DoD awards $201.8M for Black Hawk helicopter control units under existing contract
Contract Overview
Contract Amount: $20,183,280 ($20.2M)
Contractor: Defense Systems and Solutions
Awarding Agency: Department of Defense
Start Date: 2020-07-15
End Date: 2027-08-01
Contract Duration: 2,573 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: REQUEST FOR NEW ORDER UNDER CONTRACT W58RGZ-18-D-0001, MULTI-FUNCTION CONTROL UNIT INTEGRATION FOR UH-60M/HH-60M AIRCRAFT.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.2 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: REQUEST FOR NEW ORDER UNDER CONTRACT W58RGZ-18-D-0001, MULTI-FUNCTION CONTROL UNIT INTEGRATION FOR UH-60M/HH-60M AIRCRAFT. Key points: 1. Contract awarded to Defense Systems and Solutions for integration of multi-function control units. 2. The contract supports UH-60M/HH-60M Black Hawk helicopters, a critical military asset. 3. Spending is spread over a long period (2020-2027), suggesting phased implementation or sustainment. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating specialized components.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is substantial, but the duration is long, making a direct comparison difficult without knowing the scope of work per year.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a limited competition. This method may restrict the pool of potential bidders and potentially impact price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical defense equipment upgrades, ensuring operational readiness of Black Hawk helicopters.
Public Impact
Enhances the capabilities and safety of essential military transport and medical evacuation helicopters. Supports the operational readiness of the U.S. Army's aviation fleet. Investment in specialized manufacturing and integration services within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Limited competition may lead to higher prices than full and open competition.
- Long contract duration could obscure true per-unit cost efficiency.
Positive Signals
- Supports critical military aircraft modernization.
- Awarded under an existing contract, potentially leveraging established relationships and processes.
- Long-term award provides budget stability for this specific component.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is a niche but vital part of the aerospace and defense industry. Spending benchmarks are difficult to establish without more specific component cost data, but significant investment in aircraft modernization is common.
Small Business Impact
The data indicates the prime contractor is Defense Systems and Solutions, and the 'sb' (small business) flag is false, suggesting this award did not directly benefit small businesses as prime contractors. Subcontracting opportunities for small businesses are not detailed in this data.
Oversight & Accountability
The award is a delivery order under an existing contract (W58RGZ-18-D-0001), implying some level of initial oversight. However, the Cost Plus Fixed Fee structure necessitates robust oversight to control costs and ensure value for money throughout the contract's lifecycle.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may result in suboptimal pricing.
- Lack of transparency on specific performance metrics and validation.
- No indication of small business subcontracting goals or achievements.
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 $20.2 million to DEFENSE SYSTEMS AND SOLUTIONS. REQUEST FOR NEW ORDER UNDER CONTRACT W58RGZ-18-D-0001, MULTI-FUNCTION CONTROL UNIT INTEGRATION FOR UH-60M/HH-60M AIRCRAFT.
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 $20.2 million.
What is the period of performance?
Start: 2020-07-15. End: 2027-08-01.
What is the estimated total cost per control unit, and how does it compare to industry benchmarks for similar systems?
The provided data does not allow for a precise per-unit cost calculation due to the Cost Plus Fixed Fee structure and the long duration of the contract. A detailed analysis would require breaking down the total award amount by the number of units or integration hours and comparing it against market research or other government contracts for similar multi-function control units.
What specific exclusions were made in the 'full and open competition after exclusion of sources' process, and what was the justification?
The justification for excluding certain sources is not provided in this data snippet. Typically, such exclusions are based on factors like proprietary technology, unique capabilities, or urgent requirements where only specific contractors can meet the need. Understanding these reasons is crucial for assessing if the limited competition was truly warranted and if it impacted the final price.
How will the effectiveness and performance of the integrated control units be measured and validated throughout the contract period?
Performance validation mechanisms are not detailed here. Effective oversight would involve clearly defined performance metrics, testing protocols, and acceptance criteria for the integrated control units. Regular reviews and milestone assessments would be necessary to ensure the delivered systems meet the required operational standards for the UH-60M/HH-60M aircraft.
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: $20,183,280
Exercised Options: $20,183,280
Current Obligation: $20,183,280
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: 2020-07-15
Current End Date: 2027-08-01
Potential End Date: 2027-08-01 00:00:00
Last Modified: 2025-06-04
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