Air Force Awards $20.3M for Paint Booth and Facility Upgrades to STS Systems Defense LLC

Contract Overview

Contract Amount: $20,327,902 ($20.3M)

Contractor: STS Systems Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-26

End Date: 2027-06-08

Contract Duration: 651 days

Daily Burn Rate: $31.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROCUREMENT OF A PAINT BOOTH AND FACILITY MODIFICATIONS FOR REVERSION OFF-EQUIPMENT DEPOT ACTIVATION IN STRICT ACCORDANCE WITH THE STATEMENT OF WORK. SBA REQUIREMENT # KI1645724462E

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to STS SYSTEMS DEFENSE LLC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROCUREMENT OF A PAINT BOOTH AND FACILITY MODIFICATIONS FOR REVERSION OFF-EQUIPMENT DEPOT ACTIVATION IN STRICT ACCORDANCE WITH THE STATEMENT OF WORK. SBA REQUIREMENT # KI1645724462E Key points: 1. Significant investment in specialized facility infrastructure for depot activation. 2. Sole-source award to STS Systems Defense LLC indicates limited competition. 3. Potential for cost overruns due to facility modifications and specialized equipment. 4. Engineering services sector, with a focus on defense readiness.

Value Assessment

Rating: fair

The contract value of $20.3M for a paint booth and facility modifications is substantial. Without comparable contract data, it's difficult to definitively assess pricing, but specialized equipment and construction can be costly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, limiting competitive bidding. This approach may not yield the best price discovery for the government, potentially leading to higher costs.

Taxpayer Impact: Taxpayer funds are being used for a specialized defense facility upgrade. The lack of competition raises concerns about cost-effectiveness.

Public Impact

Enhances Air Force depot capabilities for equipment maintenance and readiness. Supports specialized industrial processes critical for military operations. Potential for job creation in the skilled trades and engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Scope includes facility modifications, which can be prone to cost overruns.
Contract duration extends over two fiscal years.

Positive Signals

Addresses a specific, stated need for depot activation.
Awarded to a single vendor, potentially streamlining execution.
Clear end date for project completion.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and supports defense sector infrastructure. Spending benchmarks for specialized facility construction and equipment procurement vary widely based on complexity and location.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting plans for small businesses within the provided data.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight will be crucial to manage the scope of facility modifications and ensure the paint booth meets all technical requirements within budget.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Potential for scope creep in facility modifications
Extended contract duration
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to STS SYSTEMS DEFENSE LLC. THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROCUREMENT OF A PAINT BOOTH AND FACILITY MODIFICATIONS FOR REVERSION OFF-EQUIPMENT DEPOT ACTIVATION IN STRICT ACCORDANCE WITH THE STATEMENT OF WORK. SBA REQUIREMENT # KI1645724462E

Who is the contractor on this award?

The obligated recipient is STS SYSTEMS DEFENSE 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 $20.3 million.

What is the period of performance?

Start: 2025-08-26. End: 2027-06-08.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must document the rationale and explore competitive options before resorting to sole-source procurement to ensure fair and reasonable pricing.

How will the government ensure cost control during the facility modification phase, given the potential for unforeseen issues?

Cost control will rely on robust contract management, including detailed oversight of the Statement of Work, regular progress reviews, and strict change order management. The government should establish clear milestones and performance metrics to track progress and identify potential cost deviations early.

What are the long-term operational benefits and cost savings expected from this paint booth and facility upgrade?

The long-term benefits likely include improved efficiency in equipment maintenance, enhanced safety and environmental compliance for painting operations, and potentially reduced turnaround times for critical repairs. Cost savings may arise from reduced reliance on external services, better material utilization, and extended equipment lifespan.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1826 N LOOP 1604 W, SAN ANTONIO, TX, 78248

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,327,902

Exercised Options: $20,327,902

Current Obligation: $20,327,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA822423D0007

IDV Type: IDC

Timeline