Department of the Army awards $18.3M for aircraft parts, including IVHMS and GSE kits

Contract Overview

Contract Amount: $18,307,772 ($18.3M)

Contractor: Simmonds Precision Products Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-29

End Date: 2011-09-05

Contract Duration: 341 days

Daily Burn Rate: $53.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE 82 IVHMS KITS, 104 GSE KITS, AND 69 DEPLOYMENT SPARES

Place of Performance

Location: VERGENNES, ADDISON County, VERMONT, 05491

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to SIMMONDS PRECISION PRODUCTS INC for work described as: PURCHASE 82 IVHMS KITS, 104 GSE KITS, AND 69 DEPLOYMENT SPARES Key points: 1. Contract awarded for specialized aircraft components, indicating a need for specific maintenance and operational support. 2. The procurement focuses on Integrated Vehicle Health Management Systems (IVHMS) and Ground Support Equipment (GSE) kits. 3. A significant portion of the award is for deployment spares, suggesting readiness and operational tempo requirements. 4. The contract value of $18.3 million falls within a moderate spending range for specialized aerospace components. 5. The award to Simmonds Precision Products Inc. represents a single-source decision for these specific items.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specific nature of the IVHMS and GSE kits. Without detailed specifications and market availability, a direct comparison to similar contracts is difficult. The fixed price nature of the contract provides some cost certainty, but the lack of competition raises questions about whether the government secured the best possible price. The total award of $18.3 million for 82 IVHMS kits, 104 GSE kits, and 69 deployment spares suggests a unit cost that would need further analysis against industry standards for such specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or proprietary rights to fulfill the requirement. The lack of competition means that the government did not benefit from a price discovery process driven by multiple bids, potentially leading to a higher cost than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, it is difficult to ascertain if the price reflects fair market value.

Public Impact

The primary beneficiaries are likely Department of the Army aviation units requiring specialized maintenance and operational support for their aircraft. The contract delivers essential components for aircraft health monitoring and ground operations, crucial for maintaining fleet readiness. Geographic impact is likely concentrated around Army aviation bases where these aircraft are deployed or maintained. Workforce implications include the need for trained personnel to install, operate, and maintain the IVHMS and GSE kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-sourcing requires further scrutiny.
Specific performance metrics and delivery timelines are not detailed, posing a potential risk to timely operational support.

Positive Signals

Award to Simmonds Precision Products Inc. suggests reliance on established expertise for critical aircraft components.
Firm Fixed Price contract provides cost certainty for the government.
The inclusion of deployment spares indicates a focus on operational readiness and immediate support needs.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high technological barriers to entry and specialized production capabilities. Contracts for aircraft parts, especially those related to health management systems and ground support, are critical for maintaining operational readiness. Spending in this area is often driven by specific platform requirements and lifecycle support needs. Comparable spending benchmarks would typically be found within other Department of Defense procurements for similar aircraft components or maintenance support services.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized products (IVHMS and GSE kits), it is unlikely that small businesses were primary awardees. Subcontracting opportunities for small businesses may exist if Simmonds Precision Products Inc. utilizes them for specific components or services, but this is not explicitly stated in the award data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency regarding the sole-source justification and the specific technical requirements would be key areas for oversight. Inspector General jurisdiction may be involved if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Component Manufacturing
Ground Support Equipment
Avionics Systems
Defense Logistics

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to SIMMONDS PRECISION PRODUCTS INC. PURCHASE 82 IVHMS KITS, 104 GSE KITS, AND 69 DEPLOYMENT SPARES

Who is the contractor on this award?

The obligated recipient is SIMMONDS PRECISION PRODUCTS 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 $18.3 million.

What is the period of performance?

Start: 2010-09-29. End: 2011-09-05.

What is the specific justification for awarding this contract on a sole-source basis to Simmonds Precision Products Inc.?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE' award. Typically, sole-source justifications are based on factors such as the unique capabilities of a single contractor, proprietary technology, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. For Simmonds Precision Products Inc. to be the sole source for IVHMS kits, GSE kits, and deployment spares, it suggests they may hold patents, unique manufacturing processes, or possess specific certifications and expertise essential for these particular aircraft components that other manufacturers do not. A detailed review of the contract file, specifically the Justification and Approval (J&A) document, would be required to understand the precise rationale and confirm the absence of viable alternatives.

How does the unit cost of the IVHMS kits and GSE kits compare to industry benchmarks or previous government procurements?

Without specific unit counts and detailed specifications for the IVHMS and GSE kits, a precise unit cost comparison is not feasible from the provided data. The total award of $18.3 million covers 82 IVHMS kits, 104 GSE kits, and 69 deployment spares. If we were to assume an even distribution for a rough estimate (which is not accurate), the average cost per item would be approximately $18,307,772 / (82 + 104 + 69) = $73,539. However, IVHMS and GSE kits can vary significantly in complexity and cost. To perform a true benchmark, one would need to identify comparable kits procured by the DoD or other agencies, analyze their specifications, and compare pricing. Factors like technological sophistication, integration requirements, and manufacturer overhead significantly influence unit costs in the aerospace sector.

What are the potential risks associated with a sole-source award for critical aircraft components?

The primary risk associated with a sole-source award for critical aircraft components is the potential for inflated pricing due to the lack of competitive pressure. Without competing offers, the government may not achieve the best possible value for its expenditure. Another risk is vendor lock-in, where the reliance on a single supplier can limit future flexibility and potentially lead to higher sustainment costs. Furthermore, if the sole-source contractor experiences production issues, financial instability, or goes out of business, it could severely disrupt the supply chain for these essential parts, impacting aircraft readiness and operational capabilities. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations.

What is the historical spending pattern for IVHMS and GSE kits by the Department of the Army or Department of Defense?

The provided data only details this specific $18.3 million contract awarded in 2010. To understand historical spending patterns for IVHMS and GSE kits, a broader analysis of federal procurement databases (like FPDS or USASpending) would be necessary. This would involve searching for similar contract actions over several fiscal years, filtering by agency (Department of the Army, other DoD branches), product service codes (PSCs) related to aircraft parts and avionics, and keywords like 'IVHMS' and 'GSE'. Analyzing this historical data would reveal trends in contract values, awardees, competition levels, and the overall volume of spending on these types of components, providing context for the current procurement.

What is the track record of Simmonds Precision Products Inc. in delivering similar aircraft components to the government?

The provided data indicates Simmonds Precision Products Inc. as the contractor for this $18.3 million award. To assess their track record, one would need to examine their past performance on government contracts, particularly those involving IVHMS, GSE kits, or other complex aircraft components. This would involve searching procurement databases for previous awards to Simmonds Precision Products Inc., reviewing contract performance reports (if available), and looking for any past issues related to quality, delivery, or cost overruns. A positive track record with similar items would increase confidence in their ability to fulfill this current requirement, while a history of performance problems would raise concerns.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 100 PANTON RD, VERGENNES, VT, 00

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,307,772

Exercised Options: $18,307,772

Current Obligation: $18,307,772

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ08D0224

IDV Type: IDC

Timeline