DoD's $6.2M V-22 Fuel Bladder Contract Awarded to Advanced Technology International

Contract Overview

Contract Amount: $6,223,284 ($6.2M)

Contractor: Advanced Technology International

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2027-08-14

Contract Duration: 1,053 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ACWSS FUEL BLADDER (V-22)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: ACWSS FUEL BLADDER (V-22) Key points: 1. Contract awarded for critical V-22 Osprey component, indicating ongoing support needs. 2. Advanced Technology International, a new entrant for this specific item, secured the award. 3. The contract duration of over three years suggests a sustained requirement. 4. Research and Development classification points to potential for innovation or specialized manufacturing. 5. The award value is modest within the broader DoD R&D landscape. 6. Full and open competition was utilized, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of $6.2 million for ACWSS FUEL BLADDER (V-22) appears reasonable given the specialized nature of aerospace components and the three-year duration. Benchmarking against similar V-22 component contracts is difficult without more specific data, but the award to a single entity suggests a focused procurement. The Cost Plus Fixed Fee (CPFF) contract type allows for cost control while incentivizing efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value. The use of this procurement approach suggests a healthy market for this type of specialized component.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who operate the V-22 Osprey aircraft. The contract will ensure the continued availability of essential fuel bladders for V-22 aircraft maintenance and readiness. The geographic impact is primarily within Virginia, where the contractor is located, potentially supporting local jobs. Workforce implications may include specialized manufacturing and engineering roles within Advanced Technology International.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Dependence on a single contractor for a critical component could pose supply chain risks.
Limited historical data on Advanced Technology International's performance with this specific product line.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration of over three years indicates a stable requirement and potential for long-term partnership.
Focus on a critical component for a key military aircraft highlights its strategic importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The aerospace and defense industry is characterized by high technological barriers to entry and significant government investment. The market for specialized aircraft components like fuel bladders is niche, often dominated by a few key suppliers. The $6.2 million award is a moderate sum within the broader context of defense R&D spending, which can range into billions for major programs.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Advanced Technology International chooses to engage small businesses for specific tasks or materials. Without explicit subcontracting plans, the direct benefit to small businesses is uncertain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.

Related Government Programs

V-22 Osprey Sustainment Programs
Aerospace Component Manufacturing
Defense Research and Development Contracts
Naval Aviation Support Contracts

Risk Flags

Potential for cost overruns
Supply chain dependency
Limited contractor performance history for this specific item

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to ADVANCED TECHNOLOGY INTERNATIONAL. ACWSS FUEL BLADDER (V-22)

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2024-09-25. End: 2027-08-14.

What is the track record of Advanced Technology International in supplying V-22 components?

Based on the provided data, Advanced Technology International is listed as the contractor for this specific ACWSS FUEL BLADDER (V-22) award. However, the data does not offer insight into their historical performance or prior experience with V-22 components or similar aerospace parts. Further investigation into the contractor's past performance records, including any previous government contracts, awards, or past performance evaluations, would be necessary to fully assess their track record. The fact that this is a new award suggests they may be a newer supplier for this specific item or have recently entered this market segment.

How does the value of this contract compare to similar V-22 component procurements?

Direct comparison of this $6.2 million contract value for ACWSS FUEL BLADDER (V-22) to similar V-22 component procurements is challenging without access to a broader dataset of comparable contracts. The value is influenced by factors such as the specific component's complexity, material requirements, research and development intensity, and the duration of the contract (over three years). While $6.2 million is a significant sum, it represents a specific need within the larger V-22 sustainment budget. Benchmarking would ideally involve analyzing contracts for other critical V-22 parts, considering their function, criticality, and procurement history.

What are the primary risks associated with this contract?

Key risks associated with this contract include potential cost overruns, which are inherent in Cost Plus Fixed Fee (CPFF) contracts if not managed diligently. There is also a supply chain risk, as the V-22 program relies on the consistent availability of this critical fuel bladder; any disruption from the sole awardee could impact aircraft readiness. Furthermore, the limited public information on Advanced Technology International's specific experience with this component introduces performance risk. Ensuring the contractor meets stringent quality and performance standards for aerospace applications will be crucial.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of R&D procurement?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development efforts where the scope of work may evolve or is not fully defined at the outset, as is common in R&D. It allows the government to benefit from the contractor's expertise while providing an incentive for the contractor to control costs through a fixed fee. For this V-22 fuel bladder contract, CPFF can be effective if the government maintains strong oversight to ensure costs are reasonable and the fixed fee adequately compensates the contractor for their effort and risk. However, it requires diligent monitoring to prevent cost escalation beyond the initial estimates.

What is the historical spending trend for V-22 fuel bladders or similar components?

The provided data does not include historical spending trends for V-22 fuel bladders or similar components. This specific award of $6.2 million represents a single procurement action. To understand historical spending, one would need to analyze contract databases for previous awards related to V-22 fuel systems, fuel bladders, or comparable aircraft components over several fiscal years. This would reveal patterns in contract values, awardees, and the overall investment in maintaining the V-22 fleet's fuel systems.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies that this contract is primarily for research and development activities. This implies that the work may involve innovation, design, testing, or the development of new or improved versions of the ACWSS FUEL BLADDER for the V-22. It suggests that the contract is not solely for the mass production of an existing item but likely includes an element of technical advancement or specialized engineering services related to the fuel bladder.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 315 SIGMA DR, SUMMERVILLE, SC, 29486

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,757,588

Exercised Options: $11,757,588

Current Obligation: $6,223,284

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,377,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001421D7001

IDV Type: IDC

Timeline