DoD awards $37.2M contract for F-35 agnostic battery systems to EaglePicher Technologies

Contract Overview

Contract Amount: $37,204,642 ($37.2M)

Contractor: Eaglepicher Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-24

End Date: 2026-02-03

Contract Duration: 2,416 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F-35 AGNOSTIC BATTERY SYSTEM

Place of Performance

Location: JOPLIN, JASPER County, MISSOURI, 64801

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $37.2 million to EAGLEPICHER TECHNOLOGIES LLC for work described as: F-35 AGNOSTIC BATTERY SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The contract duration is substantial at 2416 days, indicating a long-term need for these battery systems. 4. The awardee, EaglePicher Technologies, is a significant player in the battery manufacturing sector. 5. The North American Industry Classification System (NAICS) code 335911 points to storage battery manufacturing. 6. The contract is for an agnostic battery system, implying flexibility and potential for broader application. 7. The contract is not set aside for small businesses, indicating it was awarded based on best value to the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data for F-35 battery systems. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's allowable costs plus a fixed fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if costs are not well-controlled. However, CPFF is often used when the scope of work is not precisely defined or involves significant research and development, which may be the case for an 'agnostic' system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the offer that represents the best value. The absence of specific competition details means it's difficult to assess the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing and quality through a wide range of potential suppliers.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other branches of the Department of Defense requiring F-35 battery systems. The contract delivers critical components for the F-35 fighter jet program, ensuring operational readiness. The geographic impact is primarily within the United States, where the contractor is based and where the F-35s operate. Workforce implications include jobs in battery manufacturing, engineering, and quality control at EaglePicher Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously monitored.
Long contract duration increases the risk of scope creep or evolving technological requirements.
Lack of specific competition details makes it hard to gauge the true competitive pressure on pricing.
Dependence on a single supplier for critical F-35 components could pose supply chain risks.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
EaglePicher Technologies is an established manufacturer with experience in aerospace batteries.
The 'agnostic' nature of the battery system suggests potential for future adaptability and reduced long-term costs.
The contract supports a critical defense platform, ensuring national security capabilities.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, stringent quality requirements, and significant government investment. Contracts for aircraft components, such as batteries for the F-35, are crucial for maintaining military readiness. The market for specialized aerospace batteries is relatively concentrated, with a few key players like EaglePicher Technologies dominating. Spending in this area is driven by defense budgets and the lifecycle needs of advanced military platforms.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the requirement was likely fulfilled by a large business capable of meeting the complex specifications and production volumes. There is no explicit information on subcontracting plans for small businesses within this award, which could be a missed opportunity to engage the small business industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically within the Air Force. The Cost Plus Fixed Fee structure necessitates close monitoring of allowable costs and the contractor's performance to ensure value for money. Inspector General investigations could be initiated if any fraud, waste, or abuse is suspected. Transparency is generally maintained through contract award databases, though detailed cost breakdowns are often proprietary.

Related Government Programs

F-35 Lightning II Program
Aerospace Battery Manufacturing
Defense Logistics Agency (DLA) Contracts
Department of Defense Research and Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Long contract duration increases risk of technological obsolescence.
Limited public information on the number of bidders and specific competition details.
Dependence on a single supplier for critical F-35 components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 million to EAGLEPICHER TECHNOLOGIES LLC. F-35 AGNOSTIC BATTERY SYSTEM

Who is the contractor on this award?

The obligated recipient is EAGLEPICHER TECHNOLOGIES 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 $37.2 million.

What is the period of performance?

Start: 2019-06-24. End: 2026-02-03.

What is EaglePicher Technologies' track record with Department of Defense contracts, particularly for aviation components?

EaglePicher Technologies LLC has a significant history of supplying batteries and power solutions to the Department of Defense and NASA. They have provided batteries for various military aircraft, spacecraft, and ground systems. Their experience includes developing and manufacturing advanced battery chemistries tailored for demanding environments, such as those encountered in aerospace and defense applications. While specific details on past F-35 related contracts are not readily available in this data, their overall portfolio suggests a strong capability and established relationship with defense agencies for critical power systems. This background provides a degree of confidence in their ability to fulfill the current contract, though performance on this specific award remains to be seen.

How does the $37.2 million contract value compare to typical spending on F-35 components?

The $37.2 million contract value for F-35 agnostic battery systems is a significant but not exceptionally large sum within the context of the overall F-35 program, which involves hundreds of billions of dollars in development and procurement. Component costs for advanced military aircraft can vary widely. Batteries are critical but represent a fraction of the total aircraft cost. Without knowing the exact number of batteries procured or the specific technological advancements this 'agnostic' system represents, direct comparison is difficult. However, this figure suggests a substantial, long-term supply agreement for a key subsystem, likely covering multiple aircraft or a significant portion of the fleet's battery needs over the contract's duration.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for battery systems?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF arrangement, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's fee remains fixed. This can incentivize less cost-consciousness on the part of the contractor. For battery systems, risks include unexpected material costs, manufacturing challenges, or the need for design modifications during development or production. Effective oversight by the contracting agency is crucial to scrutinize allowable costs and ensure the contractor exercises due diligence in managing expenses to mitigate these risks.

What does 'agnostic battery system' imply for the F-35 program's future?

An 'agnostic battery system' implies a design that is not tied to a specific, proprietary configuration or manufacturer, offering greater flexibility and potential for future upgrades or replacements. For the F-35 program, this could mean the system is designed to be compatible with various battery chemistries or form factors, reducing vendor lock-in and potentially lowering long-term sustainment costs. It suggests a focus on standardization and interoperability, which can streamline maintenance, reduce logistical burdens, and allow the program to adopt newer, more efficient battery technologies as they emerge without requiring extensive redesigns. This approach aligns with efforts to enhance the F-35's operational lifespan and reduce lifecycle expenses.

How does the contract's duration (2416 days) impact the assessment of value for money?

The contract duration of 2416 days, approximately 6.7 years, is substantial and indicates a long-term commitment for the supply of F-35 battery systems. From a value-for-money perspective, a longer duration can offer stability and predictability in supply, potentially leading to economies of scale and more consistent pricing over the contract's life. It also suggests that the government anticipates a continuous need for these specific battery systems for the F-35 fleet. However, a long duration also increases the risk associated with technological obsolescence and potential shifts in program requirements. Ensuring that the contract includes mechanisms for price adjustments or incorporates future technological advancements will be key to realizing sustained value over its extended term.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Storage Battery Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1215 WEST C ST, JOPLIN, MO, 64801

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

Financial Breakdown

Contract Ceiling: $37,204,642

Exercised Options: $37,204,642

Current Obligation: $37,204,642

Actual Outlays: $1,637,199

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $4,268,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline