Army awards $158M for German CH-47F helicopter support tools, including specialized equipment

Contract Overview

Contract Amount: $15,813,065 ($15.8M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2028-11-21

Contract Duration: 1,086 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REQUIRED TO SUPPORT THE FOREIGN MILITARY SALES (FMS) REQUIREMENTS FOR THE CH-47F PROJECT MANAGEMENT OFFICE, CARGO HELICOPTERS. THE PIF WILL PROVIDE SPECIAL TOOLS AND TEST EQUIPMENT (STTE) TO SUPPORT CH-47 AIRCRAFT FOR GERMANY.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: REQUIRED TO SUPPORT THE FOREIGN MILITARY SALES (FMS) REQUIREMENTS FOR THE CH-47F PROJECT MANAGEMENT OFFICE, CARGO HELICOPTERS. THE PIF WILL PROVIDE SPECIAL TOOLS AND TEST EQUIPMENT (STTE) TO SUPPORT CH-47 AIRCRAFT FOR GERMANY. Key points: 1. The contract supports Foreign Military Sales (FMS) for Germany's CH-47F aircraft. 2. Specialized tools and test equipment (STTE) are crucial for aircraft maintenance and readiness. 3. The award is a delivery order under an existing contract, indicating ongoing program support. 4. The sector is dominated by large defense contractors, with limited direct small business participation.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful cost monitoring. The total value of $158.1 million over approximately 3.6 years suggests a significant investment in specialized support for a major defense platform.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the pool of potential bidders. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used to support a foreign military sale, which can enhance interoperability and strengthen alliances, but direct U.S. benefit is indirect.

Public Impact

Enhances U.S. military cooperation and interoperability with a key NATO ally (Germany). Supports the sustainment and operational readiness of advanced CH-47F Chinook helicopters. Contributes to the U.S. defense industrial base by providing work for specialized manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Reliance on specialized tools could create single-source dependencies.
CPFF contract type requires robust oversight to control costs.

Positive Signals

Supports a critical FMS program for a key ally.
Ensures operational readiness of advanced rotary-wing aircraft.
Leverages existing contract vehicles for efficiency.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is often driven by military modernization programs and international sales, with significant R&D and specialized manufacturing requirements.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific award (sb: false). The nature of specialized tools and test equipment for large military platforms often favors larger, established defense contractors.

Oversight & Accountability

The Department of the Army, as the procuring agency, is responsible for oversight. The CPFF contract type necessitates diligent monitoring of costs and performance to ensure value for money and adherence to program objectives.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may result in suboptimal pricing.
Dependency on specific suppliers for specialized equipment.
Ensuring timely delivery of critical support items.
Managing the complexities of international sales and support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to DEFENSE SYSTEMS AND SOLUTIONS. REQUIRED TO SUPPORT THE FOREIGN MILITARY SALES (FMS) REQUIREMENTS FOR THE CH-47F PROJECT MANAGEMENT OFFICE, CARGO HELICOPTERS. THE PIF WILL PROVIDE SPECIAL TOOLS AND TEST EQUIPMENT (STTE) TO SUPPORT CH-47 AIRCRAFT FOR GERMANY.

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 $15.8 million.

What is the period of performance?

Start: 2025-12-01. End: 2028-11-21.

What is the specific justification for excluding other sources in the competition, and how does this impact the final price?

The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on proprietary technology, unique capabilities, or urgent requirements where only specific contractors can fulfill the need. This limitation can reduce competitive pressure, potentially leading to higher prices than if a broader competition were held.

What are the long-term implications of providing specialized support equipment for foreign military sales on U.S. defense readiness and industrial capacity?

Providing specialized support equipment for FMS strengthens allied capabilities, which indirectly benefits U.S. security interests by enhancing interoperability and burden-sharing. It also sustains critical segments of the U.S. defense industrial base, ensuring capacity for both domestic and allied needs. However, it requires careful resource allocation to ensure it does not detract from U.S. domestic readiness requirements.

How will the effectiveness of the specialized tools and test equipment be measured to ensure they meet the CH-47F operational requirements for Germany?

Effectiveness will likely be measured through performance metrics outlined in the contract, including delivery timelines, equipment functionality, and successful integration into Germany's maintenance procedures. Acceptance testing by the German FMS customer and ongoing feedback loops will be crucial. The CPFF structure incentivizes the contractor to deliver functional equipment that meets specifications to achieve final payment.

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: $15,813,065

Exercised Options: $15,813,065

Current Obligation: $15,813,065

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,256,368

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