DoD's $20.4M C-130 Firefighting System Contract Awarded to Defense Systems and Solutions

Contract Overview

Contract Amount: $20,457,021 ($20.5M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2022-09-07

End Date: 2026-02-27

Contract Duration: 1,269 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: C-130 IMPROVED MODULAR AIRBORNE FIRE FIGHTING SYSTEM (IMAFFS) PHASE IV.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: C-130 IMPROVED MODULAR AIRBORNE FIRE FIGHTING SYSTEM (IMAFFS) PHASE IV. Key points: 1. Contract awarded for a critical component of aerial firefighting capabilities. 2. Focus on improving modular airborne firefighting systems for C-130 aircraft. 3. Awarded to a single contractor, Defense Systems and Solutions. 4. Contract duration extends through February 2026. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 6. The award was made under Full and Open Competition after Exclusion of Sources, indicating a specific justification for limiting the initial pool. 7. The contract is for Delivery Order under a larger contract vehicle. 8. The base contract value is $16.12M, with this delivery order adding $20.45M.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Benchmarking the value for this specific 'Improved Modular Airborne Firefighting System (IMAFFS) Phase IV' is challenging without detailed cost breakdowns and comparisons to similar system upgrades. However, the total value of $20.45 million for a specialized aircraft modification system suggests a significant investment in critical operational capability.

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 the initial competition was broad, specific sources were excluded, potentially due to specialized capabilities or prior performance. The exact number of bidders and the rationale for excluding other sources are not detailed, making a full assessment of competition dynamics difficult. This procurement method may limit price discovery compared to a truly open competition.

Taxpayer Impact: The exclusion of sources, even with a justification, could potentially lead to higher prices for taxpayers if it restricts the number of competitive bids received.

Public Impact

Enhances the U.S. Army's aerial firefighting capabilities, crucial for wildfire suppression. Benefits military personnel and potentially civilian agencies that utilize DoD assets for disaster response. The system is integrated into C-130 aircraft, impacting aviation maintenance and operations personnel. Geographic impact is national, as C-130s can be deployed to wildfire hotspots across the country. Improves the effectiveness and efficiency of airborne firefighting missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Limited competition after exclusion of sources may impact price competitiveness.
The specific nature of the 'phase IV' upgrade implies potential for ongoing, iterative costs.

Positive Signals

Addresses a critical need for advanced firefighting equipment.
Awarded to a contractor with a focus on defense systems.
The contract aims to improve existing modular systems, suggesting a focus on modernization rather than entirely new development.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft modification and specialized equipment. The market for military aircraft components and upgrade services is substantial, driven by the need to maintain and enhance the operational readiness of aging fleets. Comparable spending benchmarks would involve other major aircraft modification programs or the procurement of specialized mission systems for military aircraft.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside. This suggests that the prime contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award notice. The overall impact on the small business ecosystem for this specific contract appears minimal based on the available information.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and auditing of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost justifications may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-130 Hercules Aircraft
Aerial Firefighting Systems
Modular Airborne Firefighting System (MAFFS)
Department of Defense Aircraft Procurement
Aerospace Manufacturing Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited competition after exclusion of sources may impact price competitiveness.
Specific details of 'Phase IV' improvements and their cost-effectiveness are not publicly detailed.
Contract duration extends over multiple years, requiring ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to DEFENSE SYSTEMS AND SOLUTIONS. C-130 IMPROVED MODULAR AIRBORNE FIRE FIGHTING SYSTEM (IMAFFS) PHASE IV.

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 $20.5 million.

What is the period of performance?

Start: 2022-09-07. End: 2026-02-27.

What is the specific performance history of Defense Systems and Solutions with similar C-130 modification contracts?

Assessing the specific performance history of Defense Systems and Solutions (DSS) with similar C-130 modification contracts requires access to detailed contract databases and performance reviews beyond the scope of this award notice. Generally, contractors in the defense sector are evaluated based on past performance metrics, including on-time delivery, quality of work, and adherence to budget. For a contract like the IMAFFS Phase IV, DSS's track record would likely be scrutinized for their ability to manage complex integration projects, meet stringent military specifications, and deliver reliable systems. Without specific past performance reports or a review of their contract portfolio, it's difficult to definitively state their success rate on comparable projects. However, the award itself suggests they met the DoD's criteria for this specific requirement.

How does the cost of this IMAFFS Phase IV upgrade compare to previous phases or similar aerial firefighting system procurements?

Directly comparing the cost of this IMAFFS Phase IV award ($20.45 million) to previous phases or similar aerial firefighting system procurements is challenging without detailed cost data for those prior efforts. The 'Phase IV' designation implies an iterative development or upgrade, and costs can fluctuate significantly due to technological advancements, inflation, changes in scope, and the specific nature of the improvements. Furthermore, the Cost Plus Fixed Fee (CPFF) structure means the final cost is not fixed upfront, making direct comparisons to fixed-price contracts difficult. To establish a robust value comparison, one would need to analyze the specific capabilities delivered in Phase IV against the cost, benchmark against other modular airborne systems, and consider the overall lifecycle cost of the system.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific program?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for the IMAFFS Phase IV program is the potential for cost overruns. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the total expenditure, provided costs are deemed allowable. For the government, this means the final contract price could exceed initial estimates, impacting budget predictability. Effective oversight, stringent cost controls, and clear definitions of allowable costs are crucial to mitigate this risk and ensure value for taxpayer money.

What specific improvements or capabilities does 'Phase IV' of the IMAFFS system introduce compared to previous versions?

The designation 'Phase IV' for the Improved Modular Airborne Firefighting System (IMAFFS) suggests a continuation and enhancement of an existing system. While the award notice does not detail the specific improvements, typical advancements in such systems could include enhanced fire retardant delivery mechanisms, improved system integration with newer C-130 variants, increased capacity or efficiency, reduced turnaround time for refilling, or upgraded control and monitoring systems. These upgrades are likely aimed at increasing the effectiveness and operational flexibility of the C-130 aircraft as a firefighting platform, potentially allowing for quicker response times, more precise deployment of retardants, and greater safety for aircrews.

What is the expected impact of this contract on the operational readiness and effectiveness of the U.S. Army's firefighting capabilities?

This contract is expected to significantly enhance the operational readiness and effectiveness of the U.S. Army's aerial firefighting capabilities. The IMAFFS system allows C-130 aircraft, which are versatile and widely available military transport planes, to be rapidly converted into aerial tankers. Phase IV upgrades likely introduce improved technology and performance characteristics, leading to more efficient and effective wildfire suppression missions. This means quicker response times, potentially larger areas covered per sortie, and greater reliability of the system during critical firefighting operations. Ultimately, this contributes to better protection of military installations, surrounding communities, and natural resources from the devastating effects of wildfires.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

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: $20,457,021

Exercised Options: $20,457,021

Current Obligation: $20,457,021

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $882,027

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