DoD awards $65.8M contract to modify 12 Black Hawk helicopters for Air Force use

Contract Overview

Contract Amount: $65,821,852 ($65.8M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-07-21

End Date: 2024-02-05

Contract Duration: 2,390 days

Daily Burn Rate: $27.5K/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: REFERENCE TO RFOP 17-R-0070. MODIFY 12 ARMY UH-60L BLACKHAWK HELICOPTERS TO AIR FORCE HH-60G BLOCK 162 CONFIGURATION (L2G). BASE EFFORT IS 8 HELICOPTERS WITH A OPTION OF UP TO 4 HELICOPTERS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $65.8 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: REFERENCE TO RFOP 17-R-0070. MODIFY 12 ARMY UH-60L BLACKHAWK HELICOPTERS TO AIR FORCE HH-60G BLOCK 162 CONFIGURATION (L2G). BASE EFFORT IS 8 HELICOPTERS WITH A OPTION OF UP TO 4 HELICOPTERS. Key points: 1. Contract aims to enhance helicopter capabilities by reconfiguring Army Black Hawks for Air Force missions. 2. The modification involves converting UH-60L to HH-60G Block 162 configuration, indicating a need for specialized Air Force roles. 3. This contract represents a significant investment in fleet modernization and interoperability between Army and Air Force assets. 4. The chosen contractor, Science and Engineering Services, LLC, will perform the complex conversion work. 5. The contract structure includes a base effort for 8 helicopters with an option for 4 additional units, allowing for flexibility. 6. The duration of the contract is substantial, spanning over 2390 days, suggesting a phased and extensive modification process.

Value Assessment

Rating: fair

The total contract value of $65.8 million for the modification of up to 12 helicopters appears reasonable given the complexity of aircraft reconfiguration. However, without specific details on the scope of work for each modification and the cost breakdown per helicopter, a precise value-for-money assessment is challenging. Benchmarking against similar aircraft modification contracts would be necessary for a more definitive evaluation. The cost-plus-fixed-fee (CPFF) contract type suggests that costs are reimbursed, plus a fixed fee for profit, which can sometimes lead to higher overall costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was initially open, certain sources were excluded, possibly due to specific technical requirements or existing relationships. The number of bidders is not specified, but the 'full and open' nature suggests an attempt to solicit a broad range of qualified contractors. The level of competition, even with exclusions, is intended to promote price discovery and ensure a fair market price.

Taxpayer Impact: The use of full and open competition, even with exclusions, aims to leverage market forces to secure the best possible pricing for taxpayers. This approach generally leads to more competitive bids compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. Air Force, which will receive upgraded HH-60G helicopters equipped for specific mission requirements. The services delivered include the complex modification and conversion of existing Army UH-60L Black Hawk helicopters. The geographic impact is primarily within the United States, where the modifications will be performed and where the upgraded aircraft will eventually be deployed. Workforce implications include skilled labor in aircraft manufacturing, engineering, and technical services, potentially supporting jobs in specialized aerospace sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation raises questions about the extent of true competition and potential barriers to entry for some firms.
The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored by the agency.
The long contract duration (2390 days) may present challenges in managing scope creep and ensuring continued cost control over an extended period.

Positive Signals

The modification of existing airframes represents a cost-effective approach to fleet modernization compared to purchasing entirely new aircraft.
The contract aims to enhance the capabilities of the Air Force's rotary-wing fleet, improving operational readiness and mission effectiveness.
The use of a full and open competition process, even with exclusions, suggests an effort to obtain competitive pricing and technical solutions.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on the modification and upgrade of existing military helicopters. The market for defense aircraft modification is specialized, requiring significant technical expertise and adherence to stringent military specifications. Spending in this area is driven by the need for fleet modernization, adaptation to new mission requirements, and extending the service life of existing assets. Comparable spending benchmarks would involve other major aircraft modification programs within the Department of Defense.

Small Business Impact

The contract details indicate that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the primary contract was not specifically targeted towards small businesses. However, the prime contractor, Science and Engineering Services, LLC, may engage small businesses as subcontractors for specialized services or components, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the subcontracting opportunities generated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army and the Air Force, as it involves a modification for Air Force use. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army UH-60 Black Hawk Fleet Modernization
Air Force HH-60 Pave Hawk Helicopter Upgrades
Rotary-Wing Aircraft Modification Programs
Defense Logistics Agency Aviation Support Contracts
DoD Aircraft Manufacturing and Maintenance Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Complexity of integrating new systems into older airframes.
Ensuring interoperability and seamless transition for Air Force operations.
Long contract duration may introduce unforeseen challenges.
Dependency on specific technical expertise for the 'L2G' configuration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.8 million to SCIENCE AND ENGINEERING SERVICES, LLC. REFERENCE TO RFOP 17-R-0070. MODIFY 12 ARMY UH-60L BLACKHAWK HELICOPTERS TO AIR FORCE HH-60G BLOCK 162 CONFIGURATION (L2G). BASE EFFORT IS 8 HELICOPTERS WITH A OPTION OF UP TO 4 HELICOPTERS.

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 $65.8 million.

What is the period of performance?

Start: 2017-07-21. End: 2024-02-05.

What is the specific technical scope of the 'L2G' modification for the UH-60L to HH-60G Block 162 configuration?

The 'L2G' modification, converting the Army's UH-60L Black Hawk helicopters to the Air Force's HH-60G Block 162 configuration, likely involves significant avionics, sensor, and potentially structural upgrades. The HH-60G is a specialized variant designed for combat search and rescue (CSAR) missions, equipped with advanced communication systems, navigation aids, defensive countermeasures, and potentially specialized mission equipment such as winches and medical facilities. The Block 162 designation suggests a specific set of upgrades within the HH-60G program. The exact scope would detail the integration of new systems, removal of obsolete ones, and any airframe reinforcements required to meet the performance and safety standards for Air Force operations, differing from the standard Army utility configuration.

How does the cost of this modification compare to purchasing new HH-60G aircraft?

The cost-effectiveness of modifying existing UH-60L airframes versus procuring new HH-60G aircraft hinges on several factors. Modifying existing airframes typically leverages sunk costs in the original airframe, potentially reducing the overall expense compared to the full acquisition cost of a new aircraft. However, the complexity and extent of the modifications, as indicated by the 'L2G' designation and the substantial contract value, can significantly drive up the per-unit cost. A detailed cost-benefit analysis would compare the total lifecycle cost, including modification, maintenance, and operational expenses, of the upgraded UH-60Ls against the acquisition and lifecycle costs of new HH-60Gs. Without specific per-unit modification costs and the price of new HH-60Gs, a direct comparison is difficult, but modification is often pursued to extend the utility of existing assets when new procurement is prohibitively expensive or faces long lead times.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft modification?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for complex aircraft modifications like the UH-60L to HH-60G conversion revolve around cost control and contractor efficiency. In a CPFF structure, the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the actual costs. The government bears the risk of cost overruns. Effective mitigation requires robust government oversight, detailed cost tracking, stringent auditing of expenses, and clear definition of allowable costs. Without diligent management, CPFF contracts can lead to expenditures exceeding initial estimates, potentially diminishing the value proposition compared to fixed-price contracts.

What is the historical spending pattern for similar helicopter modification contracts within the DoD?

Historical spending on similar helicopter modification contracts within the DoD often reflects a significant investment in extending the service life and enhancing the capabilities of aging fleets. Programs like the UH-60 modernization, AH-64 Apache upgrades, or CH-47 Chinook enhancements typically involve multi-year efforts with substantial budgets, often in the tens to hundreds of millions of dollars, depending on the scale and complexity. These contracts frequently utilize cost-reimbursement or incentive-fee structures due to the inherent uncertainties in modifying complex systems. Spending patterns are influenced by evolving threat environments, technological advancements, and budgetary priorities, leading to cyclical investments in upgrades and conversions rather than solely new platform procurement. The average cost per airframe can vary widely based on the specific modifications, but it generally represents a significant portion of the cost of a new aircraft.

What is the track record of Science and Engineering Services, LLC in performing complex aircraft modifications?

Assessing the track record of Science and Engineering Services, LLC (SES) in performing complex aircraft modifications requires examining their past performance on similar government contracts. While the provided data identifies SES as the contractor, it does not detail their specific experience with helicopter conversions or DoD aviation programs. A thorough review would involve searching contract databases (like FPDS or SAM.gov) for previous awards to SES related to aircraft modification, maintenance, or engineering services, particularly for military rotary-wing aircraft. Evaluating past performance would include looking at contract completion success, adherence to schedule and budget, quality of work, and any documented performance issues or commendations. Without this specific historical data, it's difficult to definitively assess their capability for this particular complex modification.

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

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: $92,180,743

Exercised Options: $65,821,852

Current Obligation: $65,821,852

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $5,348,243

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