DoD awards $17.8M for aircraft mission computer upgrades, addressing obsolescence with a focus on integration and installation

Contract Overview

Contract Amount: $17,799,525 ($17.8M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2019-08-28

End Date: 2026-04-03

Contract Duration: 2,410 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAIRSYSCOM PMA-275 FOR THE PROCUREMENT, MANUFACTURING, INTEGRATION, KITTING, DELIVERY, AND INSTALLATION OF MISSION COMPUTER OBSOLESCENCE INITIATIVE (MCOI) RETROFIT KITS AND COMMON AIRCRAFT PORTABLE REPROGRAMMING EQUIPMENT (CAPRE) GBE FILLPORT KITS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: NAVAIRSYSCOM PMA-275 FOR THE PROCUREMENT, MANUFACTURING, INTEGRATION, KITTING, DELIVERY, AND INSTALLATION OF MISSION COMPUTER OBSOLESCENCE INITIATIVE (MCOI) RETROFIT KITS AND COMMON AIRCRAFT PORTABLE REPROGRAMMING EQUIPMENT (CAPRE) GBE FILLPORT KITS. Key points: 1. The contract addresses critical obsolescence in mission computer systems, aiming to enhance aircraft readiness and operational effectiveness. 2. A significant portion of the award is allocated to integration, kitting, and installation, indicating a complex logistical and technical undertaking. 3. The procurement includes Common Aircraft Portable Reprogramming Equipment (CAPRE) kits, suggesting a need for standardized and efficient field reprogramming capabilities. 4. The contract's duration extends over several years, implying a phased approach to implementation and potential for ongoing support. 5. While the total award is substantial, the per-unit cost for the retrofit kits and installation will be a key metric for value assessment. 6. The use of a Cost Plus Fixed Fee (CPFF) contract type warrants close monitoring of cost overruns and contractor efficiency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns for the retrofit kits and installation services. The CPFF structure introduces inherent risk for cost control. Comparing this to similar aircraft modernization programs would require understanding the specific technological advancements and the scope of integration across different aircraft platforms. The $17.8 million award covers a multi-year period, making a direct cost-per-unit comparison difficult without knowing the total number of units to be delivered and installed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while competition was sought, specific criteria or circumstances led to the exclusion of some potential bidders. Further details on the justification for excluding sources are needed to fully assess the competitive landscape. The limited nature of the competition may impact price discovery and potentially lead to higher costs compared to a truly open competition.

Taxpayer Impact: Taxpayers may face higher costs due to the limited competitive environment. A more open competition could have driven down prices through increased bidder engagement and innovation.

Public Impact

The primary beneficiaries are the U.S. military branches operating aircraft equipped with the affected mission computer systems, leading to improved operational capabilities. The services delivered include the manufacturing, integration, kitting, delivery, and installation of critical hardware and software components. The geographic impact is likely widespread, affecting various military installations where these aircraft are deployed and maintained. Workforce implications include the need for skilled technicians for installation and integration, as well as potential training requirements for aircrews and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Limited competition ('Full and Open Competition After Exclusion of Sources') may result in suboptimal pricing.
The complexity of integration and installation across potentially diverse aircraft platforms poses execution risks.
Obsolescence mitigation is critical, but the effectiveness of the chosen solution needs ongoing validation.

Positive Signals

Addresses a critical need for mission computer obsolescence mitigation, enhancing long-term platform viability.
Includes the development and delivery of CAPRE kits, promoting standardization and field maintainability.
The contract spans multiple years, allowing for a structured and phased implementation approach.
The award signifies a commitment to modernizing aging aircraft systems.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for aircraft modernization and sustainment is substantial, driven by the need to extend the service life of existing platforms and incorporate new technologies. Spending in this area is critical for maintaining military readiness. Comparable spending benchmarks would involve analyzing other contracts for aircraft system upgrades, avionics modernization, and component obsolescence solutions within the DoD.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the prime contractor, Defense Systems and Solutions, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business subcontractors for specialized components or services, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Air Systems Command (NAVAIRSYSCOM) PMA-275, given the nature of the procurement. Accountability measures will be tied to the Cost Plus Fixed Fee contract terms, requiring detailed cost reporting and performance metrics. Transparency can be assessed through publicly available contract data, though specific technical details and cost breakdowns may be limited due to security or proprietary concerns. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Modernization Programs
Avionics Systems Procurement
Defense Logistics and Sustainment
Mission Computer Systems
Obsolescence Management Programs
Naval Aviation Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Impact on Price
Technical Integration Complexity
Schedule Delay Potential
Obsolescence Mitigation Effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to DEFENSE SYSTEMS AND SOLUTIONS. NAVAIRSYSCOM PMA-275 FOR THE PROCUREMENT, MANUFACTURING, INTEGRATION, KITTING, DELIVERY, AND INSTALLATION OF MISSION COMPUTER OBSOLESCENCE INITIATIVE (MCOI) RETROFIT KITS AND COMMON AIRCRAFT PORTABLE REPROGRAMMING EQUIPMENT (CAPRE) GBE FILLPORT KITS.

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 $17.8 million.

What is the period of performance?

Start: 2019-08-28. End: 2026-04-03.

What is the specific justification for excluding certain sources from the 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding specific sources under 'Full and Open Competition After Exclusion of Sources' is typically rooted in factors such as unique technical capabilities, proprietary technology, or the need for compatibility with existing systems that only a limited number of contractors can provide. For this NAVAIRSYSCOM contract concerning Mission Computer Obsolescence Initiative (MCOI) retrofit kits and CAPRE GBE fillport kits, the exclusion might stem from the need for specific intellectual property, specialized manufacturing processes, or established integration expertise with particular aircraft platforms. Without explicit documentation from the contracting agency detailing the rationale, it's presumed that the selected contractor(s) offered a solution deemed essential or uniquely qualified to meet the stringent requirements of mitigating obsolescence in critical aircraft systems, thereby justifying the limited competition.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact the overall cost-effectiveness of this $17.8 million award?

The Cost Plus Fixed Fee (CPFF) contract structure for this $17.8 million award presents a mixed outlook for cost-effectiveness. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing their profit. While this structure is often used for research and development or complex projects where the scope is not fully defined, it shifts a significant portion of the cost risk to the government. If the contractor's costs exceed initial estimates, the government bears the burden. The fixed fee provides an incentive for the contractor to control costs to some extent, as their profit is capped. However, effective oversight, stringent cost monitoring, and clear performance metrics are crucial to ensure that the government receives good value and that costs do not escalate beyond reasonable levels. The ultimate cost-effectiveness will depend heavily on the government's ability to manage the contract and the contractor's efficiency in execution.

What are the primary risks associated with the integration and installation of these mission computer retrofit kits across different aircraft platforms?

The integration and installation of mission computer retrofit kits across potentially diverse aircraft platforms carry several primary risks. Firstly, technical integration challenges are significant; ensuring seamless compatibility between the new mission computer components and existing avionics, software, and power systems on various aircraft types can be complex and time-consuming. Unexpected technical hurdles may arise, requiring redesign or additional development. Secondly, installation risks include logistical complexities in scheduling aircraft downtime, ensuring proper handling and installation by qualified personnel, and potential damage to sensitive equipment during the process. Thirdly, performance risks exist if the integrated system does not meet the expected operational enhancements or reliability standards. Finally, schedule risks are inherent, as unforeseen integration or installation issues can lead to delays, impacting aircraft availability and program timelines.

Can the Common Aircraft Portable Reprogramming Equipment (CAPRE) GBE fillport kits significantly improve field reprogramming efficiency and reduce downtime?

The Common Aircraft Portable Reprogramming Equipment (CAPRE) GBE fillport kits are designed precisely to enhance field reprogramming efficiency and reduce aircraft downtime. Traditional reprogramming methods can be cumbersome, requiring specialized equipment, lengthy procedures, and often necessitating the aircraft to be in a maintenance depot. CAPRE aims to streamline this process by providing a standardized, portable, and potentially faster method for updating software and data directly in the field. If successfully implemented and utilized as intended, these kits can empower maintenance crews to perform updates more rapidly and with less logistical support, thereby minimizing the time aircraft are grounded for reprogramming. The effectiveness will depend on the user-friendliness of the system, the reliability of the kits, and the training provided to personnel.

What is the historical spending pattern for mission computer obsolescence mitigation and related aircraft modernization efforts by NAVAIRSYSCOM?

Analyzing historical spending patterns for mission computer obsolescence mitigation and related aircraft modernization by NAVAIRSYSCOM reveals a consistent and significant investment area. The Naval Air Systems Command, responsible for a vast array of naval aircraft, frequently procures upgrades and sustainment solutions to address aging platforms and evolving threats. Spending in this category typically fluctuates based on the lifecycle of specific aircraft fleets and the urgency of technological upgrades. Historically, NAVAIRSYSCOM has allocated substantial funds towards avionics modernization, system integration, and component obsolescence management across various platforms like the F/A-18, P-8 Poseidon, and H-60 helicopters. These efforts are critical for maintaining air superiority and operational readiness. The $17.8 million awarded here for MCOI and CAPRE kits aligns with this ongoing trend of investing in the longevity and capability enhancement of naval aviation assets.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $23,595,982

Exercised Options: $17,799,525

Current Obligation: $17,799,525

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $7,439,533

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