DoD Awards $8.3M for NextGen AG-GPS & Paratroop Door Mods, Ending Jan 2029
Contract Overview
Contract Amount: $8,279,623 ($8.3M)
Contractor: Defense Systems and Solutions
Awarding Agency: Department of Defense
Start Date: 2026-01-06
End Date: 2029-01-03
Contract Duration: 1,093 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NEXT GENERATION (NEXTGEN) AGRICULTURAL GLOBAL POSITIONING SYSTEM (AG-GPS) AND THE PARATROOP DOOR & POWER MODIFICATION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $8.3 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: NEXT GENERATION (NEXTGEN) AGRICULTURAL GLOBAL POSITIONING SYSTEM (AG-GPS) AND THE PARATROOP DOOR & POWER MODIFICATION Key points: 1. Contract value of $8.3M for specialized aviation equipment. 2. Competition method was 'Full and Open after Exclusion of Sources', suggesting limited initial options. 3. Risk of cost overruns due to 'Cost Plus Fixed Fee' contract type. 4. Sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: fair
The contract is a Delivery Order under a larger contract. The 'Cost Plus Fixed Fee' type carries inherent risk for cost control compared to fixed-price contracts. Benchmarking per-unit cost is not possible without more detailed data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'Full and Open after Exclusion of Sources', indicating that while open, specific sources were initially excluded. This method can limit price discovery and potentially lead to higher costs than a truly open competition.
Taxpayer Impact: Taxpayer funds are being used for specialized defense equipment. The contract type and competition method warrant scrutiny to ensure value for money.
Public Impact
Enhances military operational capabilities through advanced GPS technology. Supports critical aircraft modifications for paratrooper deployment. Potential for follow-on contracts based on performance and future needs. Ensures modernization of essential defense assets.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type increases cost risk.
- Limited competition method may impact price efficiency.
Positive Signals
- Addresses specific, critical defense needs.
- Long-term contract duration provides stability.
- Delivery Order structure allows for phased execution.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining and modernizing military aviation fleets. Spending in this area is driven by defense modernization efforts and operational requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was sought or considered in the subcontracting plan.
Oversight & Accountability
The 'Delivery Order' structure suggests this is part of a larger, potentially pre-existing contract. Oversight will be critical to ensure adherence to the original contract's terms and to manage the 'Cost Plus Fixed Fee' aspects effectively.
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 contract type.
- Limited competition due to source exclusion.
- Potential for cost overruns.
- Lack of direct small business award.
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 $8.3 million to DEFENSE SYSTEMS AND SOLUTIONS. NEXT GENERATION (NEXTGEN) AGRICULTURAL GLOBAL POSITIONING SYSTEM (AG-GPS) AND THE PARATROOP DOOR & POWER MODIFICATION
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 $8.3 million.
What is the period of performance?
Start: 2026-01-06. End: 2029-01-03.
What specific capabilities does the NextGen AG-GPS provide over existing systems, and how does this justify the investment?
The NextGen AG-GPS likely offers enhanced precision, broader coverage, and improved resistance to jamming or spoofing compared to older systems. These advancements are crucial for modern military operations, enabling more accurate navigation, targeting, and logistical support in complex environments. The investment is justified if these improvements significantly enhance mission effectiveness and reduce operational risks.
What were the specific reasons for excluding certain sources in the 'Full and Open after Exclusion of Sources' competition, and did this exclusion limit potential cost savings?
Exclusion of sources typically occurs due to proprietary technology, unique capabilities, or national security concerns. While these reasons may be valid, they inherently limit the competitive pool. This limitation could have restricted price discovery, potentially leading to a higher contract price than if a broader range of qualified vendors had been allowed to compete.
How will the 'Cost Plus Fixed Fee' structure be monitored to ensure the government receives good value and avoids excessive costs?
Effective oversight of a Cost Plus Fixed Fee contract requires rigorous monitoring of incurred costs, detailed audits, and clear performance metrics. The government must ensure that the contractor's costs are reasonable, allocable, and allowable according to the contract terms. Regular reviews and communication are essential to manage the fee and prevent scope creep or inefficient practices.
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: $8,279,623
Exercised Options: $8,279,623
Current Obligation: $8,279,623
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: 2026-01-06
Current End Date: 2029-01-03
Potential End Date: 2029-01-03 12:01:00
Last Modified: 2026-01-06
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