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 ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, 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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