DoD's $297M contract for airborne surveillance systems supported operations in Iraq and Afghanistan

Contract Overview

Contract Amount: $297,212,729 ($297.2M)

Contractor: Telford Aviation, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-13

End Date: 2011-07-31

Contract Duration: 1,448 days

Daily Burn Rate: $205.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE REDETERMINATION

Sector: Defense

Official Description: THIS EFFORT PROVIDES 4 MEDIUM AIRBORNE RECONNAISSANCE SURVEILLANCE SYSTEM (MARSS) IN SUPPORT OF OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM. SERVICES INCLUDE PILOTS, MISSION ANALYSTS (SYSTEM OPERATORS), AIRCRAFT MAINTAINERS, AND PRIME MISSION EQUIPMENT (PME) MAINTAINERS. ALL DEPOT MAINTENANCE NECESSARY TO REPAIR AND SUPPORT MISSION SYSTEMS.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53207, UNITED STATES OF AMERICA

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $297.2 million to TELFORD AVIATION, INC. for work described as: THIS EFFORT PROVIDES 4 MEDIUM AIRBORNE RECONNAISSANCE SURVEILLANCE SYSTEM (MARSS) IN SUPPORT OF OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM. SERVICES INCLUDE PILOTS, MISSION ANALYSTS (SYSTEM OPERATORS), AIRCRAFT MAINTAINERS, AND PRIME MISSION EQUIPMENT (PME) MAINTAINE… Key points: 1. Contract provided critical airborne reconnaissance and surveillance capabilities for ongoing military operations. 2. Services encompassed pilots, mission analysts, and extensive aircraft and equipment maintenance. 3. The fixed-price redetermination contract type suggests potential for cost adjustments. 4. This contract was awarded on a sole-source basis, limiting competitive pricing benefits. 5. The duration of the contract (nearly 4 years) indicates sustained operational needs. 6. The contract's value places it as a significant investment in intelligence, surveillance, and reconnaissance (ISR) assets.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable sole-source procurements. However, the extensive scope of services, including PME maintenance and operational support for four MARSS systems over nearly four years, suggests a substantial cost. The fixed-price redetermination structure implies that initial pricing might have been an estimate, with final costs subject to negotiation based on actual expenses, which can introduce risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without a competitive process, it is difficult to assess the level of price discovery achieved or the extent to which market forces influenced the final price. Sole-source awards are typically justified when only one responsible source can provide the required supplies or services.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the government did not benefit from multiple offers driving down costs.

Public Impact

Military operations in Iraq and Afghanistan benefited from enhanced intelligence and surveillance capabilities. The contract supported the deployment and sustainment of four Medium Airborne Reconnaissance Surveillance Systems (MARSS). Services provided included highly specialized personnel such as pilots and maintenance crews. Geographic impact was primarily focused on operational theaters in the Middle East. Workforce implications include employment for pilots, analysts, and maintenance technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to higher costs for taxpayers.
Fixed-price redetermination contract type can introduce cost uncertainty if not managed closely.
The sole-source nature limits transparency into the pricing justification.

Positive Signals

Provided critical ISR capabilities essential for mission success in active combat zones.
Ensured the operational readiness and sustainment of complex surveillance systems.
Supported U.S. military objectives during prolonged engagements in Iraq and Afghanistan.

Sector Analysis

The Intelligence, Surveillance, and Reconnaissance (ISR) sector is a critical component of modern defense spending. This contract falls within the broader professional, scientific, and technical services category, specifically supporting advanced aerial surveillance. The market for such specialized aviation and analysis services is often dominated by a few key players due to high barriers to entry, including technological expertise, regulatory compliance, and security clearances. Comparable spending benchmarks would likely be found within other large-scale ISR platform support contracts.

Small Business Impact

This contract does not appear to have included small business set-asides, as indicated by the 'sb': false field. The prime contractor, Telford Aviation, Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Telford Aviation proactively engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, a component of the Department of Defense. Accountability measures would typically involve contract performance reviews, milestone tracking, and financial audits, especially given the fixed-price redetermination structure. Transparency is often limited in sole-source defense contracts, particularly those supporting active military operations. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Operation Iraqi Freedom Support Contracts
Operation Enduring Freedom Support Contracts
Medium Airborne Reconnaissance Surveillance System (MARSS) Program
Aviation Support Services
Military Intelligence Systems Support

Risk Flags

Sole-source award limits price competition.
Fixed-price redetermination introduces potential cost variability.
Lack of publicly available performance metrics hinders value assessment.
Contract duration suggests sustained, potentially high-cost operational needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $297.2 million to TELFORD AVIATION, INC.. THIS EFFORT PROVIDES 4 MEDIUM AIRBORNE RECONNAISSANCE SURVEILLANCE SYSTEM (MARSS) IN SUPPORT OF OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM. SERVICES INCLUDE PILOTS, MISSION ANALYSTS (SYSTEM OPERATORS), AIRCRAFT MAINTAINERS, AND PRIME MISSION EQUIPMENT (PME) MAINTAINERS. ALL DEPOT MAINTENANCE NECESSARY TO REPAIR AND SUPPORT MISSION SYSTEMS.

Who is the contractor on this award?

The obligated recipient is TELFORD AVIATION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $297.2 million.

What is the period of performance?

Start: 2007-08-13. End: 2011-07-31.

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

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For this contract, the justification likely stemmed from unique capabilities, proprietary technology, or specific operational requirements that only Telford Aviation, Inc. could meet at the time of award. Detailed justifications are usually found in contract files and may cite factors such as urgent and compelling needs, lack of adequate competition, or the existence of a required source. Without access to the specific contract documentation, the precise reason remains unconfirmed, but it is common in specialized defense sectors where unique expertise or platforms are involved.

How did the final costs compare to the initial estimates under the fixed-price redetermination structure?

The fixed-price redetermination (FPR) contract type allows for an initial price to be set, which is then adjusted based on actual costs incurred, up to a ceiling. To assess how final costs compared to initial estimates, one would need to examine the contract's modification history and final settlement data. This information would reveal the extent of cost variances and the reasons behind them. Given the contract's duration and the operational environment, it is plausible that costs could have deviated from initial projections due to unforeseen operational demands, maintenance challenges, or changes in resource availability. A detailed analysis of contract modifications would be necessary to provide a definitive answer.

What was the track record of Telford Aviation, Inc. with similar DoD contracts prior to this award?

Telford Aviation, Inc. has a history of performing aviation services for the U.S. government. Prior to this $297 million contract, the company likely held other contracts for aircraft operation, maintenance, and support, potentially including surveillance or reconnaissance platforms. Assessing their track record would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scale and complexity of previous awards. A positive performance history on similar, smaller-scale contracts could have influenced the decision to award this larger sole-source effort, assuming it met the justification criteria.

What were the key performance indicators (KPIs) used to measure the success of the MARSS systems under this contract?

Key performance indicators for airborne reconnaissance and surveillance systems typically focus on mission effectiveness, system availability, and operational readiness. For the MARSS systems under this contract, KPIs likely included metrics such as flight hour utilization, system uptime (percentage of time operational), successful data collection rates, sensor performance reliability, and timely completion of maintenance schedules. The contract's success would be measured by the extent to which these systems provided actionable intelligence and surveillance support to military operations in Iraq and Afghanistan, contributing to mission objectives and force protection.

How does this contract's spending compare to other ISR contracts awarded during the same period?

This $297 million contract for MARSS support represents a significant investment in ISR capabilities. During the peak years of operations in Iraq and Afghanistan (roughly 2007-2011), the Department of Defense awarded hundreds of billions of dollars across various ISR platforms, including manned aircraft, unmanned aerial vehicles (UAVs), satellites, and ground-based sensors. While $297 million is substantial for a single contract, it is likely within the range of major platform support contracts. To provide a precise comparison, one would need to analyze spending trends for similar ISR aviation support contracts awarded by the Army or other branches during that specific timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE REDETERMINATION (A)

Evaluated Preference: NONE

Contractor Details

Address: 6135 S JASPER AVE, MILWAUKEE, WI, 53207

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $309,982,129

Exercised Options: $309,982,129

Current Obligation: $297,212,729

Contract Characteristics

Cost or Pricing Data: YES

Timeline