DoD awards $57.7M for aerostat structures, with limited competition and a long performance period

Contract Overview

Contract Amount: $57,730,772 ($57.7M)

Contractor: Tcom, L.P.

Awarding Agency: Department of Defense

Start Date: 2018-07-09

End Date: 2025-11-04

Contract Duration: 2,675 days

Daily Burn Rate: $21.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AEROSTAT FLEX STRUCTURE

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $57.7 million to TCOM, L.P. for work described as: AEROSTAT FLEX STRUCTURE Key points: 1. The contract's value of $57.7 million over its performance period suggests a significant investment in aerostat technology. 2. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the extent of market research and justification for sole-sourcing. 3. The firm-fixed-price contract type aims to provide cost certainty for the government, but the absence of competition may limit price negotiation. 4. The extended performance period, ending in November 2025, indicates a long-term need for these aerostat structures. 5. The North Carolina location for performance suggests a concentration of specialized manufacturing capabilities in that region. 6. The contract's focus on search, detection, navigation, guidance, and aeronautical systems aligns with critical defense intelligence and surveillance needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar aerostat structures. The firm-fixed-price nature provides some cost control, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. The total value of $57.7 million over the contract's duration needs to be evaluated against the specific capabilities and technological advancements offered by the aerostat system to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the government did not conduct a full and open competition. This typically occurs when only one responsible source is available or when an exception to full and open competition applies. The limited competition means that potential alternative suppliers were not considered, which can impact price discovery and potentially lead to higher costs than if multiple bids were received.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution, as the government did not leverage market forces to drive down prices through multiple bids.

Public Impact

The Department of the Navy benefits from the acquisition of advanced aerostat structures essential for its search, detection, and navigation systems. These structures are critical for intelligence, surveillance, and reconnaissance (ISR) missions, enhancing operational awareness. The contract supports specialized manufacturing capabilities, potentially impacting the aerospace and defense industry workforce in North Carolina. The technology deployed is expected to bolster national security by providing persistent surveillance and early warning capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Limited transparency into the justification for sole-sourcing could obscure potential alternatives.
Long contract duration without competitive re-evaluation might reduce incentives for ongoing cost efficiency.
Dependence on a single source for critical aerostat structures poses a supply chain risk.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The award supports advanced defense technology crucial for national security.
Performance in North Carolina may leverage existing specialized industrial base.

Sector Analysis

The contract falls within the aerospace and defense sector, specifically focusing on advanced sensor platforms and structural components for surveillance systems. The market for aerostat systems is specialized, often involving a limited number of manufacturers capable of producing such high-technology, large-scale structures. Spending in this area is driven by the increasing demand for persistent, wide-area surveillance capabilities, particularly in defense and homeland security applications. Comparable spending benchmarks would likely be found within other large, sole-source or limited-competition procurements for advanced ISR platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of aerostat structure manufacturing and the sole-source award, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available unless specified by the prime contractor. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to review. Transparency regarding the specific reasons for the 'NOT AVAILABLE FOR COMPETITION' status and the contractor's performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense ISR Platforms
Naval Aviation Systems
Advanced Surveillance Technology Procurement
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of transparency regarding competition justification.
Long performance period without competitive re-evaluation.
Potential single-point-of-failure risk in supply chain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.7 million to TCOM, L.P.. AEROSTAT FLEX STRUCTURE

Who is the contractor on this award?

The obligated recipient is TCOM, L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $57.7 million.

What is the period of performance?

Start: 2018-07-09. End: 2025-11-04.

What is the specific justification provided by the Department of the Navy for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION). This designation typically implies that only one responsible source exists to fulfill the requirement, or that a statutory exception to full and open competition applies. Common justifications include unique capabilities, proprietary technology, or urgent and compelling needs where competition is not feasible. A detailed review of the contract's Justification and Approval (J&A) document, if publicly available, would be necessary to understand the precise rationale. Without this document, it's difficult to ascertain if adequate market research was performed to confirm the absence of other capable sources or if the justification is robust.

How does the per-unit cost or total contract value compare to similar aerostat structure procurements, if available?

Direct comparison of the total contract value ($57.7 million) to similar aerostat structure procurements is difficult without access to detailed specifications and market data for comparable systems. Aerostat structures can vary significantly in size, payload capacity, endurance, and technological sophistication, all of which influence cost. Furthermore, the 'NOT AVAILABLE FOR COMPETITION' status suggests that this award was not subject to competitive pricing pressures. To benchmark value, one would need to identify contracts for aerostats with similar operational requirements and performance characteristics, ideally awarded competitively. If such comparisons reveal significantly higher costs for this contract, it would indicate potential value concerns.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract for TCOM, L.P.?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or risk mitigation strategies for TCOM, L.P. However, given the nature of the contract (firm-fixed-price, long duration), KPIs would likely revolve around timely delivery of aerostat structures meeting specified technical requirements, durability, and operational readiness. Risk mitigation strategies for the contractor would typically involve robust quality control processes, supply chain management to ensure component availability, and contingency planning for potential production delays or technical challenges. The government's risk mitigation would focus on contract oversight, performance monitoring, and ensuring the contractor meets contractual obligations.

What is the historical spending pattern for aerostat structures by the Department of the Navy or Department of Defense?

Historical spending data for aerostat structures by the Department of the Navy or Department of Defense is not provided in the current data snippet. To analyze historical spending patterns, one would need to query federal procurement databases (like FPDS or SAM.gov) for contracts related to aerostats over several fiscal years. This analysis would reveal trends in contract values, award types (competitive vs. sole-source), key contractors, and the evolution of technology requirements. Understanding these patterns is crucial for assessing whether the current $57.7 million award represents an increase, decrease, or stable level of investment in this capability.

What are the potential implications of a sole-source award for the long-term development and availability of aerostat technology?

A sole-source award can have mixed implications for the long-term development and availability of aerostat technology. On one hand, it can provide a stable funding stream and clear demand signal to a specific contractor, enabling focused investment in research, development, and production capabilities. This can lead to technological advancements and efficiencies within that company. On the other hand, it can stifle innovation by reducing competitive pressure, potentially leading to complacency and higher costs over time. It also limits the government's ability to benefit from alternative technological approaches or cost reductions that might emerge from a more diverse and competitive market.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785418R2015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7115 THOMAS EDISON DR STE A, COLUMBIA, MD, 21046

Business Categories: Category Business, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,446,270

Exercised Options: $58,133,038

Current Obligation: $57,730,772

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline