DoD's $19.2M contract for aircraft equipment services awarded to MTC Technologies, Inc. with a 1432-day duration

Contract Overview

Contract Amount: $19,244,799 ($19.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-29

End Date: 2008-05-31

Contract Duration: 1,432 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200411!000208!5700!GE37 !OO-ALC/LGFD !F0960301D0209 !A!N! !N!QP23 ! !20040629!20050228!122525991!122525991!110341133!N!MTC TECHNOLOGIES, INC !4032 LINDEN AVENUE !DAYTON !OH!45432!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000000989922!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !541330!E! !5!B!M! !C! !99990909!B! ! !N!Z!A!N!J!1!001!B! !A!Y!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200411!000208!5700!GE37 !OO-ALC/LGFD !F0960301D0209 !A!N! !N!QP23 ! !20040629!20050228!122525991!122525991!110341133!N!MTC TECHNOLOGIES, INC !4032 LINDEN AVENUE !DAYTON !OH!45432!21000!113!39!DAYTON !MONT… Key points: 1. The contract value of $19.2 million for aircraft equipment services represents a significant investment in defense logistics. 2. Awarded to MTC Technologies, Inc., the contract's duration of 1432 days suggests a long-term need for these specialized services. 3. The 'FULL AND OPEN COMPETITION' indicates a robust bidding process, potentially leading to competitive pricing. 4. The primary service category is 'SYSTEMS ENGINEERING SERVICES' with a secondary classification of 'OTHER AIRCRAFT EQUIPMENT'. 5. The contract was awarded by the Department of Defense, highlighting its strategic importance within the military supply chain. 6. The North American Industry Classification System (NAICS) code 336411 points to the Aircraft Manufacturing sector.

Value Assessment

Rating: fair

The total contract value of $19.2 million over approximately four years suggests a substantial but not exceptionally high annual spend. Benchmarking against similar systems engineering or aircraft equipment support contracts would be necessary for a precise value-for-money assessment. Without specific performance metrics or comparison data, it's difficult to definitively state if this represents excellent value. However, the duration and scope imply a critical need that the DoD deemed worth this investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this type of competition generally fosters price discovery and encourages multiple companies to vie for the contract. This approach is intended to ensure the government receives competitive pricing and the best available solutions.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment that could occur with less competitive award methods.

Public Impact

The primary beneficiaries are likely components of the Department of Defense requiring specialized systems engineering and support for aircraft equipment. The services delivered are crucial for maintaining the operational readiness and effectiveness of military aircraft. The geographic impact is likely concentrated around military bases or facilities where aircraft maintenance and support operations are conducted. The contract supports a workforce skilled in systems engineering, aerospace, and potentially logistics, contributing to specialized job creation within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and systems engineering nature.
Dependence on a single contractor for critical aircraft equipment services could pose a risk if performance falters.
The specific details of 'SYSTEMS ENGINEERING SERVICES' are broad and require careful monitoring to ensure alignment with DoD objectives.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
The long contract duration indicates a stable, long-term requirement, providing predictability for the contractor and ensuring sustained support.
The contract is with MTC Technologies, Inc., whose track record would need further review to assess reliability.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft equipment and systems engineering. The market for such services is characterized by high technical barriers to entry and significant government spending. Comparable spending benchmarks would involve analyzing other DoD contracts for similar engineering support and equipment maintenance, which often run into millions or billions of dollars annually across various branches.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is none. However, MTC Technologies, Inc. may engage small businesses as subcontractors, which would be a secondary impact on the small business ecosystem. Further investigation into subcontracting plans would be needed to fully assess this.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency, the Department of Defense, likely through its contract management offices such as the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Systems Engineering
Defense Logistics Support
Military Equipment Procurement
Government Contracting Services

Risk Flags

Long contract duration may increase risk of scope creep or technological obsolescence.
Specific performance metrics and quality assurance details are not provided in the summary data.
The number of bidders in the full and open competition is not specified, limiting insight into the degree of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200411!000208!5700!GE37 !OO-ALC/LGFD !F0960301D0209 !A!N! !N!QP23 ! !20040629!20050228!122525991!122525991!110341133!N!MTC TECHNOLOGIES, INC !4032 LINDEN AVENUE !DAYTON !OH!45432!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000000989922!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !541330!E! !5!B!M! !C! !999

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2004-06-29. End: 2008-05-31.

What is the specific nature of the 'SYSTEMS ENGINEERING SERVICES' provided under this contract?

The provided data classifies the primary service as 'SYSTEMS ENGINEERING SERVICES' and the secondary as 'OTHER AIRCRAFT EQUIPMENT'. While 'SYSTEMS ENGINEERING SERVICES' is broad, in the context of aircraft equipment, it typically involves the design, integration, testing, and management of complex systems throughout their lifecycle. This could include aspects like avionics integration, software development for control systems, performance analysis, reliability engineering, and ensuring interoperability between different aircraft components and platforms. The specific deliverables would be detailed in the contract's statement of work, outlining the precise engineering tasks MTC Technologies, Inc. is expected to perform to support the DoD's aircraft equipment needs.

How does the $19.2 million contract value compare to similar systems engineering contracts within the DoD?

The $19.2 million contract value for MTC Technologies, Inc. is a substantial sum, but its relative competitiveness depends heavily on the scope and duration. For systems engineering and support services within the Department of Defense, contracts can range from a few million to several billion dollars. This particular contract, with a duration of 1432 days (approximately 4 years), averages around $4.8 million per year. This annual figure is moderate within the DoD's vast contracting landscape. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (like 541330 - Engineering Services, or specific defense-related engineering codes), similar service descriptions, and comparable contract lengths awarded over the same period.

What are the potential risks associated with a long-duration contract like this for aircraft equipment services?

Long-duration contracts, such as this 1432-day award, carry several potential risks. Firstly, there's the risk of 'scope creep,' where the requirements may evolve or expand beyond the original agreement, potentially leading to cost overruns if not managed carefully through contract modifications. Secondly, technological obsolescence is a concern; aircraft equipment and associated systems engineering needs can change rapidly. If the contract doesn't include mechanisms for adapting to new technologies, the services provided might become outdated. Thirdly, contractor performance degradation over time is possible. Maintaining consistent quality and responsiveness over nearly four years requires robust oversight and performance management from the government. Finally, dependence on a single contractor for critical services can create vulnerabilities if the contractor faces financial instability or operational issues.

What does the 'FULL AND OPEN COMPETITION' designation imply for the selection of MTC Technologies, Inc.?

The 'FULL AND OPEN COMPETITION' designation signifies that the Department of Defense utilized a procurement process where all responsible sources were allowed to submit bids. This is generally considered the preferred method for government contracting as it maximizes competition and is intended to result in the best value for the government. It implies that MTC Technologies, Inc. was selected from a pool of potentially multiple bidders who responded to the solicitation. The government would have evaluated these bids based on criteria outlined in the solicitation, which could include technical approach, past performance, and price, ultimately selecting the offer that best met the stated requirements. This process aims to ensure fair pricing and access to a wide range of capabilities.

How has historical spending in 'OTHER AIRCRAFT EQUIPMENT' or related services evolved within the DoD?

Historical spending within the DoD for 'OTHER AIRCRAFT EQUIPMENT' and related services has generally been substantial and subject to fluctuations based on geopolitical events, modernization programs, and budget allocations. The defense sector consistently represents a significant portion of federal discretionary spending. Over the past two decades, there has been a continuous demand for advanced aircraft technologies, maintenance, and support services. Spending trends often reflect shifts towards unmanned aerial systems, advanced avionics, and cybersecurity for aviation platforms. While specific figures for 'OTHER AIRCRAFT EQUIPMENT' are granular, the overall defense procurement and services budget runs into hundreds of billions annually, with aviation-related spending being a major component. Contracts like this one for systems engineering are integral to ensuring the effectiveness and longevity of these expensive assets.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F0960301D0209

IDV Type: IDC

Timeline