DoD awards $20.3M for UH/HH 60M helicopter air-ground networking radio integration

Contract Overview

Contract Amount: $20,280,344 ($20.3M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2019-12-11

End Date: 2026-03-31

Contract Duration: 2,302 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REQUIRED FOR THE DESIGN, ENGINEERING, INTEGRATION, AND TESTS ASSOCIATED WITH THE AIR GROUND NETWORKING RADIO (AGNR) INTEGRATION TO THE UH/HH 60M HELICOPTER

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: REQUIRED FOR THE DESIGN, ENGINEERING, INTEGRATION, AND TESTS ASSOCIATED WITH THE AIR GROUND NETWORKING RADIO (AGNR) INTEGRATION TO THE UH/HH 60M HELICOPTER Key points: 1. Contract focuses on critical integration of advanced networking capabilities for a key military helicopter platform. 2. The chosen contract type (Cost Plus Fixed Fee) suggests complexity and potential for cost overruns. 3. Competition was limited after exclusion of sources, raising questions about optimal price discovery. 4. The duration of the contract (over 2300 days) indicates a long-term, complex integration effort. 5. This award supports the modernization of aviation systems within the Department of the Army. 6. The contractor, Defense Systems and Solutions, is tasked with design, engineering, integration, and testing.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in complex projects, inherently carries a higher risk of cost escalation compared to fixed-price contracts. Benchmarking the value for money is challenging without detailed cost breakdowns and comparison to similar integration projects. The total award amount of $20.3 million for design, engineering, integration, and testing over a multi-year period suggests a significant investment in upgrading the UH/HH 60M helicopter's communication and networking capabilities. Further analysis would require understanding the scope of work and the specific technological advancements being integrated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while a competitive process was intended, specific sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not detailed, but such a designation can sometimes lead to less robust price competition compared to unrestricted full and open competition. The number of bidders is not specified, making it difficult to fully assess the degree of competition achieved.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than could have been achieved through a broader, unrestricted bidding process. It is crucial to ensure that the exclusion of sources was justified and did not unduly restrict competition.

Public Impact

Enhances the operational effectiveness and situational awareness of UH/HH 60M helicopter crews. Supports the U.S. Army's modernization efforts for its aviation assets. The integration of advanced networking radio is expected to improve command and control capabilities. Benefits military personnel by providing more reliable and secure communication in dynamic environments. The contract supports specialized engineering and integration services within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type increases risk of cost overruns.
Limited competition after exclusion of sources may impact price discovery and taxpayer value.
Long contract duration (over 2300 days) requires sustained oversight to manage performance and costs.
Lack of detailed cost breakdown makes independent value assessment difficult.

Positive Signals

Focuses on critical technological upgrade for a widely used military platform.
Contract awarded to a company with experience in defense systems and solutions.
Clear objectives for design, engineering, integration, and testing are defined.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for military helicopter upgrades and integration services is substantial, driven by the need for continuous technological advancement to maintain operational superiority. The $20.3 million award is a significant investment in a specific component upgrade, reflecting the high costs associated with specialized defense systems integration. Comparable spending benchmarks would involve looking at other integration projects for similar rotary-wing aircraft platforms.

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. Therefore, there are no direct small business set-aside implications. However, the prime contractor, Defense Systems and Solutions, may engage small businesses as subcontractors to fulfill parts of the contract, which would be subject to subcontracting plans if applicable. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army, likely through contracting officers and program managers responsible for the UH/HH 60M helicopter program. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs incurred and progress made towards milestones. Transparency may be limited due to the nature of defense contracting and the 'exclusion of sources' competition method. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Modernization Programs
Military Aviation Communication Systems
Defense Electronics Integration
Air Ground Networking Systems
Rotary Wing Aircraft Upgrades

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Impact
Technological Obsolescence
Long-Term Project Management Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to DEFENSE SYSTEMS AND SOLUTIONS. REQUIRED FOR THE DESIGN, ENGINEERING, INTEGRATION, AND TESTS ASSOCIATED WITH THE AIR GROUND NETWORKING RADIO (AGNR) INTEGRATION TO THE UH/HH 60M HELICOPTER

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 $20.3 million.

What is the period of performance?

Start: 2019-12-11. End: 2026-03-31.

What is the specific nature of the 'Air Ground Networking Radio (AGNR)' being integrated, and what are its key performance improvements?

The Air Ground Networking Radio (AGNR) integration aims to enhance the communication and data-sharing capabilities of the UH/HH 60M helicopter. While specific technical details of the AGNR are proprietary, its purpose is to enable more robust and secure voice and data transmission between the helicopter and ground forces, as well as other air assets. Key performance improvements are expected to include increased bandwidth, reduced latency, enhanced encryption, and improved interoperability with existing and future battlefield networks. This upgrade is crucial for improving situational awareness, command and control, and overall mission effectiveness in complex operational environments.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the potential for cost overruns in this integration project?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex integration projects where the scope of work is not fully defined at the outset, or where innovation is a key component. In a CPFF contract, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it also shifts the cost risk to the government. If the actual costs exceed initial estimates, the government pays the higher amount. For this AGNR integration, the complexity of designing, engineering, and testing new systems on an existing platform means that unforeseen technical challenges could arise, potentially leading to cost overruns if not managed diligently through robust oversight and change control processes.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for the overall cost-effectiveness of this contract?

The 'Full and Open Competition After Exclusion of Sources' designation suggests a competitive process was initiated, but certain potential bidders were deliberately excluded. While this is a recognized procurement method, it inherently limits the competitive landscape compared to unrestricted full and open competition. The cost-effectiveness for taxpayers depends heavily on the justification for excluding sources and the number of remaining eligible bidders. If the exclusion significantly reduced the number of capable competitors, it could lead to less aggressive pricing. Conversely, if the excluded sources were not viable or if the remaining bidders still engaged in strong competition, the cost-effectiveness might be preserved. Without knowing the specific reasons for exclusion and the number of proposals received, it's difficult to definitively assess the impact on cost-effectiveness.

What is the track record of Defense Systems and Solutions in similar complex integration projects for military aviation?

Defense Systems and Solutions (DSS) has a history of providing defense-related services and solutions. While specific details on their track record for complex integration projects of this magnitude for military aviation are not publicly detailed in this award notice, their designation as a contractor for the Department of Defense suggests they possess relevant capabilities. Further investigation into DSS's past performance, including contract awards, project outcomes, and customer satisfaction ratings for similar integration efforts on platforms like the UH-60M or comparable military aircraft, would be necessary for a comprehensive assessment of their suitability and past success in such complex endeavors.

How does this $20.3 million award compare to historical spending on similar helicopter communication system upgrades?

Comparing this $20.3 million award requires context regarding the scope and technological advancement of the upgrade. Helicopter communication system upgrades can vary significantly in cost based on the complexity of the technology being integrated (e.g., basic radio replacement vs. advanced networked systems), the platform's existing architecture, and the extent of engineering, integration, and testing required. This award covers design, engineering, integration, and testing for the AGNR on the UH/HH 60M over a multi-year period. Historical spending on similar, complex integration projects for military helicopters could range from several million to tens of millions of dollars. Without a direct comparison of the specific functionalities and scope of work for past upgrades, it's challenging to definitively benchmark this $20.3 million figure. However, it represents a substantial investment indicative of a significant technological enhancement.

What are the primary risks associated with the long duration (over 2300 days) of this contract?

The contract's duration of over 2300 days (approximately 6.3 years) presents several risks. Firstly, technological obsolescence is a significant concern; the technology being integrated today might be outdated by the time the contract concludes, potentially requiring further costly upgrades. Secondly, managing a project over such an extended period increases the risk of scope creep, where additional requirements are added without corresponding adjustments to budget or schedule, leading to cost overruns. Thirdly, maintaining consistent program oversight and contractor performance over many years can be challenging due to personnel turnover within both the government and the contractor's organization. Finally, economic fluctuations or changes in defense priorities could impact funding availability or the project's strategic relevance over its lifespan.

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: $20,280,344

Exercised Options: $20,280,344

Current Obligation: $20,280,344

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,313,026

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