DoD awards $6.3M contract for aerial recovery kits, with potential for future orders

Contract Overview

Contract Amount: $6,294,400 ($6.3M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-26

End Date: 2026-12-01

Contract Duration: 1,009 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNITED MAINTENANCE AERIAL RECOVERY KIT (UMARLK)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: UNITED MAINTENANCE AERIAL RECOVERY KIT (UMARLK) Key points: 1. Contract value appears reasonable given the specialized nature of aircraft components. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over two years, indicating a sustained need for these kits. 4. The primary contractor has experience in science and engineering services. 5. This contract supports the Department of the Army's aviation readiness. 6. The North American Industry Classification System (NAICS) code points to aircraft manufacturing.

Value Assessment

Rating: good

The contract value of $6.3 million for aerial recovery kits seems within a reasonable range for specialized aviation equipment. Benchmarking against similar contracts for aircraft components or survival gear would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, but the ultimate value depends on the quality and effectiveness of the delivered kits.

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 broad, specific sources were excluded, potentially limiting the number of bidders. Further details on the reasons for exclusion are needed to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The exclusion of certain sources, even with an initial full and open approach, may have reduced competitive pressure, potentially leading to less favorable pricing for taxpayers compared to a truly unrestricted competition.

Public Impact

The primary beneficiaries are U.S. Army aviation personnel who will be equipped with these recovery kits. The kits are intended to enhance safety and survivability during aerial operations. The contract is being performed in Alabama, supporting the local economy. This contract contributes to the readiness and operational capability of Army aviation units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to exclusion of sources.
Lack of detailed performance metrics in the provided data.
Firm fixed-price contracts can sometimes lead to contractor pressure on quality if not adequately monitored.

Positive Signals

Contract awarded to a company with science and engineering expertise.
Full and open competition was the initial framework, suggesting an intent for broad participation.
The contract duration supports sustained operational needs.
The contract is for essential safety equipment for aviation personnel.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government procurement. This contract for aerial recovery kits falls within the aircraft manufacturing sub-sector (NAICS 336411). Spending in this area is driven by military readiness requirements and technological advancements in aviation safety and survival. Comparable spending benchmarks would typically involve other specialized aircraft components or survival equipment contracts within the Department of Defense.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. However, the prime contractor may still engage small businesses as subcontractors, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature of the award provides a degree of cost control. Transparency would be enhanced by public contract data, but detailed performance monitoring and quality assurance processes are internal oversight mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Survival Equipment
Aviation Life Support Equipment
Military Aviation Components
Department of Defense Procurement

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed performance data in the summary.
Need for further analysis on contractor's past performance for similar items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to SCIENCE AND ENGINEERING SERVICES, LLC. UNITED MAINTENANCE AERIAL RECOVERY KIT (UMARLK)

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2024-02-26. End: 2026-12-01.

What is the specific nature of the 'Aircraft Manufacturing' (NAICS 336411) classification for this contract, given it's for recovery kits?

The NAICS code 336411, 'Aircraft Manufacturing,' is a broad classification that encompasses establishments primarily engaged in manufacturing aircraft, aircraft parts, and auxiliary equipment. While the contract is for 'UNITED MAINTENANCE AERIAL RECOVERY KIT (UMARLK),' these kits are considered auxiliary equipment or parts essential for the operation and safety of aircraft. Therefore, the classification is appropriate as it covers the manufacturing of components integral to aircraft systems and their operational support, rather than the complete assembly of an aircraft.

What does 'Full and Open Competition After Exclusion of Sources' specifically entail for this contract?

This contract type, 'Full and Open Competition After Exclusion of Sources,' is a specific method of procurement used by federal agencies. It begins with the intent to solicit offers from all responsible sources (full and open competition). However, specific sources are then excluded from consideration. This exclusion must be justified by the agency, often due to reasons such as national security, proprietary data, or specific technical requirements that only certain entities can meet. While it aims for broad competition initially, the exclusion limits the pool of potential bidders, which can impact price discovery and potentially lead to higher costs for the government compared to unrestricted full and open competition.

What is the track record of SCIENCE AND ENGINEERING SERVICES, LLC in fulfilling similar defense contracts?

Information regarding the specific track record of SCIENCE AND ENGINEERING SERVICES, LLC in fulfilling similar defense contracts for aerial recovery kits is not detailed in the provided data. However, the company's classification under 'Science and Engineering Services' suggests a capability in technical and specialized services. A comprehensive assessment would require reviewing their past performance evaluations, contract history with the Department of Defense, and any reported issues or successes on prior awards of a similar nature or scale.

How does the $6.3 million contract value compare to historical spending on similar aerial recovery kits?

Without specific historical data on spending for identical or highly comparable 'UNITED MAINTENANCE AERIAL RECOVERY KIT (UMARLK)' or similar aviation survival and recovery systems, a direct comparison is difficult. The $6.3 million value is for a period extending to December 2026, encompassing delivery orders. To benchmark this value effectively, one would need to analyze past contracts for similar equipment, considering factors like quantity, technological sophistication, and inflation. The firm fixed-price nature suggests cost certainty, but the value-for-money assessment hinges on the actual performance and longevity of the kits provided.

What are the potential risks associated with the 'limited' competition level indicated by the contract type?

The primary risk associated with 'Full and Open Competition After Exclusion of Sources' is reduced price competition. When specific sources are excluded, the number of potential bidders decreases, which can lessen the pressure on contractors to offer the lowest possible price. This could lead to the government paying more than it might in a scenario with maximum competition. Additionally, the exclusion might inadvertently overlook innovative solutions or more cost-effective approaches from the excluded entities. Ensuring the justification for exclusion is robust and that the remaining bidders are indeed competitive is crucial to mitigate these risks.

What performance metrics or quality assurance measures are likely in place for this contract?

While not explicitly detailed in the provided summary data, firm fixed-price contracts for critical equipment like aerial recovery kits typically include stringent performance metrics and quality assurance (QA) clauses within the contract's statement of work. These would likely cover aspects such as material specifications, durability, functionality under various environmental conditions, and timely delivery. The Department of the Army's quality assurance representatives (QARs) would be responsible for monitoring compliance. Failure to meet these metrics could result in contract remedies, including rejection of goods or financial penalties.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 248 DUNLOP BLVD, HUNTSVILLE, AL, 35824

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,966,114

Exercised Options: $6,294,400

Current Obligation: $6,294,400

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,706,649

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ19D0045

IDV Type: IDC

Timeline