DoD's $260M Aging Aircraft Program Faces Scrutiny for Competition and Value

Contract Overview

Contract Amount: $25,973,831 ($26.0M)

Contractor: THE Corporation of Mercer University

Awarding Agency: Department of Defense

Start Date: 2017-04-21

End Date: 2025-05-15

Contract Duration: 2,946 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF THE AIRCRAFT STRUCTURAL INTEGRITY PROGRAM (ASIP) AND MECHANICAL EQUIPMENT AND SUBSYSTEM PROGRAM (MESIP)ARE PART OF AN OVERALL AGING AIRCRAFT LIFE CYCLE MANAGEMENT SUSTAINMENT EFFORT FOR THE TH-1H, UH-1N, AND HH-60G UNITED STATES ROTARY WING.

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to THE CORPORATION OF MERCER UNIVERSITY for work described as: IGF::OT::IGF THE AIRCRAFT STRUCTURAL INTEGRITY PROGRAM (ASIP) AND MECHANICAL EQUIPMENT AND SUBSYSTEM PROGRAM (MESIP)ARE PART OF AN OVERALL AGING AIRCRAFT LIFE CYCLE MANAGEMENT SUSTAINMENT EFFORT FOR THE TH-1H, UH-1N, AND HH-60G UNITED STATES ROTARY WING. Key points: 1. The contract supports critical life cycle management for aging rotary-wing aircraft. 2. Competition was limited, raising questions about price discovery and potential overspending. 3. The program's long duration and cost warrant close monitoring for efficiency. 4. Engineering services sector spending is substantial, but specific benchmarks are needed.

Value Assessment

Rating: questionable

The contract's cost-plus-fee structure for engineering services, without clear competition, makes a direct pricing assessment difficult. Benchmarking against similar aging aircraft sustainment contracts is crucial to determine if the $259.7 million awarded is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This lack of competition may hinder effective price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The absence of full and open competition raises concerns about taxpayer value and the potential for inflated costs over the contract's duration.

Public Impact

Ensures continued operational readiness of vital rotary-wing aircraft fleets. Supports the sustainment of aging aircraft, extending their service life. Potential for increased costs due to limited competition impacts taxpayer funds. Long-term contract requires ongoing oversight to ensure program effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical aging aircraft sustainment
Essential for operational readiness

Sector Analysis

This contract falls within the Engineering Services sector, which is a significant area of government spending. Benchmarks for similar aircraft sustainment programs are needed to assess cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract. Future solicitations should explore opportunities for small business participation where feasible.

Oversight & Accountability

The long duration of this contract necessitates robust oversight from the Department of Defense to ensure performance, cost control, and adherence to program objectives. Regular reviews are essential.

Related Government Programs

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

Risk Flags

Lack of competition may lead to higher costs.
Cost-plus contract type increases government financial risk.
Long contract duration requires sustained oversight.
Potential for inefficient resource allocation without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to THE CORPORATION OF MERCER UNIVERSITY. IGF::OT::IGF THE AIRCRAFT STRUCTURAL INTEGRITY PROGRAM (ASIP) AND MECHANICAL EQUIPMENT AND SUBSYSTEM PROGRAM (MESIP)ARE PART OF AN OVERALL AGING AIRCRAFT LIFE CYCLE MANAGEMENT SUSTAINMENT EFFORT FOR THE TH-1H, UH-1N, AND HH-60G UNITED STATES ROTARY WING.

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 $26.0 million.

What is the period of performance?

Start: 2017-04-21. End: 2025-05-15.

What is the justification for not competing this significant contract for aging aircraft sustainment?

The provided data does not specify the justification for the limited competition. Typically, reasons might include unique capabilities, urgent needs, or existing contractor familiarity. However, without explicit documentation, it's difficult to assess the validity of this approach and its impact on achieving the best possible value for taxpayers.

How does the cost-plus-fee structure impact the risk of cost overruns for this aging aircraft program?

A cost-plus-fee contract structure shifts a significant portion of the financial risk to the government. While it can be useful for research and development or when costs are uncertain, it provides less incentive for the contractor to control costs compared to fixed-price contracts. This increases the risk of cost overruns if not managed with stringent oversight.

What metrics are in place to measure the effectiveness of the ASIP and MESIP in extending the life cycle of the specified aircraft?

The provided data does not detail the specific metrics used to measure the effectiveness of the Aircraft Structural Integrity Program (ASIP) and Mechanical Equipment and Subsystem Program (MESIP). Effective measurement would likely involve tracking component failure rates, maintenance costs, and the actual extension of airframe service life beyond initial projections.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA855217R0006

Offers Received: 1

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: $25,973,831

Exercised Options: $25,973,831

Current Obligation: $25,973,831

Actual Outlays: $2,072,605

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $5,937,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline