DoD Awards $157M for Aviation and Missile Command Logistics Support Services to AAI Corporation

Contract Overview

Contract Amount: $157,393,283 ($157.4M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2004-11-01

End Date: 2007-12-31

Contract Duration: 1,155 days

Daily Burn Rate: $136.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200502!000234!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05C0014 !A!N! !Y! ! !20041101!20051031!003090198!003090198!001527852!N!AAI CORPORATION !124 INDUSTRY LN !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000007000000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !272 !TACTICAL UAV !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !D!N!V!1!001!N!1G!C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $157.4 million to TEXTRON SYSTEMS CORPORATION for work described as: 200502!000234!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05C0014 !A!N! !Y! ! !20041101!20051031!003090198!003090198!001527852!N!AAI CORPORATION !124 INDUSTRY LN !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALT… Key points: 1. Contract awarded to AAI Corporation for logistics support services, specifically for airframes and spares for tactical UAVs. 2. The contract value is $157,393,282.52, with a period of performance from November 1, 2004, to October 31, 2005. 3. This was a 'Not Competed' award, indicating a sole-source or limited competition scenario. 4. The primary service code (PSC) is 541330 (Engineering Services), and the North American Industry Classification System (NAICS) code is also 541330.

Value Assessment

Rating: fair

The contract value of $157.4 million for logistics support services appears to be within a reasonable range for specialized defense contracts. However, without specific benchmarks for tactical UAV airframe and spare parts logistics, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a 'Not Competed' basis, suggesting a sole-source procurement. This limits price discovery and potentially leads to higher costs compared to a fully competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized logistics support services.

Public Impact

Ensures continued operational readiness for tactical Unmanned Aerial Vehicles (UAVs) critical for military operations. Supports the supply chain for essential airframes and spare parts, preventing potential mission delays. Maintains a specialized workforce and infrastructure necessary for advanced aviation and missile systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about cost-effectiveness.
Sole-source award may limit innovation and alternative solutions.
Contract duration and value warrant close monitoring for potential cost overruns.

Positive Signals

Addresses critical logistics needs for defense assets.
Ensures availability of specialized parts and services.
Supports a key defense contractor.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on aviation and missile systems logistics. Spending in this area is driven by national security needs and the modernization of military equipment. Benchmarks for similar logistics support contracts can vary widely based on the complexity and criticality of the assets supported.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. The award was made directly to AAI Corporation, a large defense contractor.

Oversight & Accountability

The 'Not Competed' nature of this award suggests that standard competitive oversight processes may have been bypassed. Further review of the justification for sole-source procurement is recommended to ensure accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of Competition
Potential for Inflated Pricing
Limited Transparency in Cost Determination
Reliance on a Single Contractor for Critical Support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $157.4 million to TEXTRON SYSTEMS CORPORATION. 200502!000234!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05C0014 !A!N! !Y! ! !20041101!20051031!003090198!003090198!001527852!N!AAI CORPORATION !124 INDUSTRY LN !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000007000000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !272 !TACTICAL UAV !541330!E! !1! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $157.4 million.

What is the period of performance?

Start: 2004-11-01. End: 2007-12-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or lack of viable alternatives. Without access to the specific contract file and its supporting documentation, it's impossible to determine the precise reasons. However, for specialized defense systems like tactical UAVs, it's plausible that only AAI Corporation possessed the necessary technical expertise, proprietary data, or existing infrastructure to provide the required logistics support effectively and without unacceptable delay.

How does the cost-plus-incentive-fee (CPIF) structure impact the overall value and risk for taxpayers in this sole-source contract?

A Cost Plus Incentive Fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government. In a sole-source scenario, while the incentive is present, the baseline cost is not established through competition, potentially inflating the starting point. This structure shifts some risk to the government if costs exceed targets but also offers potential savings if the contractor performs efficiently, making the ultimate taxpayer impact dependent on effective oversight and contractor performance.

What is the long-term strategic value of this contract for the Department of Defense's tactical UAV program?

This contract provides essential sustainment for the tactical UAV fleet, ensuring operational readiness and availability of critical assets. By securing logistics support for airframes and spares, the DoD mitigates risks of mission degradation due to equipment downtime. The long-term value lies in maintaining the effectiveness of these intelligence, surveillance, and reconnaissance (ISR) platforms, which are vital for modern military operations and force projection.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 21030

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline