DoD's $147.7M UH-60 Helicopter Training & Maintenance Contract Awarded to Science and Engineering Services, LLC

Contract Overview

Contract Amount: $147,657,861 ($147.7M)

Contractor: Science and Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-20

End Date: 2024-08-16

Contract Duration: 2,157 days

Daily Burn Rate: $68.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PERFORM UH-60 AIRCRAFT QUALIFICATION TRAINING (AQT) AND PERFORM ALL SCHEDULED AND UNSCHEDULED MAINTENANCE ON UH-60 HELICOPTERS BASED OUT OF MAIN OPERATING BASE (MOB) KANDAHAR WITH THE CAPABILITY TO SUPPORT FORWARD OPERATING BASES (FOB).

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $147.7 million to SCIENCE AND ENGINEERING SERVICES, LLC for work described as: THE CONTRACTOR SHALL PERFORM UH-60 AIRCRAFT QUALIFICATION TRAINING (AQT) AND PERFORM ALL SCHEDULED AND UNSCHEDULED MAINTENANCE ON UH-60 HELICOPTERS BASED OUT OF MAIN OPERATING BASE (MOB) KANDAHAR WITH THE CAPABILITY TO SUPPORT FORWARD OPERATING BASES (FOB). Key points: 1. Contract focuses on critical UH-60 helicopter qualification training and maintenance, essential for operational readiness. 2. Awarded via full and open competition, suggesting a competitive bidding process for this service. 3. The contract duration extends over several years, indicating a long-term need for these services. 4. Performance is based out of Kandahar, highlighting the strategic importance and potential risks associated with operating in such a location. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires robust oversight. 6. This contract falls under the Aircraft Manufacturing NAICS code, though it primarily involves services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure means actual costs could fluctuate, making direct comparison to fixed-price contracts difficult. However, the total award amount of over $147 million for several years of comprehensive training and maintenance for a critical aircraft platform suggests a significant investment. Further analysis would require understanding the scope of services, the number of personnel and aircraft supported, and the specific fixed fee negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that after an initial exclusion period or specific circumstances, the opportunity was opened to all responsible sources. The presence of two bidders indicates some level of competition, but the specifics of the exclusion and the number of bidders warrant further investigation to fully assess the competitive landscape and its impact on pricing.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally aims to secure better pricing and value for taxpayers compared to sole-source or non-competitive awards.

Public Impact

The primary beneficiaries are the U.S. Army personnel requiring UH-60 helicopter qualification training. The contract ensures the operational readiness and maintenance of critical UH-60 helicopters. Services are geographically focused on Kandahar, Afghanistan, with support for forward operating bases. This contract supports a specialized workforce of trainers, maintenance technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in the operating region (Kandahar) poses significant operational and personnel risks.
Reliance on a Cost Plus Fixed Fee contract necessitates stringent oversight to manage costs effectively and prevent overruns.
The 'Exclusion of Sources' aspect of the competition, even if followed by open competition, may warrant a review to ensure maximum value was achieved.

Positive Signals

Awarded through a competitive process, indicating potential for value and fair pricing.
The contract addresses a critical and long-standing requirement for UH-60 helicopter support.
The extended duration suggests a stable, long-term partnership for essential services.

Sector Analysis

This contract operates within the aerospace and defense sector, specifically focusing on aviation support services. The market for military aircraft maintenance and training is substantial, driven by ongoing defense needs and the operational tempo of armed forces. Science and Engineering Services, LLC, as a provider in this space, competes with other specialized firms. Benchmarking would involve comparing the cost and scope of this contract to similar support agreements for other helicopter platforms or for the UH-60 across different theaters of operation.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not primary considerations for this specific contract award. This suggests that the prime contractor, Science and Engineering Services, LLC, is likely a larger entity, and there may be limited direct subcontracting opportunities for small businesses unless they are part of the prime's supply chain or are brought in by the prime. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, with potential involvement from the Department of Defense's Inspector General. The CPFF contract type requires diligent monitoring of costs, performance, and adherence to contract terms. Transparency would be enhanced by public reporting of performance metrics and cost expenditures, though specific details may be limited due to operational security.

Related Government Programs

UH-60 Black Hawk Helicopter Operations
Aviation Maintenance Services
Military Training Contracts
Defense Logistics Support
Afghanistan Security Contracts

Risk Flags

Operational Risk in Kandahar
Cost Control under CPFF
Competition Level Assessment
Contractor Performance Verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.7 million to SCIENCE AND ENGINEERING SERVICES, LLC. THE CONTRACTOR SHALL PERFORM UH-60 AIRCRAFT QUALIFICATION TRAINING (AQT) AND PERFORM ALL SCHEDULED AND UNSCHEDULED MAINTENANCE ON UH-60 HELICOPTERS BASED OUT OF MAIN OPERATING BASE (MOB) KANDAHAR WITH THE CAPABILITY TO SUPPORT FORWARD OPERATING BASES (FOB).

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 Army).

What is the total obligated amount?

The obligated amount is $147.7 million.

What is the period of performance?

Start: 2018-09-20. End: 2024-08-16.

What is the track record of Science and Engineering Services, LLC in performing similar large-scale aviation support and training contracts, particularly in complex operational environments?

Assessing the track record of Science and Engineering Services, LLC requires a review of their past performance on contracts of similar scope, complexity, and geographic location. Information regarding their experience with UH-60 operations, qualification training, and maintenance, especially in overseas or high-risk environments like Kandahar, would be crucial. Publicly available contract databases, past performance reviews, and agency penilaian reports can provide insights into their ability to meet performance requirements, manage costs, and adhere to schedules. A history of successful contract completion, positive performance evaluations, and minimal disputes would indicate a lower risk profile for this current award. Conversely, a history of performance issues, cost overruns, or contract disputes would raise concerns about their capability to execute this significant contract effectively.

How does the per-unit cost or overall value proposition of this contract compare to similar UH-60 maintenance and training contracts awarded by the DoD or other military branches?

Directly comparing the value proposition of this $147.7 million contract requires detailed cost breakdowns and performance metrics that are not fully available in the provided data. However, a comparative analysis can be initiated by examining publicly awarded contracts for similar UH-60 support services, considering factors such as the number of aircraft supported, training hours delivered, maintenance tasks performed, and the duration of the contract. Benchmarking against contracts in different geographic locations or with different contract types (e.g., fixed-price vs. cost-reimbursable) can highlight potential cost efficiencies or inefficiencies. The Cost Plus Fixed Fee (CPFF) nature of this award means that while the contractor is reimbursed for allowable costs, the fixed fee provides a ceiling for their profit, necessitating careful oversight to ensure costs remain reasonable and competitive relative to market rates and historical data for similar services.

What are the primary risks associated with performing UH-60 maintenance and training in Kandahar, and what mitigation strategies are in place?

Performing critical aviation support in Kandahar presents significant risks, primarily stemming from the volatile geopolitical and security environment. These risks include potential threats to personnel and equipment, logistical challenges due to infrastructure limitations and supply chain disruptions, and the possibility of unforeseen operational tempo changes impacting service demands. Security risks may necessitate enhanced force protection measures, specialized transportation, and robust contingency planning. Logistical risks require resilient supply chains and potentially higher inventory levels for spare parts and consumables. The contract's duration and the CPFF structure may allow for some flexibility in adapting to changing conditions, but effective risk mitigation relies heavily on the contractor's operational security protocols, the U.S. military's security support, and clear communication channels between the contractor and the contracting agency to adjust plans as needed.

How effective is the Cost Plus Fixed Fee (CPFF) contract structure in ensuring cost control and performance for long-term aviation support services in a high-risk environment?

The Cost Plus Fixed Fee (CPFF) contract structure aims to balance cost control with performance incentives. In this model, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure can be effective when the scope of work is not precisely defined at the outset or when unforeseen circumstances are likely, as is often the case in long-term, complex service contracts, particularly in challenging environments like Kandahar. The fixed fee incentivizes the contractor to manage costs efficiently to maximize their profit margin, as any cost savings below the estimated total project cost would increase their percentage of profit. However, CPFF contracts also require robust government oversight to ensure that costs are reasonable, allocable, and allowable, and that the contractor is not incentivized to inflate costs to cover inefficiencies. Effective administration and monitoring are crucial to realizing the benefits of this contract type.

What is the historical spending trend for UH-60 helicopter training and maintenance services by the Department of the Army, and how does this award fit within that pattern?

Analyzing historical spending trends for UH-60 helicopter training and maintenance by the Department of the Army is essential to contextualize this $147.7 million award. The Army operates a large fleet of UH-60 variants, necessitating continuous investment in their upkeep and pilot proficiency. Historical data would likely show consistent, significant annual expenditures on these services, often spread across multiple contracts, theaters of operation, and service providers. Factors influencing spending include operational tempo, fleet modernization programs, and geopolitical commitments. This specific award, covering a multi-year period and a critical operational base, appears to represent a substantial, but potentially standard, allocation of resources for maintaining a key aviation asset. Understanding the trend allows for assessment of whether this award represents an increase, decrease, or stable level of investment compared to previous periods.

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

Offers Received: 2

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: $152,279,534

Exercised Options: $147,657,861

Current Obligation: $147,657,861

Subaward Activity

Number of Subawards: 120

Total Subaward Amount: $146,632,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ13D0048

IDV Type: IDC

Timeline