DoD's $30.6M avionics engineering contract with Greenfield Engineering Corporation shows fair value but limited competition

Contract Overview

Contract Amount: $30,594,108 ($30.6M)

Contractor: Greenfield Engineering Corporation

Awarding Agency: Department of Defense

Start Date: 2019-06-01

End Date: 2024-06-01

Contract Duration: 1,827 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CORE AVIONICS ENGINEERING SUPPORT SERVICES FOR NAVAIR PMA-274

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to GREENFIELD ENGINEERING CORPORATION for work described as: CORE AVIONICS ENGINEERING SUPPORT SERVICES FOR NAVAIR PMA-274 Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering support services. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. The cost-plus-fixed-fee structure introduces some risk regarding final cost escalation. 4. Performance context is tied to critical avionics systems for PMA-274, indicating high stakes. 5. This contract positions Greenfield Engineering as a key provider in a specialized defense sector. 6. The duration of the contract suggests a long-term need for these specialized services.

Value Assessment

Rating: fair

The contract's total value of approximately $30.6 million over five years suggests a moderate annual spend for specialized engineering support. Benchmarking against similar contracts for avionics engineering services indicates that the pricing is within a reasonable range, though the lack of robust competition makes definitive value assessment challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex R&D or services where costs are uncertain, carries inherent risks of cost overruns compared to fixed-price contracts. However, the fixed fee component provides some level of cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while a competitive process was intended, specific sources were excluded, leading to a limited number of bidders. The exact number of bidders is not specified, but the designation suggests a departure from truly open competition. This limited competition may have resulted in less aggressive pricing than a fully open solicitation would have achieved, potentially impacting the government's ability to secure the best possible price.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most competitive pricing available in the market. This could translate to higher overall costs for the services rendered.

Public Impact

The primary beneficiaries are the Department of the Navy and specifically PMA-274, ensuring the continued development and support of critical avionics systems. Services delivered include core avionics engineering support, crucial for aircraft readiness and technological advancement. The geographic impact is primarily centered around the contractor's location in Maryland, with potential ripple effects to Navy operational bases. Workforce implications include the employment of specialized engineers and technical staff, contributing to the skilled labor pool in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contracts carry inherent risks of cost escalation.
Exclusion of sources in the competition process reduces market reach.
Dependence on a single contractor for critical avionics support could pose a risk if performance falters.

Positive Signals

Contractor provides essential engineering support for critical defense systems.
The contract duration indicates a stable, long-term need for these services.
Engineering services are vital for maintaining technological superiority in defense.

Sector Analysis

The aerospace and defense engineering services sector is highly specialized, characterized by significant R&D investment, stringent quality requirements, and long product lifecycles. This contract falls within the broader engineering services industry (NAICS 541330), which serves a critical role in supporting government acquisition programs. The market is often dominated by a few large, established firms with specific expertise and security clearances. Spending in this sector is driven by national security priorities and technological advancements, with contracts often being long-term and high-value.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of specialized avionics engineering often requires deep expertise and established infrastructure, which may favor larger, more experienced contractors. The absence of small business participation could limit opportunities for smaller firms to enter or expand within this niche defense market.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers within PMA-274. Accountability measures are embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the DoD IG having oversight.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
PMA-274 Programs
Defense Avionics Systems Support
Engineering Services for Military Aircraft
Aerospace Engineering Contracts

Risk Flags

Limited competition
Cost-plus-fixed-fee pricing structure
Potential for cost overruns
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to GREENFIELD ENGINEERING CORPORATION. CORE AVIONICS ENGINEERING SUPPORT SERVICES FOR NAVAIR PMA-274

Who is the contractor on this award?

The obligated recipient is GREENFIELD ENGINEERING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2019-06-01. End: 2024-06-01.

What is Greenfield Engineering Corporation's track record with the Department of Defense and specifically with NAVAIR?

Greenfield Engineering Corporation has a history of providing engineering services to the Department of Defense. While specific details on their entire contract history require deeper database analysis, their selection for this significant avionics engineering support contract with NAVAIR's PMA-274 indicates a level of established performance and trust. Reviewing past performance evaluations, any past performance issues, and the types of previous contracts awarded to Greenfield Engineering by NAVAIR would provide a more comprehensive understanding of their reliability and capability in delivering complex engineering solutions for defense applications.

How does the pricing of this contract compare to similar avionics engineering support contracts awarded by other branches of the military or DoD agencies?

Benchmarking this contract's pricing against similar avionics engineering support services across the DoD is crucial for assessing value. Given the total award of approximately $30.6 million over five years, the average annual value is around $6.1 million. Without access to a detailed breakdown of labor categories, hours, and rates, a precise comparison is difficult. However, preliminary analysis suggests the pricing is within a fair market range for specialized engineering services. A more granular comparison would involve analyzing the specific technical requirements, contract duration, and the competitive landscape of comparable contracts awarded by agencies like the Air Force or Army for similar avionics support.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The Cost Plus Fixed Fee (CPFF) contract type, used here, presents specific risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize cost overruns, as the contractor's fee remains constant regardless of the final project cost, although they are motivated to complete the work efficiently to maximize their return on the fixed fee. The government bears the risk of cost uncertainty, and robust oversight is necessary to ensure costs are reasonable and allocable. This contrasts with fixed-price contracts where the contractor assumes more cost risk.

How effective has PMA-274 been in managing its avionics engineering support contracts, and what is the historical spending trend in this area?

Assessing the effectiveness of PMA-274's contract management requires analyzing performance metrics, delivery timeliness, and system integration success rates for past avionics engineering support contracts. Historical spending trends for PMA-274 in this category would reveal if the current $30.6 million award represents an increase, decrease, or stable level of investment. Examining trends over the last 5-10 years, including the number and value of similar contracts awarded, would provide context on the program's evolving needs and budget allocation for avionics engineering support, indicating whether current spending aligns with historical patterns or reflects new priorities.

What is the potential impact of the 'Full and Open Competition After Exclusion of Sources' award method on the overall cost-effectiveness for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method, while a form of competition, inherently limits the pool of potential bidders compared to a truly open solicitation. This exclusion can reduce competitive pressure, potentially leading to higher prices than might be achieved in a broader market. Taxpayers may therefore face increased costs because the government did not leverage the full spectrum of available vendors. The specific reasons for excluding sources would need to be examined to understand if they were justified by technical requirements or if they unduly restricted competition, impacting cost-effectiveness.

Are there any performance concerns or notable successes associated with Greenfield Engineering Corporation's previous work on NAVAIR programs?

Information regarding specific performance concerns or notable successes for Greenfield Engineering Corporation on previous NAVAIR programs is not detailed in the provided data. A thorough review of past performance reports, contract close-outs, and any CPARS (Contractor Performance Assessment Reporting System) data would be necessary to ascertain their historical performance. Such a review would highlight their reliability, quality of work, adherence to schedule, and overall effectiveness in fulfilling previous defense contracts, providing crucial context for this current award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042118R0041

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 20319 BEAUVUE CT, LEONARDTOWN, MD, 20650

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,767,303

Exercised Options: $30,767,303

Current Obligation: $30,594,108

Actual Outlays: $2,733,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0024

IDV Type: IDC

Timeline