DoD awards $24.2M for CH-47F modification components, with Science and Engineering Services, LLC managing procurement and kitting

Contract Overview

Contract Amount: $24,164,980 ($24.2M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-12-20

End Date: 2026-01-30

Contract Duration: 2,233 days

Daily Burn Rate: $10.8K/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: CARGO PROGRAM MANAGEMENT (PM), CARGO INTERNATIONAL DIRECTORATE REQUIREMENT FOR THE PROCUREMENT, MANUFACTURING, AND KITTING OF ALL REQUIRED COMPONENTS IN SUPPORT OF THE CH-47F/ICH-47F MODIFICATION AND UPGRADE PROGRAM.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: CARGO PROGRAM MANAGEMENT (PM), CARGO INTERNATIONAL DIRECTORATE REQUIREMENT FOR THE PROCUREMENT, MANUFACTURING, AND KITTING OF ALL REQUIRED COMPONENTS IN SUPPORT OF THE CH-47F/ICH-47F MODIFICATION AND UPGRADE PROGRAM. Key points: 1. Value for money assessed through cost-plus-fixed-fee contract structure, aiming to control expenses while ensuring component quality. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. Risk indicators include reliance on a single contractor for critical component procurement and kitting. 4. Performance context is tied to the ongoing CH-47F/ICH-47F modification and upgrade program, crucial for fleet modernization. 5. Sector positioning within Aircraft Manufacturing (NAICS 336411) highlights specialized capabilities required for military helicopter upgrades.

Value Assessment

Rating: good

The contract's cost-plus-fixed-fee structure allows for flexibility in procurement while aiming for cost control. Benchmarking against similar aircraft modification contracts is challenging without specific component cost data. However, the total award value of $24.2 million over approximately 6 years suggests a reasonable annual expenditure for specialized manufacturing and kitting services supporting a major aircraft upgrade program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, specific sources may have been excluded based on predefined criteria. The number of bidders is not specified, but the method suggests a competitive process was initiated to find the best value provider for these specialized services.

Taxpayer Impact: The competitive nature of the award, even with source exclusions, is intended to drive fair pricing and ensure taxpayer funds are used efficiently for critical defense components.

Public Impact

The primary beneficiaries are the U.S. Army, receiving essential components for the modernization of its CH-47F/ICH-47F Chinook helicopter fleet. Services delivered include the procurement, manufacturing, and kitting of all required components, ensuring readiness and enhanced capabilities for the aircraft. The geographic impact is primarily within Alabama (AL), where the contractor is located, potentially supporting local jobs and the regional aerospace supply chain. Workforce implications include the need for skilled labor in manufacturing, logistics, and program management to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not rigorously managed.
Dependence on a single contractor for critical component supply chain management.
Risk of schedule delays impacting the broader CH-47F modification program timeline.

Positive Signals

Contractor's role in procurement, manufacturing, and kitting suggests integrated capabilities.
Focus on a specific, critical aircraft upgrade program indicates alignment with strategic defense priorities.
Long-term contract duration (over 6 years) suggests a stable partnership for sustained support.

Sector Analysis

The aerospace manufacturing sector is highly specialized, with significant barriers to entry due to technological complexity and stringent quality requirements. This contract falls within the aircraft manufacturing sub-sector, specifically supporting military helicopter upgrades. Comparable spending benchmarks are difficult to establish without detailed component breakdowns, but the overall value reflects the significant investment in maintaining and modernizing aging military fleets.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb': false. The prime contractor, Science and Engineering Services, LLC, is not explicitly identified as a small business. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army, with specific program managers responsible for monitoring performance, cost, and schedule. Accountability measures would be embedded within the contract terms and conditions, including reporting requirements and potential penalties for non-performance. Transparency is facilitated through contract award databases, though detailed operational oversight specifics are not publicly available.

Related Government Programs

CH-47F Chinook Helicopter Program
Army Aviation Modernization Programs
Defense Logistics and Sustainment Contracts
Aerospace Component Manufacturing Contracts

Risk Flags

Potential for cost overruns in CPFF contract
Supply chain disruption risk
Schedule slippage impacting fleet modernization

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to SCIENCE AND ENGINEERING SERVICES, LLC. CARGO PROGRAM MANAGEMENT (PM), CARGO INTERNATIONAL DIRECTORATE REQUIREMENT FOR THE PROCUREMENT, MANUFACTURING, AND KITTING OF ALL REQUIRED COMPONENTS IN SUPPORT OF THE CH-47F/ICH-47F MODIFICATION AND UPGRADE PROGRAM.

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 $24.2 million.

What is the period of performance?

Start: 2019-12-20. End: 2026-01-30.

What is the track record of Science and Engineering Services, LLC in managing complex defense manufacturing and kitting contracts?

Information regarding the specific track record of Science and Engineering Services, LLC in managing complex defense manufacturing and kitting contracts of this scale is not detailed in the provided data. However, their selection for this significant CH-47F modification program suggests they possess the requisite capabilities and have met the Department of the Army's requirements. Further investigation into their past performance on similar contracts, client references, and any history of performance issues or accolades would provide a more comprehensive understanding of their reliability and expertise in this domain. The contract type (Cost Plus Fixed Fee) and duration (over 6 years) also imply a level of trust and established relationship or a thorough vetting process by the procuring agency.

How does the total contract value of $24.2 million compare to historical spending on CH-47F modification components?

Direct comparison of the $24.2 million total contract value to historical spending on CH-47F modification components is challenging without access to granular historical data for this specific program. However, the value represents an average annual expenditure of approximately $3.4 million over the contract's 2233-day duration (roughly 6.1 years). This figure should be contextualized against the overall budget allocated for the CH-47F/ICH-47F Modification and Upgrade Program. If this contract covers all required components, its value might be considered reasonable given the complexity and scale of modernizing a significant helicopter fleet. Benchmarking against previous modification phases or similar large-scale aircraft upgrade programs would offer further insight into its relative cost-effectiveness.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft component manufacturing and kitting?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft component manufacturing and kitting revolve around cost control and contractor incentive. For the government, the main risk is that the contractor may not be sufficiently incentivized to control costs, as they are reimbursed for allowable expenses plus a fixed fee. This can lead to cost overruns if the contractor's estimates are inaccurate or if unforeseen issues arise during procurement and manufacturing. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks and ensure value for taxpayer money. The CPFF structure is often used when the scope of work involves uncertainties or when innovation is required, balancing flexibility with cost accountability.

What is the expected impact of this contract on the operational readiness and modernization of the CH-47F fleet?

This contract is critical for the operational readiness and modernization of the CH-47F/ICH-47F fleet. By ensuring the procurement, manufacturing, and kitting of all necessary components, it directly supports the ongoing modification and upgrade program. These upgrades are essential for maintaining the Chinook's relevance in modern warfare, enhancing its capabilities, survivability, and potentially reducing long-term operating costs. Successful and timely execution of this contract will enable the Army to field modernized helicopters equipped with the latest technology, thereby improving mission effectiveness and ensuring the fleet remains a viable asset for years to come. Delays or issues with component supply could directly impede the pace of fleet modernization.

How does the 'full and open competition after exclusion of sources' procurement method influence price discovery and potential savings?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. While 'full and open' suggests an intention to solicit from all responsible sources, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately not considered, possibly due to specific technical qualifications, past performance issues, or proprietary technology requirements. This selective approach can influence price discovery by potentially limiting the number of competitive bids received compared to a purely unrestricted full and open competition. If the exclusions were too broad or based on non-essential criteria, it could reduce competitive pressure and potentially lead to higher prices. Conversely, if the exclusions were narrowly tailored to ensure only highly qualified bidders participated, it might foster competition among capable firms, potentially leading to competitive pricing while ensuring technical suitability.

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: $24,164,980

Exercised Options: $24,164,980

Current Obligation: $24,164,980

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $11,262,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ19D0045

IDV Type: IDC

Timeline