DoD awards $14.5M for Apache helicopter survivability upgrades, with delivery expected by mid-2026

Contract Overview

Contract Amount: $14,518,305 ($14.5M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2023-06-08

End Date: 2026-07-14

Contract Duration: 1,132 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS IS AN AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT COMMON WARNING SYSTEM FOR APACHE HELICOPTERS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: THIS IS AN AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT COMMON WARNING SYSTEM FOR APACHE HELICOPTERS. Key points: 1. Contract focuses on enhancing Apache helicopter survivability through common warning systems. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost overrun risks. 4. Delivery order signifies a specific task within a larger contract vehicle. 5. The contractor, Defense Systems and Solutions, is involved in aircraft parts manufacturing. 6. Project duration extends over 1132 days, indicating a long-term commitment. 7. Geographic location of performance is Alabama.

Value Assessment

Rating: fair

The contract's value of $14.5 million for product improvement is moderate for defense systems. Benchmarking against similar survivability upgrades for other platforms would provide better context. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain reasonable and the fixed fee is justified by the effort. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award suggests an attempt at fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 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, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing than true full and open competition. The number of bidders is not specified, making it difficult to fully assess the extent of competition.

Taxpayer Impact: The exclusion of sources, even if justified, may have limited the potential for the most competitive pricing, potentially impacting taxpayer value compared to a fully open process.

Public Impact

The primary beneficiaries are the U.S. Army, enhancing the survivability of its Apache helicopter fleet. The services delivered involve product improvement and the integration of common warning systems. Geographic impact is concentrated in Alabama, where the work will be performed. Workforce implications include skilled labor in manufacturing and systems integration within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns if not managed diligently.
The 'exclusion of sources' in the competition method warrants further investigation into potential limitations on competitive pricing.
Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and value of the product improvement.

Positive Signals

Awarded through a competitive process, suggesting an effort to secure fair market pricing.
The contract addresses critical survivability needs for a key military asset (Apache helicopters).
The contractor operates within the relevant industry (Aircraft Parts and Auxiliary Equipment Manufacturing).

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for military aircraft upgrades and survivability systems is substantial, driven by ongoing modernization efforts and the need to maintain technological superiority. Comparable spending benchmarks would involve looking at other product improvement contracts for major military platforms, considering factors like system complexity and platform type. The $14.5 million value is within the typical range for significant component upgrades.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Without this detail, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often utilize small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be enforced through contract clauses, performance reviews, and financial audits, particularly given the Cost Plus Fixed Fee structure. Transparency is facilitated by contract databases like FPDS, though detailed cost breakdowns and performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Apache Helicopter Modernization Programs
Avionics and Electronic Warfare Systems
Defense Logistics Agency (DLA) Contracts
Aircraft Component Manufacturing
U.S. Army Aviation and Missile Command (AMCOM) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition due to 'exclusion of sources' may impact price discovery.
Lack of detailed performance metrics hinders full value assessment.
Contractor-specific performance history not readily available for deep risk analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to DEFENSE SYSTEMS AND SOLUTIONS. THIS IS AN AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT COMMON WARNING SYSTEM FOR APACHE HELICOPTERS.

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 $14.5 million.

What is the period of performance?

Start: 2023-06-08. End: 2026-07-14.

What is the specific nature of the 'common warning system' being improved, and what are the expected enhancements to Apache helicopter survivability?

The provided data describes the contract as being for an 'AIRCRAFT SURVIVABILITY PRODUCT IMPROVEMENT COMMON WARNING SYSTEM FOR APACHE HELICOPTERS.' While the exact technical specifications of the 'common warning system' are not detailed, it likely refers to systems that alert pilots to threats such as incoming missiles (e.g., radar warning receivers, missile approach warning systems, or countermeasures). Product improvements suggest upgrades to existing systems to enhance their detection capabilities, reduce false alarms, improve reliability, or integrate new threat data. The goal is to increase the survivability of the Apache helicopter by providing pilots with earlier and more accurate warnings, allowing them more time to take evasive action or deploy countermeasures, thereby reducing the risk of aircraft loss and pilot casualties in combat environments.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type compare to other defense contract types in terms of risk and potential value for money?

Cost Plus Fixed Fee (CPFF) contracts are common in defense acquisition, particularly for research, development, and complex system integration where the scope of work may evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost is not fixed upfront. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but can lead to higher costs if not managed stringently. For value for money, CPFF can be effective when the scope is uncertain, allowing for necessary adjustments. However, it requires robust government oversight to control costs and ensure the fixed fee remains appropriate for the effort expended. FFP contracts generally offer better price certainty for the government but are less suitable for high-risk R&D efforts.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the competitive landscape for this contract?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a specific procurement strategy. It means that the solicitation was made available to all responsible sources capable of meeting the requirements, but certain potential sources were intentionally excluded prior to or during the solicitation process. The reasons for exclusion are typically based on specific criteria outlined in the solicitation, such as past performance, technical capabilities, or security requirements. While it aims for broad competition, the exclusion implies that the field of bidders was narrowed from the outset. This can be a valid approach when specific expertise or capabilities are critical and only a limited number of contractors possess them. However, it may result in less price competition compared to a scenario where all potential bidders were allowed to participate without prior exclusion.

What is the historical spending pattern for Apache helicopter survivability upgrades, and how does this $14.5M award fit within that context?

Historical spending on Apache helicopter survivability upgrades has been significant, reflecting the platform's long service life and evolving threat landscape. The U.S. Army has consistently invested in enhancing the survivability of its Apache fleet through various programs, including upgrades to sensors, electronic warfare suites, and defensive systems. Awards for such improvements can range from several million to tens or even hundreds of millions of dollars, depending on the scope and complexity of the upgrade (e.g., a single component improvement versus a full suite integration). This $14.5 million award for a 'common warning system product improvement' appears to be a mid-sized investment focused on a specific aspect of survivability. It aligns with ongoing efforts to maintain and enhance the Apache's combat effectiveness, fitting into a broader pattern of continuous upgrades rather than a singular, large-scale modernization initiative.

What are the potential risks associated with the contractor, Defense Systems and Solutions, based on publicly available information?

Publicly available information on Defense Systems and Solutions (DSS) is limited, making a comprehensive risk assessment challenging. As a contractor operating in the defense sector, potential risks often revolve around performance, delivery schedules, and cost control, especially under CPFF contracts. Without specific details on DSS's track record with similar product improvement contracts, past performance issues, or financial stability, it's difficult to pinpoint unique risks associated with this particular contractor. However, any contractor undertaking defense system upgrades faces inherent risks related to technological complexity, integration challenges, and adherence to stringent military specifications. The 'exclusion of sources' in the award process might suggest that only a few entities were deemed capable, potentially concentrating risk if DSS were to underperform.

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: $14,518,305

Exercised Options: $14,518,305

Current Obligation: $14,518,305

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $7,442,170

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