DoD awards $27M for CN-235 MPA and King Air 350i aircraft upgrades, with limited competition

Contract Overview

Contract Amount: $26,958,301 ($27.0M)

Contractor: Integrated Surveillance and Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-15

End Date: 2026-03-15

Contract Duration: 730 days

Daily Burn Rate: $36.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CN-235 MPA AND KING AIR 350I UPGRADE

Plain-Language Summary

Department of Defense obligated $27.0 million to INTEGRATED SURVEILLANCE AND DEFENSE, INC. for work described as: CN-235 MPA AND KING AIR 350I UPGRADE Key points: 1. The contract value of $26.96 million represents a significant investment in enhancing naval aviation capabilities. 2. The limited competition nature of this award warrants scrutiny regarding potential price impacts. 3. The firm-fixed-price contract type suggests a defined scope and cost control, but the absence of a specific Product Service Code (PSC) is noted. 4. The duration of 730 days indicates a medium-term project for aircraft modernization. 5. The contract is not set aside for small businesses, suggesting larger prime contractors are expected to perform the work. 6. The award falls within the Aircraft Manufacturing sector, aligning with established defense industrial base activities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of upgrades for the CN-235 MPA and King Air 350i. The firm-fixed-price structure provides some cost certainty. However, the limited competition raises concerns about whether the government secured the best possible price. Without comparable contract data for similar upgrade packages, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that full and open competition was not utilized. This typically occurs when only one source is capable of meeting the requirement, or in situations where urgency or national security dictates a specific provider. The limited competition means there were likely few, if any, other bidders considered, which can impact price negotiation and potentially lead to higher costs for the government.

Taxpayer Impact: Limited competition can result in taxpayers paying a premium, as the lack of multiple bids reduces the government's leverage to negotiate the lowest possible price. This approach should be justified by unique capabilities or circumstances.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive enhanced aircraft capabilities for surveillance and defense missions. The services delivered include upgrades to existing CN-235 MPA and King Air 350i aircraft, improving their operational effectiveness. The geographic impact is likely focused on naval aviation bases and operational theaters where these aircraft are deployed. Workforce implications may include specialized technicians and engineers required for the aircraft modifications and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Lack of transparency in the procurement process due to 'NOT AVAILABLE FOR COMPETITION' status.
Potential for contractor lock-in if specialized knowledge or parts are required for future maintenance.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on upgrading existing platforms enhances current defense capabilities.
Award to a known entity (Integrated Surveillance and Defense, Inc.) may imply prior successful performance.

Sector Analysis

The contract falls within the Aircraft Manufacturing sector, specifically focusing on upgrades and modifications. This sector is a critical component of the defense industrial base, supporting the operational readiness of military forces. Spending in this area is often driven by the need to maintain technological superiority and extend the service life of existing platforms. Comparable spending benchmarks would involve other contracts for aircraft modernization, avionics upgrades, and structural enhancements across various military branches.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). The prime contractor, Integrated Surveillance and Defense, Inc., is likely a mid-to-large-sized business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a small business set-aside suggests that the primary performance is expected to be handled by the prime or its larger subcontractors, potentially limiting direct opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General (DoDIG) for potential fraud, waste, and abuse. Transparency is enhanced through contract award databases, but the limited competition aspect means public insight into the justification for sole-sourcing or limited bidding may be less readily available.

Related Government Programs

Naval Aviation Modernization Programs
Aircraft Systems Upgrades
Surveillance and Reconnaissance Aircraft
King Air Aircraft Support Contracts
CN-235 Aircraft Support Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns (if scope changes)
Contractor Performance Risk (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to INTEGRATED SURVEILLANCE AND DEFENSE, INC.. CN-235 MPA AND KING AIR 350I UPGRADE

Who is the contractor on this award?

The obligated recipient is INTEGRATED SURVEILLANCE AND DEFENSE, 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 $27.0 million.

What is the period of performance?

Start: 2024-03-15. End: 2026-03-15.

What specific upgrades are being performed on the CN-235 MPA and King Air 350i aircraft under this contract?

The provided data does not specify the exact nature of the upgrades. However, given the contract title 'CN-235 MPA AND KING AIR 350I UPGRADE' and the contractor's name 'INTEGRATED SURVEILLANCE AND DEFENSE, INC.', it is highly probable that the upgrades involve enhancing the surveillance and defense capabilities of these aircraft. This could include installing new sensor suites, upgrading communication systems, improving electronic warfare capabilities, or integrating advanced data processing and display systems. The 'MPA' designation for the CN-235 typically stands for Maritime Patrol Aircraft, suggesting a focus on enhancing its long-endurance surveillance and anti-submarine warfare (ASW) or anti-surface warfare (ASuW) roles. For the King Air 350i, upgrades might focus on intelligence, surveillance, and reconnaissance (ISR) payloads or mission systems.

How does the $26.96 million contract value compare to historical spending on similar aircraft upgrades within the Navy?

Direct comparison of the $26.96 million value to historical spending on similar upgrades is difficult without specific details on the scope of work. However, major aircraft modernization programs, especially those involving avionics, sensor integration, and structural enhancements, can range from several million to tens of millions of dollars per aircraft, depending on complexity. For a fleet of aircraft or a significant upgrade package, $26.96 million is a substantial but not unprecedented amount. The Navy frequently invests in upgrading its diverse aircraft inventory to maintain operational relevance. To provide a precise benchmark, one would need to identify comparable contracts for 'CN-235 MPA upgrades' or 'King Air 350i ISR/surveillance modifications' awarded within the last 3-5 years and analyze their scope and total value.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract award of this magnitude?

The primary risk associated with a 'NOT AVAILABLE FOR COMPETITION' award of $26.96 million is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most favorable price. Another significant risk is the potential for reduced innovation, as a sole-source provider may have less incentive to propose novel or cost-saving solutions compared to a competitive environment. Furthermore, there's a risk of contractor complacency or performance issues, as the government has fewer alternatives if the contractor underperforms. Ensuring robust oversight and clear performance metrics becomes even more critical in such scenarios to mitigate these risks.

What is the track record of Integrated Surveillance and Defense, Inc. in performing similar defense contracts, particularly for aircraft upgrades?

Information regarding the specific track record of Integrated Surveillance and Defense, Inc. for similar aircraft upgrade contracts is not detailed in the provided data. However, the company's name suggests a specialization in surveillance and defense systems, which aligns with the nature of this award. To assess their track record, one would typically review their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards in similar domains, and any publicly available information on their project history. A thorough review would determine their experience with the specific aircraft types (CN-235, King Air 350i), the complexity of the required upgrades, and their ability to deliver on time and within budget on previous, comparable efforts.

How does the firm-fixed-price contract type influence the risk allocation between the government and Integrated Surveillance and Defense, Inc. for this upgrade project?

A firm-fixed-price (FFP) contract type generally places the majority of the cost risk on the contractor, Integrated Surveillance and Defense, Inc. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If their costs exceed the fixed price, their profit margin will decrease, or they may incur a loss. Conversely, if their costs are lower than anticipated, their profit will increase. For the government, the primary benefit of an FFP contract is cost certainty; the total expenditure is known upfront, assuming the scope of work does not change. The main risk for the government under FFP is that the contractor may cut corners on quality or performance to protect their profit margin if unexpected cost increases arise, especially given the limited competition context.

What is the historical spending trend for aircraft manufacturing and upgrade services within the Department of the Navy?

Historical spending trends for aircraft manufacturing and upgrade services within the Department of the Navy are substantial and cyclical, driven by modernization requirements, fleet readiness goals, and technological advancements. The Navy operates a diverse fleet of aircraft, including fixed-wing and rotary-wing platforms for various missions such as strike, patrol, transport, and training. Significant portions of the Navy's budget are allocated annually to sustain, modernize, and recapitalize these assets. Spending can fluctuate based on major platform development programs, depot maintenance cycles, and specific upgrade initiatives like avionics overhauls or structural life extensions. While precise aggregate figures require detailed budget analysis, it's understood that aircraft sustainment and modernization represent a multi-billion dollar annual investment for the Navy, making contracts like this one part of a larger, ongoing effort.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042123R0073

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25999 SW CANYON CREEK RD STE F, WILSONVILLE, OR, 97070

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

Financial Breakdown

Contract Ceiling: $27,449,793

Exercised Options: $26,958,301

Current Obligation: $26,958,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline