Navy awards $16.88M engineering services contract to Chickasaw Aerospace, LLC

Contract Overview

Contract Amount: $16,878,136 ($16.9M)

Contractor: Chickasaw Aerospace, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-15

End Date: 2026-08-14

Contract Duration: 1,095 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SERVICES IAW SOW PARA 3.2 - BASE PERIOD

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to CHICKASAW AEROSPACE, LLC for work described as: SERVICES IAW SOW PARA 3.2 - BASE PERIOD Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Limited competition raises concerns about price discovery and potential for inflated costs. 3. The contract duration of 1095 days suggests a significant, long-term need for these services. 4. The 'Not Available for Competition' status warrants further investigation into the justification. 5. Engineering services are critical for defense readiness, but value for money needs scrutiny. 6. The contractor's track record and past performance should be reviewed for reliability.

Value Assessment

Rating: questionable

The contract's value of $16.88 million for engineering services over three years requires benchmarking against similar DoD contracts. Without detailed task breakdowns and performance metrics, assessing value for money is difficult. The cost-plus-fixed-fee structure, while allowing flexibility, can lead to higher costs if not managed tightly. The absence of a specific base contract award amount and the presence of a 'br' value of 15414 suggest potential for modifications or a larger overarching program, which needs clarification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'Not Available for Competition,' indicating a sole-source or limited competition scenario. The specific justification for this procurement approach is not provided in the data. Sole-source awards can limit opportunities for other qualified businesses and may result in less competitive pricing compared to full and open competition. The lack of multiple bidders means the government did not benefit from a competitive bidding process to drive down costs.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. Without a bidding process, there is a reduced incentive for the contractor to offer the most cost-effective solution.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and readiness. This contract likely supports specific naval aviation or platform engineering requirements. The geographic impact is likely concentrated around naval facilities or contractor locations, potentially in Colorado (SN: COLORADO). The contract may support a specialized engineering workforce, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contracts can incentivize cost growth if not closely monitored.
The 'Not Available for Competition' status requires clear justification to ensure fairness and efficiency.
Limited transparency on the specific engineering tasks may hinder performance assessment.

Positive Signals

Award to a specific contractor (Chickasaw Aerospace, LLC) suggests a need for specialized expertise.
The contract duration indicates a sustained requirement, potentially for critical defense systems.
Engineering services are vital for maintaining and advancing defense capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for specialized engineering services supporting government contracts is substantial, driven by the need for technical expertise in complex systems development, maintenance, and upgrades. Benchmarking this contract's value against other DoD engineering service awards would provide context on its relative size and scope within the sector.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The focus appears to be on a prime contractor with specialized capabilities, rather than leveraging the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. The cost-plus-fixed-fee structure necessitates robust financial oversight to monitor expenditures and ensure compliance with the contract terms. Transparency regarding performance metrics and cost reporting will be key accountability measures. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Engineering Services
Aerospace Engineering Support Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award justification required.
Cost-plus-fixed-fee pricing requires close monitoring.
Potential for cost overruns due to CPFF structure.
Lack of competition may impact price efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to CHICKASAW AEROSPACE, LLC. SERVICES IAW SOW PARA 3.2 - BASE PERIOD

Who is the contractor on this award?

The obligated recipient is CHICKASAW AEROSPACE, 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 $16.9 million.

What is the period of performance?

Start: 2023-08-15. End: 2026-08-14.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION' (ct: NOT AVAILABLE FOR COMPETITION). This designation typically implies that only one responsible source is capable of providing the required services, or that a compelling justification exists for limiting competition (e.g., urgent need, unique capabilities, follow-on work to a previous sole-source award). Without further documentation from the agency, the precise reason remains unknown. A thorough review of the contract file and any associated Justification and Approval (J&A) document would be necessary to understand the rationale behind this sole-source determination and to assess whether it was appropriate and in the government's best interest.

How does the cost-plus-fixed-fee (CPFF) structure impact the potential final cost and contractor incentive?

A Cost-Plus-Fixed-Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is uncertainty in performance costs. While it allows for flexibility and encourages the contractor to undertake complex or uncertain projects, it shifts much of the cost risk to the government. The fixed fee provides a baseline profit, but the contractor has less incentive to control costs aggressively compared to fixed-price contracts, as their profit is fixed regardless of the final cost. Effective government oversight is crucial to manage costs and ensure the contractor exercises due diligence in controlling expenses.

What is the typical performance scope for 'Engineering Services' within the Department of the Navy?

Engineering Services for the Department of the Navy encompass a broad range of technical support activities critical to the lifecycle of naval platforms, systems, and infrastructure. This can include research and development support, design and integration of new systems, modification and upgrade of existing systems (e.g., ships, aircraft, weapons systems), testing and evaluation, technical data and documentation, systems engineering, cybersecurity engineering, and lifecycle sustainment engineering. The specific scope for this contract, 'SERVICES IAW SOW PARA 3.2,' would detail the precise tasks, deliverables, and performance standards required by Chickasaw Aerospace, LLC.

What does the 'br' value of 15414 signify in the context of this contract?

The 'br' value of 15414 is not a standard contract data field and its meaning is unclear without additional context or a data dictionary. It could potentially represent a budget line item, a reference number, a specific task order value within a larger contract, or a metric related to the contract's administration or performance. Given the base period award is $16.88 million, this 'br' value might relate to a specific funding allocation, a ceiling for a particular phase, or a benchmark figure used internally by the agency. Further clarification from the awarding agency or a more detailed data source would be needed to interpret its significance accurately.

How does the contract type 'DEFINITIVE CONTRACT' influence its structure and flexibility?

A 'DEFINITIVE CONTRACT' (ct: DEFINITIVE CONTRACT) is a standard, fully negotiated contract that specifies all the terms and conditions, including price, quantity, and delivery schedule. Unlike basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract typically represents a complete agreement for a specific procurement. In this case, it signifies that the $16.88 million award represents the finalized terms for the engineering services described in the Statement of Work (SOW) for the base period. While definitive, the 'Cost Plus Fixed Fee' pricing structure still allows for cost variations up to the negotiated fee.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6600123R0035

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD STE 2222, NORMAN, OK, 73071

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

Financial Breakdown

Contract Ceiling: $19,360,585

Exercised Options: $19,360,585

Current Obligation: $16,878,136

Actual Outlays: $1,001,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline