DoD Awards $34M Task Order for MH-60 System Upgrades Under RS3 Contract

Contract Overview

Contract Amount: $34,048,203 ($34.0M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-18

End Date: 2024-06-16

Contract Duration: 1,276 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AWARD OF TASK ORDER W15P7T21F0027 UNDER RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) CONTRACT W15P7T17D0124 IN SUPPORT OF PMA 299 MH-60 SYSTEM MODIFICATIONS AND UPGRADES FOR PEO AIR ANTI-SUBMARINE WARFARE ASSAULT AND SPECIAL MISSION PROGRAMS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: AWARD OF TASK ORDER W15P7T21F0027 UNDER RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) CONTRACT W15P7T17D0124 IN SUPPORT OF PMA 299 MH-60 SYSTEM MODIFICATIONS AND UPGRADES FOR PEO AIR ANTI-SUBMARINE WARFARE ASSAULT AND SPECIAL MISSION PROGRAMS. Key points: 1. Significant investment in critical MH-60 helicopter modernization for anti-submarine warfare. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed closely. 4. The R&D sector (NAICS 541712) is characterized by innovation but also inherent project uncertainty.

Value Assessment

Rating: good

The award amount of $34M appears reasonable for system modifications and upgrades on a major aircraft platform. Benchmarking against similar complex R&D and engineering support contracts for defense systems would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The task order was awarded under the RS3 IDIQ contract using full and open competition. This method generally promotes competitive pricing by allowing all eligible offerors to bid, leading to better price discovery.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible pricing and technical solutions.

Public Impact

Enhances critical anti-submarine warfare capabilities for the U.S. Navy. Supports the modernization of a key helicopter platform, ensuring operational readiness. Invests in advanced technology for defense systems, potentially improving mission effectiveness. Creates or sustains high-skilled jobs in engineering and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires close monitoring to control costs.
Potential for scope creep in R&D projects if not clearly defined.
Reliance on a single IDIQ vehicle (RS3) for multiple task orders.

Positive Signals

Awarded under a pre-competed IDIQ contract (RS3).
Full and open competition utilized for this task order.
Supports a critical defense platform (MH-60).

Sector Analysis

This award falls within the Research and Development sector, specifically focusing on engineering and physical sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to higher risk due to the inherent uncertainties of innovation and development.

Small Business Impact

The data indicates this award was not made to a small business (SB=false). Analysis of the RS3 IDIQ contract's overall small business utilization would be necessary to assess the broader impact.

Oversight & Accountability

The award is a task order under an existing IDIQ contract (RS3), suggesting some level of pre-competition and oversight. However, the Cost Plus Fixed Fee structure necessitates diligent oversight to ensure cost control and prevent contractor inefficiencies.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Research and Development project inherent uncertainties.
Potential for scope creep.
No small business participation noted on this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. AWARD OF TASK ORDER W15P7T21F0027 UNDER RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) CONTRACT W15P7T17D0124 IN SUPPORT OF PMA 299 MH-60 SYSTEM MODIFICATIONS AND UPGRADES FOR PEO AIR ANTI-SUBMARINE WARFARE ASSAULT AND SPECIAL MISSION PROGRAMS.

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 Army).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2020-12-18. End: 2024-06-16.

What is the projected return on investment for these MH-60 system modifications in terms of improved operational effectiveness or cost savings?

Quantifying the ROI requires detailed performance metrics before and after the upgrades. Improvements in mission success rates, reduced maintenance downtime, or extended platform lifespan would contribute to ROI. Without specific data on these improvements, assessing the direct return is challenging, but the investment is strategically vital for maintaining naval air superiority.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project, and how are they being mitigated?

The primary risk with CPFF is the contractor's incentive to increase costs to maximize profit, potentially leading to budget overruns. Mitigation strategies include robust government oversight, detailed cost tracking, performance metrics, and clear definition of work scope. Regular audits and milestone reviews are crucial to ensure the fixed fee remains justified by the work performed.

How effectively does the RS3 IDIQ contract vehicle facilitate competition and ensure value for money across its various task orders?

The RS3 IDIQ is designed to streamline procurement for R&D and engineering services, promoting competition through its structure. However, the effectiveness in ensuring value for money depends on the specific competition conducted for each task order and the government's ability to negotiate favorable terms. Continuous monitoring of task order pricing against benchmarks is essential.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $43,900,969

Exercised Options: $43,900,969

Current Obligation: $34,048,203

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $326,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0124

IDV Type: IDC

Timeline