ATI Engineering Services LLC awarded $23.1M contract for ISR services by the Department of the Air Force
Contract Overview
Contract Amount: $23,088,492 ($23.1M)
Contractor: ATI Engineering Services LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2025-07-09
Contract Duration: 1,378 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TUNISIA ISR
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $23.1 million to ATI ENGINEERING SERVICES LLC for work described as: TUNISIA ISR Key points: 1. Contract value represents a significant investment in intelligence, surveillance, and reconnaissance capabilities. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. A 9-bidder competition suggests a healthy market for these specialized services. 4. The contract duration of over three years allows for sustained support. 5. This award falls within the aircraft manufacturing NAICS code, indicating a focus on aviation-related ISR. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract's firm-fixed-price nature provides cost certainty. While specific benchmarking data for ISR services is not provided, the competitive award process with 9 bidders suggests a reasonable price was likely achieved. The total value of $23.1 million over approximately 3.8 years indicates a moderate annual spend, which appears reasonable for specialized intelligence support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with nine bids received. This level of competition is generally positive, indicating that multiple capable vendors were interested and able to bid. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The robust competition for this contract suggests that taxpayer dollars are being used efficiently, as the government likely secured competitive pricing due to the availability of multiple qualified offerors.
Public Impact
The Department of the Air Force benefits from enhanced intelligence, surveillance, and reconnaissance capabilities. This contract supports critical national security missions by providing essential ISR services. The geographic impact is likely global, given the nature of ISR operations. The contract may have implications for a specialized workforce in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined.
- Dependence on a single contractor for critical ISR functions could pose a risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract helps manage cost overruns.
- Competitive award process indicates potential for good value.
- Longer contract duration allows for stable service provision.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to aircraft manufacturing and associated support services. The Intelligence, Surveillance, and Reconnaissance (ISR) market is a significant segment within this sector, driven by national security needs. Spending in this area is often characterized by high technological requirements and specialized expertise. Comparable spending benchmarks would typically be found within broader defense procurement data for similar ISR-related services.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the specialized nature of ISR services, it is possible that larger, more established companies dominate this market. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific requirements of the contract.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. Accountability measures are embedded in the firm-fixed-price structure and performance requirements. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Services
- Aircraft Manufacturing Support
- Department of Defense Procurement
- Air Force Service Contracts
Risk Flags
- Potential for performance issues if specialized personnel are not retained.
- Cybersecurity risks inherent in handling sensitive ISR data.
Tags
defense, department-of-defense, department-of-the-air-force, intelligence-surveillance-reconnaissance, aircraft-manufacturing, full-and-open-competition, firm-fixed-price, delivery-order, ati-engineering-services-llc, pennsylvania, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to ATI ENGINEERING SERVICES LLC. TUNISIA ISR
Who is the contractor on this award?
The obligated recipient is ATI ENGINEERING SERVICES 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 $23.1 million.
What is the period of performance?
Start: 2021-09-30. End: 2025-07-09.
What is the specific nature of the ISR services provided under this contract?
The provided data indicates the contract is for ISR services within the aircraft manufacturing NAICS code (336411). While the exact nature of the services is not detailed, it likely involves the operation, maintenance, analysis, or support of intelligence, surveillance, and reconnaissance platforms, potentially including manned or unmanned aircraft systems. This could encompass data collection, processing, exploitation, and dissemination activities crucial for military intelligence gathering and situational awareness. The contract's duration and value suggest a substantial and ongoing requirement for these specialized capabilities.
How does the $23.1 million contract value compare to similar ISR contracts awarded by the Department of the Air Force?
Without access to a comprehensive database of all ISR contracts, a direct comparison is challenging. However, $23.1 million over approximately 3.8 years (1378 days) translates to an average annual value of roughly $6 million. This figure appears moderate for a specialized defense service contract. Larger ISR procurements can range from tens to hundreds of millions of dollars, often involving complex system development or large-scale operational support. This contract's value suggests it addresses a specific, well-defined need rather than a broad, enterprise-wide ISR initiative.
What are the key performance indicators (KPIs) or metrics used to assess ATI Engineering Services LLC's performance?
The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. However, typical KPIs for ISR services often include metrics related to data accuracy, timeliness of delivery, system uptime, operational availability of platforms, and successful mission completion rates. Performance would likely be evaluated against defined service level agreements (SLAs) and technical requirements outlined in the contract's statement of work. The government would monitor these metrics to ensure ATI Engineering Services LLC meets its contractual obligations.
What is ATI Engineering Services LLC's track record with the Department of Defense, particularly in ISR-related contracts?
The provided data identifies ATI Engineering Services LLC as the contractor but does not offer details on their specific track record or past performance with the Department of Defense (DoD) or in ISR-related contracts. A thorough assessment would require reviewing historical contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes. Without this information, it's difficult to gauge their experience and reliability in delivering complex ISR solutions.
Are there any identified risks associated with this contract, such as technical challenges or contractor viability?
The provided data does not explicitly list risks. However, general risks for ISR contracts can include rapidly evolving technology requiring continuous adaptation, potential cybersecurity vulnerabilities, reliance on specialized personnel, and geopolitical factors impacting operational environments. Contractor viability is typically assessed during the procurement process, but ongoing monitoring is essential. The firm-fixed-price nature can mitigate cost overrun risks, but performance risks remain if the contractor struggles to meet technical or operational requirements.
How does this contract align with the Air Force's broader ISR strategy and modernization efforts?
This contract likely supports the Air Force's ongoing need for robust ISR capabilities to maintain situational awareness and support combat operations. The specific alignment depends on the precise nature of the ISR services. If it involves advanced sensor technology, data analytics, or platform support, it could be part of modernization efforts to enhance intelligence gathering and processing. The Air Force consistently invests in ISR as a critical component of its air and space power projection, ensuring it can effectively monitor threats and provide decision-makers with timely intelligence.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA869121R1045
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 469 AIRPORT RD HANGAR 9, JOHNSTOWN, PA, 15904
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $23,271,786
Exercised Options: $23,271,786
Current Obligation: $23,088,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA869121D1005
IDV Type: IDC
Timeline
Start Date: 2021-09-30
Current End Date: 2025-07-09
Potential End Date: 2025-07-09 00:00:00
Last Modified: 2025-05-27
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