DoD's $34M aircraft life surveillance contract awarded to Technical Data Analysis, Inc. for engineering support

Contract Overview

Contract Amount: $34,043,535 ($34.0M)

Contractor: Technical Data Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-07-16

End Date: 2019-08-27

Contract Duration: 1,868 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIRCRAFT STRUCTURAL LIFE SURVEILLANCE ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to TECHNICAL DATA ANALYSIS, INC. for work described as: AIRCRAFT STRUCTURAL LIFE SURVEILLANCE ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract awarded via 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 duration of the contract (1868 days) indicates a long-term need for these services. 4. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The specific NAICS code (541330) points to engineering services, a critical component of defense readiness. 6. The contract was awarded to a single entity, Technical Data Analysis, Inc., highlighting their specialized role.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar engineering support services. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the total value is $34 million over approximately five years, the per-year expenditure needs careful monitoring to ensure it aligns with market rates for specialized engineering and technical support in the aerospace sector. Without access to the fixed fee percentage or detailed cost data, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specialized engineering service. While three bidders participated, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for price discovery and ensures taxpayers are not subjected to inflated costs due to restricted market access.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, ensuring the structural integrity and safety of aircraft. Services delivered include critical engineering and technical support for aircraft structural life surveillance. The geographic impact is likely concentrated around naval aviation facilities and maintenance depots where aircraft are serviced. This contract supports specialized engineering roles, contributing to the technical workforce within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not rigorously managed.
Limited number of bidders (3) may indicate a niche market or high barriers to entry, potentially impacting long-term competition.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The contract's duration of over five years requires ongoing oversight to ensure continued relevance and value.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
Technical Data Analysis, Inc. is likely a specialized firm with the expertise required for aircraft structural life surveillance.
The contract addresses a critical need for maintaining the safety and readiness of naval aviation assets.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the aerospace and defense industry. The market for specialized aircraft maintenance, repair, and overhaul (MRO) services, including structural life surveillance, is substantial, driven by the extensive fleets operated by military branches. Companies in this sector require highly skilled engineers and technicians with specific knowledge of aircraft systems and materials. Spending benchmarks for similar engineering support contracts can vary widely based on the complexity of the aircraft, the scope of services, and the duration of the contract.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Technical Data Analysis, Inc., is likely not a small business given the contract value and nature of the services. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular contract is unclear, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of incurred costs and the contractor's performance against the fixed fee. Transparency is generally achieved through regular reporting requirements mandated by the contract. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The effectiveness of oversight depends on the diligence of the government personnel assigned to the contract.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Engineering Services
Defense Logistics Support
Naval Aviation Readiness Programs
Fleet Readiness Centers

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bidders may indicate a concentrated market, potentially affecting future competition.
Lack of detailed performance metrics hinders objective assessment of service effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to TECHNICAL DATA ANALYSIS, INC.. AIRCRAFT STRUCTURAL LIFE SURVEILLANCE ENGINEERING AND TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is TECHNICAL DATA ANALYSIS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2014-07-16. End: 2019-08-27.

What is the track record of Technical Data Analysis, Inc. with government contracts, particularly within the Department of Defense?

Technical Data Analysis, Inc. (TDA) has a history of performing contracts for the U.S. government, primarily within the defense sector. While specific details on all past contracts require deeper database searches, their involvement in aircraft structural life surveillance suggests a specialization. Government contract databases often reveal performance ratings, past performance evaluations, and any significant disputes or contract terminations. A review of TDA's contract history would likely show a pattern of work related to engineering, technical support, and data analysis for military platforms. Understanding their performance on previous, similar contracts is crucial for assessing their reliability and capability in executing the current award. Factors to consider include on-time delivery, adherence to budget (especially relevant for CPFF contracts), quality of deliverables, and overall customer satisfaction as documented in past performance reviews.

How does the awarded value of $34 million compare to similar aircraft structural life surveillance contracts?

Comparing the $34 million value requires identifying contracts with similar scope, duration, and service complexity. Aircraft structural life surveillance is a specialized engineering service critical for safety and longevity. Contracts for such services can range significantly. For instance, a contract covering a broader range of aircraft types, or involving more extensive predictive maintenance technologies, could easily exceed this value. Conversely, contracts focused on a single aircraft model or a shorter timeframe would likely be lower. Benchmarking against contracts awarded by the Air Force, Army, or other Navy programs for similar technical support would provide a more robust comparison. Factors like the number of aircraft supported, the specific surveillance technologies employed, and the level of engineering analysis required all influence the total contract value.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fee is fixed, the total cost to the government can escalate if the contractor's costs are higher than anticipated. This structure can reduce the incentive for the contractor to control costs aggressively, as their profit (the fixed fee) remains constant regardless of the actual expenses. Effective oversight is paramount to mitigate this risk. The government must rigorously audit and approve all claimed costs to ensure they are reasonable, allocable, and allowable according to the contract terms. Without stringent cost monitoring and control, CPFF contracts can become significantly more expensive than initially projected, impacting the overall value for taxpayers.

How effective is the 'full and open competition' process in ensuring competitive pricing for specialized engineering services like this?

Full and open competition is designed to maximize the pool of potential bidders, thereby fostering a competitive environment that ideally leads to better pricing and value for the government. For specialized engineering services, its effectiveness can depend on the number of firms possessing the requisite expertise and security clearances. In this case, with 3 bids received, the competition was present but perhaps not as robust as it could be. If the market for aircraft structural life surveillance engineering is inherently limited to a few highly specialized firms, even full and open competition might yield a smaller number of bids. The key is whether the solicitation effectively reached all capable sources and whether the evaluation criteria fairly balanced technical merit with price. A thorough analysis would examine the pre-solicitation market research and the outreach efforts to ensure all potential bidders were aware of and encouraged to participate.

What are the implications of this contract's duration (1868 days) on long-term aircraft readiness and maintenance planning?

A contract duration of 1868 days (approximately 5 years) signifies a long-term commitment to specialized engineering support for aircraft structural life surveillance. This extended period suggests that the services are integral to the ongoing maintenance and readiness of the supported aircraft fleet. Such long-term contracts provide stability for both the government and the contractor, allowing for continuity of operations and the development of deep institutional knowledge. For the Navy, it ensures that critical safety and maintenance functions are consistently addressed, contributing to predictable aircraft availability and reducing unforeseen risks associated with structural integrity. It also allows the contractor to invest in specialized tools, training, and personnel dedicated to the program, potentially leading to greater efficiency and effectiveness over the contract's life.

How does the NAICS code 541330 (Engineering Services) typically relate to defense spending and the types of services procured?

NAICS code 541330, 'Engineering Services,' is a broad category that encompasses a wide array of professional services essential to the Department of Defense. Within defense, these services often include design, development, testing, and technical support for complex military systems, such as aircraft, ships, vehicles, and weapons platforms. Engineering services procured under this code are critical for research and development, system acquisition, sustainment, and modernization efforts. For aircraft structural life surveillance, it specifically relates to the engineering analysis required to assess the fatigue life, structural integrity, and maintenance needs of airframes. Defense spending heavily relies on engineering services to maintain technological superiority, ensure operational readiness, and manage the lifecycle of its vast inventory of assets.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002413R3272

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3190 FAIRVIEW PK DR STE 650, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,272,019

Exercised Options: $37,518,110

Current Obligation: $34,043,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017807D5265

IDV Type: IDC

Timeline