DoD Awards $18.18M Contract for UH-1N Helicopter Health Monitoring System Integration

Contract Overview

Contract Amount: $18,176,721 ($18.2M)

Contractor: Tyonek Global Services LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-01

End Date: 2026-08-28

Contract Duration: 3,192 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INTEGRATION OF HEALTH AND USAGE MONITORING SYSTEM ON UH-1N HELICOPTER

Place of Performance

Location: MADISON, MADISON County, ALABAMA, 35758

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to TYONEK GLOBAL SERVICES LLC for work described as: INTEGRATION OF HEALTH AND USAGE MONITORING SYSTEM ON UH-1N HELICOPTER Key points: 1. Contract awarded to Tyonek Global Services LLC for critical aircraft system integration. 2. The contract value of $18.18M supports the Department of the Air Force's aviation readiness. 3. Potential risks include integration complexity and long-term system sustainment. 4. Spending falls within the Aircraft Manufacturing sector, with benchmarks varying by system complexity.

Value Assessment

Rating: fair

The contract value of $18.18M for system integration appears reasonable given the scope. However, without specific per-unit cost data or detailed breakdown of labor and materials, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment.

Taxpayer Impact: The lack of competition raises concerns about maximizing taxpayer value, as alternative, potentially more cost-effective solutions may not have been explored.

Public Impact

Enhances operational readiness and safety of the UH-1N helicopter fleet. Supports critical maintenance and performance monitoring for aging aircraft. Ensures continued serviceability of a vital military asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Long contract duration (over 8 years) may not reflect current market pricing.
Lack of detailed cost breakdown makes value assessment difficult.

Positive Signals

Addresses a critical need for aircraft system modernization.
Supports a key component of national defense infrastructure.
Long-term contract provides stability for system development and deployment.

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, specifically focusing on system integration for helicopters. Spending benchmarks in this area can vary significantly based on the complexity of the technology and the specific aircraft platform.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities for small business participation were missed.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Robust performance metrics and regular reviews are essential for accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of competitive pressure.
Long contract duration may not reflect current market conditions.
Limited transparency on cost breakdown and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to TYONEK GLOBAL SERVICES LLC. INTEGRATION OF HEALTH AND USAGE MONITORING SYSTEM ON UH-1N HELICOPTER

Who is the contractor on this award?

The obligated recipient is TYONEK GLOBAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2017-12-01. End: 2026-08-28.

What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition. Without specific documentation, it's difficult to ascertain the exact reasons. However, the lack of competition inherently limits the government's ability to explore potentially more cost-effective alternatives or leverage market competition to drive down prices.

How does the per-unit cost of this integration compare to similar systems on other aircraft platforms?

A direct per-unit cost comparison is challenging without specific data points for this contract and comparable systems. The complexity of integrating health and usage monitoring systems can vary greatly depending on the aircraft's architecture, existing infrastructure, and the desired level of data granularity. Benchmarking would require detailed technical specifications and cost breakdowns from multiple sources.

What are the long-term cost implications of this contract for system sustainment and upgrades?

The long-term cost implications are significant. This contract covers the initial integration, but ongoing sustainment, maintenance, software updates, and potential future upgrades will incur additional costs. The sole-source nature may also impact future pricing for these sustainment activities, potentially leading to higher lifecycle costs if not managed proactively through contract modifications or future competitive procurements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA855217R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 229 PALMER RD, MADISON, AL, 35758

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,169,486

Exercised Options: $18,176,721

Current Obligation: $18,176,721

Actual Outlays: $316,819

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,515,805

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline