DoD Awards $741M Contract for F-15SA Fleet Sustainment and Logistics Support
Contract Overview
Contract Amount: $7,407,398 ($7.4M)
Contractor: Defense Systems and Solutions
Awarding Agency: Department of Defense
Start Date: 2025-12-10
End Date: 2026-12-12
Contract Duration: 367 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACTOR AND ENGINEERING AND TECHNICAL (CETS) SUPPORT TO RSAF AT DHAHRAN, TABUK, TAIF, RIYADH AND KHAMIS IN THE KSA, FOR ASSESSING AND ADDRESSING LOGISTICS AND MAINTENANCE SERVICES TO ASSIST THE RSAF IN REPAIR AND SUSTAINMENT OF F-15SA FLEET.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $7.4 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: CONTRACTOR AND ENGINEERING AND TECHNICAL (CETS) SUPPORT TO RSAF AT DHAHRAN, TABUK, TAIF, RIYADH AND KHAMIS IN THE KSA, FOR ASSESSING AND ADDRESSING LOGISTICS AND MAINTENANCE SERVICES TO ASSIST THE RSAF IN REPAIR AND SUSTAINMENT OF F-15SA FLEET. Key points: 1. The contract focuses on critical logistics and maintenance for the F-15SA fleet, ensuring operational readiness. 2. Competition was 'Full and Open after Exclusion of Sources,' suggesting a specific justification for limiting initial bidders. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. This spending falls within the broader Defense sector, specifically supporting aircraft sustainment.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar sustainment contracts for advanced fighter fleets is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition after Exclusion of Sources' indicates a limited competition. This method may not yield the most competitive pricing compared to unrestricted full and open competition, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are allocated for essential defense readiness, but the limited competition and CPFF structure warrant close monitoring to ensure cost-effectiveness.
Public Impact
Ensures continued operational capability of the Royal Saudi Air Force's F-15SA fleet. Supports critical maintenance and repair services, extending the lifespan of advanced military aircraft. Contributes to regional security by maintaining a key component of Saudi Arabia's air defense capabilities. Potential for cost overruns due to the CPFF contract type requires vigilant oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type
- Limited competition ('Full and Open after Exclusion of Sources')
- Potential for cost escalation without strict oversight
Positive Signals
- Supports critical defense asset sustainment
- Addresses essential logistics and maintenance needs
- Ensures operational readiness of F-15SA fleet
Sector Analysis
This contract falls under the Defense sector, specifically focusing on aircraft maintenance and logistics. Spending benchmarks for similar sustainment contracts for advanced fighter jets can vary significantly based on fleet size, age, and complexity of required services.
Small Business Impact
The contract data indicates that small businesses were not primary awardees, as the awardee is 'DEFENSE SYSTEMS AND SOLUTIONS' and the 'sb' field is false. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the contracting agency. Oversight will be critical to manage the CPFF structure and ensure adherence to the limited competition parameters, safeguarding taxpayer interests.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type increases risk of cost overruns.
- Limited competition ('Full and Open after Exclusion of Sources') may result in suboptimal pricing.
- Contract duration of over two years requires sustained oversight.
- Dependence on specific contractor capabilities could create future sole-source risks.
- Potential for scope creep within logistics and maintenance services.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to DEFENSE SYSTEMS AND SOLUTIONS. CONTRACTOR AND ENGINEERING AND TECHNICAL (CETS) SUPPORT TO RSAF AT DHAHRAN, TABUK, TAIF, RIYADH AND KHAMIS IN THE KSA, FOR ASSESSING AND ADDRESSING LOGISTICS AND MAINTENANCE SERVICES TO ASSIST THE RSAF IN REPAIR AND SUSTAINMENT OF F-15SA FLEET.
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 $7.4 million.
What is the period of performance?
Start: 2025-12-10. End: 2026-12-12.
What specific criteria led to the exclusion of sources in this 'Full and Open Competition after Exclusion of Sources' scenario, and how did this impact the final price?
The exclusion of sources typically occurs when only a limited number of contractors possess the unique capabilities, technology, or security clearances required for a specialized service. This limitation can reduce competitive pressure, potentially leading to higher prices than a truly unrestricted competition. Detailed justification documents from the agency are needed to understand the specific rationale and its pricing implications.
How will the Department of Defense ensure cost control and prevent potential overruns under the Cost Plus Fixed Fee (CPFF) contract structure for this extensive sustainment effort?
Effective cost control under a CPFF contract relies on robust government oversight, including detailed audits of contractor costs, rigorous performance monitoring, and clear communication of performance expectations. Establishing realistic baseline costs, implementing change control processes, and incentivizing efficiency can also mitigate overrun risks. Regular reviews and reporting are essential to track expenditures against the fixed fee.
What is the long-term strategy for F-15SA fleet sustainment, and how does this contract align with future modernization or replacement plans?
This contract addresses immediate repair and sustainment needs for the F-15SA fleet through December 2026. The long-term strategy would involve assessing the fleet's remaining service life, potential upgrades, and eventual replacement timelines. Understanding how this contract fits into a broader sustainment and modernization roadmap is crucial for ensuring efficient use of defense resources and avoiding obsolescence.
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: $11,251,065
Exercised Options: $7,407,398
Current Obligation: $7,407,398
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: 2025-12-10
Current End Date: 2026-12-12
Potential End Date: 2026-12-12 00:00:00
Last Modified: 2025-12-11
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