DoD awards $12.35M for King Air 360 integration, raising questions on value and competition

Contract Overview

Contract Amount: $12,351,743 ($12.4M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2026-06-12

Contract Duration: 995 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PERU KING AIR 360 INTEGRATION

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: PERU KING AIR 360 INTEGRATION Key points: 1. Contract value appears high relative to the scope of integration services. 2. Limited competition may have inflated pricing and reduced taxpayer value. 3. Potential risks include schedule delays and cost overruns due to integration complexity. 4. Performance context is limited, making it difficult to assess contractor effectiveness. 5. This contract falls within the aerospace manufacturing sector, specifically aircraft modification. 6. The sole-source nature of the award warrants scrutiny for potential cost inefficiencies.

Value Assessment

Rating: questionable

The $12.35 million contract for the integration of the PERU KING AIR 360 is difficult to benchmark without specific details on the integration scope. However, given the nature of aircraft integration, this amount could represent a significant investment. A comparison to similar integration projects for this aircraft type or comparable platforms would be necessary to determine if the pricing is competitive. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost escalation if not managed tightly, potentially impacting overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a complex designation that often implies a sole-source justification was made after initial attempts at broader competition. The fact that only one offer was solicited suggests a lack of robust competition. This limited competition environment can lead to less favorable pricing for the government as the contractor faces minimal pressure to offer the most competitive bid.

Taxpayer Impact: The limited competition for this contract means taxpayers may not have received the best possible price. Without multiple bids, the government lacks leverage to negotiate down costs, potentially leading to overspending on this integration effort.

Public Impact

The primary beneficiaries are likely the Department of the Army, receiving an integrated King Air 360 aircraft for its operations. The service delivered is the integration of specific systems and modifications onto the King Air 360 platform. The geographic impact is centered around the contractor's facility in Alabama (AL) and potentially the operational deployment area of the aircraft. Workforce implications include specialized engineering and technical roles required for aircraft integration, potentially supporting skilled labor in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially inflates costs.
CPFF contract type can incentivize cost overruns if not rigorously overseen.
Lack of detailed performance metrics makes assessing contractor efficiency challenging.
The 'exclusion of sources' designation requires further investigation into the justification for limited competition.

Positive Signals

Contract awarded to SCIENCE AND ENGINEERING SERVICES, LLC, which may have specific expertise in this type of integration.
The contract duration of 995 days suggests a comprehensive integration plan.
The award is for a specific aircraft model (King Air 360), indicating a focused requirement.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and integration. The market for such specialized services is often characterized by a limited number of highly skilled contractors. Comparable spending benchmarks for similar integration projects on mid-size turboprop aircraft would be necessary for a thorough assessment, but such projects can range from hundreds of thousands to several million dollars depending on complexity.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award. There is no indication of a small business set-aside. This means that larger, established firms were likely the target or sole participants. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if the prime contractor engages them for specific components or services.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would involve regular progress reviews, cost tracking, and performance evaluations against contract milestones. Transparency is moderate, as contract details are publicly available, but the specifics of the 'exclusion of sources' justification and detailed cost breakdowns may be less accessible.

Related Government Programs

Aircraft Modification Programs
Specialized Aviation Services
Defense Logistics Agency (DLA) Aviation Support
Air Force Sustainment Center Contracts
Naval Air Systems Command (NAVAIR) Contracts

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Lack of Detailed Scope Definition
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to SCIENCE AND ENGINEERING SERVICES, LLC. PERU KING AIR 360 INTEGRATION

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 $12.4 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-06-12.

What specific systems or modifications are included in the PERU KING AIR 360 integration, and how does this define the scope of work?

The provided data does not detail the specific systems or modifications encompassed by the 'PERU KING AIR 360 INTEGRATION.' This integration likely refers to the incorporation of specialized mission equipment, communication systems, avionics upgrades, or operational enhancements tailored to the U.S. Army's requirements for the King Air 360 platform. The scope could range from basic avionics modernization to the integration of advanced sensor suites or command and control capabilities. Understanding these specifics is crucial for evaluating the contract's value and the appropriateness of the $12.35 million cost. Without this information, it's challenging to benchmark against similar integration efforts or assess potential risks associated with the complexity of the work.

What was the justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' and why was only one offer solicited?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically indicates that the agency initially intended to compete the requirement broadly but subsequently determined that only one source could meet the needs. This often occurs when a specific technology, unique capability, or proprietary system is required, or when urgent and compelling circumstances necessitate a sole source. The justification would need to articulate why other potential sources were excluded and why the selected contractor is uniquely qualified. The solicitation of only one offer suggests that, after the exclusion process, the agency identified a single viable bidder. This raises concerns about whether the exclusion was truly warranted or if it unnecessarily limited competition, potentially impacting price and innovation.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives for this integration project?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For the government, this structure can be advantageous when the scope of work is not precisely defined or is expected to evolve, as it allows for flexibility. However, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable and allocable. Contractor incentives under CPFF are primarily driven by completing the work within the estimated cost to avoid impacting the fixed fee, but there's less inherent incentive to aggressively reduce costs compared to fixed-price contracts. Effective oversight, robust cost accounting standards, and clear performance metrics are essential to mitigate the risk of cost overruns and ensure value for money.

What is the track record of SCIENCE AND ENGINEERING SERVICES, LLC in performing similar aircraft integration contracts for the Department of Defense?

Information regarding the specific track record of SCIENCE AND ENGINEERING SERVICES, LLC in performing similar aircraft integration contracts for the Department of Defense is not detailed in the provided data. A thorough assessment would require examining the company's past performance evaluations, contract history, and any reported issues or successes on comparable projects. Key areas to investigate would include their experience with the King Air platform, the complexity of systems integrated, adherence to schedules, cost control performance, and overall customer satisfaction ratings from previous government contracts. Without this background information, it is difficult to definitively assess their capability and reliability for this specific $12.35 million integration effort.

Are there any comparable integration projects for the King Air 360 or similar aircraft that can serve as a benchmark for this contract's value?

Benchmarking the $12.35 million value of this King Air 360 integration contract requires access to data on similar projects. Comparable projects might include other King Air 360 modifications, integration efforts on similar mid-size turboprop aircraft (e.g., Beechcraft King Air variants, Cessna Caravan, Pilatus PC-12), or specialized mission equipment installations. Factors influencing cost include the type and complexity of systems being integrated (e.g., advanced avionics, ISR payloads, communication suites), the extent of structural modifications, and the specific requirements of the end-user agency. Without publicly available data on such comparable contracts, assessing whether $12.35 million represents a fair market price or an inflated cost is challenging. Further research into defense contract databases and industry reports would be needed.

What are the primary risks associated with integrating new systems into an existing aircraft platform like the King Air 360, and how are they being mitigated?

Integrating new systems into an existing aircraft platform like the King Air 360 presents several inherent risks. These include technical integration challenges (ensuring compatibility between new and existing hardware/software), potential impacts on aircraft performance and airworthiness, schedule delays due to unforeseen technical issues or rework, and cost overruns if integration proves more complex than initially estimated. Risks also extend to the potential for electromagnetic interference between systems and the need for extensive testing and validation. Mitigation strategies typically involve detailed system engineering, thorough risk assessments during the design phase, phased integration and testing, robust project management, and contingency planning. The CPFF contract type suggests some flexibility for managing unforeseen issues, but close government oversight is critical to ensure risks are actively managed and do not lead to significant cost or schedule impacts.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $12,351,743

Exercised Options: $12,351,743

Current Obligation: $12,351,743

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,434,914

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