DoD awards $40.7M contract to Science and Engineering Services, LLC for aircraft manufacturing support

Contract Overview

Contract Amount: $40,731,862 ($40.7M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-06-28

End Date: 2020-10-31

Contract Duration: 1,221 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF:XX::IGF DELIVERY ORDER 0090 AWARD IN REFERENCE TO RFOP 17-R-0179.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $40.7 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: IGF:XX::IGF DELIVERY ORDER 0090 AWARD IN REFERENCE TO RFOP 17-R-0179. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process with specific justifications. 2. The contract duration of 1221 days suggests a significant, long-term need for the services provided. 3. The award type is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 4. The contract's focus on Aircraft Manufacturing (NAICS 336411) places it within a critical defense industrial base sector. 5. The pricing structure is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while ensuring contractor profit. 6. The contract was awarded to a single entity, Science and Engineering Services, LLC, for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this $40.7 million delivery order is challenging without knowing the specific services rendered and the base IDIQ contract's scope. However, the Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain reasonable and the fixed fee is appropriate for the effort. Comparing this to similar aircraft manufacturing support contracts would reveal if the overall cost and fee structure are competitive.

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 initial solicitation may have been open, certain sources were excluded, or a specific justification was made to limit the pool of potential bidders. The 'no' value of 2 indicates there were two bids received, which is a moderate level of competition. This suggests that while not a sole-source award, the competition may not have been as broad as a standard full and open competition.

Taxpayer Impact: A moderate level of competition, with two bidders, suggests that taxpayers may not have received the absolute lowest price achievable through maximum competition, but it is better than a sole-source award. The exclusion of sources warrants scrutiny to ensure it was justified and did not unduly limit price discovery.

Public Impact

The primary beneficiaries are the Department of Defense and potentially specific Army units requiring aircraft manufacturing expertise. The services delivered likely involve specialized engineering, manufacturing, or technical support related to aircraft. The geographic impact is primarily within Alabama (ST: AL), where the contractor is located, but the ultimate impact is on national defense capabilities. The contract supports a workforce skilled in aircraft manufacturing and related engineering disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type requires further investigation to ensure it was justified and did not limit fair competition.
The CPFF contract type necessitates robust oversight to manage costs effectively and prevent potential overruns.
Limited competition (2 bidders) may have resulted in a higher price than if more vendors had participated.

Positive Signals

The contract was awarded through a competitive process, even if limited, indicating some level of market vetting.
The long duration (1221 days) suggests a stable, ongoing requirement that the contractor is expected to fulfill reliably.
The contractor, Science and Engineering Services, LLC, is being entrusted with a significant defense-related task.

Sector Analysis

The aircraft manufacturing sector is a critical component of the defense industrial base, involving complex engineering, production, and maintenance of military aircraft. This contract, valued at over $40 million, falls within this high-stakes industry. Spending in this sector is often characterized by long-term programs, high R&D costs, and significant government oversight due to national security implications. Comparable spending benchmarks would typically be found within other large-scale defense manufacturing contracts for aircraft, engines, or related systems.

Small Business Impact

This contract does not appear to have a small business set-aside (SB: false, SS: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary focus is on the prime contractor, Science and Engineering Services, LLC. Analysis of the prime contractor's overall subcontracting plan, if any, would be necessary to determine broader small business impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, potentially through its contracting command or program executive offices responsible for aviation and logistics. The CPFF structure necessitates detailed financial and performance reporting from the contractor. Accountability measures would include adherence to contract terms, delivery schedules, and quality standards. Transparency is often limited in defense contracts due to security concerns, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Manufacturing
Defense Logistics
Aerospace Engineering Services
Military Aircraft Support
Department of the Army Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Cost control risks inherent in CPFF contracts.
Need for robust oversight of contractor performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.7 million to SCIENCE AND ENGINEERING SERVICES, LLC. IGF:XX::IGF DELIVERY ORDER 0090 AWARD IN REFERENCE TO RFOP 17-R-0179.

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 $40.7 million.

What is the period of performance?

Start: 2017-06-28. End: 2020-10-31.

What specific aircraft manufacturing services were provided under this delivery order?

The provided data indicates the contract is for 'Aircraft Manufacturing' (NAICS 336411) and was awarded to Science and Engineering Services, LLC. However, the specific nature of the services rendered under this particular delivery order (0090) is not detailed in the provided data. Typically, contracts in this category can encompass a wide range of activities, including but not limited to, manufacturing of aircraft components, assembly, modification, repair, overhaul, technical support, engineering services, or program management related to aircraft. Further investigation into the base IDIQ contract (RFOP 17-R-0179) and the specific statement of work for delivery order 0090 would be required to ascertain the precise services.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other aircraft manufacturing contracts?

The Cost Plus Fixed Fee (CPFF) structure is common in defense contracts, especially for services where the scope may evolve or is difficult to define precisely upfront. It allows the government to reimburse the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer less price certainty for the government but provides flexibility. For aircraft manufacturing, where innovation and adaptation are often necessary, CPFF can be suitable. However, it places a strong emphasis on government oversight to control costs. Benchmarking requires comparing the total contract value (costs + fee) against similar services and the percentage of the fee relative to total costs across comparable contracts.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type suggests that while the initial solicitation was intended to be open, specific sources were later excluded, or a justification was made to limit the pool. This can introduce risks if the exclusion was not properly justified or if it significantly reduced the competitive landscape. Potential risks include: 1) Higher prices due to reduced competition. 2) Limited innovation if a diverse range of potential solutions were not considered. 3) Potential for protests if excluded vendors believe the exclusion was improper. 4) Reduced transparency regarding the rationale for exclusion. Understanding the specific justification for exclusion is critical to assessing these risks.

What is the track record of Science and Engineering Services, LLC in fulfilling government contracts, particularly in aircraft manufacturing?

The provided data identifies Science and Engineering Services, LLC as the contractor for this $40.7 million delivery order. To assess their track record, one would need to examine their past performance on similar government contracts. This includes reviewing contract histories for on-time delivery, quality of work, cost control, and any past performance evaluations or disputes. Information on their experience specifically within the aircraft manufacturing sector (NAICS 336411) and their success with CPFF contracts would be particularly relevant. A comprehensive review of their contract awards and performance history across various agencies would provide a clearer picture of their reliability and capabilities.

How does the $40.7 million award compare to historical spending on aircraft manufacturing support by the Department of the Army?

To compare this $40.7 million award to historical spending, one would need to analyze the Department of the Army's procurement data for aircraft manufacturing support over several fiscal years. This involves identifying similar contracts awarded under the same or related NAICS codes (e.g., 336411) and summing their values. Understanding the typical scale of such contracts, the number of awards made annually, and the average award value would provide context. A $40.7 million award for a single delivery order suggests a significant, but not necessarily unprecedented, investment in this capability. Trends in spending, such as increases or decreases in contract values or the number of awards, would indicate shifts in the Army's requirements or budget allocation for aircraft manufacturing support.

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: 2

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: $40,731,862

Exercised Options: $40,731,862

Current Obligation: $40,731,862

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $9,340,128

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