DoD Awards $27.4M for Apache Support & Aircraft Survivability, Boosting Defense Systems & Solutions

Contract Overview

Contract Amount: $27,450,627 ($27.5M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2022-11-07

End Date: 2027-04-30

Contract Duration: 1,635 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT (ASPI) AND APACHE SUPPORT.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT (ASPI) AND APACHE SUPPORT. Key points: 1. The contract focuses on critical aircraft survivability and support for the Apache platform. 2. Defense Systems and Solutions secured this award, indicating their role in specialized defense manufacturing. 3. The award value of $27.4M is significant for this niche product category. 4. Competition was full and open after exclusion of sources, suggesting a structured procurement process.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This is common for development or specialized services where final costs are uncertain. The award amount of $27.4M appears reasonable for product improvement and support of a major defense platform.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'full and open competition after exclusion of sources.' This implies that while the competition was open, certain sources were initially excluded, possibly due to specific technical requirements or prior relationships. The price discovery mechanism is likely robust given the open competition.

Taxpayer Impact: Taxpayer funds are being allocated to enhance critical defense capabilities, ensuring the effectiveness and longevity of Apache helicopters.

Public Impact

Enhances the survivability of vital military aircraft, directly impacting soldier safety and mission success. Supports the operational readiness of the Apache attack helicopter fleet, a key asset for the U.S. Army. Invests in specialized defense manufacturing capabilities, potentially fostering innovation in related technologies. The long performance period (2022-2027) suggests a sustained need for these product improvements and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
Dependence on a single contractor for critical product improvements.
Long contract duration may not adapt quickly to evolving threats or technologies.

Positive Signals

Addresses critical survivability needs for a key military platform.
Utilizes a competitive procurement process to ensure value.
Supports ongoing modernization and readiness of the Apache fleet.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for similar product improvement contracts can vary widely based on complexity and platform.

Small Business Impact

The data indicates that small businesses were not directly involved as prime contractors in this specific award. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The Department of Defense, specifically the Department of the Army, is the awarding agency. Oversight would typically involve program managers and contracting officers ensuring performance, cost control, and adherence to contract terms throughout the period of performance.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Exclusion of sources in competition.
Sole prime contractor for critical improvements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to DEFENSE SYSTEMS AND SOLUTIONS. AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT (ASPI) AND APACHE SUPPORT.

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 $27.5 million.

What is the period of performance?

Start: 2022-11-07. End: 2027-04-30.

What specific survivability enhancements are being implemented, and what is the projected impact on threat mitigation?

The contract details do not specify the exact survivability enhancements. However, product improvements in this area typically involve upgrades to armor, electronic warfare systems, or countermeasure capabilities. The projected impact is to increase the Apache's resilience against modern threats, thereby reducing aircraft losses and improving mission completion rates in contested environments.

How does the Cost Plus Fixed Fee structure mitigate risks associated with potential cost overruns for the government?

While Cost Plus Fixed Fee contracts inherently carry risk of cost overruns, the government mitigates this through stringent oversight, detailed cost tracking, and negotiation of a reasonable fixed fee. The fee is fixed, meaning it doesn't increase if costs rise, incentivizing the contractor to manage expenses. Regular audits and performance reviews are crucial for controlling costs.

What is the long-term strategy for ensuring the Apache's survivability beyond this contract's scope?

This contract addresses immediate product improvements and support. The long-term strategy likely involves continuous threat assessment, research and development into next-generation survivability technologies, and potentially future contract awards for further upgrades or replacements. The Army's aviation modernization plan would outline these broader objectives.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD 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: $27,450,627

Exercised Options: $27,450,627

Current Obligation: $27,450,627

Actual Outlays: $-0

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,463,617

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