F-16 upgrades and maintenance contract awarded to Gauss Management Research and Engineering Inc. for over $22 million

Contract Overview

Contract Amount: $22,132,203 ($22.1M)

Contractor: Gauss Management Research and Engineering Inc

Awarding Agency: General Services Administration

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F16 UPGRADES MAINTENANCE

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $22.1 million to GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC for work described as: F16 UPGRADES MAINTENANCE Key points: 1. Contract value exceeds $22 million, indicating significant investment in aircraft sustainment. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Competition was conducted under 'Full and Open Competition After Exclusion of Sources', suggesting a specific justification for limiting initial bidders. 4. The contract duration is 1095 days, spanning three years, allowing for sustained support. 5. The award was made by the General Services Administration (GSA), a common contracting vehicle. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, aligning with the contract's nature.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of 'F16 UPGRADES MAINTENANCE'. However, the $22.1 million price tag over three years suggests a substantial investment. The Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps costs. Further analysis would require comparing the specific deliverables and unit costs against similar F-16 maintenance and upgrade contracts to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, certain sources were excluded, likely due to specific technical requirements or prior performance. The number of bidders is not specified, but the exclusion suggests a potentially narrower field than a truly unrestricted full and open competition. This could impact price discovery if fewer qualified bidders were involved.

Taxpayer Impact: The exclusion of sources may limit the potential for the most competitive pricing, potentially leading to higher costs for taxpayers if the remaining bidders did not face intense price pressure.

Public Impact

The primary beneficiaries are likely the U.S. Air Force or other entities operating F-16 aircraft, ensuring the continued operational readiness of these platforms. Services delivered include maintenance and upgrades for F-16 fighter jets, crucial for national defense. The geographic impact is primarily within Ohio, where the contractor is located, but the ultimate impact is on national defense capabilities. Workforce implications include employment for engineers and technical staff at Gauss Management Research and Engineering Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type warrants further investigation to ensure fair opportunity and optimal pricing.
Lack of specific details on the 'upgrades' component makes it difficult to assess the technological advancement and long-term value.
The contract's reliance on a single award without clear performance metrics makes it hard to gauge contractor performance proactively.

Positive Signals

The Firm Fixed Price contract structure provides cost certainty for the government.
The contract duration of three years allows for consistent and predictable support for critical aircraft.
Awarding to a specialized engineering firm suggests access to necessary technical expertise for F-16 sustainment.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. Contracts for aircraft maintenance and upgrades are a substantial part of this sector's spending. This contract fits within the broader category of defense logistics and sustainment services. Comparable spending benchmarks would involve looking at other major aircraft platform sustainment contracts, which often run into tens or hundreds of millions of dollars over their lifecycle.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a set-aside. However, the prime contractor, Gauss Management Research and Engineering Inc., may still engage small businesses for specialized services or materials, contributing indirectly to the small business ecosystem. The extent of this subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and potentially the contracting activity within the Department of Defense that utilizes the F-16s. Accountability measures are inherent in the Firm Fixed Price contract type, where the contractor is responsible for delivering specified services within the agreed price. Transparency is facilitated by contract databases, but detailed performance reports and specific oversight activities are not publicly available.

Related Government Programs

F-16 Fighter Jet Modernization Programs
Air Force Aircraft Maintenance Contracts
Defense Logistics and Sustainment Services
Aerospace Engineering Services Contracts

Risk Flags

Competition Method Justification
Scope Clarity for Upgrades
Performance Metrics Definition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.1 million to GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC. F16 UPGRADES MAINTENANCE

Who is the contractor on this award?

The obligated recipient is GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What specific upgrades are included in this contract, and how do they enhance the F-16's capabilities?

The provided data abbreviates the contract description as 'F16 UPGRADES MAINTENANCE'. Without further details, it is impossible to specify the exact nature of the upgrades. These could range from avionics modernization, structural enhancements, software updates, to weapon system integration. The value of these upgrades in enhancing the F-16's capabilities (e.g., survivability, lethality, situational awareness) cannot be assessed without a detailed statement of work. Typically, upgrades aim to extend the operational life of the aircraft, improve performance against evolving threats, or integrate new technologies.

How does the $22.1 million contract value compare to historical spending on F-16 maintenance and upgrades?

Comparing the $22.1 million contract value requires context regarding the scope and duration of historical contracts. This contract spans three years (1095 days). If this represents a significant portion of the annual sustainment budget for a fleet of F-16s, it could be considered substantial. However, if it's for a specific set of major upgrades across numerous aircraft, it might be moderate. Historical data on F-16 sustainment spending by the Air Force would be needed for a precise comparison. For instance, major depot maintenance or modernization programs for fighter jets can easily run into hundreds of millions or even billions of dollars over their program life.

What are the key performance indicators (KPIs) for Gauss Management Research and Engineering Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for an 'F16 UPGRADES MAINTENANCE' contract, typical KPIs would likely include metrics related to on-time delivery of services, quality of work (e.g., defect rates, rework), adherence to technical specifications, and potentially cost control within the fixed-price framework. The effectiveness of oversight and accountability would depend on how rigorously these KPIs are monitored and enforced by the contracting agency.

What is the track record of Gauss Management Research and Engineering Inc. in performing similar defense contracts?

Information regarding the specific track record of Gauss Management Research and Engineering Inc. in performing similar defense contracts is not included in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on previous government contracts, particularly those involving aircraft maintenance or complex engineering services. Their past performance is a critical factor in assessing their capability to successfully execute this F-16 contract.

What is the risk associated with the 'Full and Open Competition After Exclusion of Sources' contracting method for this award?

The 'Full and Open Competition After Exclusion of Sources' method introduces a moderate level of risk. While it aims for competition, the exclusion of certain sources implies that the pool of potential bidders was deliberately narrowed. This could be due to highly specialized requirements that only a few firms could meet, or it could indicate a potential for reduced price competition if the excluded sources were strong competitors. The risk lies in potentially paying a higher price than might have been achieved in a truly unrestricted competition, and ensuring that the exclusion was fully justified and documented.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFLA23Q0088

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5875 S ADAMS AVE PKWY STE 2A, SOUTH OGDEN, UT, 84405

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,421,208

Exercised Options: $23,926,464

Current Obligation: $22,132,203

Actual Outlays: $-11,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D3074

IDV Type: IDC

Timeline