V-22 Fleet Readiness: $19.2M for Prototype Integration Facility to Develop Commercial Maintenance Capability

Contract Overview

Contract Amount: $19,242,877 ($19.2M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2024-10-31

Contract Duration: 2,071 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMNAVAIRSYSCOM PROGRAM MANAGER AIR (PMA) -275 HAS A REQUIREMENT FOR THE PROTOTYPE INTEGRATION FACILITY (PIF) TO DEVELOP A V-22 COMMERCIAL MAINTENANCE CAPABILITY TO HELP SOLVE THE UNDER REQUIREMENT NEEDS FOR THE V-22 FLEET READINESS. UNDER THE PLANNED MAINTENANCE INTERVAL (PMI) SPECIFICATION THE AIRCRAFT IS REQUIRED EVERY 1,740 HOURS TO COMPLETELY INSPECT FOR THE STRUCTURE, MECHANICAL/DRIVETRAIN AND AVIONIC DAMAGES. THE WORKS INCLUDE V-22 AIRCRAFT INDUCTION, PLANNED MAINTENANCE INTERVAL (PMI) INSPECTION, DISCREPANCY CORRECTION, SCHEDULED MAINTENANCE AND TECHNICAL DIRECTIVE COMPLIANCE. INCLUDED ARE THE ASSOCIATED PROGRAM MANAGEMENT AND LOGISTICS SUPPORT PLANNING REQUIREMENTS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: COMNAVAIRSYSCOM PROGRAM MANAGER AIR (PMA) -275 HAS A REQUIREMENT FOR THE PROTOTYPE INTEGRATION FACILITY (PIF) TO DEVELOP A V-22 COMMERCIAL MAINTENANCE CAPABILITY TO HELP SOLVE THE UNDER REQUIREMENT NEEDS FOR THE V-22 FLEET READINESS. UNDER THE PLANNED MAINTENANCE INTERVAL (PMI) … Key points: 1. Addresses critical V-22 fleet readiness gaps by developing a commercial maintenance capability. 2. Focuses on planned maintenance intervals (PMI) requiring comprehensive inspections every 1,740 hours. 3. Includes aircraft induction, inspection, discrepancy correction, scheduled maintenance, and technical directive compliance. 4. Contract awarded via full and open competition after exclusion of sources, suggesting a competitive process. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type introduces risk for cost overruns. Benchmarking against similar V-22 maintenance 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 after exclusion of sources,' indicating an initial competitive process that later narrowed. This method can impact price discovery if the exclusion was not fully justified.

Taxpayer Impact: Taxpayer funds are being used to enhance V-22 fleet readiness, which is a critical national security objective. The effectiveness of the spending will depend on the successful development of the commercial maintenance capability and its impact on readiness.

Public Impact

Enhances V-22 aircraft readiness, crucial for military operations and national security. Aims to reduce maintenance downtime and improve the overall operational availability of the V-22 fleet. Supports the development of commercial maintenance capabilities, potentially leading to long-term cost savings and increased industry capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Potential for cost overruns due to the complexity of aircraft maintenance and development.
Reliance on a single facility (PIF) for prototype development may limit scalability.

Positive Signals

Addresses a critical need for V-22 fleet readiness.
Utilizes a competitive contracting process to ensure fair pricing.
Includes comprehensive maintenance tasks from inspection to technical directive compliance.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and readiness. Spending benchmarks for similar specialized maintenance and readiness programs can vary significantly based on aircraft type, complexity, and required service levels.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by COMNAVAIRSYSCOM, indicating a level of established oversight. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring to ensure cost control and prevent inefficiencies.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Complexity of V-22 maintenance requirements.
Dependence on a single prototype integration facility.
Need for robust oversight to manage costs and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to DEFENSE SYSTEMS AND SOLUTIONS. COMNAVAIRSYSCOM PROGRAM MANAGER AIR (PMA) -275 HAS A REQUIREMENT FOR THE PROTOTYPE INTEGRATION FACILITY (PIF) TO DEVELOP A V-22 COMMERCIAL MAINTENANCE CAPABILITY TO HELP SOLVE THE UNDER REQUIREMENT NEEDS FOR THE V-22 FLEET READINESS. UNDER THE PLANNED MAINTENANCE INTERVAL (PMI) SPECIFICATION THE AIRCRAFT IS REQUIRED EVERY 1,740 HOURS TO COMPLETELY INSPECT FOR THE STRUCTURE, MECHANICAL/DRIVETRAIN AND AVIONIC DAMAGES. THE WORKS INCLUDE V-22 AIRCRAFT INDUCTION, PLANNED MAINTENANCE INTERVAL (PMI)

Who is the contractor on this award?

The obligated recipient is DEFENSE SYSTEMS AND SOLUTIONS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2019-03-01. End: 2024-10-31.

What is the projected impact of this commercial maintenance capability on V-22 operational readiness rates and overall fleet availability?

The development of a commercial maintenance capability is intended to directly address under-requirement needs for V-22 fleet readiness. By establishing a robust process for planned maintenance intervals (PMI), discrepancy correction, and technical directive compliance, the program aims to increase aircraft availability and reduce downtime. The success of this initiative will be measured by improvements in operational readiness rates and the overall availability of the V-22 fleet for its intended missions.

What are the key risks associated with the Cost Plus Fixed Fee contract type in this context, and how are they being mitigated?

The primary risk with Cost Plus Fixed Fee (CPFF) contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically involve rigorous oversight, detailed cost tracking, and performance metrics to ensure the contractor remains efficient. For this V-22 maintenance capability, effective program management and clear definition of work scope are crucial to controlling costs.

How does the 'full and open competition after exclusion of sources' contracting method ensure value for taxpayer money in developing this specialized maintenance capability?

This method suggests an initial broad competition followed by a narrowing of sources, potentially due to specialized requirements or prior performance. While aiming for competition, the exclusion of sources warrants scrutiny to ensure it was justified and did not unduly limit price discovery. The ultimate value for taxpayer money will depend on whether the selected contractor provided a competitive price and delivers the required capability effectively and efficiently.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 631 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,903,659

Exercised Options: $19,242,877

Current Obligation: $19,242,877

Actual Outlays: $3,463,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ18D0001

IDV Type: IDC

Timeline