFIELD, DAVIS County, UTAH, 84015

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. for work described as: C-5 BOGIE REDESIGN IN SUPPORT OF THE 417TH Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of the contract extends over five years, indicating a long-term need for these services. 4. The primary service falls under Engineering Services (NAICS 541330). 5. The contract is not set aside for small businesses, nor does it indicate specific subcontracting goals. 6. The awardee has a track record with the Department of Defense, as indicated by the agency and service acquisition.

Value Assessment

Rating: good

The contract value of $24.6 million over approximately five years appears reasonable for specialized engineering and software system solutions supporting a major aircraft platform like the C-5. Without specific benchmarks for C-5 redesigns or similar complex aerospace engineering tasks, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure helps manage cost risks for the government. The award to a single entity suggests a focused scope of work, and the pricing is assumed to be competitive given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is not a large number, it does provide a basis for price comparison and negotiation, which is generally favorable for price discovery compared to sole-source awards.

Taxpayer Impact: A competitive bidding process, even with two offers, helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Air Force and the C-5 air mobility command, ensuring the continued operational readiness and modernization of a critical strategic asset. Services delivered include engineering and software system solutions specifically for the C-5 BOGIE REDESIGN. The geographic impact is primarily within the United States, supporting Air Force operations and maintenance activities. Workforce implications may include specialized engineers and software developers employed by the contractor, contributing to the aerospace and defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'redesign' is broader than initially anticipated and requires significant rework.
Dependence on a single contractor for critical engineering and software updates could pose a risk if performance issues arise.
Limited competition (2 bidders) might mean less aggressive pricing than a scenario with numerous offers.

Positive Signals

Firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost increases.
Awarded through full and open competition, indicating a structured procurement process designed to achieve best value.
Long-term contract duration (over 5 years) suggests a stable and predictable need, allowing for focused expertise development.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically focusing on engineering and software services for military aircraft sustainment and modernization. The market for such specialized services is characterized by high barriers to entry due to technical expertise, security clearances, and established relationships with government agencies. Spending in this area is driven by the need to maintain aging fleets, incorporate new technologies, and ensure operational readiness. Comparable spending benchmarks would typically involve other major aircraft sustainment contracts or complex system integration projects within the DoD.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. The awardee, ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC., is likely a mid-to-large-sized business. The absence of set-asides or reported subcontracting plans suggests that the primary focus was on obtaining specialized engineering and software expertise, potentially from larger firms with the requisite capabilities. This could mean limited direct opportunities for small businesses on this specific contract, though they might be involved as lower-tier suppliers or through other contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified engineering and software solutions within the agreed-upon price. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

C-5 Galaxy Sustainment Programs
Air Mobility Command Engineering Support Contracts
DoD Aircraft Modernization and Sustainment
Aerospace Engineering Services
Defense Software Development Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Technical integration challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC.. C-5 BOGIE REDESIGN IN SUPPORT OF THE 417TH

Who is the contractor on this award?

The obligated recipient is ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, 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 $24.6 million.

What is the period of performance?

Start: 2022-09-23. End: 2028-12-28.

What is the track record of ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. with the Department of Defense, particularly on similar aircraft sustainment or modernization contracts?

ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. (ES3) has a history of performing work for the Department of Defense. While specific details on past C-5 related projects are not provided in this data snippet, ES3's profile generally indicates experience in areas such as aircraft maintenance, logistics support, and engineering services for various military platforms. Their ability to secure this contract suggests they have demonstrated relevant capabilities and past performance acceptable to the Air Force. Further investigation into their contract history, including past performance reviews and award types, would provide a more comprehensive understanding of their track record on similar complex defense projects.

How does the awarded value of $24.6 million compare to the estimated cost of similar C-5 BOGIE redesign or modernization efforts?

Benchmarking the $24.6 million award for the C-5 BOGIE REDESIGN is challenging without access to specific cost estimates, historical data for similar redesigns, or detailed scope of work comparisons. The C-5 is a large, complex aircraft, and its components, like the bogie system, require significant engineering and potentially software integration for upgrades. The contract duration of over five years suggests a phased approach or ongoing support. Given the firm-fixed-price nature and full and open competition, the award value is presumed to reflect a competitive market assessment for the defined requirements. However, a precise value-for-money assessment would necessitate comparing this contract's cost per deliverable or per labor hour against industry standards or previous similar government contracts.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential scope creep if the 'redesign' requirements are not precisely defined, leading to cost overruns despite the firm-fixed-price structure. Technical risks involve the complexity of integrating new engineering solutions or software into an aging C-5 airframe, potentially causing unforeseen compatibility issues or performance shortfalls. Contractor performance risk exists, as with any long-term engagement; if ES3 underperforms, it could impact C-5 readiness. Mitigation strategies likely include robust contract management by the Air Force, clear definition of milestones and deliverables, performance monitoring, and potentially phased payments tied to successful completion of specific project phases. The firm-fixed-price contract itself is a risk mitigation tool for the government regarding cost certainty.

What is the expected impact of this contract on the operational readiness and modernization of the C-5 fleet?

This contract is expected to have a positive impact on the operational readiness and modernization of the C-5 fleet by addressing the BOGIE REDESIGN. The bogie system is a critical component of the landing gear, essential for safe takeoff, landing, and ground operations. Redesigning or upgrading this system can enhance reliability, reduce maintenance downtime, improve safety margins, and potentially incorporate newer technologies for better performance or efficiency. By ensuring the bogie system is up-to-date and well-supported through engineering and software solutions, the contract directly contributes to maintaining the C-5's capability as a strategic airlifter for the U.S. Air Force.

How does the competition level (2 bidders) for this contract influence the potential value achieved for taxpayers?

A competition level with two bidders suggests a moderate degree of market interest and potential for price negotiation. While more bidders generally lead to greater price competition, two offers still provide a basis for the government to evaluate proposals and select the best value. It indicates that the requirement was sufficiently defined and attractive to at least two capable firms. This level of competition is preferable to a sole-source award, as it introduces market dynamics that can help ensure the government is not paying an excessive price. However, it may not achieve the same level of cost savings as a procurement with numerous competing offers, potentially leaving some value on the table for taxpayers.

What is the significance of the 'FIRM FIXED PRICE' contract type in the context of this engineering and software development effort?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the primary cost risk on the contractor, ENGINEERING AND SOFTWARE SYSTEM SOLUTIONS, INC. For the government, this means the total price is fixed, regardless of the contractor's actual costs incurred in performing the work. This provides budget certainty and predictability, which is highly desirable for federal agencies. For an engineering and software development effort like the C-5 BOGIE REDESIGN, an FFP contract incentivizes the contractor to manage their costs efficiently and to complete the work within the agreed-upon budget. It requires a well-defined scope of work upfront to minimize disputes over what is included in the fixed price.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1346 SOUTH LEGENDS HILLS DR, CLEARFIELD, UT, 84015

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

Financial Breakdown

Contract Ceiling: $26,966,330

Exercised Options: $26,966,330

Current Obligation: $24,604,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820318D0003

IDV Type: IDC

Timeline