DoD awards $18.8M for aircraft maintenance, with Science and Engineering Services, LLC securing the contract

Contract Overview

Contract Amount: $18,812,880 ($18.8M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-26

End Date: 2026-01-29

Contract Duration: 1,829 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ACI OVER AND ABOVE (O&A) MAINTENANCE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: ACI OVER AND ABOVE (O&A) MAINTENANCE Key points: 1. The contract value of $18.8 million over approximately five years suggests a moderate annual spend. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 3. The 'full and open competition after exclusion of sources' indicates a specific, but competitive, procurement process. 4. The duration of 1829 days (approx. 5 years) provides long-term stability for the awarded contractor. 5. The North American Industry Classification System (NAICS) code 336411 points to a specialized segment within aircraft manufacturing. 6. The contract is geographically focused in Alabama, potentially impacting the local aerospace workforce.

Value Assessment

Rating: fair

Benchmarking the value of this $18.8 million contract requires more granular data on the specific maintenance services provided. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation. Without detailed performance metrics or comparisons to similar O&A maintenance contracts, it's difficult to definitively assess value for money. The fixed fee component provides some cost certainty for the contractor's effort, but the overall cost is subject to the actual costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential bidders. The number of bidders (8) indicates a reasonable level of interest, but the 'exclusion of sources' aspect warrants further investigation to understand if it limited the competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The exclusion of sources, even with 8 bidders, may have prevented the most competitive offers from being considered, potentially leading to higher costs for taxpayers than a truly unrestricted full and open competition.

Public Impact

The primary beneficiary is the Department of Defense, ensuring the operational readiness of its aircraft fleet. The services delivered include 'ACI OVER AND ABOVE (O&A) MAINTENANCE,' crucial for sustaining aircraft. The geographic impact is concentrated in Alabama, supporting local jobs and the regional aerospace industry. Workforce implications include employment opportunities for skilled technicians and engineers in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
The 'exclusion of sources' in the procurement process may have limited the breadth of competition.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the maintenance provided.
The contract's duration could lock in costs for an extended period, potentially missing out on more competitive pricing in the future.

Positive Signals

The contract was awarded through a competitive process, indicating multiple interested parties.
The award to Science and Engineering Services, LLC suggests they possess the necessary capabilities for aircraft maintenance.
The long contract duration provides stability and predictability for both the government and the contractor.
The focus on 'Over and Above' maintenance addresses critical needs beyond standard scheduled upkeep.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for such services is substantial, driven by the continuous need to maintain complex military aviation assets. Comparable spending benchmarks would involve analyzing other DoD contracts for similar maintenance, repair, and overhaul (MRO) services, considering factors like aircraft type, age, and operational tempo. The NAICS code 336411, Aircraft Manufacturing, suggests a connection to the broader manufacturing ecosystem, though the service itself is maintenance-oriented.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, Science and Engineering Services, LLC, is likely a larger entity, and the contract's direct impact on the small business ecosystem may be limited unless they proactively engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the CPFF structure, requiring detailed cost reporting and justification. Transparency is generally facilitated through contract databases like FPDS, where this information is sourced. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Aircraft Maintenance Services
Defense Logistics Agency Contracts
Aerospace Manufacturing Support
Cost Plus Fixed Fee Contracts
Department of Defense Procurement

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition due to 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to SCIENCE AND ENGINEERING SERVICES, LLC. ACI OVER AND ABOVE (O&A) 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2021-01-26. End: 2026-01-29.

What is the historical spending pattern for ACI Over and Above maintenance services within the Department of Defense?

Analyzing historical spending for 'ACI Over and Above (O&A) Maintenance' requires querying federal procurement databases for similar contract actions over several fiscal years. This specific contract represents $18.8 million over approximately five years. To establish a pattern, one would look for trends in the total annual obligated amounts, the number of contracts awarded for O&A maintenance, and the average contract values. For instance, if historical data shows a consistent annual spend of $3-5 million for this type of service, then this $18.8 million award aligns with expectations. Conversely, a significant deviation might warrant further investigation into the reasons for increased or decreased spending, such as changes in operational tempo, fleet size, or the introduction of new maintenance technologies. Understanding this historical context is crucial for assessing the reasonableness of the current contract's value and ensuring efficient resource allocation.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar aircraft maintenance services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the costs involved, such as in complex maintenance or research and development. For aircraft maintenance, other common contract types include Firm-Fixed Price (FFP), which offers the most price certainty for the government but places risk on the contractor, and Cost Plus Incentive Fee (CPIF), which incentivizes cost savings. CPFF provides the contractor with reimbursement for allowable costs plus a predetermined fixed fee representing profit. While it allows flexibility for unforeseen issues, it carries a higher risk of cost growth for the government compared to FFP. Benchmarking against FFP contracts for similar, well-defined maintenance tasks would likely show higher potential costs under CPFF, but CPFF might be justified if the nature of the 'over and above' maintenance is inherently unpredictable or requires significant adaptive engineering.

What are the specific performance metrics used to evaluate Science and Engineering Services, LLC under this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. In a Cost Plus Fixed Fee (CPFF) contract for aircraft maintenance, effective oversight typically relies on metrics such as aircraft availability rates, turnaround times for repairs, quality of workmanship (e.g., defect rates), adherence to maintenance schedules, and compliance with safety regulations. The government contracting officer and the Defense Contract Management Agency (DCMA) would be responsible for monitoring these metrics. Without access to the contract's Performance Work Statement (PWS) or Service Level Agreements (SLAs), it's impossible to detail the exact measures used. The 'fixed fee' portion of the contract implies that the contractor earns their profit regardless of cost efficiency, making adherence to defined performance standards critical for ensuring value delivery.

What is the track record of Science and Engineering Services, LLC in performing similar aircraft maintenance contracts for the DoD?

Assessing the track record of Science and Engineering Services, LLC requires examining their past performance on similar contracts. This involves reviewing their contract history in federal procurement databases (like FPDS) for awards related to aircraft maintenance, repair, and overhaul (MRO), particularly those involving 'over and above' services or complex systems. Key aspects to evaluate include their past performance ratings, any instances of contract disputes or terminations, their ability to manage costs effectively on CPFF contracts, and their compliance with delivery schedules and quality standards. A positive track record with successful completion of comparable DoD contracts would increase confidence in their ability to execute this current award effectively. Conversely, a history of performance issues or cost overruns on similar contracts would raise concerns about the risk associated with this award.

What does the 'exclusion of sources' in the procurement process imply for the competitiveness and potential cost savings?

The phrase 'Full and Open Competition After Exclusion of Sources' indicates that while the procurement was intended to be competitive, specific sources were intentionally excluded from consideration. This exclusion could be based on various factors, such as national security concerns, specific technical capabilities required that only a limited number of firms possess, or previous performance issues with certain contractors. While 8 bidders participated, the exclusion means the pool of potential competitors was smaller than in a truly unrestricted 'full and open' competition. This limitation can potentially reduce price pressure, as the remaining bidders might face less intense competition. Consequently, the government might not achieve the lowest possible price, and the cost savings for taxpayers could be diminished compared to a scenario where all qualified sources were allowed to compete.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, 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: COST PLUS FIXED FEE (U)

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: $20,962,223

Exercised Options: $20,962,223

Current Obligation: $18,812,880

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $15,245,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6852020D0033

IDV Type: IDC

Timeline