DoD Awards $31.6M for Agile Pod AEP Phase 2 to The Keyw Corporation

Contract Overview

Contract Amount: $31,577,476 ($31.6M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Defense

Start Date: 2020-08-13

End Date: 2026-10-30

Contract Duration: 2,269 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AGILE POD AEP PHASE 2

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to THE KEYW CORPORATION for work described as: AGILE POD AEP PHASE 2 Key points: 1. Contract awarded to The Keyw Corporation for $31.6 million. 2. The contract is for Agile Pod AEP Phase 2. 3. The Department of the Air Force is the awarding agency. 4. The contract type is Cost Plus Fixed Fee. 5. This contract was not competed.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $31.6 million price is reasonable compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition for this $31.6 million contract raises concerns about potential overspending of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The effectiveness of the Agile Pod AEP Phase 2 system is unknown without competitive benchmarking. The long duration of the contract (until October 2026) means potential cost increases over time are a concern.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Long contract duration

Positive Signals

  • Awarded to a specific corporation for a defined project phase

Sector Analysis

The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for defense capabilities, but competitive procurement is generally preferred to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the Keyw Corporation is delivering on the contract objectives efficiently and within reasonable cost parameters. Accountability for cost control is crucial.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for cost overruns due to CPFF contract type
  • Limited transparency on justification for sole-source award
  • Long contract duration increases risk of scope creep and cost escalation
  • No clear indication of small business participation

Tags

search-detection-navigation-guidance-aer, department-of-defense, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to THE KEYW CORPORATION. AGILE POD AEP PHASE 2

Who is the contractor on this award?

The obligated recipient is THE KEYW CORPORATION.

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 $31.6 million.

What is the period of performance?

Start: 2020-08-13. End: 2026-10-30.

What specific justification was provided for not competing this contract, and how does it align with federal procurement regulations for sole-source awards?

Federal regulations allow for sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why competition was not feasible or not in the government's best interest. Without access to the specific justification document, it's impossible to verify its validity or adherence to procurement laws.

What are the key performance indicators (KPIs) for Agile Pod AEP Phase 2, and how will their achievement be measured to ensure effective use of funds?

Effective measurement of KPIs is crucial for any government contract, especially Cost Plus Fixed Fee. The contract should outline specific, measurable, achievable, relevant, and time-bound (SMART) goals for Phase 2. The Department of the Air Force must have a robust system in place to track progress against these KPIs and ensure that the funds awarded are directly contributing to the successful development and implementation of the Agile Pod system.

What is the projected total cost of the Agile Pod AEP program, and how does this $31.6 million award fit into the overall budget and lifecycle cost?

Understanding the total program cost is essential for assessing the long-term financial commitment. This $31.6 million award represents a significant investment for Phase 2. Without visibility into the full program's budget and projected lifecycle costs, it's difficult to determine if this specific award represents good value or if it's part of a potentially escalating expenditure. A comprehensive cost-benefit analysis of the entire program is needed.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,762,472

Exercised Options: $31,762,472

Current Obligation: $31,577,476

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2020-08-13

Current End Date: 2026-10-30

Potential End Date: 2026-10-30 00:00:00

Last Modified: 2025-12-22

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