DoD Awards $44.1M for MI-17 Cockpit Modification to Science and Engineering Services, LLC
Contract Overview
Contract Amount: $44,139,471 ($44.1M)
Contractor: Science and Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-28
End Date: 2015-08-17
Contract Duration: 1,784 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MI-17 STANDARDIZED COCKPIT MODIFICATION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $44.1 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: MI-17 STANDARDIZED COCKPIT MODIFICATION Key points: 1. Contract awarded for aircraft modification, indicating ongoing needs in aviation support. 2. The awardee, Science and Engineering Services, LLC, is a key player in this niche. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. Spending falls within the Aircraft Manufacturing sector, a significant area for defense procurement.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure suggests potential for cost growth. Benchmarking against similar aircraft modification contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds are being utilized for specialized aircraft upgrades, with the efficiency of the procurement method impacting the overall value for money.
Public Impact
Enhances operational capabilities of MI-17 aircraft through cockpit modernization. Supports military readiness and aviation maintenance sectors. Potential for job creation within the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Limited competition may result in suboptimal pricing.
- Contract duration is substantial, increasing exposure to market fluctuations.
Positive Signals
- Addresses specific military aircraft modernization needs.
- Awarded to a company with relevant engineering and services expertise.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is a critical component of the defense industrial base. Spending benchmarks for similar aircraft modification projects would provide further context.
Small Business Impact
The contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses is recommended to ensure broader economic participation.
Oversight & Accountability
The contract's limited competition and cost-plus structure warrant close oversight to ensure adherence to scope and prevent unnecessary expenditures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited competition procurement method.
- Long contract duration.
- No small business awardee.
Tags
aircraft-manufacturing, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.1 million to SCIENCE AND ENGINEERING SERVICES, LLC. MI-17 STANDARDIZED COCKPIT MODIFICATION
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 $44.1 million.
What is the period of performance?
Start: 2010-09-28. End: 2015-08-17.
What is the typical profit margin for Cost Plus Fixed Fee contracts in aircraft modification, and how does this award compare?
Cost Plus Fixed Fee (CPFF) contracts typically allow for reimbursement of all allowable costs plus a fixed fee representing profit. Profit margins can vary significantly based on contract complexity, risk, and market conditions, but often range from 7-15%. Without specific profit data for this contract, a direct comparison is difficult, but the fixed fee component aims to incentivize contractor efficiency.
What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?
This method, while allowing for some competition, inherently limits the pool of potential bidders. Risks include reduced price competition, potentially leading to higher costs for the government. It may also signal a lack of readily available sources or specific proprietary requirements, which could be a concern for long-term sustainment and future procurements.
How does the modernization of MI-17 cockpits contribute to the overall effectiveness of the Department of Defense's aviation assets?
Modernizing MI-17 cockpits can significantly enhance operational effectiveness by improving pilot situational awareness, integrating advanced navigation and communication systems, and potentially increasing flight safety. This upgrade ensures these aircraft remain viable and capable assets within the DoD's fleet, supporting mission requirements in diverse operational environments.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,139,471
Exercised Options: $44,139,471
Current Obligation: $44,139,471
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ09D0130
IDV Type: IDC
Timeline
Start Date: 2010-09-28
Current End Date: 2015-08-17
Potential End Date: 2015-08-17 00:00:00
Last Modified: 2025-02-12
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