Dod's $700M Test Operations and Sustainment II Contract Awarded to Beyond NEW Horizons, LLC
Contract Overview
Contract Amount: $699,220,798 ($699.2M)
Contractor: Beyond NEW Horizons, LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2026-09-30
Contract Duration: 912 days
Daily Burn Rate: $766.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: TEST OPERATIONS AND SUSTAINMENT (TOS) II
Place of Performance
Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389
Plain-Language Summary
Department of Defense obligated $699.2 million to BEYOND NEW HORIZONS, LLC for work described as: TEST OPERATIONS AND SUSTAINMENT (TOS) II Key points: 1. Significant contract value of $699.2M for engineering services. 2. Awarded under full and open competition, suggesting market availability. 3. Risk of cost overruns due to Cost Plus Award Fee (CPA) structure. 4. Focus on engineering services within the Department of the Air Force.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee (CPA) structure allows for contractor reimbursement of costs plus a fee based on performance. This can incentivize good performance but also carries a risk of higher-than-expected costs if performance targets are aggressively set or difficult to achieve.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and improves service quality.
Public Impact
Impacts the Department of the Air Force's operational testing and sustainment capabilities. Potential for technological advancements through engineering services. Ensures continued support for critical defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Contract duration of 912 days requires ongoing monitoring.
- Potential for performance-related cost increases.
Positive Signals
- Awarded under full and open competition.
- Clear contract end date provides predictability.
- Definitive contract type offers a structured agreement.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for defense operations. Spending benchmarks for this sector vary widely based on project scope and complexity, but a $700M contract indicates a large-scale, long-term engagement.
Small Business Impact
The contract data indicates that small business participation was not a primary consideration, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large prime contract.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. The Cost Plus Award Fee structure necessitates robust performance metrics and regular evaluations to ensure accountability and prevent contractor overcharging.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration.
- Potential for scope creep.
- Reliance on contractor performance metrics.
- Limited visibility into specific performance incentives.
Tags
engineering-services, department-of-defense, tn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $699.2 million to BEYOND NEW HORIZONS, LLC. TEST OPERATIONS AND SUSTAINMENT (TOS) II
Who is the contractor on this award?
The obligated recipient is BEYOND NEW HORIZONS, 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 $699.2 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-09-30.
What specific test operations and sustainment activities are covered under this contract, and how do they align with current Air Force priorities?
The contract likely encompasses a broad range of activities including the planning, execution, and analysis of operational tests for various Air Force systems, as well as the ongoing maintenance and support required to keep these systems functional. Alignment with Air Force priorities would depend on the specific systems being tested and sustained, potentially including next-generation aircraft, communication systems, or weapons platforms.
What are the key performance indicators (KPIs) for the award fee, and what is the potential range of the award fee as a percentage of the base cost?
Specific KPIs are not detailed in the provided data but are crucial for a CPA F contract. They typically relate to schedule adherence, technical performance, cost control, and quality of deliverables. The award fee range is also not specified, but it's common for it to be a significant percentage of the cost, incentivizing contractors to exceed minimum performance requirements.
How does the $700M contract value compare to historical spending on similar test operations and sustainment programs within the DoD?
Without historical data for comparable programs, a direct comparison is difficult. However, $700M represents a substantial investment, suggesting a program of significant scope and importance to the Air Force's operational readiness and development cycles. Benchmarking against similar large-scale engineering service contracts within the defense sector would provide better context.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA910122RB001
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 308 VOYAGER WAY NW STE 200, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,958,402,777
Exercised Options: $790,184,485
Current Obligation: $699,220,798
Actual Outlays: $2,563,956
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-01
Current End Date: 2026-09-30
Potential End Date: 2037-03-31 00:00:00
Last Modified: 2025-12-30
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