Army Awards $146M for Maritime Patrol Aircraft Parts, Boosting Defense Systems and Solutions

Contract Overview

Contract Amount: $14,610,215 ($14.6M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2025-09-05

End Date: 2028-02-29

Contract Duration: 907 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: U.S. ARMY FIXED WING PROJECT OFFICE (FWPO) ARGENTINA MARITIME PATROL AIRCRAFT CASE: PB-B-WLA

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: U.S. ARMY FIXED WING PROJECT OFFICE (FWPO) ARGENTINA MARITIME PATROL AIRCRAFT CASE: PB-B-WLA Key points: 1. The contract, valued at $146,102,150, is for fixed-wing aircraft parts, indicating a need for specialized components. 2. Defense Systems and Solutions secured the award, suggesting a competitive landscape for defense contractors. 3. The contract's duration of 907 days points to a significant, long-term requirement for these parts. 4. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code highlights a niche but critical segment of the aerospace industry.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This is common for complex projects where costs are hard to predict but offers less price certainty than fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method is 'Full and Open Competition After Exclusion of Sources.' This implies that while the competition was intended to be broad, specific sources were excluded, potentially limiting the number of bidders and impacting price discovery.

Taxpayer Impact: The award of $146M represents a significant taxpayer investment in maintaining and upgrading military aviation capabilities.

Public Impact

Ensures continued operational readiness for U.S. Army maritime patrol aircraft. Supports the defense industrial base and specialized manufacturing capabilities. Contributes to national security by maintaining critical surveillance and reconnaissance assets. Potential for job creation within the awarded company and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition due to source exclusion.
  • Cost Plus Fixed Fee contract type can lead to cost overruns.
  • Lack of small business participation noted.

Positive Signals

  • Supports critical military aviation assets.
  • Award to established defense contractor.
  • Long-term contract duration provides stability.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is driven by military modernization, operational needs, and the lifecycle management of existing fleets. Benchmarks vary widely based on aircraft type and component complexity.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests that the prime contractor is likely a larger entity, and opportunities for small business subcontracting may be limited or not explicitly tracked in this data.

Oversight & Accountability

The contract is managed by the Department of the Army, specifically the Fixed Wing Project Office (FWPO). Oversight would involve monitoring contract performance, cost adherence, and delivery schedules to ensure taxpayer funds are used effectively and efficiently.

Related Government Programs

  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition may result in higher prices.
  • CPFF contract type carries inherent cost overrun risk.
  • No small business participation identified.
  • Lack of detailed cost breakdown hinders granular analysis.

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 $14.6 million to DEFENSE SYSTEMS AND SOLUTIONS. U.S. ARMY FIXED WING PROJECT OFFICE (FWPO) ARGENTINA MARITIME PATROL AIRCRAFT CASE: PB-B-WLA

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 $14.6 million.

What is the period of performance?

Start: 2025-09-05. End: 2028-02-29.

What specific types of aircraft parts are being procured under this contract, and how do their costs compare to industry benchmarks?

The provided data does not specify the exact aircraft parts. However, the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' Without detailed specifications, a precise cost benchmark is difficult. The 'br': 16108 value might represent a baseline or previous benchmark, but its context is unclear. Further analysis would require itemized lists and comparison with similar procurements for specific components.

What were the primary reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

Excluding sources in a full and open competition typically occurs when specific technical capabilities, past performance, or unique requirements are necessary, and only a limited number of vendors can meet them. The Army likely determined that only certain qualified contractors possessed the necessary expertise or technology for these specialized maritime patrol aircraft parts, justifying the exclusion to ensure performance.

How will the Cost Plus Fixed Fee (CPFF) contract structure impact the overall cost-effectiveness and potential for cost overruns?

A CPFF contract reimburses the contractor for allowable costs plus a fixed fee representing profit. While it allows flexibility for unforeseen issues, it shifts some cost risk to the government. Effective oversight is crucial to manage allowable costs and prevent overruns. The fixed fee provides a predictable profit margin, but the total cost can fluctuate based on actual expenses incurred.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: $14,610,215

Exercised Options: $14,610,215

Current Obligation: $14,610,215

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,850,392

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

Start Date: 2025-09-05

Current End Date: 2028-02-29

Potential End Date: 2028-02-29 12:02:00

Last Modified: 2025-09-05

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