DoD awards $12.9M for aircraft parts, with University of Dayton as prime contractor

Contract Overview

Contract Amount: $12,903,624 ($12.9M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PRODUCT SUPPORT ENGINEERING SUSTAINMENT AND MODERNIZATION TASK ORDER OFF OF RAPID SUSTAINMENT OFFICE MULTIPLE AWARD IDIQ (FA8003-24-D-0026)

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to UNIVERSITY OF DAYTON for work described as: PRODUCT SUPPORT ENGINEERING SUSTAINMENT AND MODERNIZATION TASK ORDER OFF OF RAPID SUSTAINMENT OFFICE MULTIPLE AWARD IDIQ (FA8003-24-D-0026) Key points: 1. Contract focuses on product support, engineering, sustainment, and modernization for aircraft. 2. The award is a delivery order under a larger IDIQ contract, indicating a phased approach to procurement. 3. The contract duration is one year, suggesting a need for ongoing, potentially evolving support. 4. The contractor, University of Dayton, is a non-traditional defense contractor, potentially bringing innovative approaches. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor effort. 6. The North American Industry Classification System (NAICS) code 336413 points to specialized aircraft parts manufacturing.

Value Assessment

Rating: good

Benchmarking the value of this $12.9 million contract requires comparison to similar product support and sustainment contracts within the Department of Defense. Given the Cost Plus Fixed Fee structure, the final cost will depend on actual expenses incurred plus a fixed fee. Without detailed cost breakdowns or comparisons to industry benchmarks for similar services, a precise value-for-money assessment is challenging. However, the fixed fee component provides some cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The Department of the Air Force utilized this approach, suggesting confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive essential product support and sustainment services for its aircraft. Services delivered include engineering, sustainment, and modernization, crucial for maintaining operational readiness and extending the lifespan of aircraft. The geographic impact is primarily within Ohio, where the University of Dayton is located, potentially creating local employment and economic activity. Workforce implications may include the need for specialized engineers and technical staff at the University of Dayton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs.
The one-year duration might indicate a need for flexibility or potential for follow-on work, but also limits long-term planning certainty.

Positive Signals

Awarding to a university like the University of Dayton could bring fresh perspectives and potentially more cost-effective, innovative solutions compared to traditional defense contractors.
Full and open competition suggests a robust market response and a good chance of securing competitive pricing.
The focus on sustainment and modernization is critical for ensuring the longevity and effectiveness of Air Force assets.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and support services. The market for such services is substantial, driven by the continuous need to maintain and upgrade military aviation fleets. Comparable spending benchmarks would involve analyzing other contracts for aircraft sustainment, engineering support, and parts manufacturing awarded by the DoD and its various branches. The University of Dayton's involvement as a prime contractor is noteworthy, as academic institutions are increasingly participating in defense contracting, often bringing specialized research and development capabilities.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses as prime contractors is likely minimal for this specific award. However, the prime contractor, the University of Dayton, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and performance. Transparency is facilitated through contract award databases, though specific performance metrics and cost breakdowns may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Rapid Sustainment Office (RSO) Contracts
Air Force Product Support Contracts
Aircraft Modernization Programs
Defense IDIQ Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited long-term strategic planning due to one-year duration.
Contractor may lack extensive experience as a prime in this specific domain.
Definition of 'product support' may require clarification to ensure alignment with manufacturing NAICS code.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to UNIVERSITY OF DAYTON. PRODUCT SUPPORT ENGINEERING SUSTAINMENT AND MODERNIZATION TASK ORDER OFF OF RAPID SUSTAINMENT OFFICE MULTIPLE AWARD IDIQ (FA8003-24-D-0026)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF DAYTON.

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 $12.9 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the University of Dayton's track record with defense contracts, particularly in product support and engineering?

The University of Dayton has a history of engaging in research and development contracts with government agencies, including the Department of Defense. While not a traditional defense prime contractor focused on manufacturing, its research institutes and engineering departments have collaborated on various projects. Specific to product support, engineering, sustainment, and modernization for aircraft, detailed performance data from prior DoD contracts would be needed for a comprehensive assessment. Their involvement as a prime contractor on this IDIQ task order suggests a growing capacity or strategic focus on defense-related applied engineering and sustainment solutions, potentially leveraging their academic expertise in materials science, aerospace engineering, and related fields.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar sustainment services?

The Cost Plus Fixed Fee (CPFF) contract type is common for complex projects where the scope of work is not precisely defined at the outset, or where innovation and research are key components, such as product support and modernization. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the actual costs incurred, offering greater cost certainty to the government but potentially higher risk for the contractor. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) also exist, offering varying degrees of cost sharing and performance incentives. CPFF aims to balance the government's need for flexibility and contractor effort with a degree of cost predictability through the fixed fee.

What are the potential risks associated with a one-year contract duration for sustainment and modernization services?

A one-year contract duration for sustainment and modernization services presents several potential risks. Firstly, it may limit the ability to undertake long-term, strategic modernization efforts that require sustained investment and development over multiple years. Secondly, it can lead to inefficiencies if there is significant ramp-up time required for the contractor, as a substantial portion of the contract period might be consumed before full operational capacity is reached. Thirdly, it increases the administrative burden on the government for frequent re-competition or contract extension processes. Finally, it might deter contractors from making significant investments in specialized equipment or personnel if they perceive the contract as short-term, potentially impacting the depth and breadth of services offered.

How does the NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing) align with the described services of product support, engineering, and sustainment?

The NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' primarily categorizes establishments that manufacture aircraft parts and auxiliary equipment, excluding engines, propellers, and landing gear. While the contract description includes 'product support engineering, sustainment, and modernization,' which extends beyond pure manufacturing, the code is relevant because sustainment and modernization often involve the repair, overhaul, modification, or remanufacture of existing aircraft parts and auxiliary equipment. Engineering support may also be required to design or improve these parts. Therefore, the NAICS code captures a significant aspect of the contract's scope, particularly if the 'product support' involves the lifecycle management and enhancement of physical aircraft components.

What is the significance of this contract being a delivery order off an IDIQ contract?

This contract being a delivery order off an IDIQ (Indefinite Delivery/Indefinite Quantity) contract signifies a strategic procurement approach by the Department of the Air Force. The IDIQ contract establishes the terms and conditions, including pricing structures and performance requirements, under which multiple task orders or delivery orders can be issued over a specified period. This allows the agency to procure a range of services or supplies as needed, without needing to re-compete the basic contract each time. A delivery order, like this one, specifies the exact quantity and delivery schedule for a particular set of goods or services. This method provides flexibility and efficiency, enabling the Air Force to respond to evolving requirements for product support, engineering, sustainment, and modernization in a timely manner.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 COLLEGE PARK AVE, DAYTON, OH, 45469

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,903,624

Exercised Options: $12,903,624

Current Obligation: $12,903,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA800324D0026

IDV Type: IDC

Timeline