DoD awards $23.4M F-16 integration engineering support contract to STS Government Solutions, LLC

Contract Overview

Contract Amount: $23,416,945 ($23.4M)

Contractor: STS Government Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-04

End Date: 2026-05-03

Contract Duration: 364 days

Daily Burn Rate: $64.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Defense

Official Description: F-16 INTEGRATION ENGINEERING SUPPORT

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to STS GOVERNMENT SOLUTIONS, LLC for work described as: F-16 INTEGRATION ENGINEERING SUPPORT Key points: 1. Contract awarded on a fixed-price level-of-effort basis, indicating a defined scope of work with payment tied to effort expended. 2. The contract duration is 364 days, suggesting a short-term need for specialized engineering services. 3. Awarded by the Department of the Air Force, this contract supports F-16 aircraft integration engineering. 4. The contractor, STS Government Solutions, LLC, is a private entity. 5. The contract was not competed, raising questions about potential cost efficiencies and market-driven pricing. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 7. The contract value is approximately $23.4 million.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed information on the specific engineering services required and the complexity of F-16 integration. However, the fixed-price level-of-effort structure suggests that costs are intended to be controlled within a defined framework. Comparing this to similar F-16 sustainment or upgrade contracts would provide better context for assessing value for money. The absence of competition may also limit opportunities for price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other qualified vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary knowledge, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or fostered innovation among multiple offerors.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing. It also limits the opportunity for small businesses to participate in this specific contract.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other F-16 operating entities within the Department of Defense, who will receive critical engineering support for aircraft integration. The services delivered will focus on ensuring the seamless integration of systems and technologies into F-16 aircraft, crucial for maintaining operational readiness and enhancing capabilities. The geographic impact is likely concentrated around Air Force bases and facilities where F-16 operations and maintenance occur, primarily within the United States. This contract supports a specialized segment of the aerospace engineering workforce, requiring skilled professionals with expertise in aircraft systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competed contract.
Limited transparency into the selection process due to sole-source award.
Potential for cost overruns if the 'level of effort' is not well-defined or managed.
Dependence on a single contractor for critical F-16 integration support.

Positive Signals

Contract awarded to a specific vendor, STS Government Solutions, LLC, suggesting they possess specialized knowledge or capabilities for F-16 integration.
Fixed-price structure provides some cost certainty, provided the scope of effort is accurately defined.
Contract duration of nearly a year allows for sustained support on integration tasks.

Sector Analysis

The aerospace and defense sector is characterized by complex engineering requirements and long product lifecycles. Contracts for aircraft sustainment, modification, and integration are a significant part of this sector's spending. The market often involves specialized firms capable of meeting stringent government specifications. Comparable spending benchmarks for engineering support on major aircraft platforms can range from millions to billions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate directly. Without explicit set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price level-of-effort structure, requiring the contractor to justify expended effort against the agreed-upon scope. Transparency may be limited due to the sole-source nature of the award, but contract performance data and financial expenditures would typically be subject to internal review and potentially Inspector General oversight if performance issues arise.

Related Government Programs

F-16 Sustainment Programs
Aerospace Engineering Services
Defense Contractor Support Services
Aircraft Systems Integration
Department of Defense Procurement

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competition.
Need for robust oversight to ensure value for money.
Contract duration is short, may require follow-on contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to STS GOVERNMENT SOLUTIONS, LLC. F-16 INTEGRATION ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is STS GOVERNMENT SOLUTIONS, 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 $23.4 million.

What is the period of performance?

Start: 2025-05-04. End: 2026-05-03.

What is the specific nature of the 'F-16 INTEGRATION ENGINEERING SUPPORT' being provided under this contract?

The contract specifies 'F-16 INTEGRATION ENGINEERING SUPPORT,' which generally refers to the technical services required to integrate new systems, modifications, or upgrades into the F-16 fighter aircraft. This can encompass a wide range of activities, including design, analysis, testing, documentation, and troubleshooting related to hardware and software integration. The exact scope would be detailed in the contract's Statement of Work (SOW), outlining specific tasks, deliverables, and performance standards. Given the sole-source award, STS Government Solutions, LLC likely possesses unique expertise or prior involvement with F-16 integration projects that makes them the preferred provider for these specific engineering tasks.

How does the fixed-price level-of-effort (FPLE) contract type typically function, and what are its implications for cost control?

A Fixed-Price Level-of-Effort (FPLE) contract is a hybrid type where the government agrees to pay a fixed price for a specified level of effort (e.g., a certain number of labor hours at agreed-upon rates). The contractor is obligated to perform the work up to the specified level of effort, and the government is obligated to pay the fixed price upon satisfactory completion of that effort. This structure provides some cost certainty for the government, as the total price is capped. However, it relies heavily on accurate estimation of the required effort. If the effort is underestimated, the contractor may not be able to complete the work within the fixed price, potentially leading to disputes or requests for modification. Conversely, if the effort is overestimated, the government may pay more than necessary. Effective management and monitoring of the contractor's labor hours and progress are crucial for cost control under an FPLE contract.

What are the potential risks associated with awarding a sole-source contract for critical engineering support?

Sole-source awards carry several potential risks. Primarily, the absence of competition can lead to higher prices than might be achieved in a competitive bidding process, as the contractor faces less pressure to optimize costs. There's also a risk of reduced innovation, as there's no incentive for multiple companies to develop novel solutions. Furthermore, the government may become overly reliant on a single provider, creating a potential single point of failure if the contractor experiences performance issues, financial instability, or decides to exit the market. Transparency in pricing and justification for the sole-source decision is crucial to mitigate these risks, along with robust contract oversight to ensure fair pricing and adequate performance.

What is the historical spending pattern for F-16 integration engineering support, and how does this award compare?

Historical spending data for F-16 integration engineering support is not readily available in a consolidated public format. However, the F-16 has undergone numerous upgrades and modifications throughout its service life, necessitating ongoing engineering support. Spending in this area can fluctuate significantly based on modernization programs, new technology insertions, and sustainment requirements. A single contract award of $23.4 million for a one-year period suggests a focused effort on a specific integration task rather than a comprehensive, multi-year upgrade program. To provide a meaningful comparison, one would need to analyze historical contracts for similar F-16 engineering services, considering factors like scope, duration, and inflation.

What is the track record of STS Government Solutions, LLC in providing engineering services to the Department of Defense?

Information regarding the specific track record of STS Government Solutions, LLC in providing F-16 integration engineering support or similar services to the Department of Defense is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any publicly available information on their previous projects and client satisfaction. As a sole-source awardee, it is implied that the Air Force has determined STS Government Solutions, LLC possesses the necessary qualifications, experience, and capability to perform this specific task effectively. Further due diligence would involve examining federal procurement databases and contractor performance systems for detailed insights.

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: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 1826 N LOOP 1604 W STE 337G, SAN ANTONIO, TX, 78248

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,416,945

Exercised Options: $23,416,945

Current Obligation: $23,416,945

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,615,238

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA823225DB007

IDV Type: IDC

Timeline