DoD's $26.1M engineering support contract for aviation and missile R&D awarded to PPT Solutions, Inc

Contract Overview

Contract Amount: $26,119,589 ($26.1M)

Contractor: PPT Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-06

End Date: 2026-07-20

Contract Duration: 2,693 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: ENGINEERING SUPPORT FOR THE AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (AMRDEC), AVIATION ENGINEERING DIRECTORATE (AED), APACHE DIVISION **THIS REQUIREMENT IS 100% SET ASIDE FOR SMALL BUSINESS**

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to PPT SOLUTIONS, INC. for work described as: ENGINEERING SUPPORT FOR THE AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (AMRDEC), AVIATION ENGINEERING DIRECTORATE (AED), APACHE DIVISION **THIS REQUIREMENT IS 100% SET ASIDE FOR SMALL BUSINESS** Key points: 1. Contract focuses on specialized engineering support for aviation and missile research, development, and engineering. 2. The contract is 100% set aside for small businesses, indicating a focus on fostering small business participation. 3. Performance period spans over 7 years, suggesting a long-term need for these engineering services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed diligently. 5. Awarded by the Department of the Army, this contract aligns with broader defense modernization efforts. 6. The geographic location of performance is Alabama, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this specific engineering support contract is challenging without more granular data on the scope of services and comparable market rates. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not closely monitored. The total award amount of $26.1 million over nearly seven years suggests a moderate investment in specialized engineering expertise. Further analysis would require comparing the labor categories and rates to industry standards for similar defense engineering support services.

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 offers. The data indicates there were 4 bids received. While full and open competition is generally preferred for ensuring the best value, the relatively low number of bids might suggest potential limitations in the market for this highly specialized engineering support or challenges in reaching all potential bidders.

Taxpayer Impact: Full and open competition aims to drive down prices through market forces, potentially benefiting taxpayers by securing services at competitive rates. However, with only four bids, the extent of price discovery and potential savings for taxpayers is less certain than in a more robustly competed scenario.

Public Impact

The primary beneficiaries are the Army's Aviation and Missile Research, Development and Engineering Center (AMRDEC) and its Aviation Engineering Directorate (AED), Apache Division, who receive critical engineering support. Services delivered include specialized engineering expertise essential for the research, development, and sustainment of aviation and missile systems. The contract's performance is located in Alabama, potentially creating or sustaining high-skilled engineering jobs within the state. This contract supports the advancement of defense technologies, contributing to national security objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases the risk of cost overruns if not managed with rigorous oversight.
The relatively low number of bids (4) in a full and open competition could indicate limited market interest or potential barriers to entry for some firms.
The specific scope of 'engineering support' is broad and may require detailed performance monitoring to ensure alignment with project goals.

Positive Signals

100% set aside for small business promotes participation and growth of smaller defense contractors.
Long performance period (over 7 years) suggests a stable, long-term need and potential for building specialized expertise.
Awarded by the Department of the Army, indicating alignment with critical defense research and development priorities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research and development. The market for specialized aerospace and defense engineering is highly competitive, with significant government spending allocated to R&D and sustainment. Comparable spending benchmarks would typically involve analyzing other contracts for similar engineering support services within the Department of Defense, focusing on the scope of work, duration, and contractor expertise.

Small Business Impact

This contract is notable for being 100% set aside for small businesses. This strategy aims to ensure that small businesses have a significant opportunity to compete for and win federal contracts, fostering their growth and contribution to the defense industrial base. It implies that the government is actively seeking to diversify its contractor pool and support the small business ecosystem. There is no explicit mention of subcontracting requirements, but the set-aside nature suggests a focus on direct performance by the small business awardee.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Army Contracting Command, supported by technical representatives within the AMRDEC and AED. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aviation Systems Engineering Support
Missile Systems R&D Support
Department of Defense Engineering Services
Army Research and Development Contracts
Small Business Set-Aside Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited number of bidders (4) in a full and open competition.
Need for rigorous performance monitoring to ensure scope alignment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to PPT SOLUTIONS, INC.. ENGINEERING SUPPORT FOR THE AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (AMRDEC), AVIATION ENGINEERING DIRECTORATE (AED), APACHE DIVISION **THIS REQUIREMENT IS 100% SET ASIDE FOR SMALL BUSINESS**

Who is the contractor on this award?

The obligated recipient is PPT SOLUTIONS, 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 $26.1 million.

What is the period of performance?

Start: 2019-03-06. End: 2026-07-20.

What is the track record of PPT Solutions, Inc. in performing similar engineering support contracts for the Department of Defense?

Assessing the track record of PPT Solutions, Inc. requires a review of their past performance on federal contracts, particularly those involving engineering support for aviation and missile systems. Information on past performance, including customer satisfaction, adherence to schedule and budget, and technical proficiency, is typically available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A detailed analysis would involve examining the size, scope, and complexity of their previous awards, as well as any documented performance issues or commendations. Without specific past performance data readily available in this summary, it's difficult to definitively assess their capabilities for this particular contract, though the award itself suggests they met initial qualification criteria.

How does the pricing structure (Time and Materials) compare to other contract types for similar engineering services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, offering flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts because the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or hourly rate. For specialized engineering services like those required by AMRDEC, T&M can be appropriate if the exact technical challenges are emergent. The key to mitigating risk lies in robust oversight, including detailed monitoring of labor hours, validation of material costs, and clear task definitions. Benchmarking T&M rates against industry standards for comparable engineering roles and skill sets is crucial for ensuring fair and reasonable pricing.

What is the strategic importance of this contract to the Army's aviation and missile development programs?

This contract is strategically important as it provides essential engineering support to the Aviation and Missile Research, Development and Engineering Center (AMRDEC), specifically within the Aviation Engineering Directorate (AED) and the Apache Division. AMRDEC is a critical hub for developing and integrating advanced aviation and missile technologies for the U.S. Army. The engineering expertise procured through this contract likely supports key activities such as system design, analysis, testing, and sustainment for platforms like the Apache helicopter and various missile systems. Ensuring continuous access to high-caliber engineering talent is vital for maintaining technological superiority, addressing evolving threats, and supporting the lifecycle management of critical defense assets.

What are the potential implications of the 100% small business set-aside on competition and overall cost-effectiveness?

A 100% small business set-aside aims to direct contract opportunities exclusively to small businesses, fostering their growth and participation in the federal marketplace. This can lead to increased competition among small businesses, potentially driving innovation and competitive pricing within that segment. However, it also limits the pool of potential bidders to only those classified as small businesses. If the specialized nature of the engineering support requires capabilities that are more commonly found in larger, established firms, the set-aside might inadvertently reduce the overall number of highly qualified bidders, potentially impacting the breadth of competition. The government must ensure that even within the small business pool, robust competition is achieved to secure the best value.

How does the contract's duration (nearly 7 years) align with the typical lifecycle of aviation and missile development projects?

The contract's duration of approximately 7 years (from March 2019 to July 2026) is substantial and suggests it supports activities that extend beyond initial development phases, potentially encompassing sustainment, upgrades, or long-term research initiatives. Aviation and missile systems often have lifecycles spanning decades, involving continuous research, modernization, and engineering support to maintain operational readiness and incorporate new technologies. A contract of this length allows for the development of deep institutional knowledge within the contractor, fostering a strong partnership with the government. It also provides stability for the workforce dedicated to these critical programs, ensuring continuity of expertise.

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

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: PPT Solutions Inc.

Address: 360B QUALITY CIR NW STE 210, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $36,207,899

Exercised Options: $26,119,589

Current Obligation: $26,119,589

Actual Outlays: $93,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F422GA

IDV Type: FSS

Timeline