DoD's $96.3M UH-60 Programmatic Effort Contract Awarded to Axient LLC Under Full and Open Competition

Contract Overview

Contract Amount: $96,313,474 ($96.3M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-23

End Date: 2023-10-15

Contract Duration: 2,397 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF TASK ORDER AWARD FOR THE UH-60 PROGRAMMATIC EFFORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $96.3 million to AXIENT LLC for work described as: IGF::CT::IGF TASK ORDER AWARD FOR THE UH-60 PROGRAMMATIC EFFORT Key points: 1. Contract awarded for programmatic support of the UH-60 helicopter fleet. 2. Significant duration of over 6 years indicates a long-term need for these services. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Awarded under a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 5. The contract was competed fully and openly, suggesting a competitive award process. 6. Small business participation was not a specific set-aside, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The total award amount of $96.3 million over approximately six years for programmatic support of a critical asset like the UH-60 helicopter appears reasonable. While direct comparisons are difficult without specific scope details, the firm fixed-price structure provides cost certainty. Benchmarking against similar engineering services contracts for major defense platforms would offer further insight into value for money, but the duration and nature of the support suggest a fair market price was likely achieved through competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 4 bids were received, suggesting a healthy level of interest and competition for this requirement. This competitive process is expected to drive more favorable pricing and ensure the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price, preventing potential overspending associated with less competitive or sole-source awards.

Public Impact

The primary beneficiaries are the Department of the Army and the broader Department of Defense, ensuring the continued operational readiness and support of the UH-60 Black Hawk fleet. Services delivered include programmatic support, likely encompassing logistics, maintenance planning, engineering, and lifecycle management for the UH-60 aircraft. The geographic impact is national, supporting Army aviation assets across various installations, with a specific award location in Alabama. Workforce implications include the potential for skilled engineering and technical jobs at Axient LLC and any subcontractors, contributing to the aerospace and defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if programmatic support requirements are not tightly managed.
Dependence on a single contractor for critical programmatic functions could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract type helps control costs and provides budget predictability.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Long contract duration indicates a stable, ongoing need and potential for contractor expertise development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the aerospace and defense industry. The market for defense engineering services is substantial, driven by the continuous need for modernization, sustainment, and upgrades of military platforms. The UH-60 Black Hawk is a cornerstone of Army aviation, and contracts supporting its lifecycle are critical. Comparable spending benchmarks would involve other large-scale engineering support contracts for major weapon systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Axient LLC is the prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized areas of engineering or support services. The extent of small business subcontracting would depend on Axient's strategy and the specific needs of the programmatic effort.

Oversight & Accountability

Oversight is typically managed by the contracting officer and program management office within the Department of the Army. Performance reviews, milestone tracking, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Sustainment
DoD Aviation Maintenance Contracts
Defense Engineering Services
Army Aviation Program Management
Logistics Support Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of contractor performance issues impacting fleet readiness.
Dependence on a single entity for critical programmatic functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $96.3 million to AXIENT LLC. IGF::CT::IGF TASK ORDER AWARD FOR THE UH-60 PROGRAMMATIC EFFORT

Who is the contractor on this award?

The obligated recipient is AXIENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $96.3 million.

What is the period of performance?

Start: 2017-03-23. End: 2023-10-15.

What is Axient LLC's track record with similar large-scale defense programmatic contracts?

Axient LLC has a history of performing complex engineering and technical services for the Department of Defense. While this specific contract is for the UH-60 programmatic effort, the company has experience across various defense programs, often involving systems engineering, test and evaluation, and logistics support. Their past performance on similar contracts, particularly those requiring long-term programmatic management and technical expertise, would be a key indicator of their capability. Reviewing their contract history, including any past performance evaluations or awards, provides insight into their reliability and effectiveness in delivering on complex defense requirements. The scale and duration of this UH-60 contract suggest a level of trust and proven capability.

How does the $96.3 million total value compare to other UH-60 support contracts?

Directly comparing the $96.3 million total award value requires access to detailed scope-of-work and duration specifics for other UH-60 support contracts. However, given the UH-60's extensive service life and critical role in Army aviation, multi-year programmatic support contracts in the tens to hundreds of millions of dollars are not uncommon. This figure represents the total potential value over the contract's lifespan (approximately 6.5 years). The firm fixed-price nature suggests this amount is intended to cover all specified services. Benchmarking against similar engineering and logistics support contracts for other major military aircraft platforms would provide a broader context for assessing whether this value is competitive.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential scope creep, where the requirements for programmatic support may expand beyond the initial definition, leading to cost overruns or schedule delays. Another risk is contractor performance; if Axient LLC fails to deliver adequate technical expertise or timely support, it could impact the operational readiness of the UH-60 fleet. Mitigation strategies typically involve robust contract management by the Army, including clear definition of deliverables, regular performance reviews, and change control processes. The firm fixed-price structure incentivizes the contractor to manage costs effectively. Furthermore, the full and open competition process likely selected a contractor with a strong demonstrated capability to perform, reducing performance risk.

How effective is the firm fixed-price (FFP) contract type in managing costs for this type of programmatic support?

The Firm Fixed Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks of cost overruns are manageable. For programmatic support of a mature platform like the UH-60, where many requirements might be predictable, FFP provides cost certainty for the government. It places the responsibility on the contractor (Axient LLC) to control costs and perform the work within the agreed-upon price. This structure incentivizes efficiency and discourages scope creep, as any additional work not explicitly covered by the contract would require a modification and potentially additional funding. However, if unforeseen technical challenges arise that were not reasonably foreseeable, an FFP contract could strain the contractor's profitability or lead to disputes.

What is the historical spending trend for UH-60 programmatic support within the Department of Defense?

Historical spending on UH-60 programmatic support within the DoD has been substantial and consistent, reflecting the platform's long service life and critical operational role. Over the past decade, the Army has consistently allocated significant funding towards the sustainment, modernization, and operational support of its large UH-60 fleet. This includes various contracts for maintenance, repair, overhaul, engineering services, and logistics support. While specific figures for 'programmatic support' can vary based on how it's categorized, overall spending on the UH-60 program likely runs into billions of dollars cumulatively across all support elements. This $96.3 million award represents a portion of that ongoing investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 360A QUALITY CIR STE 100, HUNTSVILLE, AL, 35806

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $150,265,320

Exercised Options: $96,313,474

Current Obligation: $96,313,474

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $68,751,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q16A0010

IDV Type: BPA

Timeline