DoD's $28.1M contract for digital airworthiness certification aims to modernize processes
Contract Overview
Contract Amount: $28,126,363 ($28.1M)
Contractor: Istari Federal LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-22
End Date: 2026-07-30
Contract Duration: 1,042 days
Daily Burn Rate: $27.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: FLYER ONE - TOWARDS DIGITAL-FIRST AIRWORTHINESS CERTIFICATION
Place of Performance
Location: COSTA MESA, ORANGE County, CALIFORNIA, 92627
Plain-Language Summary
Department of Defense obligated $28.1 million to ISTARI FEDERAL LLC for work described as: FLYER ONE - TOWARDS DIGITAL-FIRST AIRWORTHINESS CERTIFICATION Key points: 1. Focuses on advancing digital-first approaches to airworthiness, potentially improving efficiency and safety. 2. Contract awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 1000 days indicates a significant, long-term project. 4. Research and Development in Physical, Engineering, and Life Sciences is a key area for innovation. 5. The firm-fixed-price structure aims to control costs for the government. 6. Awarded by the Department of the Air Force, highlighting a specific branch's modernization needs.
Value Assessment
Rating: good
The contract value of $28.1 million for a 1042-day period appears reasonable for a complex R&D initiative in a specialized field like digital airworthiness. Benchmarking against similar large-scale R&D contracts within the DoD for advanced technology development would provide further context. The firm-fixed-price nature suggests an effort to establish cost certainty, which is a positive indicator for value.
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 bids. This generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The number of bidders is not specified, but the open competition itself is a positive sign for price discovery and market responsiveness.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a robust bidding process, potentially driving down costs and encouraging innovation.
Public Impact
The Department of the Air Force benefits from advancements in digital airworthiness certification, potentially leading to faster and more efficient aircraft certification processes. The project aims to deliver research and development outputs that support the modernization of defense systems. Workforce implications may include the need for specialized skills in digital engineering and certification within the defense sector. The geographic impact is primarily within the Department of Defense's operational and research environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term R&D projects if not managed tightly.
- Dependence on contractor's expertise could pose a risk if key personnel depart.
- Ensuring the developed digital solutions are interoperable with existing systems requires careful planning.
Positive Signals
- Focus on digital-first approaches aligns with modernizing defense capabilities.
- Firm-fixed-price contract provides cost predictability.
- Awarded through full and open competition, suggesting a competitive market for these services.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced engineering and physical sciences. The market for digital transformation in aerospace and defense is growing, driven by the need for increased efficiency, safety, and reduced lifecycle costs. Comparable spending benchmarks would involve other large-scale R&D contracts aimed at developing new methodologies or technologies for critical defense applications.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. While this contract may not directly benefit small businesses through set-asides, the prime contractor, ISTARI FEDERAL LLC, may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, requiring delivery of specified R&D outcomes. Transparency is generally maintained through contract award notices and reporting requirements, though specific oversight details are not provided.
Related Government Programs
- Airworthiness Certification Modernization Programs
- Digital Engineering Initiatives
- Aerospace Research and Development Contracts
- Department of Defense R&D Spending
Risk Flags
- R&D Project Complexity
- Technology Integration Risk
- Long-Term Project Management
- Definition of Success Metrics for R&D
Tags
department-of-defense, department-of-the-air-force, research-and-development, digital-transformation, airworthiness-certification, firm-fixed-price, full-and-open-competition, california, large-contract, technology-innovation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.1 million to ISTARI FEDERAL LLC. FLYER ONE - TOWARDS DIGITAL-FIRST AIRWORTHINESS CERTIFICATION
Who is the contractor on this award?
The obligated recipient is ISTARI FEDERAL 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 $28.1 million.
What is the period of performance?
Start: 2023-09-22. End: 2026-07-30.
What is the specific technological innovation expected from this 'digital-first airworthiness certification' contract?
The contract aims to advance the concept of 'digital-first airworthiness certification.' This implies a shift from traditional, paper-based or fragmented digital processes to a more integrated, model-based systems engineering (MBSE) approach. The expected innovation likely involves developing and implementing digital tools, workflows, and data standards that allow for continuous airworthiness assessment throughout the lifecycle of an aircraft, rather than relying solely on point-in-time inspections. This could include advanced simulation, digital twins, and AI-driven analysis to predict and manage potential issues, thereby streamlining the certification process and enhancing safety.
How does the firm-fixed-price (FFP) structure mitigate risks for the government in this R&D context?
A firm-fixed-price contract is designed to provide the government with cost certainty by establishing a ceiling price that the contractor must adhere to, regardless of their actual costs. In an R&D context, this can be challenging due to the inherent uncertainties in research outcomes. However, for this contract, the FFP structure suggests that the scope of work and expected deliverables are sufficiently defined to allow for a predictable cost estimate. It incentivizes the contractor to manage their resources efficiently and innovate cost-effectively to achieve the defined R&D objectives within the agreed-upon price, thereby mitigating the risk of cost overruns for the government.
What are the potential long-term implications of this contract for the broader aerospace and defense industry?
This contract has the potential to significantly influence the future of airworthiness certification within the aerospace and defense industry. By pioneering a 'digital-first' approach, the Department of the Air Force is signaling a strategic direction that other branches and potentially commercial aviation entities may follow. Successful implementation could lead to industry-wide adoption of new digital tools and standards, fostering greater interoperability, reducing certification timelines, and enhancing overall safety and efficiency. It could also spur innovation in related fields, such as cybersecurity for digital engineering data and advanced simulation technologies.
Given the R&D nature, how will the success of the contract be measured and evaluated?
The success of this R&D contract will likely be measured against specific, pre-defined technical and performance milestones outlined in the contract statement of work. These could include the successful development and validation of specific digital tools, the creation of new data standards for airworthiness, the demonstration of improved certification process efficiency through pilot programs, and the achievement of defined safety metrics. Evaluation will involve rigorous testing, peer reviews, and potentially independent verification of the developed digital solutions and methodologies. The contractor's ability to deliver tangible, functional outputs that advance the 'digital-first' concept will be key.
What is the significance of the contract being awarded to ISTARI FEDERAL LLC, and what is their track record in this domain?
ISTARI FEDERAL LLC is identified as the prime contractor. While specific details about their track record in 'digital-first airworthiness certification' are not provided in the summary data, their selection suggests they possess the requisite expertise, technology, or innovative capabilities deemed necessary by the Department of the Air Force for this advanced R&D initiative. Further investigation into ISTARI FEDERAL LLC's past performance on similar government contracts, particularly in R&D, digital transformation, or aerospace engineering, would be necessary to fully assess their capabilities and potential risks associated with their track record.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1966 NOVUS PL, COSTA MESA, CA, 92627
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,126,363
Exercised Options: $28,126,363
Current Obligation: $28,126,363
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-09-22
Current End Date: 2026-07-30
Potential End Date: 2026-07-30 00:00:00
Last Modified: 2025-10-02
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