Army Awards $13.8M Contract for UH-60M Aircraft Modification for Latvia
Contract Overview
Contract Amount: $13,813,891 ($13.8M)
Contractor: Defense Systems and Solutions
Awarding Agency: Department of Defense
Start Date: 2020-07-17
End Date: 2026-05-21
Contract Duration: 2,134 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DEFINES THE PERSONNEL, MATERIALS, FACILITIES, AND SERVICES REQUIRED TO MODIFY, VERIFY, DOCUMENT, AND DELIVER FOUR (4) UH-60M AIRCRAFT IN THE UNIQUE REPUBLIC OF LATVIA (LAT) CONFIGURATION.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: DEFINES THE PERSONNEL, MATERIALS, FACILITIES, AND SERVICES REQUIRED TO MODIFY, VERIFY, DOCUMENT, AND DELIVER FOUR (4) UH-60M AIRCRAFT IN THE UNIQUE REPUBLIC OF LATVIA (LAT) CONFIGURATION. Key points: 1. Contract focuses on unique configuration for Latvia's UH-60M aircraft. 2. Defense Systems and Solutions is the prime contractor. 3. Competition method involved exclusion of sources, raising potential concerns. 4. Spending is within the Defense sector, specifically aircraft modification.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar aircraft modification contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, specific reasons for excluding other potential sources may exist and warrant scrutiny for price discovery.
Taxpayer Impact: Taxpayer funds are being used for specialized military aircraft modifications, impacting national defense budgets and potentially international aid considerations.
Public Impact
Enhances Latvia's military aviation capabilities with specialized UH-60M configuration. Supports U.S. foreign military sales and defense cooperation initiatives. Ensures operational readiness and interoperability of Latvian aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Cost-plus contract type can incentivize higher spending.
- Specific configuration details might limit future contractor options.
Positive Signals
- Supports a key NATO ally's defense modernization.
- Addresses a specific and unique operational requirement.
- Contract awarded to a known defense contractor.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft modification and integration. Spending benchmarks for such specialized modifications can vary widely based on complexity and aircraft type.
Small Business Impact
The contract was awarded to Defense Systems and Solutions, and there is no indication of small business subcontracting in the provided data. Further investigation would be needed to determine if small businesses are involved in the supply chain.
Oversight & Accountability
The Department of the Army is overseeing this contract. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the modifications meet Latvia's specific requirements within budget.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in higher costs.
- Cost-plus contract type carries inherent cost overrun risk.
- Unique configuration could lead to specialized and potentially expensive spare parts.
- Lack of small business participation noted.
- Contract duration extends over several years, increasing exposure to market fluctuations.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to DEFENSE SYSTEMS AND SOLUTIONS. DEFINES THE PERSONNEL, MATERIALS, FACILITIES, AND SERVICES REQUIRED TO MODIFY, VERIFY, DOCUMENT, AND DELIVER FOUR (4) UH-60M AIRCRAFT IN THE UNIQUE REPUBLIC OF LATVIA (LAT) CONFIGURATION.
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 $13.8 million.
What is the period of performance?
Start: 2020-07-17. End: 2026-05-21.
What were the specific justifications for excluding other sources during the competition phase, and how did this impact the final negotiated price?
The exclusion of sources in a 'Full and Open Competition After Exclusion of Sources' award requires a clear justification, often related to unique capabilities, proprietary technology, or national security concerns. Without this justification, it's difficult to assess if the limited competition led to a suboptimal price for the government and, by extension, the taxpayer. Understanding the rationale is key to evaluating value for money.
How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns, given the complexity of unique aircraft configurations?
Effective oversight of a Cost Plus Fixed Fee (CPFF) contract for complex aircraft modifications necessitates rigorous monitoring of all incurred costs. The government must ensure that all expenses are allowable, allocable, and reasonable according to the contract terms. Regular audits, detailed progress reports, and clear communication channels with the contractor are essential to manage the fixed fee and prevent uncontrolled cost escalation.
What is the long-term sustainment plan for these uniquely configured UH-60M aircraft, and does this contract adequately address it?
The contract focuses on the initial modification and delivery of four UH-60M aircraft to a unique Latvian configuration. While this addresses immediate operational needs, the long-term sustainment, including parts availability, maintenance, and future upgrades for these specialized aircraft, is not detailed here. A comprehensive sustainment strategy would be crucial for the Republic of Latvia's operational readiness and cost-effectiveness over the aircraft's lifecycle.
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: $13,813,891
Exercised Options: $13,813,891
Current Obligation: $13,813,891
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
Start Date: 2020-07-17
Current End Date: 2026-05-21
Potential End Date: 2026-05-21 12:05:00
Last Modified: 2025-09-02
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