DoD's $22.4M unscheduled maintenance contract awarded to Science and Engineering Services, LLC, raises value and competition questions

Contract Overview

Contract Amount: $22,456,213 ($22.5M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-27

End Date: 2026-12-31

Contract Duration: 1,921 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNSCHEDULED MAINTENANCE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: UNSCHEDULED MAINTENANCE Key points: 1. The contract's value for unscheduled maintenance appears high, necessitating a benchmark against similar services. 2. Limited competition for this essential service could impact pricing and efficiency. 3. The firm fixed-price structure offers cost certainty but may not incentivize efficiency gains. 4. The contract duration extends over five years, requiring careful performance monitoring. 5. This award falls within the aircraft parts manufacturing sector, indicating specialized support needs. 6. The lack of small business involvement warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: questionable

The $22.4 million contract for unscheduled maintenance is substantial. Without specific details on the scope of 'unscheduled maintenance' for aircraft parts, it is difficult to benchmark against similar contracts. However, the absence of a competitive bidding process for such a significant amount raises concerns about whether the government secured the best possible value. The firm fixed-price (FFP) contract type provides cost predictability, but it's crucial to ensure the pricing is fair and reasonable given the lack of competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Science and Engineering Services, LLC, was solicited. This significantly limits price discovery and competitive pressure. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), the rationale for not competing this substantial maintenance contract needs thorough review to ensure taxpayer interests were protected.

Taxpayer Impact: A sole-source award means taxpayers may have paid a premium compared to what could have been achieved through a competitive process. The lack of multiple bids prevents price negotiation based on market competition.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring the operational readiness of aircraft through timely maintenance. This contract supports the maintenance and repair of aircraft parts, contributing to the overall airworthiness of naval aviation assets. The contract is geographically focused on Alabama (AL), where the contractor is located, potentially impacting local employment in the aerospace support sector. It ensures the availability of specialized services critical for maintaining a high-performance military fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value.
Potential for overpayment due to sole-source award.
Long contract duration without clear performance metrics for review.
No indication of small business participation or subcontracting goals.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract awarded to a single entity suggests potential specialized expertise.
Contract duration allows for stable support over an extended period.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized maintenance and repair services for military aircraft is often characterized by high barriers to entry due to technical expertise, security clearances, and established relationships. While specific market size data for 'unscheduled maintenance' is difficult to isolate, the overall defense MRO (Maintenance, Repair, and Overhaul) market is substantial, with significant government spending allocated annually to ensure fleet readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The lack of small business participation is a concern, as it limits opportunities for smaller firms to contribute to critical defense supply chains. There is no information provided on subcontracting plans, which means potential opportunities for small businesses to engage in this contract are not evident. This could represent a missed opportunity to foster small business growth within the defense industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Maintenance Services
Aerospace Parts Manufacturing
Defense Logistics Support
Unscheduled Repair Contracts
Naval Aviation Readiness

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Long contract duration requires robust ongoing oversight.
Lack of small business participation noted.
Definition of 'unscheduled maintenance' could lead to scope ambiguity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to SCIENCE AND ENGINEERING SERVICES, LLC. UNSCHEDULED MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, urgent and compelling needs, or situations where only one responsible source can provide the required service or supply. For this contract, the Department of the Navy would need to provide documentation detailing why Science and Engineering Services, LLC was the only viable option. This could involve proprietary technology, highly specialized expertise not available elsewhere, or a critical and time-sensitive requirement that precluded a competitive solicitation. Without this documented justification, the award appears to bypass standard procurement procedures designed to ensure best value for the government.

How does the $22.4 million contract value for unscheduled maintenance compare to industry benchmarks or historical spending for similar services?

Benchmarking this $22.4 million contract for unscheduled maintenance is challenging without granular data on the specific types of aircraft parts and the nature of the 'unscheduled maintenance' required. However, the value suggests a significant scope of work over the contract's duration (2021-2026). To assess value for money, one would compare this contract's unit costs (if available) or total cost against historical spending patterns for similar maintenance tasks within the Navy or across other military branches. Additionally, comparing it to commercial MRO (Maintenance, Repair, and Overhaul) rates for comparable aircraft components could provide an external benchmark. The lack of competition makes this comparison even more critical to ensure fair pricing.

What are the potential risks associated with a five-year contract for unscheduled maintenance?

A five-year contract for unscheduled maintenance carries several risks. Firstly, the definition of 'unscheduled maintenance' can be broad, potentially leading to scope creep or disputes over what services are covered. Secondly, over such a long period, technology and aircraft requirements can evolve, potentially making the contracted services less relevant or efficient. Thirdly, without regular performance reviews and competitive pressure, the contractor might become complacent, leading to decreased quality or inflated costs over time. Finally, the government is locked into this provider for an extended duration, limiting its flexibility to adapt to changing needs or to seek better value from alternative sources should they emerge.

What performance metrics or oversight mechanisms are in place to ensure the effectiveness of this contract?

Effective oversight for a contract of this magnitude and duration typically involves clearly defined Performance Work Statements (PWS), Key Performance Indicators (KPIs), and Service Level Agreements (SLAs). The government should be monitoring metrics such as turnaround time for repairs, quality of work (defect rates), adherence to technical specifications, and responsiveness to urgent requirements. Regular performance reviews, potentially quarterly or semi-annually, are crucial. The Contracting Officer's Representative (COR) plays a vital role in day-to-day oversight. The firm fixed-price nature means the government pays a set amount, so oversight focuses on ensuring the contractor meets all contractual obligations and quality standards.

What is the track record of Science and Engineering Services, LLC in performing similar defense contracts?

Assessing the track record of Science and Engineering Services, LLC is crucial for understanding their capability to fulfill this $22.4 million contract. Information on past performance, including contract history, past performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), and any history of disputes or contract terminations, would provide insight. A review of their financial stability and technical expertise relevant to aircraft parts maintenance is also important. Without access to these specific performance details, it's difficult to definitively assess their reliability and competence for this critical support role.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001921R0087

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 248 DUNLOP BLVD, HUNTSVILLE, AL, 35824

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,456,213

Exercised Options: $22,456,213

Current Obligation: $22,456,213

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $2,835,225

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline