DoD's $21M H-60M CIRCM A-Kits contract awarded to Science and Engineering Services, LLC

Contract Overview

Contract Amount: $21,035,994 ($21.0M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-04-10

Contract Duration: 1,136 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROJECT MANAGEMENT OFFICE AIRCRAFT SURVIVABILITY EQUIPMENT (PMO-ASE) REQUIREMENT TO PROCURE, MANUFACTURE, AND DELIVER H-60M COMMON INFRARED COUNTERMEASURE (CIRCM) A-KITS, GROUND COVER ASSEMBLIES, AND FLYABLE COVER ASSEMBLIES.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: PROJECT MANAGEMENT OFFICE AIRCRAFT SURVIVABILITY EQUIPMENT (PMO-ASE) REQUIREMENT TO PROCURE, MANUFACTURE, AND DELIVER H-60M COMMON INFRARED COUNTERMEASURE (CIRCM) A-KITS, GROUND COVER ASSEMBLIES, AND FLYABLE COVER ASSEMBLIES. Key points: 1. Value for money assessed through comparison with similar aircraft component procurements. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (firm fixed price) and duration, which can impact cost certainty. 4. Performance context relies on the successful delivery of critical aircraft survivability equipment. 5. Sector positioning within Aircraft Manufacturing highlights the importance of specialized defense components.

Value Assessment

Rating: good

The contract value of approximately $21 million for H-60M CIRCM A-Kits appears reasonable given the specialized nature of the equipment and the firm fixed-price contract type, which shifts risk to the contractor. Benchmarking against similar complex aircraft component procurements suggests this pricing is within expected ranges for high-tech defense systems. The contract's duration of over three years also supports a phased delivery approach that can be cost-effective.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' basis, indicating that while multiple sources were considered, specific exclusions were applied. With two bidders identified, the level of competition appears moderate. This suggests that while the government sought competitive bids, the specialized nature of the required components may have limited the pool of qualified offerors.

Taxpayer Impact: A moderate level of competition generally benefits taxpayers by encouraging competitive pricing. However, the specific exclusions in this 'full and open after exclusion of sources' competition warrant further scrutiny to ensure the broadest possible price discovery was achieved.

Public Impact

The primary beneficiaries are the U.S. Army, receiving critical components for the survivability of its H-60M helicopters. Services delivered include the procurement, manufacturing, and delivery of H-60M Common Infrared Countermeasure (CIRCM) A-Kits, ground cover assemblies, and flyable cover assemblies. The geographic impact is primarily within the United States, with potential deployment of the equipped aircraft globally. Workforce implications include skilled labor in manufacturing, engineering, and project management within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during manufacturing.
Dependence on a limited number of qualified bidders could impact future competition.
Supply chain disruptions for specialized components could delay delivery.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Award to a single contractor for a defined period provides program stability.
Focus on critical aircraft survivability equipment enhances operational readiness.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on specialized components for military helicopters. The market for such defense-related components is characterized by high technical barriers to entry, stringent quality requirements, and significant government oversight. Comparable spending benchmarks would involve other procurements of advanced avionics, electronic warfare systems, or specialized airframe modifications for military aircraft.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Science and Engineering Services, LLC, is likely a larger entity. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified components. Transparency is facilitated through federal procurement databases, though detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

H-60 Black Hawk Helicopter Modernization Programs
Department of Defense Aircraft Component Procurement
Countermeasure Systems Development and Production
Avionics and Electronic Warfare Systems

Risk Flags

Potential for limited competition due to specialized nature of components.
Firm fixed-price contract requires careful monitoring of quality and performance.
Dependence on specific manufacturing capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to SCIENCE AND ENGINEERING SERVICES, LLC. PROJECT MANAGEMENT OFFICE AIRCRAFT SURVIVABILITY EQUIPMENT (PMO-ASE) REQUIREMENT TO PROCURE, MANUFACTURE, AND DELIVER H-60M COMMON INFRARED COUNTERMEASURE (CIRCM) A-KITS, GROUND COVER ASSEMBLIES, AND FLYABLE COVER ASSEMBLIES.

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-04-10.

What is the track record of Science and Engineering Services, LLC in delivering complex defense manufacturing contracts?

A comprehensive review of Science and Engineering Services, LLC's track record would involve examining their past performance on similar government contracts, particularly those involving aircraft components, manufacturing, and defense systems. This would include assessing their history of on-time delivery, adherence to quality standards, and financial stability. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reports (CPARS) would be crucial. Without specific data on their past performance on comparable contracts, it is difficult to definitively assess their capability for this specific H-60M CIRCM A-Kit requirement. However, the award itself suggests they met the minimum qualifications and demonstrated some level of capability during the bidding process.

How does the $21 million contract value compare to similar procurements for aircraft countermeasure systems?

Benchmarking the $21 million contract value requires identifying comparable procurements for similar systems, such as Common Infrared Countermeasure (CIRCM) kits or other advanced electronic warfare components for military aircraft. Factors such as the specific aircraft model (H-60M), the scope of work (procurement, manufacturing, delivery), the quantity of units, and the contract type (firm fixed-price) are critical for a fair comparison. If similar contracts for comparable systems have been awarded at significantly lower or higher price points, it would indicate potential overpricing or exceptional value. Given the specialized nature of CIRCM technology and the firm fixed-price structure, a value of $21 million over approximately three years for a suite of components appears within a plausible range for advanced defense systems, but detailed comparative analysis with specific contract data is needed for a definitive assessment.

What are the primary risks associated with the firm fixed-price contract type for this procurement?

The primary risk associated with a firm fixed-price (FFP) contract type for this procurement is the potential for the contractor, Science and Engineering Services, LLC, to incur losses if their costs exceed the agreed-upon price. This risk is generally borne by the contractor, which incentivizes them to manage costs efficiently. However, for the government, the risk lies in the potential for the contractor to cut corners on quality or performance to maintain profitability, especially if unforeseen technical challenges or cost increases arise during manufacturing. While FFP contracts offer price certainty to the buyer, they can sometimes lead to less flexibility in scope adjustments and may require robust government oversight to ensure contract compliance and quality standards are met throughout the performance period.

How effective is the 'full and open competition after exclusion of sources' in ensuring competitive pricing for specialized defense components?

The 'full and open competition after exclusion of sources' aims to balance broad competition with the need to potentially exclude specific sources for reasons such as national security, proprietary information, or unique capabilities. In this case, with two bidders identified, the competition level is moderate. While it's more competitive than a sole-source award, it's less competitive than a truly unrestricted full and open competition. The effectiveness in ensuring competitive pricing depends heavily on the justification for the exclusions and the number of qualified bidders that remained. If the exclusions significantly limited the pool of capable suppliers, the resulting price might be higher than if a broader range of companies could have competed. Taxpayers benefit when the exclusions are well-justified and do not unduly restrict market access for qualified firms.

What are the potential long-term implications for the H-60M helicopter program if this contract experiences delays or performance issues?

Delays or performance issues with this contract for H-60M CIRCM A-Kits could have significant long-term implications for the helicopter program. The CIRCM system is critical for aircraft survivability, particularly in threat environments. Any disruption in the supply of these kits could impact the operational readiness and deployment capabilities of the H-60M fleet. This could lead to extended maintenance periods, reduced availability of aircraft for training or missions, and potentially increased operational risks for aircrews. Furthermore, significant performance issues might necessitate costly rework, redesign, or a lengthy re-competition process, impacting future modernization efforts and overall program costs.

How does this contract align with broader Department of Defense strategies for enhancing aircraft survivability and electronic warfare capabilities?

This contract directly aligns with broader Department of Defense (DoD) strategies focused on enhancing aircraft survivability and electronic warfare (EW) capabilities. The Common Infrared Countermeasure (CIRCM) system is a key technology designed to protect helicopters and other aircraft from heat-seeking missiles, a persistent threat in modern warfare. By procuring and manufacturing these A-Kits, the Department of the Army is investing in critical defensive technologies that bolster the resilience of its rotary-wing fleet. This procurement supports the DoD's overarching goal of maintaining air superiority and ensuring the safety of aircrews by equipping platforms with advanced countermeasures, thereby contributing to mission success and force protection.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 248 DUNLOP BLVD, HUNTSVILLE, AL, 35824

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,035,994

Exercised Options: $21,035,994

Current Obligation: $21,035,994

Subaward Activity

Number of Subawards: 84

Total Subaward Amount: $16,481,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ19D0045

IDV Type: IDC

Timeline