DoD Awards $9.9M for Aircraft Manufacturing Support, Highlighting Potential for Cost Overruns
Contract Overview
Contract Amount: $9,925,656 ($9.9M)
Contractor: Science and Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-17
End Date: 2026-04-30
Contract Duration: 1,199 days
Daily Burn Rate: $8.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COLLABORATIVE DEVELOPMENT
Place of Performance
Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: COLLABORATIVE DEVELOPMENT Key points: 1. Contract awarded to SCIENCE AND ENGINEERING SERVICES, LLC for aircraft manufacturing support. 2. Full and open competition after exclusion of sources indicates a potentially limited competitive landscape. 3. The Cost Plus Fixed Fee contract type carries inherent risk of cost escalation. 4. The sector is Aircraft Manufacturing, with a PSC code of 336411.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts. The awarded amount of $9.9M for a 1199-day duration needs further benchmarking against similar CPFF contracts for aircraft manufacturing support 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 that initial sources were limited, potentially impacting price discovery and overall competition. This method requires strong justification to ensure fair pricing.
Taxpayer Impact: The CPFF structure and limited initial competition raise concerns about potential overspending, impacting taxpayer value. Robust oversight is crucial to mitigate these risks.
Public Impact
Taxpayers may face increased costs due to the CPFF contract type. The exclusion of sources in the competition phase warrants scrutiny to ensure fairness. The duration of the contract (1199 days) suggests a long-term need for these services. The specific nature of 'Aircraft Manufacturing' support implies critical defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition after exclusion of sources
- No small business participation noted
Positive Signals
- Awarded to a single entity, potentially streamlining management
- Clear delivery order structure
Sector Analysis
The contract falls within the Aircraft Manufacturing sector, which is a critical component of the defense industry. Spending in this area is often high due to the complexity and specialized nature of aircraft development and production.
Small Business Impact
The data indicates no small business participation in this contract. Further analysis is needed to determine if opportunities were missed or if the nature of the work precluded small business involvement.
Oversight & Accountability
The 'Exclusion of Sources' clause requires careful oversight to ensure that the government received the best possible value and that the exclusion was justified. Monitoring the CPFF contract's cost performance is essential.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Limited competition due to exclusion of sources may impact price.
- No small business participation noted.
- The contract duration is substantial (1199 days), requiring long-term cost monitoring.
Tags
aircraft-manufacturing, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to SCIENCE AND ENGINEERING SERVICES, LLC. COLLABORATIVE DEVELOPMENT
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 Navy).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2023-01-17. End: 2026-04-30.
What specific services are included under 'Aircraft Manufacturing' support, and how do they align with the $9.9M budget?
The contract details 'COLLABORATIVE DEVELOPMENT' for aircraft manufacturing. This likely encompasses engineering, design, prototyping, or specialized technical support. The $9.9M budget over nearly four years needs to be assessed against the scope of work to determine if it represents fair value, especially given the CPFF structure which allows costs to fluctuate.
What was the justification for excluding other sources during the full and open competition phase?
The justification for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award is critical. It typically involves demonstrating that only specific entities possess the required unique capabilities, proprietary data, or specialized facilities. Without this justification, the exclusion raises concerns about fair market access and potential price inflation.
How will the Cost Plus Fixed Fee structure be managed to ensure cost control and prevent overruns?
Managing a CPFF contract requires stringent oversight, including detailed cost tracking, regular audits, and performance reviews. The government must ensure that SCIENCE AND ENGINEERING SERVICES, LLC adheres to the fixed fee and that all costs incurred are reasonable, allocable, and allowable. Clear milestones and performance metrics are essential to control spending.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0042116R0040
Offers Received: 4
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, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,258,453
Exercised Options: $10,258,453
Current Obligation: $9,925,656
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $2,070,929
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042117D0052
IDV Type: IDC
Timeline
Start Date: 2023-01-17
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-09
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