DoD awards $16.5M for H-60 Black Hawk blade de-ice components, addressing obsolescence

Contract Overview

Contract Amount: $16,499,663 ($16.5M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2025-09-04

End Date: 2029-09-16

Contract Duration: 1,473 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: H-60 BLADE DE-ICE CONTROL-INDICATOR (CONTROLLER) AND DISTRIBUTION BOX (DISTRIBUTOR) OBSOLESCENCE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: H-60 BLADE DE-ICE CONTROL-INDICATOR (CONTROLLER) AND DISTRIBUTION BOX (DISTRIBUTOR) OBSOLESCENCE Key points: 1. Contract addresses critical component obsolescence for H-60 helicopters. 2. Full and open competition after exclusion of sources indicates a structured procurement process. 3. Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of contractor costs. 4. Long contract duration of 1473 days suggests a sustained need for these components. 5. The award is a delivery order against an existing contract, implying prior vetting. 6. Focus on specialized aircraft parts manufacturing highlights a niche but vital defense sector.

Value Assessment

Rating: fair

Benchmarking the value of this $16.5 million award is challenging without specific unit cost data or comparison to similar obsolescence mitigation contracts. The CPFF structure necessitates close oversight to ensure costs remain reasonable and the fixed fee is justified by the effort. While addressing obsolescence is crucial for fleet readiness, the overall value for money will depend on the efficiency of the contractor's execution and the final cost of the components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential bidders. The number of bidders is not specified, but this procurement method implies a more controlled competition than a standard full and open process, potentially impacting price discovery.

Taxpayer Impact: Taxpayers benefit from a structured competition that aims to find qualified sources, but the exclusion of some sources could limit the downward pressure on pricing compared to unrestricted full and open competition.

Public Impact

The primary beneficiaries are the U.S. Army and potentially other branches operating H-60 Black Hawk helicopters, ensuring continued operational capability. The contract delivers essential components for the de-icing system of the H-60 helicopter, critical for safe flight in various weather conditions. The geographic impact is national, supporting military aviation readiness across the United States and deployed locations. Workforce implications include supporting specialized manufacturing jobs within the aerospace and defense sector, particularly in Alabama where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent cost monitoring to prevent overruns.
Obsolescence mitigation can sometimes lead to higher component costs due to limited production runs.
The 'exclusion of sources' clause warrants scrutiny to ensure fair competition was maintained.

Positive Signals

Addresses critical component obsolescence, ensuring fleet readiness.
Awarded through a competitive process, indicating a search for qualified providers.
Long-term contract duration suggests a stable and predictable need, allowing for efficient planning.

Sector Analysis

This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector (NAICS 336413), a critical segment of the aerospace industry. This sector is characterized by high technical expertise, stringent quality control, and often long production lead times. The market size for specialized defense aircraft components is substantial, driven by the ongoing need to maintain and upgrade aging military fleets. This award represents a specific investment in ensuring the continued airworthiness of the widely used H-60 platform.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Defense Systems and Solutions, engages them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and cost breakdowns may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

H-60 Black Hawk Helicopter Sustainment Programs
Aerospace Component Manufacturing
Defense Logistics Agency (DLA) Aviation Support
Aircraft Parts and Equipment Procurement
Military Helicopter Maintenance and Repair

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition may result in higher-than-market pricing.
Risk of supply chain disruptions for obsolete components.
Ensuring quality and authenticity of replacement parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to DEFENSE SYSTEMS AND SOLUTIONS. H-60 BLADE DE-ICE CONTROL-INDICATOR (CONTROLLER) AND DISTRIBUTION BOX (DISTRIBUTOR) OBSOLESCENCE

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 $16.5 million.

What is the period of performance?

Start: 2025-09-04. End: 2029-09-16.

What is the historical spending trend for H-60 blade de-ice components or similar obsolescence mitigation efforts within the Department of Defense?

Analyzing historical spending on H-60 blade de-ice components requires access to detailed procurement data over several fiscal years. Generally, obsolescence mitigation efforts within the DoD are a continuous and significant expenditure. As aircraft platforms age, components become outdated, difficult to source, or no longer supported by the original manufacturer. This necessitates dedicated funding for redesign, replacement, or finding alternative suppliers. For a platform as widely used as the H-60, which has been in service for decades, such mitigation efforts are routine. Spending can fluctuate based on the urgency of identified obsolescence, the complexity of the required solution, and the availability of funding within specific program budgets. Without specific historical data for this exact component, it's reasonable to infer that similar investments have been made periodically to maintain the H-60 fleet's operational readiness.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for managing obsolescence in defense systems?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when significant research and development or engineering effort is anticipated, as is common in obsolescence mitigation. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost incurred. However, it places a significant burden on the government to meticulously audit and approve all costs. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. Compared to Cost Plus Incentive Fee (CPIF), the profit is fixed rather than variable based on performance targets. For obsolescence, CPFF can be effective if the government has strong oversight to ensure efficiency and prevent cost creep, balancing the need for technical solutions with fiscal responsibility.

What are the primary risks associated with procuring obsolete components for critical military aircraft like the H-60?

The primary risks associated with procuring obsolete components for critical military aircraft like the H-60 are multifaceted. Firstly, there's a significant risk to operational readiness and mission capability; if essential components are unavailable or unreliable due to obsolescence, aircraft may be grounded, impacting training, deployment, and operational effectiveness. Secondly, safety is a major concern, as older components may lack modern safety features or fail unexpectedly. Thirdly, the cost of sourcing or remanufacturing obsolete parts can be exceedingly high due to limited production runs, specialized tooling requirements, and the lack of competitive suppliers, leading to budget overruns. Fourthly, there's a risk of counterfeit parts entering the supply chain when original manufacturers cease support, potentially compromising performance and safety. Finally, extended lead times for these specialized parts can create significant logistical challenges and delays in aircraft maintenance and repair.

What is the typical lifespan and sustainment strategy for components on a platform like the H-60 Black Hawk?

The H-60 Black Hawk helicopter platform has been in service since the early 1980s, meaning many of its original components have long surpassed their initial design life. The sustainment strategy for such a long-serving platform involves a continuous cycle of monitoring component health, identifying parts nearing or past their service life, and implementing obsolescence management strategies. This includes proactive measures like redesigning components with modern materials and technologies, extending the life of existing parts through refurbishment or overhaul programs, and establishing long-term agreements with specialized manufacturers for continued production or repair. The DoD often employs 'diminishing manufacturing sources and material shortages' (DMSMS) programs to track and address these issues. For critical components like the blade de-ice system, ensuring continuous availability through these strategies is paramount to maintaining the fleet's operational readiness and safety over its extended service life.

How does the 'exclusion of sources' clause in this contract potentially impact competition and pricing?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the procurement was intended to be competitive, specific sources were deliberately excluded from the bidding process. This exclusion could be based on various factors, such as unique capabilities, proprietary technology, past performance requirements, or specific security clearances. While it aims to ensure that only highly qualified or specialized vendors participate, it inherently limits the pool of potential bidders. A smaller pool of bidders generally leads to less intense price competition compared to a truly unrestricted full and open competition where all capable sources can participate. Consequently, the government might not achieve the lowest possible price, as the remaining bidders may face less pressure to offer aggressive pricing. The justification for excluding sources must be robust to ensure that the government is still obtaining fair value and that the exclusion serves a legitimate purpose related to the contract's requirements.

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: $16,499,663

Exercised Options: $16,499,663

Current Obligation: $16,499,663

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $94,565

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