DoD Awards $1.65 Billion for C-130 Firefighting System Upgrades, Facing Limited Competition

Contract Overview

Contract Amount: $16,545,492 ($16.5M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2024-04-12

End Date: 2027-04-16

Contract Duration: 1,099 days

Daily Burn Rate: $15.1K/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 V.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: C-130 IMPROVED MODULAR AIRBORNE FIRE FIGHTING SYSTEM (IMAFFS) PHASE V. Key points: 1. Significant investment in critical C-130 firefighting capabilities. 2. Competition was limited, raising questions about price discovery. 3. Potential risks include cost overruns and integration challenges. 4. Spending aligns with defense sector modernization efforts.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which offers less price certainty than fixed-price contracts. The award amount is substantial, and without detailed cost breakdowns, it's difficult to benchmark against similar upgrades.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited number of bidders. This method can restrict price competition and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price for this significant investment.

Public Impact

Enhances critical aerial firefighting capabilities for the U.S. military. Supports the modernization of aging C-130 aircraft fleets. Potential for improved response times and effectiveness in wildfire suppression.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type
Lack of small business participation

Positive Signals

Critical capability upgrade
Modernization of key assets

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and specialized equipment. Spending benchmarks for similar C-130 upgrades can vary widely based on the scope of work.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to leverage the capabilities of smaller businesses within the defense supply chain.

Oversight & Accountability

The 'EXCLUSION OF SOURCES' clause warrants further scrutiny to understand the justification for limiting competition and ensure adequate oversight of the contractor's performance and costs.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Cost-plus contract type increases financial risk.
No small business participation noted.
Potential for cost overruns due to contract type.
Justification for source exclusion requires review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to DEFENSE SYSTEMS AND SOLUTIONS. C-130 IMPROVED MODULAR AIRBORNE FIRE FIGHTING SYSTEM (IMAFFS) PHASE V.

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 $16.5 million.

What is the period of performance?

Start: 2024-04-12. End: 2027-04-16.

What is the specific justification for excluding sources in this full and open competition, and how does it impact overall value?

The justification for excluding sources needs to be clearly documented and publicly accessible. Typically, such exclusions are based on proprietary technology, unique capabilities, or specific security requirements. Without this information, it's challenging to assess if the limited competition truly served the government's best interest or if it unnecessarily restricted the potential for better pricing and innovation.

What are the key performance metrics and risk mitigation strategies for this Cost Plus Fixed Fee contract?

Given the Cost Plus Fixed Fee structure, robust oversight is crucial. Key performance metrics should focus on timely delivery, system integration success, and adherence to technical specifications. Risk mitigation strategies should address potential cost overruns through stringent financial tracking, independent cost reviews, and clear change order management processes to ensure taxpayer funds are used efficiently.

How will the effectiveness of the Improved Modular Airborne Firefighting System (IMAFFS) Phase V be measured post-deployment?

Measuring the effectiveness of the IMAFFS Phase V requires defining clear, quantifiable metrics. This could include response times, volume of water/retardant deployed, successful mission completion rates in various conditions, and feedback from operational units. Post-deployment analysis should compare these metrics against pre-upgrade performance and stated program objectives to validate the investment's value.

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: $16,545,492

Exercised Options: $16,545,492

Current Obligation: $16,545,492

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $464,885

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