DoD's $18.6M AMCOM Aviation Support Contract Awarded to SIGMATECH INC

Contract Overview

Contract Amount: $18,607,474 ($18.6M)

Contractor: Sigmatech Inc

Awarding Agency: Department of Defense

Start Date: 2025-08-15

End Date: 2026-08-15

Contract Duration: 365 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE THE AVIATION AND MISSILE COMMAND (AMCOM) AVIATION FIELD MAINTENANCE DIRECTORATE (AFMD) TECHNICAL, ENGINEERING, LOGISTICAL, AND MATERIAL SUPPORT.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to SIGMATECH INC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE THE AVIATION AND MISSILE COMMAND (AMCOM) AVIATION FIELD MAINTENANCE DIRECTORATE (AFMD) TECHNICAL, ENGINEERING, LOGISTICAL, AND MATERIAL SUPPORT. Key points: 1. Contract provides critical technical, engineering, logistical, and material support for AMCOM's Aviation Field Maintenance Directorate. 2. Awarded via full and open competition, indicating a broad market search for qualified vendors. 3. The contract duration is one year, with a potential for extension, suggesting ongoing needs. 4. SIGMATECH INC. is the sole awardee for this specific delivery order. 5. The North American Industry Classification System (NAICS) code 541712 points to research and development activities. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee for profit. 7. The contract value of $18.6M is for a 365-day period, with specific start and end dates. 8. The contract was awarded in Alabama, indicating a specific geographic focus for the support services.

Value Assessment

Rating: good

The contract value of $18.6 million for one year of technical, engineering, logistical, and material support appears reasonable given the specialized nature of aviation maintenance and R&D services. Benchmarking against similar contracts for specialized engineering and logistical support within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type is common for R&D efforts where costs can be variable, but it necessitates careful oversight to ensure costs remain controlled and the fixed fee represents fair profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit an offer. The presence of 7 bidders indicates a competitive environment for this requirement. A higher number of bidders generally suggests a healthier market and can lead to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby ensuring better value for the government's investment.

Public Impact

The Aviation and Missile Command (AMCOM) Aviation Field Maintenance Directorate (AFMD) directly benefits from this contract through enhanced technical, engineering, logistical, and material support. The services delivered are crucial for maintaining the operational readiness and effectiveness of aviation assets. The contract has a geographic impact primarily in Alabama, where the support services are likely to be performed or managed. This contract supports a specialized workforce in the fields of aviation engineering, logistics, and technical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not managed diligently, as the contractor is reimbursed for costs incurred plus a fixed profit.
The specific performance metrics and deliverables are not detailed, making it difficult to assess the contractor's performance against expectations.
Reliance on a single delivery order awardee, even if competed, can create a single point of failure for critical support functions.
The 'Research and Development' NAICS code suggests potential for unforeseen technical challenges and cost fluctuations.
The contract duration of one year, while standard for a delivery order, might not fully capture the long-term needs for sustained aviation support.
The absence of specific small business subcontracting goals (based on `sb: false`) could limit opportunities for small businesses in this contract's ecosystem.

Positive Signals

Awarded under full and open competition, ensuring a wide range of potential solutions and competitive pricing.
The contract provides essential support for critical aviation and missile command functions, contributing to national security.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.
The contractor, SIGMATECH INC., has been awarded this contract, implying they met the government's technical and performance requirements.
The contract has a clear start and end date, allowing for defined performance periods and future re-competition.
The contract is for a specific, defined need (technical, engineering, logistical, material support), indicating focused application of funds.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712, which covers physical, engineering, and life sciences R&D. This sector is characterized by innovation, specialized expertise, and often complex project management. Federal spending in this area supports advancements in technology and capabilities across various domains, including defense. Comparable spending benchmarks would involve analyzing other R&D contracts within the Department of Defense or specifically for aviation-related research and development, looking at contract values, durations, and the types of services procured.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (`sb: false`). While awarded through full and open competition, there is no explicit requirement for the prime contractor to subcontract with small businesses. This means that opportunities for small businesses to participate in this contract are dependent on SIGMATECH INC.'s own subcontracting decisions. Without specific set-aside goals or subcontracting plans mandated in the award, the direct impact on the small business ecosystem for this particular contract may be limited, though SIGMATECH INC. may still engage small businesses as part of their supply chain.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army/AMCOM. They are responsible for monitoring costs, ensuring compliance with contract terms, and verifying that the fixed fee is earned. Transparency is facilitated through contract databases like FPDS. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise. The CPFF structure requires diligent oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the work performed.

Related Government Programs

AMCOM Aviation Field Maintenance
Department of the Army R&D Contracts
Aviation Support Services
Logistics and Technical Support Contracts
Defense Research and Development

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Challenges
Technical Complexity
Dependency on Single Awardee
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to SIGMATECH INC. THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE THE AVIATION AND MISSILE COMMAND (AMCOM) AVIATION FIELD MAINTENANCE DIRECTORATE (AFMD) TECHNICAL, ENGINEERING, LOGISTICAL, AND MATERIAL SUPPORT.

Who is the contractor on this award?

The obligated recipient is SIGMATECH 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 $18.6 million.

What is the period of performance?

Start: 2025-08-15. End: 2026-08-15.

What is SIGMATECH INC.'s track record with similar Department of Defense contracts, particularly in aviation support and R&D?

A review of SIGMATECH INC.'s contract history with the Department of Defense would be necessary to assess their track record. Specifically, one would look for prior awards for technical, engineering, logistical, and material support, especially within aviation or missile command contexts. Analyzing past performance evaluations, any contract disputes, and the types of contract vehicles they have previously managed (e.g., CPFF, fixed-price) would provide insight into their capabilities and reliability. Understanding their experience with R&D projects under NAICS code 541712 would also be crucial. Without access to detailed performance data and historical contract awards for SIGMATECH INC., it is difficult to definitively assess their track record for this specific requirement.

How does the $18.6 million value for a one-year contract compare to similar aviation R&D support services procured by the DoD?

Benchmarking the $18.6 million value against similar contracts requires access to a comprehensive database of federal procurements. Key comparison points would include contracts for technical, engineering, logistical, and material support for aviation systems, particularly those classified under NAICS code 541712 (R&D in Physical, Engineering, and Life Sciences). Factors such as contract duration, specific services rendered, geographic location, and the level of competition influence pricing. A preliminary assessment suggests that $18.6 million for a year of specialized support is within a plausible range for complex defense-related R&D, but a detailed analysis comparing scope, complexity, and contractor overhead would be needed for a definitive value-for-money judgment. The CPFF structure also means the final cost could vary.

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

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. Since the contractor is reimbursed for all allowable costs plus a fixed fee, there can be less incentive to control expenses compared to fixed-price contracts. This can lead to the government paying more than initially anticipated if costs escalate unexpectedly due to technical challenges or scope creep. Mitigation strategies include robust government oversight, detailed cost monitoring, clear definition of allowable costs, and strong contract management to ensure the contractor adheres to the scope and budget. The fixed fee itself, if set appropriately, provides a ceiling on the contractor's profit, but the total cost to the government remains variable.

What is the expected impact of this contract on the operational readiness of AMCOM's aviation assets?

This contract is expected to significantly enhance the operational readiness of AMCOM's aviation assets by providing essential technical, engineering, logistical, and material support. This support likely includes troubleshooting complex technical issues, providing engineering solutions for upgrades or repairs, ensuring timely availability of necessary parts and materials, and offering expert logistical planning. By addressing these critical areas, the contract aims to minimize downtime for aircraft, improve maintenance efficiency, and ensure that aviation platforms are available and capable when needed for military operations. The R&D component may also lead to improvements in future aviation technologies and maintenance practices.

How has federal spending in aviation R&D support services evolved over the past five years, and does this contract align with trends?

Federal spending in aviation R&D support services has generally remained robust, driven by the continuous need for technological advancement and modernization within the Department of Defense. Trends often show increased investment in areas like advanced materials, autonomous systems, cybersecurity for aviation, and improved maintenance technologies. This contract, focusing on technical, engineering, logistical, and material support for aviation maintenance, aligns with the ongoing need to sustain and improve existing fleets while potentially incorporating R&D for future enhancements. Analyzing historical spending data for AMCOM and similar entities would reveal specific trends in contract values, types, and service areas, allowing for a direct comparison to gauge alignment.

What is the significance of the 7 bidders in this full and open competition, and what does it imply for future procurements?

The presence of 7 bidders in this full and open competition is a positive indicator of a healthy and competitive market for aviation R&D support services. It suggests that multiple companies possess the necessary capabilities and are interested in pursuing government contracts in this domain. A larger number of bidders generally leads to more competitive pricing and a wider array of technical solutions, ultimately benefiting the government and taxpayers. For future procurements, this level of competition implies that the government can likely continue to solicit bids from a broad base of qualified contractors, fostering ongoing price discovery and innovation. It also suggests that barriers to entry for capable firms are not excessively high.

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: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sigmatech, Inc.

Address: 4901 CORPORATE DR NW STE C, HUNTSVILLE, AL, 35805

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

Financial Breakdown

Contract Ceiling: $421,943,852

Exercised Options: $78,133,746

Current Obligation: $18,607,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0133

IDV Type: IDC

Timeline