DoD awards $14.8M for aircraft support systems engineering, with a 734-day duration

Contract Overview

Contract Amount: $14,852,282 ($14.9M)

Contractor: Technology Program Services Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-03

End Date: 2026-07-07

Contract Duration: 734 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR SUPPORT SERVICES (CSS) FOR ENGINEERING AND TECHNICAL SERVICES ASSOCIATED WITH THE ACQUISITION, DESIGN, DEVELOPMENT, FIELDING AND SUSTAINMENT OF AIRCRAFT SUPPORT SYSTEMS AND EQUIPMENT

Place of Performance

Location: MANCHESTER, OCEAN County, NEW JERSEY, 08759

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to TECHNOLOGY PROGRAM SERVICES ASSOCIATES, INC. for work described as: CONTRACTOR SUPPORT SERVICES (CSS) FOR ENGINEERING AND TECHNICAL SERVICES ASSOCIATED WITH THE ACQUISITION, DESIGN, DEVELOPMENT, FIELDING AND SUSTAINMENT OF AIRCRAFT SUPPORT SYSTEMS AND EQUIPMENT Key points: 1. Contract focuses on engineering and technical services for aircraft support systems. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spans over two years, indicating a medium-term engagement. 5. The contractor, Technology Program Services Associates, Inc., has a track record with the DoD. 6. Services cover acquisition, design, development, fielding, and sustainment phases. 7. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $14.8 million for engineering and technical services over 734 days appears within a reasonable range for complex defense systems. However, without specific benchmarks for similar aircraft support system contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain controlled and that the fixed fee is appropriate for the scope of work. Benchmarking against industry standards for engineering services in the aerospace and defense sector would provide further clarity on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Department of the Navy sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider pool of contractors to offer their best pricing and innovative solutions.

Public Impact

The Department of the Navy benefits from specialized engineering and technical support for critical aircraft systems. Services delivered will encompass the entire lifecycle of aircraft support systems, from acquisition to sustainment. The geographic impact is likely concentrated around naval aviation facilities and contractor locations, primarily in New Jersey. Workforce implications include employment for engineers, technicians, and support staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost control under CPFF requires diligent oversight to prevent cost overruns.
Scope creep could increase costs if not managed effectively.
Ensuring the fixed fee remains appropriate for the evolving technical requirements is crucial.

Positive Signals

Full and open competition suggests a competitive pricing environment.
The contractor's focus on the full lifecycle of support systems indicates comprehensive expertise.
Delivery order structure implies potential for future taskings and long-term partnership.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex engineering projects. This contract for aircraft support systems engineering falls within the broader category of defense industrial base services. Spending in this area is substantial, driven by the need for advanced military capabilities and ongoing maintenance. Comparable spending benchmarks would typically be found within large defense procurement contracts for aircraft, avionics, and related support equipment, often running into hundreds of millions or billions of dollars.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely unless they are subcontractors. The prime contractor, Technology Program Services Associates, Inc., is not identified as a small business. Further analysis would be needed to determine subcontracting opportunities for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and technical representatives who will monitor performance, costs, and adherence to the contract terms. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that costs are reasonable and allocable. Transparency is typically maintained through contract reporting requirements and potential audits by government agencies or the Inspector General.

Related Government Programs

Aircraft Systems Procurement
Naval Aviation Support Equipment
Defense Engineering Services
Technical Support Contracts
Acquisition Lifecycle Support

Risk Flags

Cost Overruns Potential (CPFF)
Scope Creep Risk
Technological Obsolescence
Contractor Performance Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to TECHNOLOGY PROGRAM SERVICES ASSOCIATES, INC.. CONTRACTOR SUPPORT SERVICES (CSS) FOR ENGINEERING AND TECHNICAL SERVICES ASSOCIATED WITH THE ACQUISITION, DESIGN, DEVELOPMENT, FIELDING AND SUSTAINMENT OF AIRCRAFT SUPPORT SYSTEMS AND EQUIPMENT

Who is the contractor on this award?

The obligated recipient is TECHNOLOGY PROGRAM SERVICES ASSOCIATES, 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 $14.9 million.

What is the period of performance?

Start: 2024-07-03. End: 2026-07-07.

What is the track record of Technology Program Services Associates, Inc. with the Department of Defense, particularly in engineering and technical services for aircraft support systems?

Technology Program Services Associates, Inc. has a history of performing contracts with the Department of Defense. While specific details on past performance for aircraft support systems engineering are not provided in this data snippet, their award for this contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any prior awards related to similar systems, would offer a more comprehensive understanding of their capabilities and reliability in this domain. Examining their performance on previous DoD contracts can reveal patterns in project completion, cost management, and adherence to technical specifications.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services, and what are its implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is common in defense and R&D where the scope of work may be uncertain or evolve. It reimburses the contractor for allowable costs plus a predetermined fixed fee, representing profit. Compared to Firm-Fixed-Price (FFP), CPFF offers more flexibility for the government if the scope changes but can lead to higher costs if not managed tightly, as the government bears the cost risk. Compared to Cost-Plus-Incentive-Fee (CPIF), CPFF provides less incentive for the contractor to control costs beyond the initial agreement on the fixed fee. For value, CPFF can be advantageous when innovation or adaptation is key, but it requires robust government oversight to ensure costs are reasonable and the fixed fee remains appropriate for the effort expended.

What are the potential risks associated with a 734-day contract duration for aircraft support systems, and how are they mitigated?

A 734-day (approximately two-year) duration for aircraft support systems engineering presents risks such as technological obsolescence, evolving threat environments, and potential shifts in program priorities. Mitigations include incorporating flexibility into the contract, such as change order clauses and provisions for technical refresh. The CPFF structure itself allows for adjustments to costs if the scope changes due to unforeseen technical challenges or evolving requirements. Furthermore, strong program management and regular technical reviews by the Department of the Navy are crucial to monitor progress, identify emerging risks, and adapt the project as needed to ensure the delivered systems remain relevant and effective throughout their intended lifecycle.

How does this contract fit within the broader context of the Department of the Navy's spending on aircraft support systems and related engineering services?

This $14.8 million contract represents a specific component within the Department of the Navy's substantial investment in maintaining and modernizing its aviation capabilities. Naval aviation support systems are critical for operational readiness, encompassing everything from ground support equipment to diagnostic tools and maintenance infrastructure. Spending in this area is continuous, driven by the lifecycle of aircraft fleets, technological advancements, and operational demands. This contract likely contributes to a larger program or portfolio of efforts aimed at ensuring the effectiveness and longevity of naval aircraft. Its value should be considered relative to the overall defense budget allocated to naval aviation sustainment and acquisition.

What are the implications of this contract being a 'Delivery Order' under a larger IDIQ contract?

This contract being a 'Delivery Order' signifies that it is a task order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQs provide a flexible contracting vehicle for agencies to procure a range of supplies or services over a set period. A delivery order specifies the exact quantity, delivery schedule, and price for a particular requirement. The implications are that the underlying IDIQ contract likely went through a competitive process, establishing terms and conditions. This specific delivery order then leverages that framework for a defined need. It suggests potential for future delivery orders under the same IDIQ, allowing the Navy to efficiently procure additional engineering and technical services as needed, potentially from the same contractor or others awarded spots on the IDIQ.

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: N6833523R3004

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2494 RIDGEWAY BLVD, MANCHESTER, NJ, 08759

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

Financial Breakdown

Contract Ceiling: $50,926,814

Exercised Options: $18,102,585

Current Obligation: $14,852,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8670

IDV Type: IDC

Timeline