DoD Awards $37.8M for CH-47F Helicopter Upgrade Program to Science and Engineering Services, LLC

Contract Overview

Contract Amount: $37,776,038 ($37.8M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-19

End Date: 2022-03-31

Contract Duration: 1,198 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DESIGN NONRECURRING ENGINEERING FABRICATION INSTALLATION VALIDATION VERIFICATION MAINTENANCE AND TRAINING OF THE CH47F ICH47F MODIFICATION AND UPGRADE PROGRAM THE CONTRACTOR SHALL PROCURE THE REQUIRED MATERIAL FOR TWO UAE AIRCRAFT AND MODIFY ONE AIRCRAFT IN GROUP B AND ONE AIRCRAFT IN GROUP C

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: DESIGN NONRECURRING ENGINEERING FABRICATION INSTALLATION VALIDATION VERIFICATION MAINTENANCE AND TRAINING OF THE CH47F ICH47F MODIFICATION AND UPGRADE PROGRAM THE CONTRACTOR SHALL PROCURE THE REQUIRED MATERIAL FOR TWO UAE AIRCRAFT AND MODIFY ONE AIRCRAFT IN GROUP B AND ONE AIRCRA… Key points: 1. Contract awarded for CH-47F helicopter modification and upgrade program. 2. Includes design, fabrication, installation, and training for UAE aircraft. 3. Competition method was 'Full and Open Competition after Exclusion of Sources'. 4. Sector is Aircraft Manufacturing, with a focus on defense spending.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is $37.8M, but without specific performance metrics or benchmarks, assessing value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'Full and Open Competition after Exclusion of Sources,' indicating some limitations on the pool of eligible bidders. This method may not have yielded the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for a critical defense upgrade program, with the ultimate impact on national security and operational readiness.

Public Impact

Enhances capabilities of the CH-47F Chinook helicopter fleet. Supports military readiness and operational effectiveness. Contributes to the modernization of aviation assets. Potential for job creation in the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Limited competition may result in suboptimal pricing.
Lack of detailed performance metrics makes value assessment challenging.

Positive Signals

Addresses critical upgrade needs for a key military asset.
Supports national defense objectives.
Contract awarded to a specific company for a defined program.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting defense aviation. Spending in this area is driven by military modernization needs and geopolitical factors. Benchmarks for similar upgrade programs would be necessary for a more precise comparison.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

Oversight would typically be managed by the Department of the Army, ensuring adherence to contract terms, performance standards, and budget. Accountability rests with the contractor to deliver the specified modifications and training.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may lead to higher prices.
Lack of detailed performance metrics for value assessment.
Contract duration is substantial (1198 days), increasing exposure to changing requirements or economic conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to SCIENCE AND ENGINEERING SERVICES, LLC. DESIGN NONRECURRING ENGINEERING FABRICATION INSTALLATION VALIDATION VERIFICATION MAINTENANCE AND TRAINING OF THE CH47F ICH47F MODIFICATION AND UPGRADE PROGRAM THE CONTRACTOR SHALL PROCURE THE REQUIRED MATERIAL FOR TWO UAE AIRCRAFT AND MODIFY ONE AIRCRAFT IN GROUP B AND ONE AIRCRAFT IN GROUP C

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $37.8 million.

What is the period of performance?

Start: 2018-12-19. End: 2022-03-31.

What is the expected increase in operational capability or efficiency for the CH-47F helicopter post-modification?

The specific improvements in operational capability or efficiency are not detailed in the provided data. Typically, such upgrades aim to enhance payload capacity, range, avionics, or survivability. A thorough analysis would require access to the program's technical specifications and performance goals to quantify the expected benefits.

What are the primary risks associated with the 'Full and Open Competition after Exclusion of Sources' method for this contract?

The primary risk is a potentially reduced pool of qualified bidders compared to unrestricted full and open competition, which could lead to less competitive pricing. It might also limit the government's ability to discover innovative solutions from a wider range of contractors, potentially impacting overall value and technological advancement.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact the government's cost control for this program?

A CPFF structure shifts some of the cost risk to the government, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fee is fixed, the total cost can escalate if actual costs exceed estimates. Effective government oversight is crucial to control allowable costs and prevent budget overruns.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 248 DUNLOP BLVD, HUNTSVILLE, AL, 35824

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,776,038

Exercised Options: $37,776,038

Current Obligation: $37,776,038

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $79,035,704

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ13D0048

IDV Type: IDC

Timeline