DoD awards $59.17M for UH-60A aircraft refurbishment, with Science and Engineering Services, LLC as the primary contractor

Contract Overview

Contract Amount: $59,168,017 ($59.2M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-04-12

End Date: 2021-01-31

Contract Duration: 1,025 days

Daily Burn Rate: $57.7K/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: THE GOVERNMENT INTENDS TO AWARD THE REFURBISHMENT OF UP TO 40 UH-60A AIRCRAFT IN SUPPORT OF AFGHANISTAN AS A SPLIT BUY. EACH TECHNICALLY ACCEPTABLE OFFER WILL BE AWARDED A BASE WITH OPTION POTENTIAL. THE OFFEROR WITH THE BEST VALUE TO THE GOVERNMENT WILL RECEIVE A BASE AWARD OF 9 AIRCRAFT WITH RANGE QUANTITIES OF OPTIONS FOR UP TO 28 ADDITIONAL AIRCRAFT. THE OFFEROR WITH A TECHNICALLY ACCEPTABLE PROPOSAL WHICH WAS NOT FOUND TO BE THE BEST VALUE BUT REPRESENTED A FAIR AND REASONABLE PRICE TO THE GOVERNMENT WILL RECEIVE A BASE AWARD OF 3 AIRCRAFT WITH RANGE QUANTITIES OF OPTIONS FOR UP TO 28 ADDITIONAL AIRCRAFT.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $59.2 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: THE GOVERNMENT INTENDS TO AWARD THE REFURBISHMENT OF UP TO 40 UH-60A AIRCRAFT IN SUPPORT OF AFGHANISTAN AS A SPLIT BUY. EACH TECHNICALLY ACCEPTABLE OFFER WILL BE AWARDED A BASE WITH OPTION POTENTIAL. THE OFFEROR WITH THE BEST VALUE TO THE GOVERNMENT WILL RECEIVE A BASE AWARD OF 9… Key points: 1. Contract awarded for refurbishment of up to 40 UH-60A aircraft, indicating a need for fleet modernization and sustainment. 2. The award structure prioritizes best value, with a split buy to ensure competitive pricing and access to multiple technical solutions. 3. The contract involves a base award for a minimum number of aircraft, with significant option potential for additional units. 4. This award falls under the Aircraft Manufacturing industry, suggesting a focus on specialized aerospace services. 5. The duration of the contract (1025 days) points to a substantial refurbishment effort requiring significant lead time. 6. The use of Cost Plus Fixed Fee (CPFF) pricing indicates that costs are reimbursed, plus a fixed fee for profit, common in complex R&D or service contracts.

Value Assessment

Rating: fair

The total award amount of $59.17 million for up to 40 aircraft refurbishments suggests a per-aircraft cost of approximately $1.48 million. This figure needs to be benchmarked against similar UH-60A refurbishment contracts, considering the scope of work, age of aircraft, and specific modifications required. Without detailed breakdowns of the refurbishment scope, it is difficult to definitively assess value for money. The split-buy approach, however, aims to drive better pricing by fostering competition.

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,' which implies that the initial solicitation was open to all responsible sources, but specific exclusions were made, possibly due to prior work or specific technical requirements. The details of how many offers were received and evaluated are not provided, but the split-buy mechanism suggests at least two technically acceptable offers were considered for award.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and better overall value.

Public Impact

The U.S. Army benefits from the refurbishment of its UH-60A Black Hawk helicopter fleet, ensuring operational readiness. The services delivered include the refurbishment of aircraft, likely involving extensive maintenance, repair, and potential upgrades. The contract is managed by the Department of the Army, indicating a focus on military aviation assets. The contract is being performed in Alabama (ST: AL, SN: ALABAMA), suggesting a positive impact on the regional aerospace workforce and economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'After Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and impact on broader competition.
The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed rigorously, requiring close oversight.
The split-buy award mechanism, while intended to foster competition, could potentially lead to less efficient production runs for each contractor compared to a single large award.

Positive Signals

The award is based on a 'best value' determination, indicating that factors beyond just price were considered, likely including technical merit and past performance.
The contract is being performed in Alabama, potentially supporting a skilled aerospace workforce and local economic development.
The refurbishment of existing aircraft contributes to sustainability by extending the life of valuable assets rather than procuring entirely new ones.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on rotary-wing aircraft. The UH-60 Black Hawk is a widely used utility helicopter in military operations globally. The market for aircraft refurbishment and MRO (Maintenance, Repair, and Overhaul) services is substantial, driven by the need to maintain aging fleets. Comparable spending benchmarks would involve analyzing other contracts for similar helicopter fleet modernization programs across different military branches or allied nations.

Small Business Impact

The data indicates that small business participation (SB: false) was not a primary set-aside criterion for this specific award. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary awardee is likely a large business, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the Cost Plus Fixed Fee structure, which requires detailed cost reporting and justification. 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

UH-60 Black Hawk Helicopter Fleet Modernization
Military Aircraft Maintenance and Repair
Aerospace Manufacturing Contracts
Department of Defense Aviation Sustainment Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Ensuring consistent quality across split-buy awardees.
Understanding the rationale behind 'exclusion of sources' in competition.
Benchmarking refurbishment costs against industry standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.2 million to SCIENCE AND ENGINEERING SERVICES, LLC. THE GOVERNMENT INTENDS TO AWARD THE REFURBISHMENT OF UP TO 40 UH-60A AIRCRAFT IN SUPPORT OF AFGHANISTAN AS A SPLIT BUY. EACH TECHNICALLY ACCEPTABLE OFFER WILL BE AWARDED A BASE WITH OPTION POTENTIAL. THE OFFEROR WITH THE BEST VALUE TO THE GOVERNMENT WILL RECEIVE A BASE AWARD OF 9 AIRCRAFT WITH RANGE QUANTITIES OF OPTIONS FOR UP TO 28 ADDITIONAL AIRCRAFT. THE OFFEROR WITH A TECHNICALLY ACCEPTABLE PROPOSAL WHICH WAS NOT FOUND TO BE THE BEST VALUE BUT REPRESENTED A FAIR AND REASONABLE PRICE TO THE

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 $59.2 million.

What is the period of performance?

Start: 2018-04-12. End: 2021-01-31.

What specific refurbishment tasks are included in the $59.17 million contract for the UH-60A aircraft?

The provided data does not detail the specific refurbishment tasks included in the $59.17 million contract. However, based on the nature of aircraft refurbishment, it typically involves a comprehensive overhaul of major systems, including airframe structural repairs, engine maintenance or replacement, avionics upgrades, rotor system servicing, and interior refurbishment. For the UH-60A, this could also involve modifications to meet current operational requirements or to extend the service life of the aircraft. A detailed statement of work (SOW) within the contract documents would specify the exact scope, which is not available in the summary data.

How does the 'best value' determination for the primary awardee compare to the 'fair and reasonable price' determination for the secondary awardee?

The 'best value' determination for the primary awardee implies that the government evaluated proposals based on a combination of technical merit, past performance, and price, ultimately selecting the offer that provided the greatest overall benefit. The secondary awardee, while also technically acceptable and offering a 'fair and reasonable price,' was not selected as the best value. This suggests that while their price was deemed equitable, their technical solution or other non-price factors were considered less advantageous compared to the primary awardee. This approach allows the government to secure a second source while prioritizing the most advantageous offer.

What are the potential risks associated with a split-buy award strategy for aircraft refurbishment?

A split-buy award strategy, while intended to foster competition and ensure a backup source, can introduce several risks. Firstly, it may lead to less efficient production scales for each contractor compared to a single, larger award, potentially increasing per-unit costs. Secondly, managing two separate contracts, even for similar work, can increase administrative overhead for the government. Thirdly, ensuring consistent quality and adherence to specifications across both awardees requires robust oversight. Finally, if the option quantities are significantly different, it could create an uneven playing field for future sustainment or follow-on work.

What is the significance of the 'Aircraft Manufacturing' NAICS code (336411) in the context of this contract?

The North American Industry Classification System (NAICS) code 336411, 'Aircraft Manufacturing,' signifies that the primary business activity related to this contract involves the production or assembly of aircraft. In the context of refurbishment, this code indicates that the contractor possesses the capabilities, facilities, and expertise akin to aircraft manufacturers, which often includes extensive engineering, structural repair, systems integration, and quality control processes necessary for major aircraft overhauls. This code suggests the contractor is a significant player in the aerospace industry, capable of handling complex aviation projects.

How does the contract duration of 1025 days impact the overall program timeline and budget?

A contract duration of 1025 days (approximately 2.8 years) for the refurbishment of up to 40 UH-60A aircraft indicates a phased approach to the program. This extended timeline allows for a methodical refurbishment process, potentially accommodating complex technical challenges and ensuring thorough quality checks for each aircraft. From a budget perspective, it spreads the financial outlay over a longer period, which can be beneficial for cash flow management. However, it also means that the full operational benefit of all refurbished aircraft will be realized gradually, and potential cost increases due to inflation or changing requirements over this period need to be managed.

What does the 'AL' state code and 'ALABAMA' state name suggest about the contractor's location or performance site?

The 'AL' state code and 'ALABAMA' state name associated with this contract likely indicate that the contractor, Science and Engineering Services, LLC, is either headquartered in Alabama or that the primary performance location for this refurbishment contract is in Alabama. Alabama has a significant aerospace and defense industry presence, including major manufacturers and support companies. This suggests the contract may leverage existing infrastructure and a skilled workforce within the state, potentially contributing to the local economy and job market in the region.

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: $88,136,978

Exercised Options: $59,168,017

Current Obligation: $59,168,017

Subaward Activity

Number of Subawards: 104

Total Subaward Amount: $13,704,802

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