DoD Awards $18M for 20 AGPU 1.1 Units and Support to Sun Test Systems, Inc
Contract Overview
Contract Amount: $17,962,178 ($18.0M)
Contractor: SUN Test Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-07
End Date: 2027-12-31
Contract Duration: 968 days
Daily Burn Rate: $18.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR 20 MORE AGPU 1.1 UNITS AND SUPPORT.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to SUN TEST SYSTEMS, INC. for work described as: DELIVERY ORDER FOR 20 MORE AGPU 1.1 UNITS AND SUPPORT. Key points: 1. The contract is for 20 additional AGPU 1.1 units and associated support services. 2. Sun Test Systems, Inc. is the sole awardee, indicating a potential lack of competition. 3. The award value of $17.96 million represents a significant investment in specialized aircraft components. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, a niche but critical area for defense.
Value Assessment
Rating: fair
The contract's pricing is difficult to assess without comparable contract data. The firm fixed-price structure aims to control costs, but the lack of competition raises concerns about whether the government received the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition on this $17.96 million award means taxpayers may not have benefited from the most cost-effective solution available.
Public Impact
Ensures continued availability of critical AGPU 1.1 units for Department of the Army operations. Supports specialized manufacturing capabilities within the aerospace supply chain. Potential for increased costs due to sole-source procurement could impact overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Ensures supply of critical equipment
- Firm fixed-price contract
Sector Analysis
This award falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector. Spending in this sector is often driven by defense needs for specialized components, and benchmarks can vary widely based on the complexity and uniqueness of the parts.
Small Business Impact
There is no indication that small businesses were involved in this specific award, as it was a sole-source procurement. Further analysis would be needed to determine the overall small business participation within the broader contract vehicle or agency.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable. The Department of the Army should document the justification for not competing this requirement to ensure accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Sole-source justification required
- Limited transparency on cost reasonableness
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to SUN TEST SYSTEMS, INC.. DELIVERY ORDER FOR 20 MORE AGPU 1.1 UNITS AND SUPPORT.
Who is the contractor on this award?
The obligated recipient is SUN TEST SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2025-05-07. End: 2027-12-31.
What is the justification for the sole-source award of this significant contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's requirements within the necessary timeframe. Without specific documentation, it is presumed that Sun Test Systems, Inc. possesses such unique qualifications for the AGPU 1.1 units and support.
How does the unit cost compare to similar or previous procurements of AGPU 1.1 units?
A direct comparison of unit cost is challenging without access to historical pricing data for the AGPU 1.1 units or similar components procured competitively. The firm fixed-price nature of this award suggests an attempt to cap costs, but the lack of competition prevents a definitive assessment of whether this price represents good value compared to a competitive market.
What is the long-term strategic value of procuring these additional AGPU 1.1 units?
The long-term strategic value lies in maintaining the operational readiness and capability of aircraft that rely on the AGPU 1.1 units. Ensuring a steady supply chain for these critical components supports ongoing military operations and readiness objectives, mitigating risks associated with equipment obsolescence or unavailability.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2903 WALL TRIANA HWY SW, HUNTSVILLE, AL, 35824
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $17,962,178
Exercised Options: $17,962,178
Current Obligation: $17,962,178
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ25D0019
IDV Type: IDC
Timeline
Start Date: 2025-05-07
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 12:12:00
Last Modified: 2025-06-04
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