DoD's $14.4M contract for ANG aviation support shows strong competition, but value needs scrutiny

Contract Overview

Contract Amount: $14,398,670 ($14.4M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2023-12-05

End Date: 2026-12-01

Contract Duration: 1,092 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: U.S. AIR NATIONAL GUARD (ANG) AVIATION AND AEROSPACE FLIGHT AND ENGINEERING SUPPORT TO PERSONNEL RECOVERY AND SPECIAL OPS FORCES SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: U.S. AIR NATIONAL GUARD (ANG) AVIATION AND AEROSPACE FLIGHT AND ENGINEERING SUPPORT TO PERSONNEL RECOVERY AND SPECIAL OPS FORCES SERVICES Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears reasonable when benchmarked against similar specialized aviation support services. 3. Potential risks include contractor performance and the specialized nature of the services required. 4. This contract supports critical personnel recovery and special operations forces, highlighting its strategic importance. 5. The awardee, Defense Systems and Solutions, has a track record in defense contracting. 6. The contract's duration and scope suggest a significant commitment to ongoing support.

Value Assessment

Rating: good

The contract's total value of approximately $14.4 million over three years appears reasonable given the specialized nature of aviation and aerospace engineering support for personnel recovery and special operations forces. Benchmarking against similar contracts for niche defense support services suggests that the pricing is competitive. However, a detailed cost breakdown and comparison of specific labor rates and overhead would be necessary for a more definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring to ensure cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the initial solicitation might have had some exclusions, the final award was made after a broad competitive process. The specific number of bidders is not provided, but the 'full and open' designation suggests multiple interested parties were considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple contractors.

Public Impact

Personnel recovery and special operations forces directly benefit from enhanced aviation and engineering support, improving mission readiness and effectiveness. The services provided are critical for maintaining the operational capability of specialized aircraft used in sensitive missions. The contract's geographic impact is primarily within the U.S. Air National Guard's operational areas, potentially including global deployments. Workforce implications include the need for highly skilled aviation and aerospace engineers, potentially creating specialized job opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the CPFF contract type if not closely managed.
Dependence on a single contractor for highly specialized and critical support services.
Risk of performance issues if the contractor lacks sufficient expertise or resources for the unique requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Contract supports critical national security missions related to personnel recovery and special operations.
The contractor, Defense Systems and Solutions, has experience in the defense sector.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on specialized aviation support and engineering services. The market for such niche services is often characterized by a limited number of highly qualified contractors. Comparable spending benchmarks would typically involve other contracts for aircraft maintenance, modification, and specialized engineering support for military aviation assets. The total contract value of $14.4 million is moderate for a multi-year defense support contract.

Small Business Impact

The provided data indicates that small business participation (sb) is false and that there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established defense contractors were likely the primary participants. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting these critical defense functions.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Air National Guard and the Department of the Army, given their roles in the award. Accountability measures would be embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated by the contract's public availability, but detailed cost and performance data may be subject to security restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air National Guard Aviation Support Contracts
Special Operations Forces Support Services
Personnel Recovery Mission Support
Aerospace Engineering Services Contracts
Defense Contractor Performance Monitoring

Risk Flags

Contract Type Risk (CPFF)
Specialized Service Dependency
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to DEFENSE SYSTEMS AND SOLUTIONS. U.S. AIR NATIONAL GUARD (ANG) AVIATION AND AEROSPACE FLIGHT AND ENGINEERING SUPPORT TO PERSONNEL RECOVERY AND SPECIAL OPS FORCES SERVICES

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 $14.4 million.

What is the period of performance?

Start: 2023-12-05. End: 2026-12-01.

What is the track record of Defense Systems and Solutions in delivering similar aviation and aerospace engineering support services to military branches?

Defense Systems and Solutions (DS&S) has a history of providing various support services to the U.S. military. While specific details on their aviation and aerospace engineering support for personnel recovery and special operations forces are not fully elaborated in the provided data, DS&S has been involved in defense contracting across different domains. Their experience likely includes logistics, technical support, and potentially specialized engineering services. A deeper dive into their past performance on similar contracts, including client feedback and any past performance issues or commendations, would be crucial for a comprehensive assessment of their capability to meet the demanding requirements of this specific Air National Guard contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar specialized defense support contracts, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracting, particularly for services where the scope of work can evolve or is difficult to precisely define upfront, such as specialized engineering and support. This structure allows the contractor to recover all allowable costs plus a predetermined fixed fee representing their profit. While it offers flexibility, it carries inherent risks for the government, primarily related to cost control. If not rigorously managed and monitored, CPFF contracts can lead to cost overruns as the contractor may have less incentive to control expenses compared to fixed-price contracts. Benchmarking against similar CPFF contracts for specialized aviation support would reveal if the fixed fee and anticipated costs are within market norms. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate the risks associated with this contract type.

What specific performance metrics or Key Performance Indicators (KPIs) are included in the contract to measure the effectiveness of the aviation and aerospace engineering support?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) established within this contract. However, for a contract of this nature supporting personnel recovery and special operations forces, KPIs would typically focus on critical areas such as aircraft availability rates, response times for engineering support, quality of maintenance and repair, adherence to safety standards, and successful completion of specialized mission-related tasks. The effectiveness of the support is paramount given the high-stakes nature of the operations. The contract likely includes clauses for performance reviews, potential incentives for exceeding targets, and penalties for failing to meet minimum standards. A thorough review of the contract's statement of work and performance requirements would be necessary to ascertain these specific measures.

What is the historical spending pattern for aviation and aerospace flight and engineering support services by the U.S. Air National Guard or similar units?

Historical spending patterns for aviation and aerospace flight and engineering support services by the U.S. Air National Guard (ANG) and similar units within the Department of Defense (DoD) can vary significantly based on mission requirements, fleet size, and modernization efforts. While specific aggregate data for the ANG's personnel recovery and special ops support is not provided, the DoD as a whole expends billions annually on aviation maintenance, sustainment, and specialized engineering services. Contracts for such support are often multi-year and can range from millions to hundreds of millions of dollars, depending on the scope and duration. Analyzing past contracts for similar services, including those awarded to other branches or for different specialized units, can provide context. Factors like the introduction of new aircraft platforms or changes in operational tempo can also influence historical spending trends in this sector.

Are there any identified risks related to the contractor's financial stability or capacity to handle the demands of this long-term, specialized support contract?

The provided data does not include specific information regarding the financial stability or capacity of Defense Systems and Solutions (DS&S) to handle this contract. However, for any significant defense contract, especially one involving specialized services and a duration of over three years, agencies typically conduct thorough pre-award assessments of the contractor's financial health, management capabilities, and technical resources. This includes reviewing financial statements, past performance records, and capacity planning. While DS&S is an established entity in defense contracting, potential risks could arise if the company faces significant financial challenges or if the demands of this contract strain their resources, particularly given the specialized nature of supporting personnel recovery and special operations aviation. Further due diligence on DS&S's current financial standing and operational capacity would be prudent.

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: $19,618,409

Exercised Options: $14,398,670

Current Obligation: $14,398,670

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $7,649,325

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