DoD awards $108.6M for CH-47F support to Egypt, with Science and Engineering Services, LLC winning a firm-fixed-price delivery order

Contract Overview

Contract Amount: $10,862,304 ($10.9M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-05

End Date: 2027-10-10

Contract Duration: 1,130 days

Daily Burn Rate: $9.6K/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: CH-47F TOTAL SUPPORT PACKAGE FOREIGN MILITARY SALES REQUIREMENTS FOR EGYPT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: CH-47F TOTAL SUPPORT PACKAGE FOREIGN MILITARY SALES REQUIREMENTS FOR EGYPT Key points: 1. Value for money assessed through firm-fixed-price contract type, aiming to control costs. 2. Competition dynamics indicate a full and open process after source exclusion, suggesting a competitive award. 3. Risk indicators include contract duration and potential for scope creep in foreign military sales. 4. Performance context is tied to sustainment and support for critical aviation assets. 5. Sector positioning within defense aviation manufacturing and support services. 6. The contract's value is significant but should be benchmarked against similar FMS support packages.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, which generally provides good value by capping the government's financial exposure. Benchmarking against similar foreign military sales (FMS) support packages for aviation platforms would provide a clearer picture of value. The total award amount of $108.6 million over approximately three years suggests a substantial but potentially reasonable cost for comprehensive support services for a major aircraft system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while initial sources might have been considered, the final award was made through a broad competitive process. The presence of two bidders suggests a moderate level of competition, which is generally positive for price discovery and ensuring a fair market price.

Taxpayer Impact: A competitive award process, even with two bidders, is beneficial for taxpayers as it helps ensure the government is not overpaying for essential support services.

Public Impact

The primary beneficiary is the government of Egypt, receiving critical support for its CH-47F Chinook fleet. Services delivered include sustainment, maintenance, and logistical support for the aircraft. Geographic impact is primarily in Egypt, ensuring operational readiness of its air assets. Workforce implications may involve specialized technical personnel for aircraft support, potentially benefiting U.S. defense contractors and their employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope expands beyond initial estimates.
Dependence on a single contractor for critical support could pose supply chain risks.
Ensuring timely delivery of parts and services for a foreign military sale can be complex.

Positive Signals

Firm-fixed-price contract type helps manage cost uncertainty.
Award to a company with demonstrated capabilities in aircraft support.
Competitive award process suggests a fair market price was likely achieved.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and support services. The market for such services is substantial, driven by global military modernization and the need to maintain aging fleets. Comparable spending benchmarks would involve analyzing other FMS support contracts for similar heavy-lift helicopters or large military aircraft, considering factors like fleet size and service level agreements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Science and Engineering Services, LLC, is often considered a small business itself. However, the subcontracting opportunities and overall impact on the small business ecosystem would depend on the specific subcontracting plan requirements and the company's utilization of other small businesses for specialized support.

Oversight & Accountability

Oversight will be provided by the Department of the Army, likely through program managers and contracting officers responsible for FMS. Accountability measures are embedded in the firm-fixed-price contract terms and performance requirements. Transparency is generally maintained through contract award databases, though specific performance details might be sensitive for FMS.

Related Government Programs

CH-47F Chinook Helicopter Program
Foreign Military Sales (FMS) Program
Aviation Logistics Support Contracts
Defense Contractor Support Services

Risk Flags

Potential for extended performance period impacting long-term budget planning.
Reliance on foreign military sales introduces geopolitical and logistical complexities.
Aircraft sustainment contracts can be subject to unforeseen technical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to SCIENCE AND ENGINEERING SERVICES, LLC. CH-47F TOTAL SUPPORT PACKAGE FOREIGN MILITARY SALES REQUIREMENTS FOR EGYPT

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 $10.9 million.

What is the period of performance?

Start: 2024-09-05. End: 2027-10-10.

What is the track record of Science and Engineering Services, LLC in supporting CH-47F aircraft or similar military aviation platforms?

A thorough review of Science and Engineering Services, LLC's past performance is crucial. While the award itself suggests they met the criteria, understanding their specific experience with the CH-47F platform, particularly in the context of foreign military sales, would provide greater confidence. This includes examining previous contracts, customer satisfaction ratings, and any documented performance issues or successes. Their ability to manage complex logistics, technical support, and compliance requirements for international clients is a key factor in assessing their suitability for this significant contract.

How does the $108.6 million total value compare to similar CH-47F support packages for other FMS clients?

Benchmarking this $108.6 million award against similar CH-47F support packages for other foreign military sales clients is essential for a comprehensive value assessment. Factors such as the number of aircraft supported, the scope of services (e.g., depot-level maintenance, spare parts provisioning, technical publications, training), contract duration, and the specific economic conditions at the time of award all influence pricing. Without direct comparable data, it's difficult to definitively state if this represents excellent or merely fair value. However, the firm-fixed-price nature suggests an effort to contain costs within a defined scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, delivery delays impacting Egypt's operational readiness, and unforeseen technical challenges with the CH-47F fleet. Mitigation strategies likely involve robust contract management by the Department of the Army, clear performance metrics, and defined procedures for addressing technical issues. The firm-fixed-price structure inherently mitigates financial risk for the government, but performance risk remains. Ensuring adequate spare parts availability and managing the complexities of international logistics are also critical risk areas that require proactive management by the contractor.

What is the expected impact of this contract on the operational effectiveness of Egypt's CH-47F fleet?

This contract is expected to significantly enhance the operational effectiveness of Egypt's CH-47F fleet by ensuring the aircraft are properly maintained, repaired, and supplied with necessary parts. Reliable sustainment support is critical for maintaining high readiness rates, extending the service life of the aircraft, and enabling Egypt to effectively conduct its intended missions, whether they are logistical support, troop transport, or other operational requirements. The timely delivery of these support services directly translates to increased availability and reliability of their aviation assets.

How has spending on CH-47F support evolved over the past five years, and does this award align with historical trends?

Analyzing historical spending trends for CH-47F support, both domestically and through FMS, provides context for this $108.6 million award. If previous FMS support packages for similar fleets were in a comparable range and duration, this award aligns with historical patterns. Conversely, a significant deviation might warrant further investigation into the reasons, such as increased demand, new support requirements, or market price fluctuations. Understanding the trajectory of spending helps in forecasting future needs and budget allocations for similar support contracts.

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: $10,862,304

Exercised Options: $10,862,304

Current Obligation: $10,862,304

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $248,619

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