Air Force logistics support for aircraft conversion valued at $63M, awarded to Science and Engineering Services, LLC

Contract Overview

Contract Amount: $62,996,636 ($63.0M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-26

End Date: 2019-12-31

Contract Duration: 1,922 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UNITED STATES AIR FORCE REQUIREMENT TO OBTAIN LOGISTICS INTEGRATION SUPPORT IN THE CONVERSION OF 19 UH-60L AIRCRAFT TO THE HH-60G CONFIGURATION.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $63.0 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: UNITED STATES AIR FORCE REQUIREMENT TO OBTAIN LOGISTICS INTEGRATION SUPPORT IN THE CONVERSION OF 19 UH-60L AIRCRAFT TO THE HH-60G CONFIGURATION. Key points: 1. The contract focuses on logistics integration for a significant aircraft conversion program. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract duration spans over 5 years, suggesting a long-term need. 4. The pricing structure is Cost Plus Fixed Fee, which can shift risk to the government. 5. The specific aircraft conversion involves 19 UH-60L to HH-60G configurations. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure means the government bears the risk of cost overruns, which can lead to higher final costs than fixed-price contracts. While the total value is $63 million over nearly five years, the per-unit cost for logistics support on 19 aircraft is not readily apparent. Comparing this to similar aircraft modification or logistics support contracts would provide better insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, making it difficult to assess the true level of competition. A limited competition may result in less competitive pricing.

Taxpayer Impact: The exclusion of sources, even if justified, could mean taxpayers did not benefit from the lowest possible price achievable through a fully open and unrestricted bidding process.

Public Impact

The primary beneficiaries are the United States Air Force, which will receive modernized HH-60G aircraft. The services delivered include crucial logistics integration support for a complex aircraft conversion. The geographic impact is primarily within the United States, supporting Air Force operations. The contract supports specialized technical and logistics workforce requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF pricing structure shifts cost overrun risk to the government.
The 'exclusion of sources' in competition limits the potential for maximum price competition.
Lack of detailed cost breakdowns makes value assessment difficult.

Positive Signals

Awarded under a competitive process, indicating some level of market engagement.
Supports a critical Air Force modernization program.
Long contract duration suggests a stable, ongoing requirement.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and logistics support. The market for such specialized services is often dominated by a few key contractors with the necessary technical expertise and security clearances. The total addressable market for aircraft modification and sustainment services is substantial, driven by ongoing military modernization and maintenance needs. This contract represents a portion of the Air Force's broader investment in its rotary-wing aircraft fleet.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of aircraft logistics integration and the large contract value, it is likely that prime contractors are large businesses. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates robust government oversight to monitor costs, ensure compliance with contract terms, and verify the necessity and allowability of expenses. Inspector General (IG) investigations could be initiated if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Modification Programs
Logistics Support Services
Rotary-Wing Aircraft Sustainment
Defense Logistics Agency Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure
Limited competition due to exclusion of sources
Lack of detailed cost transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.0 million to SCIENCE AND ENGINEERING SERVICES, LLC. UNITED STATES AIR FORCE REQUIREMENT TO OBTAIN LOGISTICS INTEGRATION SUPPORT IN THE CONVERSION OF 19 UH-60L AIRCRAFT TO THE HH-60G CONFIGURATION.

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES, 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 $63.0 million.

What is the period of performance?

Start: 2014-09-26. End: 2019-12-31.

What is the specific nature of the 'logistics integration support' required for the UH-60L to HH-60G conversion?

The 'logistics integration support' likely encompasses a range of activities critical to the successful conversion of 19 UH-60L Black Hawk helicopters to the HH-60G Pave Hawk configuration. This would typically include planning, coordinating, and managing the supply chain for all necessary parts, components, and equipment required for the modification. It may also involve overseeing the scheduling of maintenance and modification activities, ensuring proper documentation and tracking of all aircraft and parts, managing technical data, and coordinating with various stakeholders, including manufacturers, maintenance depots, and the end-user (USAF). The goal is to ensure a seamless and efficient transition of the aircraft with minimal disruption to operational readiness.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) structure is common for complex projects where the scope of work is not fully defined at the outset or involves significant research and development. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This contrasts with Fixed Price contracts, where the contractor agrees to a set price regardless of actual costs, shifting cost risk entirely to the contractor. For logistics and aircraft modification, Fixed Price Incentive Fee (FPIF) or Firm Fixed Price (FFP) contracts might offer better value if the scope is well-defined, as they incentivize cost control by the contractor. However, CPFF provides flexibility for evolving requirements but requires stringent government oversight to manage costs effectively.

What are the potential risks associated with the 'exclusion of sources' in the competition process?

The 'exclusion of sources' in a competitive bidding process, even if justified by the contracting agency, inherently limits the number of potential bidders. This reduction in competition can lead to several risks. Firstly, it may result in higher prices for the government, as fewer companies are vying for the contract, reducing the downward pressure on bids. Secondly, it could exclude innovative solutions or more cost-effective approaches that might have been offered by the excluded sources. Without transparency into the reasons for exclusion, it's difficult to ascertain if the government received the best possible value or if potential conflicts of interest or biases influenced the decision. This practice can also foster perceptions of unfairness within the industry.

What is the historical spending pattern for logistics integration support for aircraft conversions by the Department of Defense?

Historical spending on logistics integration support for aircraft conversions by the Department of Defense (DoD) is substantial and varies significantly based on the type and scale of aircraft programs. The DoD frequently undertakes modernization and conversion efforts for its diverse fleet, requiring extensive support services. Spending in this area is influenced by factors such as the number of aircraft being modified, the complexity of the modifications (e.g., avionics upgrades, structural changes, role conversions), and the specific technologies involved. While specific aggregate data for 'logistics integration support' in conversions is not readily available, the overall DoD budget for aircraft sustainment, modification, and upgrade programs runs into billions of dollars annually. Contracts like this one represent a segment of that larger expenditure.

How does the performance of Science and Engineering Services, LLC on this contract compare to industry benchmarks?

Assessing the performance of Science and Engineering Services, LLC (SES) on this specific contract requires access to performance reviews, delivery records, and any quality assurance data that is not publicly available. Without this detailed performance information, a direct comparison to industry benchmarks is not feasible. However, SES is a known entity in providing engineering and technical services to government agencies. Their track record on other contracts, if available, would offer more insight. Industry benchmarks for logistics integration and aircraft modification typically focus on on-time delivery, adherence to specifications, cost control (especially relevant for CPFF), and overall customer satisfaction. A review of federal procurement data systems like SAM.gov or FPDS might reveal past performance ratings or contract awards that could provide a broader context for SES's capabilities.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science and Engineering Services LLC

Address: 248 DUNLOP BLVD, HUNTSVILLE, AL, 35824

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,996,636

Exercised Options: $62,996,636

Current Obligation: $62,996,636

Subaward Activity

Number of Subawards: 480

Total Subaward Amount: $141,120,959

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ13D0048

IDV Type: IDC

Timeline