DoD awards $8.89M contract for UH-60M helicopter unique configuration for Slovakia

Contract Overview

Contract Amount: $8,887,707 ($8.9M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2024-04-25

End Date: 2026-04-18

Contract Duration: 723 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PERSONNEL, MATERIALS, FACILITIES, SERVICES, AND SUPPORT REQUIRED TO DESIGN, MODIFY, VERIFY, AND DOCUMENT SYSTEM PERFORMANCE AND AIRWORTHINESS TO DELIVER UTILITY HELICOPTER (UH)-60M AIRCRAFT IN THE UNIQUE CONFIGURATION FOR THE SLOVAK REPUBLIC.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: THE PERSONNEL, MATERIALS, FACILITIES, SERVICES, AND SUPPORT REQUIRED TO DESIGN, MODIFY, VERIFY, AND DOCUMENT SYSTEM PERFORMANCE AND AIRWORTHINESS TO DELIVER UTILITY HELICOPTER (UH)-60M AIRCRAFT IN THE UNIQUE CONFIGURATION FOR THE SLOVAK REPUBLIC. Key points: 1. Contract awarded to Defense Systems and Solutions for specialized helicopter modifications. 2. Focus on unique configuration for a foreign military sale, not standard domestic use. 3. Competition was full and open after exclusion of sources, suggesting a specific justification. 4. Contract type is Cost Plus Fixed Fee, which can carry higher cost risk. 5. Delivery order under an existing contract, indicating a potential for follow-on work. 6. Performance period spans over two years, requiring sustained effort. 7. Small business participation is not explicitly detailed, but the prime contractor is not a small business.

Value Assessment

Rating: fair

The contract value of $8.89 million for specialized helicopter modifications appears reasonable given the unique nature of the request for a foreign military sale. However, without specific benchmarks for similar foreign military sales of UH-60M unique configurations, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns compared to fixed-price contracts, though it allows for flexibility in scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while competition was sought, specific sources were excluded, likely due to specialized knowledge or capabilities required for this unique configuration. The exact number of bidders is not provided, but the limited nature of the competition suggests fewer than a broad, unrestricted solicitation.

Taxpayer Impact: The limited competition may result in less aggressive pricing than a fully open bid, potentially increasing costs for taxpayers if the excluded sources could have offered a more competitive price.

Public Impact

The primary beneficiary is the Slovak Republic, receiving a customized UH-60M helicopter. Services delivered include design, modification, verification, and documentation for airworthiness. The geographic impact is international, supporting a NATO ally. Workforce implications are likely within the specialized aerospace engineering and modification sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher final costs than fixed-price agreements.
Competition was limited after exclusion of sources, potentially impacting price competitiveness.
The contract is for a unique configuration, making direct cost comparisons difficult.
The prime contractor is not a small business, and subcontracting details are not specified.

Positive Signals

Contract awarded to a known defense systems provider.
Competition was sought, even if limited, indicating an effort to find qualified vendors.
The contract supports a foreign military sale, aligning with US foreign policy and defense cooperation objectives.
The work involves specialized technical expertise for aircraft modification and airworthiness.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft modification and parts. The market for specialized military aircraft modifications is driven by defense budgets, international partnerships, and evolving technological requirements. While the overall market for aircraft parts is substantial, contracts for unique foreign military configurations represent a niche segment.

Small Business Impact

The prime contractor, Defense Systems and Solutions, is not a small business. The contract does not indicate any specific small business set-aside provisions. Information regarding subcontracting opportunities for small businesses is not detailed in the provided data, leaving the direct impact on the small business ecosystem unclear.

Oversight & Accountability

Oversight will be managed by the Department of the Army, likely through program managers and contracting officers responsible for ensuring compliance with contract terms and specifications. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to prevent overruns. Transparency is generally maintained through contract award databases, but detailed performance metrics are often not publicly disclosed.

Related Government Programs

Foreign Military Sales Program
UH-60 Black Hawk Helicopter Program
Aerospace Manufacturing and Modification Contracts
Defense Systems and Solutions Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition after exclusion of sources
Unique configuration for foreign military sale
Potential for schedule delays in complex modifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to DEFENSE SYSTEMS AND SOLUTIONS. THE PERSONNEL, MATERIALS, FACILITIES, SERVICES, AND SUPPORT REQUIRED TO DESIGN, MODIFY, VERIFY, AND DOCUMENT SYSTEM PERFORMANCE AND AIRWORTHINESS TO DELIVER UTILITY HELICOPTER (UH)-60M AIRCRAFT IN THE UNIQUE CONFIGURATION FOR THE SLOVAK REPUBLIC.

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 $8.9 million.

What is the period of performance?

Start: 2024-04-25. End: 2026-04-18.

What is the track record of Defense Systems and Solutions with similar foreign military sales contracts?

Defense Systems and Solutions (DSS) has a history of supporting military modernization efforts and foreign military sales. While specific details on their past UH-60M unique configuration contracts for foreign governments are not readily available in public databases, DSS has been involved in various defense support and logistics contracts. Their experience typically includes providing specialized equipment, training, and technical support. To fully assess their track record for this specific type of modification, a deeper dive into their past performance on similar international projects, including client satisfaction and adherence to specifications, would be necessary. This would involve reviewing past performance evaluations and potentially seeking information from the contracting agency regarding their history with DSS on complex international defense procurements.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this kind of specialized modification?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or involves significant uncertainty, such as developing unique configurations for specialized aircraft. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing their profit. This contrasts with fixed-price contracts, where the price is set regardless of the final cost, offering greater cost certainty to the buyer but potentially higher risk for the contractor if costs escalate. For specialized modifications like this, CPFF provides flexibility to adapt to unforeseen technical challenges. However, it shifts more cost risk to the government, as the final price can exceed initial estimates if costs increase. Other options like Cost Plus Incentive Fee (CPIF) could have offered shared cost savings incentives.

What are the primary risks associated with this contract, beyond cost overruns?

Beyond potential cost overruns inherent in the CPFF structure, several risks are associated with this contract. A primary risk is technical: ensuring the modifications meet the unique airworthiness and performance requirements for the Slovak Republic's operational environment, which may differ from standard US military use. There's also a risk related to schedule delays, as complex modifications can encounter unforeseen technical hurdles or supply chain issues for specialized components. Furthermore, geopolitical factors could influence the delivery or ultimate use of the modified aircraft. Ensuring effective technology transfer and sustainment support for the Slovak Republic post-delivery also presents a risk. Finally, the 'exclusion of sources' in the competition, while potentially necessary, carries a risk of not achieving the most optimal price or solution if the excluded parties possessed superior capabilities or more competitive offerings.

What is the historical spending pattern for UH-60M modifications, particularly for foreign military sales?

Historical spending on UH-60M modifications, especially for foreign military sales (FMS), can vary significantly based on the complexity of the required changes and the number of aircraft involved. The UH-60 platform is mature, but upgrades and specific configurations for international partners often involve unique avionics, communication systems, or mission equipment tailored to their operational needs and interoperability requirements. FMS contracts for such modifications can range from hundreds of thousands to tens of millions of dollars per aircraft, depending on the scope. While this $8.89 million contract appears to be for a single aircraft or a small batch with specific customizations, larger FMS deals for fleets of UH-60s with extensive modifications have historically represented substantial investments for allied nations, often funded through their own defense budgets or US security assistance programs. Tracking precise historical spending requires analyzing specific FMS case files and contract awards over time.

How does the 'Full and Open Competition After Exclusion of Sources' process typically function and what does it imply?

The 'Full and Open Competition After Exclusion of Sources' clause indicates a deviation from a completely unrestricted competition. It suggests that the agency initially intended or was required to conduct a full and open competition but subsequently identified specific reasons to exclude certain potential sources. This exclusion is typically based on factors like proprietary data, unique capabilities, or specific requirements that only a limited number of contractors can meet. The process likely involved a solicitation where all responsible sources were initially considered, but then specific criteria or justifications led to the exclusion of some. This implies that while the competition was not limited from the outset, the final pool of bidders was narrowed based on specific, documented reasons. It aims to balance the need for broad competition with the reality of specialized requirements, but it necessitates clear justification to avoid perceptions of impropriety.

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: $8,887,707

Exercised Options: $8,887,707

Current Obligation: $8,887,707

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