DoD's $14M EW/Avionics Engineering Support Contract Awarded to Mercer University

Contract Overview

Contract Amount: $14,089,768 ($14.1M)

Contractor: THE Corporation of Mercer University

Awarding Agency: Department of Defense

Start Date: 2022-05-13

End Date: 2026-12-31

Contract Duration: 1,693 days

Daily Burn Rate: $8.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ELECTRONIC WARFARE & AVIONICS INTEGRATION SUPPORT FACILITY (EWAISF) ENGINEERING SERVICES

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to THE CORPORATION OF MERCER UNIVERSITY for work described as: ELECTRONIC WARFARE & AVIONICS INTEGRATION SUPPORT FACILITY (EWAISF) ENGINEERING SERVICES Key points: 1. The Department of the Air Force awarded a $14.1M contract for EW/Avionics Engineering Services. 2. The contract was not competed, raising questions about price discovery and value. 3. Engineering Services (NAICS 541330) is a broad category with varying cost benchmarks. 4. The duration of the contract is 1693 days, extending into late 2026.

Value Assessment

Rating: questionable

The contract type is 'COST NO FEE', which typically means the contractor is reimbursed for costs but receives no fee. This can sometimes lead to less incentive for cost control compared to fixed-price contracts. Benchmarking is difficult without specific deliverables and fee structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without competition, there is no direct price discovery mechanism to ensure the government is receiving the best possible price. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The effectiveness of EW and avionics systems could be impacted by the quality of engineering support. The long contract duration suggests a sustained need for these specialized engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-reimbursable contract type (potentially)
No fee structure specified

Positive Signals

Supports critical EW and avionics integration
Long-term engagement provides stability

Sector Analysis

This contract falls under engineering services, a sector crucial for defense technology development. Spending in this area is significant, and competitive bidding is generally preferred to ensure cost-effectiveness and access to the best available expertise.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a university suggests a focus on research and development capabilities rather than commercial service providers.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is performing effectively and that costs are reasonable, even without a fee. The Department of the Air Force should have clear performance metrics and reporting requirements.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns without competitive pressure
Limited transparency on sole-source justification
Absence of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to THE CORPORATION OF MERCER UNIVERSITY. ELECTRONIC WARFARE & AVIONICS INTEGRATION SUPPORT FACILITY (EWAISF) ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is THE CORPORATION OF MERCER UNIVERSITY.

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 $14.1 million.

What is the period of performance?

Start: 2022-05-13. End: 2026-12-31.

What was the justification for awarding this contract on a sole-source basis, and were any alternative sources considered?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a specific justification, such as a unique capability possessed by only one source or an urgent need. Without this justification, it's difficult to assess if the government acted appropriately or if taxpayer funds were potentially misspent by not exploring competitive options.

How does the 'COST NO FEE' contract structure impact the contractor's incentive to control costs and ensure efficient service delivery?

A 'COST NO FEE' contract reimburses the contractor for allowable costs but provides no additional profit. While this can reduce the overall cost to the government, it may diminish the contractor's incentive to aggressively control expenses or innovate for efficiency, as their primary focus is on covering costs rather than maximizing profit through performance.

What are the key performance indicators (KPIs) for this contract, and how will the Air Force measure the effectiveness of Mercer University's engineering support?

The effectiveness of this contract hinges on the quality and timeliness of the engineering services provided for EW and avionics integration. Specific KPIs should be established to measure performance, such as successful system integration, adherence to technical specifications, timely delivery of reports, and contribution to overall mission readiness. Robust oversight is needed to track these metrics.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852322R0008

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 135 OSIGIAN BLVD, WARNER ROBINS, GA, 31088

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,999,612

Exercised Options: $20,493,047

Current Obligation: $14,089,768

Actual Outlays: $59,798

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,559,235

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA853020D0001

IDV Type: IDC

Timeline