DoD's $26M V-22 Generator Repair Contract Awarded to Hamilton Sundstrand Without Competition

Contract Overview

Contract Amount: $26,061,291 ($26.1M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2017-09-12

End Date: 2018-05-14

Contract Duration: 244 days

Daily Burn Rate: $106.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: V-22 CONSTANT FREQUENCY GENERATOR (CFG) REPAIR

Place of Performance

Location: ROCKFORD, WINNEBAGO County, ILLINOIS, 61125

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to HAMILTON SUNDSTRAND CORPORATION for work described as: V-22 CONSTANT FREQUENCY GENERATOR (CFG) REPAIR Key points: 1. Significant spending on a critical aircraft component. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Focus on specialized aircraft parts manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $26,061,291 for a V-22 Constant Frequency Generator (CFG) repair is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to similar repair services or if it reflects market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Hamilton Sundstrand Corporation. This lack of competition limits price discovery and may lead to inflated costs for the government.

Taxpayer Impact: Taxpayers may be overpaying for this critical repair due to the absence of a competitive bidding process.

Public Impact

Ensures operational readiness of the V-22 Osprey fleet. Supports specialized manufacturing and repair capabilities. Potential impact on future defense procurement strategies. Highlights reliance on specific contractors for unique parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures critical component repair
Supports specialized manufacturing

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized area within aerospace. Spending benchmarks for sole-source repairs of this nature are hard to establish without competitive data, but significant value suggests a critical need.

Small Business Impact

The data does not indicate any small business participation in this contract. The award was made to Hamilton Sundstrand Corporation, a large entity, suggesting limited opportunities for small businesses in this specific procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Documentation justifying the lack of competition and the reasonableness of the price would be crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price gouging
Limited transparency in pricing
Reliance on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to HAMILTON SUNDSTRAND CORPORATION. V-22 CONSTANT FREQUENCY GENERATOR (CFG) REPAIR

Who is the contractor on this award?

The obligated recipient is HAMILTON SUNDSTRAND CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2017-09-12. End: 2018-05-14.

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

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. For this V-22 CFG repair, it's likely related to specialized knowledge or parts exclusive to Hamilton Sundstrand, necessitating a non-competitive procurement to maintain aircraft readiness.

What are the risks associated with sole-source contracts for specialized aircraft parts?

Sole-source contracts for specialized aircraft parts carry risks of inflated pricing due to the absence of competitive pressure. There's also a risk of vendor lock-in, reduced innovation, and potential supply chain vulnerabilities if the sole provider faces issues. The government may also lack leverage to negotiate better terms or drive down costs over time.

How does this contract contribute to the overall effectiveness of the V-22 program?

This contract is essential for maintaining the operational readiness and effectiveness of the V-22 Osprey fleet by ensuring a critical component, the Constant Frequency Generator, is repaired. Without timely and effective repairs, aircraft availability would decrease, impacting mission capabilities and potentially increasing downtime and associated costs.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4747 HARRISON AVE, ROCKFORD, IL, 61108

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: $26,061,291

Exercised Options: $26,061,291

Current Obligation: $26,061,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038312D011N

IDV Type: IDC

Timeline