DoD awards $10.3M for wireless test set engineering, with a 2346-day duration

Contract Overview

Contract Amount: $10,342,393 ($10.3M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2020-01-27

End Date: 2026-06-30

Contract Duration: 2,346 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS PROJECT IS TO PROVIDE ENGINEERING AND MANUFACTURING OF THE WIRELESS AT-PLATFORM TEST SET (WATS) AND ASSOCIATED TEST SUPPORT END OF LINE (EOL) HARDWARE IN SUPPORT OF THE TEST MEASUREMENT DIAGNOSTIC EQUIPMENT (TMDE) PROJECT OFFICE.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: THE PURPOSE OF THIS PROJECT IS TO PROVIDE ENGINEERING AND MANUFACTURING OF THE WIRELESS AT-PLATFORM TEST SET (WATS) AND ASSOCIATED TEST SUPPORT END OF LINE (EOL) HARDWARE IN SUPPORT OF THE TEST MEASUREMENT DIAGNOSTIC EQUIPMENT (TMDE) PROJECT OFFICE. Key points: 1. Contract focuses on specialized engineering and manufacturing for a wireless test platform. 2. The duration of over 6 years suggests a long-term need for this specialized equipment. 3. Competition was full and open after exclusion of sources, indicating a deliberate procurement strategy. 4. The contract type is Cost Plus Fixed Fee, which can shift some risk to the government. 5. The North American Industry Classification System (NAICS) code 336413 points to a niche manufacturing sector. 6. The awardee, Defense Systems and Solutions, is involved in defense manufacturing. 7. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The total award amount of $10.3 million over approximately 6.5 years results in an average annual value of roughly $1.6 million. Benchmarking this against similar specialized engineering and manufacturing contracts is challenging due to the specific nature of the Wireless AT-Platform Test Set (WATS). However, the Cost Plus Fixed Fee (CPFF) contract type suggests that the final cost could exceed the initial estimate, and the government bears the risk of cost overruns. Without detailed cost breakdowns or comparisons to similar test equipment manufacturing, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method typically involves a solicitation that is broadly advertised, but specific sources may be excluded based on pre-defined criteria, often related to security, capability, or prior performance. The exact reasons for excluding certain sources are not detailed, but this approach can limit the pool of potential bidders compared to a truly unrestricted full and open competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'after exclusion of sources' approach suggests an attempt to ensure qualified bidders participated. This may have led to a more focused competition among capable firms, potentially balancing specialized needs with competitive pricing, though the exclusion criteria warrant scrutiny for taxpayer value.

Public Impact

The primary beneficiaries are the Department of the Army and the Test Measurement Diagnostic Equipment (TMDE) Project Office, who will receive the specialized wireless test platform and associated hardware. The services delivered include engineering, manufacturing, and test support for critical defense equipment. The geographic impact is primarily within Alabama, where the contractor is located, and potentially at military installations where the test equipment will be deployed. Workforce implications include skilled engineering and manufacturing jobs at the contractor's facility.

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 carefully.
The 'exclusion of sources' in the competition may have limited the number of bidders, potentially impacting price competitiveness.
The long duration of the contract (over 6 years) requires sustained oversight to ensure performance and value.
Lack of detailed cost breakdown makes it difficult to benchmark value for money.
The specific nature of the 'Wireless AT-Platform Test Set' suggests a niche market, potentially limiting competition.

Positive Signals

Awarded under 'Full and Open Competition After Exclusion of Sources,' indicating an effort to engage qualified vendors.
The contract addresses a specific need for specialized test equipment within the Department of Defense.
The contractor, Defense Systems and Solutions, is an established entity in the defense sector.
The contract is a delivery order, suggesting it may be part of a broader, potentially competitively awarded, IDIQ contract.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on specialized electronic test equipment. The NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' highlights the niche nature of this work, which often involves high technical expertise and stringent quality control. The market for such specialized test equipment is driven by defense procurement cycles and technological advancements in military platforms. Comparable spending benchmarks are difficult to establish without more specific details on the technical specifications and scale of the test set.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor is likely a large business. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The focus on specialized manufacturing for defense may limit the scope for broad small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee is justified. Transparency regarding the specific criteria for excluding sources during the competition and detailed cost reporting from the contractor would enhance accountability. The Inspector General's office within the Department of Defense may also have jurisdiction for audits and investigations if fraud, waste, or abuse is suspected.

Related Government Programs

Test Measurement Diagnostic Equipment (TMDE) Project Office
Department of Defense Procurement
Aerospace and Defense Manufacturing
Wireless Communication Test Equipment
Military Logistics and Support

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition due to 'exclusion of sources' criteria.
Need for robust oversight of contractor costs and performance.
Niche technology may lead to vendor lock-in or limited future options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to DEFENSE SYSTEMS AND SOLUTIONS. THE PURPOSE OF THIS PROJECT IS TO PROVIDE ENGINEERING AND MANUFACTURING OF THE WIRELESS AT-PLATFORM TEST SET (WATS) AND ASSOCIATED TEST SUPPORT END OF LINE (EOL) HARDWARE IN SUPPORT OF THE TEST MEASUREMENT DIAGNOSTIC EQUIPMENT (TMDE) PROJECT OFFICE.

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 $10.3 million.

What is the period of performance?

Start: 2020-01-27. End: 2026-06-30.

What is the specific technical capability of the Wireless AT-Platform Test Set (WATS) and how does it compare to previous or alternative solutions?

The provided data describes the WATS as 'WIRELESS AT-PLATFORM TEST SET (WATS) AND ASSOCIATED TEST SUPPORT END OF LINE (EOL) HARDWARE'. Its specific technical capabilities, such as frequency ranges, signal analysis features, or compatibility with particular wireless protocols (e.g., Wi-Fi, Bluetooth, cellular), are not detailed. Without this information, it's impossible to compare it to previous solutions or alternative technologies. The 'End of Line' designation suggests it's used for final testing of manufactured wireless components or systems. Understanding the technical specifications is crucial for assessing its necessity and potential for obsolescence.

What were the specific criteria used to exclude sources in this 'Full and Open Competition After Exclusion of Sources' procurement?

The data states the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' but does not specify the criteria for exclusion. Typically, such exclusions are based on factors like security clearances, specialized technical expertise, prior performance on similar contracts, or specific certifications required for the project. For a defense-related manufacturing contract involving potentially sensitive technology, exclusions might relate to facility security, ITAR compliance, or proven experience with specific defense systems. Without knowing these criteria, it's difficult to assess if the exclusion unduly limited competition or was justified by legitimate program requirements.

How does the Cost Plus Fixed Fee (CPFF) structure impact the government's risk and the contractor's incentive for cost control on this project?

In a Cost Plus Fixed Fee (CPFF) contract, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. This structure shifts a significant portion of the cost risk to the government, as the government is responsible for all legitimate costs incurred, even if they exceed initial estimates. The contractor's incentive is primarily to complete the work within the scope, as their profit (the fixed fee) is set regardless of the final cost. While the fixed fee provides some incentive for the contractor to manage costs to avoid scope creep, it lacks the strong cost-saving incentives found in fixed-price contracts. Effective government oversight is critical to scrutinize allowable costs and prevent inefficiencies.

What is the historical spending pattern for the Wireless AT-Platform Test Set (WATS) or similar test equipment within the Department of Defense?

The provided data only pertains to a single award of $10.3 million for the WATS and associated hardware, with a performance period extending to June 2026. There is no historical spending data available within this dataset to establish a pattern for the WATS or similar test equipment. To understand historical spending, one would need to query federal procurement databases for previous contracts related to this specific test set, its predecessors, or comparable diagnostic equipment used by the Department of Defense or other military branches. Analyzing past contract values, durations, and competition levels would provide context for the current award's scale and nature.

What is the track record of Defense Systems and Solutions (DSS) in delivering complex engineering and manufacturing contracts for the Department of Defense?

The provided data identifies 'DEFENSE SYSTEMS AND SOLUTIONS' as the contractor but offers no information regarding their specific track record, past performance ratings, or history with complex defense manufacturing contracts. To assess DSS's track record, one would need to consult other government databases (like the Contractor Performance Assessment Reporting System - CPARS) or conduct market research on the company's project history. Key indicators would include their experience with similar technologies, successful delivery of previous DoD contracts, and any history of performance issues, cost overruns, or contract disputes.

What is the estimated total cost of ownership for the WATS, considering maintenance, upgrades, and potential sustainment over its lifecycle?

The current award of $10.3 million covers the engineering and manufacturing of the WATS and associated hardware, with a delivery end date of June 30, 2026. This figure represents the initial acquisition cost and likely some initial support. The total cost of ownership (TCO) would extend beyond this award to include ongoing sustainment, maintenance, calibration, potential software/hardware upgrades, and eventual disposal. These lifecycle costs are not detailed in the provided data. Estimating TCO would require projections for operational tempo, failure rates, repair costs, and future technological requirements, which are typically developed by the procuring agency.

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: $10,342,393

Exercised Options: $10,342,393

Current Obligation: $10,342,393

Actual Outlays: $2,798

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