Defense Systems and Solutions awarded $6.66M for Marine Rotation-Darwin operational support

Contract Overview

Contract Amount: $6,655,828 ($6.7M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2025-09-09

End Date: 2026-12-07

Contract Duration: 454 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OPERATIONAL SUPPORT FOR MARINE ROTATION-DARWIN (OPSMAR-D).

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: OPERATIONAL SUPPORT FOR MARINE ROTATION-DARWIN (OPSMAR-D). Key points: 1. Contract value appears reasonable for specialized operational support services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Potential risks include performance in a remote location and reliance on a single awardee. 4. Contract duration of over a year provides a stable period for service delivery. 5. This contract falls within the broader category of defense logistics and support services. 6. The awardee has experience in defense systems and solutions, indicating relevant capabilities.

Value Assessment

Rating: good

The contract value of $6.66 million for a period of approximately 1.5 years seems within a reasonable range for specialized operational support. Benchmarking against similar contracts for overseas rotational support would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful monitoring of costs to ensure efficiency.

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, possibly due to specialized requirements or prior performance. The exact number of bidders is not provided, but the exclusion suggests a narrowed field from the outset, potentially impacting the intensity of price discovery.

Taxpayer Impact: The exclusion of certain sources may limit the potential for the most competitive pricing, as the pool of eligible bidders was restricted. Taxpayers benefit from a structured competition, but the full extent of cost savings might be constrained by the initial source exclusion.

Public Impact

The primary beneficiaries are U.S. Marines participating in the rotational deployment to Darwin, Australia, receiving essential operational support. Services delivered include logistical, maintenance, and potentially other support functions critical for sustained operations. The geographic impact is focused on Darwin, Australia, supporting a key strategic alliance and military posture. Workforce implications may involve personnel deployed to support the contract, both directly by the contractor and indirectly through supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to CPFF structure if not closely managed.
Performance risks associated with operating in a remote international location.
Dependence on a single contractor for critical operational support.

Positive Signals

Awardee has experience in defense systems and solutions.
Contract duration provides stability for service delivery.
Clear operational objective for supporting Marine rotations.

Sector Analysis

This contract falls within the defense sector, specifically supporting logistical and operational readiness for overseas deployments. The market for defense operational support is characterized by specialized requirements, long-term relationships, and significant government oversight. Comparable spending benchmarks would involve analyzing other contracts for similar rotational support in different geographic theaters or for different military branches.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the nature of defense systems and solutions, it is possible that larger prime contractors are involved, with potential subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight mechanisms would typically involve the Department of the Army contracting officer's representative (COR) and potentially Inspector General (IG) functions for audits and investigations. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns may be less publicly accessible. Accountability rests with the contractor to meet performance requirements and with the agency to manage the contract effectively.

Related Government Programs

Marine Corps Rotational Force - Darwin
Department of Defense Logistics Support Contracts
Overseas Military Operations Support
Aircraft Parts and Auxiliary Equipment Manufacturing

Risk Flags

Potential NAICS code mismatch
Limited competition details provided
CPFF structure requires close cost oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to DEFENSE SYSTEMS AND SOLUTIONS. OPERATIONAL SUPPORT FOR MARINE ROTATION-DARWIN (OPSMAR-D).

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 $6.7 million.

What is the period of performance?

Start: 2025-09-09. End: 2026-12-07.

What is the track record of Defense Systems and Solutions with similar operational support contracts?

Defense Systems and Solutions (DSS) has a history of providing various support services to the Department of Defense. While specific details on past operational support contracts for overseas rotations are not provided in this data snippet, their designation as a provider of 'Defense Systems and Solutions' suggests a core competency in this area. To fully assess their track record, a review of their past performance evaluations, contract history with the DoD, and any awards or penalties related to similar services would be necessary. This would include examining their ability to manage logistics, maintain equipment, and provide personnel in challenging environments, similar to the requirements for the Marine Rotation-Darwin (OPSMAR-D) program.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) structure is common for services where the scope of work can be defined but the exact costs are difficult to predict upfront, such as research and development or complex operational support. In this case, it allows the contractor to be reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost growth. Compared to Cost Plus Incentive Fee (CPIF), the profit is fixed, reducing the incentive for the contractor to control costs aggressively unless specific incentive clauses are included. For operational support, CPFF can be appropriate if unforeseen challenges are anticipated, but it necessitates robust government oversight to manage costs effectively.

What are the primary risks associated with supporting military rotations in Darwin, Australia?

Supporting military rotations in Darwin, Australia, presents several risks. Logistically, the remote location can increase transportation costs and lead times for supplies and personnel. Environmental factors, such as extreme weather conditions (heat, monsoons), can impact operations and require specialized equipment or procedures. Geopolitical considerations and adherence to local regulations and customs are also important. Furthermore, maintaining consistent performance over the contract duration requires effective management of personnel and resources in an overseas environment. The reliance on a single awardee for critical support functions also introduces performance risk; any disruption to the contractor's operations could have significant implications for the military mission.

What is the historical spending pattern for Marine Rotational Force - Darwin support?

Historical spending patterns for Marine Rotational Force - Darwin (MRF-D) support would likely show a trend of increasing investment as the rotational presence has become more established and strategic. Initial years may have seen lower contract values as the program was initiated, with subsequent increases to accommodate expanded operations, infrastructure development, and evolving support requirements. Analyzing past contract awards for MRF-D, including the value, duration, and scope of services, would reveal this trend. Factors such as the number of Marines rotated, the duration of their stay, and the specific capabilities provided (e.g., training facilities, logistical support, maintenance) would directly influence historical spending. The current award of $6.66 million for approximately 1.5 years provides a data point for current spending levels.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code relate to the contract's stated purpose?

The North American Industry Classification System (NAICS) code '336413 - Other Aircraft Parts and Auxiliary Equipment Manufacturing' appears to be a mismatch with the contract's stated purpose: 'OPERATIONAL SUPPORT FOR MARINE ROTATION-DARWIN (OPSMAR-D).' While aircraft parts might be *used* in support of military operations, the primary function described is operational support, which typically encompasses logistics, maintenance, base operations, and personnel support, rather than manufacturing. It is possible that the contractor has capabilities in both areas, or that the NAICS code assigned is a legacy code, or reflects a specific component of the support that involves equipment related to aircraft. However, based on the contract description, a NAICS code related to logistics, support services, or facilities management would seem more appropriate.

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: $6,655,828

Exercised Options: $6,655,828

Current Obligation: $6,655,828

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