DoD's $9.96M contract for Ground Based Sense and Avoid System operations support awarded to Defense Systems and Solutions

Contract Overview

Contract Amount: $9,961,531 ($10.0M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2024-05-03

End Date: 2026-12-18

Contract Duration: 959 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: GROUND BASED SENSE AND AVOID SYSTEM (GBSAA) OPERATIONS SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: GROUND BASED SENSE AND AVOID SYSTEM (GBSAA) OPERATIONS SUPPORT Key points: 1. The contract value of $9.96 million for operations support suggests a focus on sustaining existing capabilities rather than new development. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, but with specific pre-qualified vendors. 3. The 'COST PLUS FIXED FEE' contract type carries inherent risk of cost overruns, requiring robust oversight. 4. The duration of 959 days (approximately 2.6 years) indicates a medium-term commitment for ongoing support. 5. The North American Industry Classification System (NAICS) code 336413 points to a specialized segment within aircraft parts manufacturing. 6. The award to Defense Systems and Solutions, a known entity in defense contracting, suggests a reliance on established expertise.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the 'operations support' provided. However, the Cost Plus Fixed Fee (CPFF) structure inherently allows for cost growth, which can impact overall value if not managed tightly. Comparing this to similar contracts for system sustainment would be necessary to determine if the pricing is competitive. The fixed fee component provides some cost certainty for the contractor's profit, but the variable cost component requires diligent monitoring by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This means that while the competition was open, only certain sources were eligible to bid, likely due to specific technical qualifications or prior performance requirements. The number of bidders is not specified, but the exclusion of sources suggests a more limited pool than a truly open competition, potentially impacting price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure qualified vendors, but the exclusion of sources may limit the potential for the lowest possible price compared to a fully open bid.

Public Impact

This contract directly supports the operational readiness and sustainment of Ground Based Sense and Avoid Systems (GBSAA) for the Department of the Army. The services provided are crucial for ensuring the safe and effective operation of aircraft, particularly in complex airspace or testing environments. The geographic impact is likely concentrated around Army installations or testing ranges where these systems are deployed and maintained. Workforce implications may include the need for specialized technical personnel for system maintenance, calibration, and operational support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Exclusion of sources in the competition limits the bidder pool, potentially affecting price competitiveness.
The specific nature of 'operations support' requires clear performance metrics to ensure value for money.

Positive Signals

Award to an established defense contractor suggests a higher likelihood of successful execution.
The competitive nature, even with exclusions, aims to ensure a reasonable price and quality.
The contract duration provides stability for the program and the supporting contractor.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically supporting specialized aircraft systems. The market for such operational support is often characterized by a limited number of highly qualified contractors due to the technical expertise and security clearances required. Spending in this area is driven by the need for continuous system readiness and upgrades to maintain technological superiority and operational safety.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. Given the specialized nature of GBSAA operations support and the likely prime contractor, the direct impact on small businesses may be limited unless they are part of the supply chain or subcontracted by Defense Systems and Solutions.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will be critical, focusing on the allowability, allocability, and reasonableness of costs incurred. The Department of the Army will likely assign contracting officers' representatives (CORs) to monitor performance and expenditures. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Systems Maintenance
Defense Logistics Support
Avionics and Navigation Equipment
Aerospace Engineering Services
Military Operations Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Limited competition due to source exclusion may impact price competitiveness.
Need for clear performance metrics to ensure value for money in 'operations support'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to DEFENSE SYSTEMS AND SOLUTIONS. GROUND BASED SENSE AND AVOID SYSTEM (GBSAA) OPERATIONS 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 $10.0 million.

What is the period of performance?

Start: 2024-05-03. End: 2026-12-18.

What specific services constitute 'operations support' for the Ground Based Sense and Avoid System (GBSAA)?

The term 'operations support' for the GBSAA likely encompasses a range of activities critical to maintaining the system's functionality and readiness. This could include routine maintenance, diagnostic testing, calibration of sensors and software, software updates and patches, troubleshooting of system malfunctions, and potentially on-site technical assistance during operational deployments or testing phases. It may also involve managing spare parts inventory, ensuring compliance with operational protocols, and providing training to end-users or maintenance personnel. The precise scope would be detailed in the contract's Statement of Work (SOW), outlining deliverables, performance standards, and reporting requirements to ensure the GBSAA remains a reliable asset for the Department of the Army.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type compare to other pricing arrangements for similar defense support services?

The CPFF structure is common in defense contracts where the scope of work may be difficult to define precisely upfront, or where innovation and flexibility are required. Unlike fixed-price contracts, CPFF allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. This shifts some cost risk to the government, as the total contract cost can exceed initial estimates if costs escalate. Compared to Cost Plus Incentive Fee (CPIF), where the fee can be adjusted based on performance against targets, or Cost Plus Award Fee (CPAF), where the fee is based on subjective performance evaluations, CPFF offers the most straightforward profit calculation but requires stringent cost control and oversight from the government to prevent overspending. For routine, well-defined support, fixed-price contracts might offer better value, but for evolving or complex operational support, CPFF can facilitate necessary adjustments.

What are the potential risks associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

This contract type, while competitive, introduces specific risks. The 'exclusion of sources' means that only a pre-selected group of potential bidders were allowed to compete. This pre-selection is typically based on stringent qualifications, past performance, or specific technological capabilities. The primary risk is that by limiting the pool of bidders, the government may not receive the most competitive pricing achievable in a truly open market. There's also a risk that innovative solutions from excluded, potentially smaller or less established, companies are not considered. Furthermore, the justification for excluding sources needs to be robust to ensure fairness and prevent potential protests. While it aims to ensure qualified bidders, it can inadvertently reduce the breadth of competition and potentially increase costs for the taxpayer if the excluded pool was not sufficiently diverse or competitive.

What is the typical track record of Defense Systems and Solutions in providing similar operational support?

Defense Systems and Solutions (DSS) is a known entity within the defense contracting landscape, often involved in providing a range of services including logistics, technical support, and systems integration for military platforms. While specific details on their track record for GBSAA operations support would require a deep dive into contract databases and performance reviews, their continued presence in the market suggests a history of successful contract execution. Companies like DSS typically leverage their experience with similar complex systems and government contracting processes. Their ability to win contracts, especially those requiring specialized knowledge, indicates a level of competence. However, as with any contractor, a thorough review of past performance, including any past issues or CPARS (Contractor Performance Assessment Reporting System) ratings, would be necessary for a complete assessment.

How does the $9.96 million contract value compare to historical spending on GBSAA or similar systems?

Without specific historical spending data for GBSAA operations support, a direct comparison is difficult. However, $9.96 million over approximately 2.6 years (959 days) translates to an average annual value of roughly $3.8 million. This figure needs to be contextualized by the complexity and criticality of the GBSAA. If GBSAA is a highly specialized and essential system for Army aviation safety and operations, this annual spend might be considered moderate. If it's a less critical or more standardized system, it could be on the higher side. Benchmarking against contracts for similar operational sustainment of complex defense systems (e.g., radar systems, communication suites, or other safety-critical avionics) would provide a more meaningful comparison point to assess if this contract represents typical or outlier spending.

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: $20,777,096

Exercised Options: $9,961,531

Current Obligation: $9,961,531

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,320,928

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