Moog Inc. awarded $24.5M for mechanical actuators, serving as a key supplier for defense aircraft parts

Contract Overview

Contract Amount: $24,509,071 ($24.5M)

Contractor: Moog Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2012-01-31

Contract Duration: 1,222 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACTUATOR, MECHANICAL

Place of Performance

Location: EAST AURORA, ERIE County, NEW YORK, 14052

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to MOOG INC for work described as: ACTUATOR, MECHANICAL Key points: 1. Contract value of $24.5 million indicates significant demand for specialized aircraft components. 2. Sole awardee suggests either a highly specialized requirement or limited market competition. 3. Long contract duration (over 3 years) implies a stable, ongoing need for these parts. 4. Firm Fixed Price contract type shifts cost risk to the contractor, potentially benefiting the government. 5. The contract falls under the 'Other Aircraft Parts' manufacturing NAICS code, highlighting its specific industrial niche. 6. Awarded by the Defense Logistics Agency, this contract supports critical military aviation sustainment.

Value Assessment

Rating: good

The contract value of $24.5 million for mechanical actuators appears reasonable given the specialized nature of defense aircraft components. Benchmarking against similar contracts for complex aerospace parts is challenging without more specific technical details. However, the firm fixed-price structure suggests the government secured predictable costs. The long duration of the award (over three years) also implies a stable pricing agreement was reached.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows one award, which could mean that Moog Inc. was the most competitive bidder based on price, technical capability, or a combination of factors. The level of competition, even with a single award, suggests a healthy market for these types of components.

Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, ensuring the operational readiness of aircraft. Services delivered include the provision of critical mechanical actuators essential for aircraft functionality. The geographic impact is national, supporting defense logistics across various military installations. Workforce implications include supporting skilled manufacturing jobs in the aerospace sector, particularly in New York where Moog Inc. is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if competition is consistently limited for specialized components.
Reliance on a single supplier for critical parts could pose supply chain risks.
Ensuring ongoing innovation and cost reduction requires continuous market monitoring.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award through full and open competition suggests a competitive process was utilized.
Long-term award indicates a stable and reliable supply chain for essential components.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aerospace components is characterized by high technical barriers to entry, stringent quality requirements, and significant R&D investment. Spending in this sector is driven by military modernization programs and sustainment efforts. Comparable spending benchmarks would typically be found within the broader Defense Logistics Agency's procurement of aircraft components and systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Moog Inc. is a large corporation. While there is no direct indication of small business subcontracting requirements in the provided data, large prime contractors are often encouraged or mandated to include small businesses in their supply chains for major defense contracts. The impact on the small business ecosystem would depend on whether Moog actively seeks out and utilizes small business suppliers for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency Procurement
Aircraft Parts and Auxiliary Equipment Manufacturing
Military Aircraft Sustainment
Aerospace Component Manufacturing
Federal Procurement of Defense Goods

Risk Flags

Potential for supply chain vulnerability due to reliance on a single awardee.
Long contract duration may require periodic review to ensure continued cost-effectiveness and technological relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to MOOG INC. ACTUATOR, MECHANICAL

Who is the contractor on this award?

The obligated recipient is MOOG INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2008-09-26. End: 2012-01-31.

What is Moog Inc.'s track record with the Department of Defense, particularly regarding on-time delivery and quality compliance for similar components?

Moog Inc. has a long-standing relationship with the Department of Defense, supplying a wide range of components for various aircraft platforms. Their track record generally indicates a strong capability in producing complex aerospace systems. Historical data from contract databases often shows a pattern of successful awards and performance. However, like any large defense contractor, there can be instances of minor delivery delays or quality issues that are typically addressed through contract management and corrective action plans. Specific performance metrics for this particular contract (336413) would require a deeper dive into DLA's performance reports and any associated contractor performance assessment reporting (CPARs) if available.

How does the unit cost of these mechanical actuators compare to industry benchmarks or previous contracts for similar items?

Determining a precise unit cost benchmark for these mechanical actuators is challenging without more granular data on the specific technical specifications, volume, and complexity of the components. Moog Inc. operates in a specialized segment of the aerospace industry where custom engineering and high reliability command premium pricing. The provided data shows a total award of $24.5 million over 1222 days (approximately 3.3 years), with one award. To benchmark, one would need to identify comparable contracts for similar actuators (e.g., by size, operating environment, criticality) awarded by the DoD or other agencies, and analyze their pricing structures. The firm fixed-price nature of this contract suggests that Moog Inc. has factored in their costs and profit margins, and the DLA has determined this price to be acceptable based on their market research and competitive analysis at the time of award.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential supply chain disruptions for critical components, the possibility of cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen manufacturing challenges, and the risk of obsolescence if the technology becomes outdated. Mitigation strategies employed by the Defense Logistics Agency likely include robust contract oversight, performance monitoring, and maintaining strong communication channels with Moog Inc. The long-term nature of the contract also suggests a degree of supply chain stability has been established. Furthermore, the full and open competition at the outset aims to ensure the most capable and cost-effective supplier is chosen, reducing initial risk. The DLA may also have contingency plans in place for critical component sourcing.

How effective has the Defense Logistics Agency been in managing contracts for aircraft parts under NAICS code 336413?

The Defense Logistics Agency (DLA) is a primary agency responsible for procuring and managing a vast array of spare parts and equipment for the U.S. military, including those under NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). DLA's effectiveness is generally considered high due to its specialized expertise, established processes, and significant purchasing power. They manage complex global supply chains to ensure readiness. However, like any large organization, challenges can arise, such as ensuring competitive pricing across all categories, managing lead times for specialized components, and adapting to evolving technological requirements. Performance metrics and Inspector General reports related to DLA's aviation supply chain management would provide a more detailed assessment of their effectiveness.

What has been the historical spending trend for mechanical actuators and similar aircraft parts by the Department of Defense over the last five years?

Historical spending by the Department of Defense (DoD) on mechanical actuators and similar aircraft parts has been substantial and relatively consistent, driven by the need to maintain a large and aging fleet of military aircraft, as well as modernization efforts. While specific figures for 'mechanical actuators' alone are difficult to isolate without detailed category breakdowns, the broader category of 'Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) consistently represents billions of dollars in annual federal spending. This spending fluctuates based on defense budgets, specific platform sustainment needs, and the introduction of new aircraft. The DoD's commitment to readiness ensures a sustained demand for these critical components, making it a significant and ongoing area of federal expenditure.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SENECA ST AT JAMISON RD, EAST AURORA, NY, 14052

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,509,071

Exercised Options: $24,509,071

Current Obligation: $24,509,071

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852407D0009

IDV Type: IDC

Timeline