DoD Awards $518M Aero-Stats Contract to TCOM, L.P. Under Full and Open Competition
Contract Overview
Contract Amount: $518,131,850 ($518.1M)
Contractor: Tcom, L.P.
Awarding Agency: Department of Defense
Start Date: 2019-06-24
End Date: 2024-09-27
Contract Duration: 1,922 days
Daily Burn Rate: $269.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS PERFORMANCE-BASED TASK ORDER IS ISSUED ON A FIRM FIXED PRICE, COST PLUS FIXED FEE, AND COST NO FEE TERM FORM BASIS IN SUPPORT OF PRODUCT DIRECTOR AEROSTATS.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $518.1 million to TCOM, L.P. for work described as: THIS PERFORMANCE-BASED TASK ORDER IS ISSUED ON A FIRM FIXED PRICE, COST PLUS FIXED FEE, AND COST NO FEE TERM FORM BASIS IN SUPPORT OF PRODUCT DIRECTOR AEROSTATS. Key points: 1. Significant contract value of $518M awarded to TCOM, L.P. 2. Competition was full and open, suggesting market-driven pricing. 3. Contract type includes firm-fixed-price, cost-plus-fixed-fee, and cost-no-fee elements. 4. The contract supports Product Director Aero-stats within the Department of the Army. 5. Duration spans 1922 days, indicating a long-term requirement.
Value Assessment
Rating: good
The contract utilizes a mix of pricing structures (FFP, CPFF, CNF), which can be effective for managing costs on complex projects. Benchmarking is difficult without specific cost breakdowns, but the mix suggests an attempt to balance risk and reward.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of multiple contract types may influence price discovery depending on how each component is structured.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers compared to sole-source or limited competition awards.
Public Impact
Supports critical Aero-stats program for the Department of the Army. Long-term contract (over 5 years) provides stability for TCOM, L.P. Potential for technological advancements in aerostat systems. Job creation and economic impact in Maryland, where the contract is managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Mixed contract types (FFP, CPFF, CNF) require careful monitoring to ensure cost control.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in CPFF and CNF portions if not managed tightly.
Positive Signals
- Awarded under full and open competition.
- Long contract duration provides program stability.
- Supports a key defense capability.
Sector Analysis
This contract falls within Engineering Services (NAICS 541330) and supports the Department of Defense's aerostat program. Spending in defense engineering services is substantial, with contracts often involving complex R&D, integration, and sustainment.
Small Business Impact
The data indicates the prime contractor is TCOM, L.P. and does not specify any small business subcontracting goals or participation. Further investigation would be needed to assess small business involvement.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight would involve monitoring performance, costs, and adherence to contract terms, particularly given the mixed contract types.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Complexity of mixed contract types.
- Lack of detailed performance metrics.
- Potential for cost overruns in CPFF/CNF portions.
- Long contract duration requires sustained oversight.
Tags
engineering-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $518.1 million to TCOM, L.P.. THIS PERFORMANCE-BASED TASK ORDER IS ISSUED ON A FIRM FIXED PRICE, COST PLUS FIXED FEE, AND COST NO FEE TERM FORM BASIS IN SUPPORT OF PRODUCT DIRECTOR AEROSTATS.
Who is the contractor on this award?
The obligated recipient is TCOM, L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $518.1 million.
What is the period of performance?
Start: 2019-06-24. End: 2024-09-27.
What is the breakdown of the $518M contract value across the different contract types (FFP, CPFF, CNF)?
The provided data does not specify the allocation of the $518 million contract value across the firm-fixed-price (FFP), cost-plus-fixed-fee (CPFF), and cost-no-fee (CNF) components. Understanding this breakdown is crucial for assessing cost control effectiveness and potential risks associated with each pricing structure.
What are the key performance metrics and deliverables for this aerostat program?
Key performance metrics and specific deliverables for the aerostat program are not detailed in the provided data. These are essential for evaluating the contractor's performance, ensuring mission success, and justifying the significant taxpayer investment. Without them, assessing effectiveness is challenging.
How does the cost performance of TCOM, L.P. on similar contracts compare to this award?
Benchmarking TCOM, L.P.'s cost performance on this $518 million contract against similar aerostat programs requires access to historical cost data and performance reports. Without comparative data, it's difficult to definitively assess if this award represents excellent value or if there are potential cost efficiencies missed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W56KGY18R0019
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7115 THOMAS EDISON DR STE A, COLUMBIA, MD, 21046
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,035,086,066
Exercised Options: $518,131,850
Current Obligation: $518,131,850
Actual Outlays: $1,767,127
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $121,432,547
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY19D0020
IDV Type: IDC
Timeline
Start Date: 2019-06-24
Current End Date: 2024-09-27
Potential End Date: 2024-09-27 12:09:00
Last Modified: 2025-11-24
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