DoD's $28.3M contract for miscellaneous manufacturing services awarded to Hamilton Sundstrand Corporation

Contract Overview

Contract Amount: $28,356,001 ($28.4M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2002-11-14

End Date: 2009-06-30

Contract Duration: 2,420 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: POMONA, LOS ANGELES County, CALIFORNIA, 91767

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to HAMILTON SUNDSTRAND CORPORATION for work described as: Key points: 1. The contract's value of $28.3 million over approximately 6.7 years suggests a significant investment in specialized manufacturing capabilities. 2. Awarded on a sole-source basis, the lack of competition may have limited opportunities for price optimization. 3. The contract's duration and firm-fixed-price nature indicate a predictable cost structure for the Department of Defense. 4. Performance was managed by the Defense Contract Management Agency, suggesting a focus on ensuring delivery standards. 5. The 'All Other Miscellaneous Manufacturing' classification points to a broad scope of potential services, making direct comparisons challenging. 6. The absence of small business set-aside flags indicates this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult due to its broad 'miscellaneous manufacturing' classification and sole-source award. The total value of $28.3 million spread over approximately 2420 days (about 6.7 years) averages to roughly $11,717 per day. Without specific details on the services rendered, it's hard to assess if this daily rate represents good value for money compared to similar specialized manufacturing contracts. The firm-fixed-price structure, however, provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Hamilton Sundstrand Corporation, was considered. This approach bypasses the competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding environment. The government did not have the opportunity to solicit and evaluate multiple offers to ensure the best possible price.

Public Impact

The primary beneficiary is the Department of Defense, which receives specialized manufacturing services essential for its operations. The contract supports the production or maintenance of various defense-related components or systems, contributing to national security. Services are likely delivered within the United States, potentially supporting domestic manufacturing capabilities. The contract supports a workforce skilled in specialized manufacturing processes, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings for taxpayers.
Broad 'miscellaneous manufacturing' category makes it difficult to assess specific performance and value.
Long contract duration without clear performance metrics could pose a risk if needs evolve.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established entity like Hamilton Sundstrand suggests a level of confidence in their capabilities.
Managed by DCMA, indicating oversight and adherence to defense contracting standards.

Sector Analysis

The defense manufacturing sector is characterized by high technological complexity, stringent quality requirements, and significant government investment. Contracts like this, falling under 'All Other Miscellaneous Manufacturing,' often support niche capabilities or specialized components that are critical to defense systems. The market size for such specialized services can be substantial, but often involves a limited number of highly qualified contractors. Benchmarking is challenging due to the unique nature of 'miscellaneous' manufacturing, but the $28.3 million value over nearly seven years indicates a significant, long-term requirement.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses indicated in the provided data. Therefore, its direct impact on the small business ecosystem is likely minimal. The focus was on securing the required manufacturing services from the awarded contractor, rather than using the contract as a vehicle to promote small business participation.

Oversight & Accountability

Oversight for this contract was provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance, quality, and delivery requirements. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. Transparency regarding the specific services and performance metrics is limited by the 'miscellaneous manufacturing' classification and the sole-source award, making a full assessment of accountability challenging without further details.

Related Government Programs

Department of Defense Manufacturing Contracts
Defense Industrial Base Support
Miscellaneous Manufacturing Services
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award limits competitive pricing.
Broad service category lacks specificity for detailed performance assessment.
Long contract duration may not align with evolving technological needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to HAMILTON SUNDSTRAND CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is HAMILTON SUNDSTRAND 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 $28.4 million.

What is the period of performance?

Start: 2002-11-14. End: 2009-06-30.

What specific types of miscellaneous manufacturing services were provided under this contract?

The provided data classifies this contract under 'All Other Miscellaneous Manufacturing' (NAICS code 339999) and does not specify the exact services rendered. This broad category can encompass a wide range of activities, from producing specialized components and parts to providing assembly or repair services for various defense equipment. Without more detailed contract documentation, it is impossible to determine the precise nature of the manufacturing activities performed by Hamilton Sundstrand Corporation. This lack of specificity makes it challenging to assess the contract's true value and performance against defined objectives.

How does the $28.3 million contract value compare to similar sole-source miscellaneous manufacturing contracts awarded by the DoD?

Direct comparison of this $28.3 million sole-source contract to similar ones is difficult due to the broad 'miscellaneous manufacturing' classification and the inherent limitations of sole-source awards. Typically, competitive contracts allow for better benchmarking. However, considering the contract duration of approximately 6.7 years, the average annual value is around $4.2 million. This figure suggests a substantial, ongoing requirement for specialized manufacturing capabilities. To provide a more accurate comparison, one would need to identify contracts with similar scope, complexity, and duration within the defense sector, focusing on those awarded under similar circumstances (e.g., sole-source for specialized needs).

What are the key risks associated with a sole-source award for miscellaneous manufacturing services?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a premium compared to a competitively bid contract. This reduces the government's leverage in negotiating the best possible price. Another risk is potential complacency from the contractor, as there is no immediate threat of losing the business to a competitor. Furthermore, the absence of multiple bidders might mean that the government did not explore all available innovative solutions or the most cost-effective methods that a competitive field might have offered. Ensuring adequate oversight and performance management becomes even more critical in sole-source situations.

What was Hamilton Sundstrand Corporation's track record with the DoD prior to this contract?

Hamilton Sundstrand Corporation, now part of Collins Aerospace, has a long history of providing complex systems and components to the aerospace and defense industries. Prior to this specific contract awarded in 2002, the company (and its predecessors) had established relationships with the Department of Defense, likely involving various manufacturing and support services. Their extensive experience in aerospace and defense manufacturing suggests a strong technical capability. However, a detailed analysis of their specific performance on prior DoD contracts, including any past issues or exceptional performance, would require access to historical contract databases and performance reviews beyond the scope of the provided data.

How does the duration of this contract (2420 days) impact its overall value and risk profile?

The contract's duration of approximately 2420 days (about 6.7 years) indicates a long-term need for the specified manufacturing services. This extended period can offer stability and predictability for both the government and the contractor, potentially leading to efficiencies and a deeper understanding of requirements. For the government, it ensures a consistent supply of necessary components or services. However, a long duration also increases the risk that the government's needs might evolve, technology could advance, or market conditions could change, potentially making the contracted services less relevant or more expensive than future alternatives. Robust contract management and potential for modification clauses are crucial for mitigating these long-term risks.

What is the significance of the 'All Other Miscellaneous Manufacturing' classification (NAICS 339999)?

The NAICS code 339999, 'All Other Miscellaneous Manufacturing,' is a broad classification used for establishments primarily engaged in manufacturing products not classified elsewhere in the manufacturing sector. This includes a diverse range of goods, such as sporting goods, toys, musical instruments, flags, buttons, and various other manufactured items. For a defense contract, this classification suggests the need for specialized, perhaps custom-made, components or products that do not fit into more specific manufacturing categories like aerospace, electronics, or ordnance. Its broadness makes it difficult to pinpoint the exact nature of the work and compare it to industry benchmarks without further details.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 2771 NORTH GAREY AVENUE, POMONA, CA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline