DoD awards $14.8M contract for helicopter upgrades, focusing on missile and GPS capabilities

Contract Overview

Contract Amount: $14,805,414 ($14.8M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2020-09-21

End Date: 2026-01-31

Contract Duration: 1,958 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STATEMENT OF WORK (SOW) FOR APPLICATION OF APKWS AND ANTI-JAMMING GPS CAPABILITIES ON MD530F HELICOPTERS REV 1

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: STATEMENT OF WORK (SOW) FOR APPLICATION OF APKWS AND ANTI-JAMMING GPS CAPABILITIES ON MD530F HELICOPTERS REV 1 Key points: 1. Contract addresses critical upgrades for MD530F helicopters, enhancing survivability and mission effectiveness. 2. The chosen contract type (Cost Plus Fixed Fee) allows for flexibility but requires close monitoring of costs. 3. Competition was conducted after excluding sources, suggesting potential limitations in market reach or specific requirements. 4. The contract duration of nearly two years indicates a substantial scope of work. 5. Focus on APKWS and anti-jamming GPS highlights a strategic investment in modernizing rotary-wing platforms. 6. The awardee, Defense Systems and Solutions, will be responsible for integrating these advanced capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to the specialized nature of the upgrades and the 'Cost Plus Fixed Fee' structure. While the total value is $14.8 million, the actual cost will depend on the hours and resources expended. The fixed fee component provides some cost control, but the overall price efficiency will be determined by how effectively the contractor manages the project's direct costs. Without detailed cost breakdowns or comparisons to similar integration projects on the MD530F platform, a definitive value-for-money assessment is difficult.

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 the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, existing relationships, or the need for specialized expertise. The exact number of bidders is not specified, but the exclusion of sources suggests a potentially narrower field than a truly unrestricted full and open competition. This approach can sometimes lead to higher prices if the excluded sources represent significant competition.

Taxpayer Impact: The exclusion of certain sources may limit the potential for the most competitive pricing, potentially resulting in a higher cost to taxpayers than if a broader range of vendors had been considered.

Public Impact

The primary beneficiaries are the U.S. Army aviation units operating the MD530F helicopters, gaining enhanced combat capabilities. The contract delivers critical upgrades including Advanced Precision Kill Weapon System (APKWS) and anti-jamming GPS. These upgrades will improve the survivability and effectiveness of the MD530F in contested environments. The geographic impact is primarily within the United States, where the integration and testing will likely occur, with potential deployment globally. Workforce implications include specialized technical roles for engineers and technicians involved in the integration and testing of advanced avionics and weapon systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
Limited competition due to exclusion of sources could impact price competitiveness.
Dependence on a single contractor for critical system integration.
Scope creep could increase costs and extend timelines beyond initial estimates.

Positive Signals

Addresses critical modernization needs for existing rotary-wing platforms.
Enhances warfighter capabilities with advanced weapon and navigation systems.
Contract awarded to a known entity in defense systems integration.
Clear statement of work focused on specific, high-impact upgrades.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code (336413), which encompasses a broad range of components and systems for aircraft. The market for military aircraft upgrades is substantial, driven by the need to maintain technological superiority and extend the service life of existing platforms. Spending in this area is often project-specific, focusing on avionics, weapon systems, and structural enhancements. Comparable spending benchmarks would typically involve other aircraft modernization programs, particularly those involving light attack or reconnaissance helicopters.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'ss' being false. The primary contractor, Defense Systems and Solutions, will likely determine subcontracting opportunities. Given the specialized nature of APKWS and anti-jamming GPS integration, subcontracts may go to niche technology providers. The overall impact on the small business ecosystem will depend on the extent to which the prime contractor utilizes small businesses for support services or specialized components, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and program managers. The 'Cost Plus Fixed Fee' (CPFF) contract type necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Performance metrics and milestones outlined in the Statement of Work (SOW) will be key to monitoring progress. Transparency is typically maintained through contract reporting requirements and potential reviews by Government Accountability Office (GAO) or the Department of Defense's Inspector General (IG) if specific concerns arise regarding performance or cost.

Related Government Programs

MD530F Helicopter Modernization Programs
APKWS Integration Contracts
Anti-Jamming GPS Systems Procurement
Light Attack Helicopter Upgrades
Department of Defense Aviation Modernization

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Limited competition may impact price discovery.
Integration of new technologies carries inherent technical risks.
Potential for schedule delays in complex system upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to DEFENSE SYSTEMS AND SOLUTIONS. STATEMENT OF WORK (SOW) FOR APPLICATION OF APKWS AND ANTI-JAMMING GPS CAPABILITIES ON MD530F HELICOPTERS REV 1

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 $14.8 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-01-31.

What is the track record of Defense Systems and Solutions with similar helicopter upgrade contracts?

Information regarding Defense Systems and Solutions' specific track record with MD530F helicopter upgrades or similar complex avionics and weapon system integrations is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract histories, and any reported issues or successes on previous Department of Defense contracts. Understanding their experience with Cost Plus Fixed Fee contracts and their ability to manage budgets and schedules effectively on similar projects would be crucial for evaluating their capability to successfully execute this award. Further research into their contract awards and performance metrics across various agencies would be necessary.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar defense upgrades?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the cost of performance, such as in research and development or complex system integration. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen technical challenges, but it shifts more cost risk to the government. While FFP provides greater price certainty for the government, it can lead to contractors building in larger contingencies, potentially increasing the overall price. For specialized upgrades like missile integration and advanced GPS, CPFF can be appropriate if detailed technical specifications are still evolving, but it requires robust government oversight to control costs and ensure value.

What are the primary risks associated with integrating APKWS and anti-jamming GPS on the MD530F platform?

The primary risks associated with integrating APKWS and anti-jamming GPS on the MD530F platform include technical integration challenges, potential performance degradation of existing systems, and schedule delays. Ensuring seamless communication between the new systems and the helicopter's existing avionics, power, and control systems is critical. The MD530F is a relatively light platform, and adding new weapon systems and sophisticated electronics could impact its weight, balance, and flight characteristics, potentially requiring performance adjustments. Furthermore, the complexity of these advanced systems means there's a risk of encountering unforeseen technical issues during development and testing, which could lead to cost overruns and schedule slippage. Cybersecurity risks related to the new GPS systems also need careful management.

What is the expected impact of these upgrades on the operational effectiveness and survivability of the MD530F?

The integration of APKWS and anti-jamming GPS is expected to significantly enhance the operational effectiveness and survivability of the MD530F helicopter. APKWS provides a precision-guided munition capability, allowing the helicopter to engage targets with greater accuracy and reduced collateral damage, thereby increasing mission success rates. The anti-jamming GPS ensures reliable navigation and targeting information even in contested electromagnetic environments, which is crucial for operating in modern conflict zones. Together, these upgrades transform the MD530F from a basic observation or light attack platform into a more capable and resilient asset, better able to perform its missions while minimizing risks to the aircrew and aircraft.

How has spending on MD530F helicopter upgrades evolved over the past five years?

Historical spending data specifically on MD530F helicopter upgrades over the past five years is not provided in this data extract. To assess spending evolution, one would need to analyze contract awards related to the MD530F platform across different agencies and fiscal years. This would involve searching federal procurement databases for contracts related to modifications, upgrades, parts, and support services for this specific helicopter model. Understanding past investment trends would help contextualize the current $14.8 million award and identify any patterns in modernization efforts or sustainment spending for the MD530F fleet.

What is the strategic importance of the MD530F platform and these specific upgrades for the Department of the Army?

The MD530F platform serves as a versatile light attack and reconnaissance helicopter, often employed in asymmetric warfare scenarios, border patrol, and close air support roles. Its relatively low acquisition and operating costs make it an attractive option for certain missions. The strategic importance of these upgrades lies in enhancing the platform's ability to operate effectively and survive in increasingly complex and contested environments. By equipping the MD530F with precision-guided munitions (APKWS) and robust navigation (anti-jamming GPS), the Army can extend the utility and relevance of this platform, ensuring it remains a viable asset for specific mission sets without the need for immediate, costly replacement. This modernization effort supports the Army's broader strategy of maintaining a diverse and capable rotary-wing fleet.

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: $14,805,414

Exercised Options: $14,805,414

Current Obligation: $14,805,414

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $11,733,549

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