DoD Awards $23M Contract for CH-53K Helicopter Maintenance Support to Adams Communication & Engineering Technology

Contract Overview

Contract Amount: $22,985,159 ($23.0M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-15

End Date: 2026-08-14

Contract Duration: 1,095 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CH-53K CONTRACTOR MAINTENANCE SUPPOR.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: CH-53K CONTRACTOR MAINTENANCE SUPPOR. Key points: 1. Contract value of $22.99 million for helicopter maintenance. 2. Competition method: Full and open after exclusion of sources. 3. Risk: Potential for limited competition impacting price discovery. 4. Sector: Defense, specifically aircraft manufacturing and support.

Value Assessment

Rating: fair

The contract value of $22.99 million for maintenance support appears reasonable given the specialized nature of CH-53K helicopter systems. Benchmarking against similar complex aircraft maintenance contracts would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition scenario. This method may restrict the pool of potential bidders, potentially impacting the government's ability to achieve the lowest possible price.

Taxpayer Impact: The limited competition raises concerns about maximizing taxpayer value. Further analysis is needed to confirm if the pricing reflects competitive pressures or if alternative sourcing could yield savings.

Public Impact

Ensures operational readiness of critical CH-53K King Stallion helicopters. Supports advanced aviation capabilities for the U.S. Navy. Impacts the defense industrial base and specialized maintenance providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may lead to higher costs.
  • Reliance on a single contractor for specialized maintenance.
  • Potential for cost overruns if scope expands.

Positive Signals

  • Supports critical defense asset maintenance.
  • Firm Fixed Price contract provides cost certainty.
  • Long-term contract ensures sustained support.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the sustainment of heavy-lift helicopters. Spending benchmarks for aircraft maintenance can vary widely based on platform complexity and service scope, but this value is within a typical range for specialized support.

Small Business Impact

The contract was awarded to Adams Communication & Engineering Technology, Inc., which is not explicitly identified as a small business in the provided data. Analysis of prime-contractor subcontracting plans would be necessary to determine small business participation.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The firm fixed-price nature of the contract provides some cost control, but monitoring performance and adherence to scope will be crucial for accountability.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for limited competition to inflate costs.
  • Lack of clear small business participation data.
  • Dependence on a single contractor for critical maintenance.
  • Need for detailed cost breakdown to ensure value.

Tags

aircraft-manufacturing, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. CH-53K CONTRACTOR MAINTENANCE SUPPOR.

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, 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 $23.0 million.

What is the period of performance?

Start: 2023-08-15. End: 2026-08-14.

What is the specific justification for excluding other sources in this 'full and open competition after exclusion of sources' award?

The justification for excluding other sources typically relates to unique capabilities, proprietary technology, or specific requirements that only a limited number of contractors can meet. Understanding this rationale is key to assessing whether the limited competition was truly necessary or if it represents an opportunity for broader market engagement in the future.

How does the per-unit cost of maintenance for the CH-53K compare to similar heavy-lift helicopter platforms?

Benchmarking the per-unit maintenance cost against comparable heavy-lift helicopters like the CH-47 Chinook or international equivalents is essential. Significant deviations could indicate either exceptional value or potential inefficiencies in the current contract's pricing structure, warranting further investigation into the specific maintenance tasks and associated labor/parts costs.

What are the long-term implications of this contract structure on the overall sustainment cost of the CH-53K fleet?

A firm fixed-price contract provides immediate cost certainty for the specified period. However, the long-term implications depend on the contract's renewal terms, potential for follow-on contracts, and the evolution of maintenance requirements. If this contract sets a precedent for future awards, it's crucial to ensure the initial pricing is competitive to avoid escalating sustainment costs over the fleet's lifecycle.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042120R0105

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10740 PARKRIDGE BLVD STE 700, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $40,525,967

Exercised Options: $23,433,324

Current Obligation: $22,985,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6852020D0032

IDV Type: IDC

Timeline

Start Date: 2023-08-15

Current End Date: 2026-08-14

Potential End Date: 2028-08-14 00:00:00

Last Modified: 2025-12-22

More Contracts from Adams Communication & Engineering Technology, Inc.

View all Adams Communication & Engineering Technology, Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending