DoD Awards $26.8M Aviation & Missile Center Support Contract to Systems Technology & Research, Inc
Contract Overview
Contract Amount: $26,795,184 ($26.8M)
Contractor: Systems Technology & Research, Inc
Awarding Agency: Department of Defense
Start Date: 2022-11-22
End Date: 2027-01-08
Contract Duration: 1,508 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: TECHNICAL SERVICE FOR AVIATION AND MISSILE CENTER FOR AIRWORTHINESS PLATFORMS SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $26.8 million to SYSTEMS TECHNOLOGY & RESEARCH, INC for work described as: TECHNICAL SERVICE FOR AVIATION AND MISSILE CENTER FOR AIRWORTHINESS PLATFORMS SUPPORT Key points: 1. Contract awarded to Systems Technology & Research, Inc. for aviation and missile center support. 2. The contract has a total value of $26.8 million. 3. The contract duration is over 4 years, ending in January 2027. 4. This contract falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may limit price discovery and could lead to higher costs than fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for engineering services supporting critical aviation and missile platforms. The effectiveness of competition and pricing structure will determine the overall value for taxpayers.
Public Impact
Ensures continued support for critical aviation and missile airworthiness platforms. Supports a specific technology and research company, potentially impacting market competition. Long-term contract (over 4 years) indicates a sustained need for these services. Geographic location of award is Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of detailed cost breakdown for benchmarking
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Supports critical defense infrastructure
- Long-term contract provides stability
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aviation and missile platforms. Spending in this sector is crucial for national defense, with benchmarks varying widely based on project complexity and duration.
Small Business Impact
The contract was awarded to Systems Technology & Research, Inc., and there is no indication that small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be critical to manage the Time and Materials aspect and ensure cost-effectiveness throughout the contract's duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of transparency in specific labor rates and material costs.
- Long contract duration may reduce flexibility for future technological advancements.
- Limited information on the specific airworthiness platforms supported.
Tags
engineering-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to SYSTEMS TECHNOLOGY & RESEARCH, INC. TECHNICAL SERVICE FOR AVIATION AND MISSILE CENTER FOR AIRWORTHINESS PLATFORMS SUPPORT
Who is the contractor on this award?
The obligated recipient is SYSTEMS TECHNOLOGY & RESEARCH, 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 $26.8 million.
What is the period of performance?
Start: 2022-11-22. End: 2027-01-08.
What is the estimated cost per hour or labor category for this Time and Materials contract, and how does it compare to industry benchmarks?
Without specific labor category rates or an estimated number of hours, a precise per-unit cost benchmark is not possible. However, Time and Materials contracts inherently carry a higher risk of cost escalation compared to fixed-price agreements. Agencies should benchmark proposed labor rates against government-wide contract vehicles or industry surveys to ensure fair and reasonable pricing.
What specific airworthiness platforms are being supported, and what is the criticality of this support to ongoing military operations?
The contract specifies support for 'Aviation and Missile Center for Airworthiness Platforms.' While the exact platforms are not detailed, airworthiness is critical for the safe and effective operation of all aircraft and missile systems. This support likely ensures compliance with safety regulations and maintains the operational readiness of vital defense assets.
How will the Department of the Army ensure cost control and value for money given the Time and Materials contract type over its multi-year duration?
The Army must implement robust oversight mechanisms, including regular reviews of contractor labor hours, rates, and material costs. Establishing clear performance metrics and milestones, along with exercising options judiciously, will be key. Periodic re-competition or market research on pricing trends can also help ensure continued cost-effectiveness.
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: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 620 DISCOVERY DR NW STE 325 BLDG 2, 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: $62,877,213
Exercised Options: $26,795,184
Current Obligation: $26,795,184
Actual Outlays: $2,691
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $9,347,180
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA22D00BA
IDV Type: FSS
Timeline
Start Date: 2022-11-22
Current End Date: 2027-01-08
Potential End Date: 2028-05-21 12:05:00
Last Modified: 2026-01-12
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