DOT's FAA Awards $29.7M to Eaton Corp for Electrical Equipment, Lacking Competition
Contract Overview
Contract Amount: $29,692,043 ($29.7M)
Contractor: Eaton Corporation
Awarding Agency: Department of Transportation
Start Date: 2007-12-19
End Date: 2013-09-27
Contract Duration: 2,109 days
Daily Burn Rate: $14.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY-08 1ST QUARTER FUNDING
Place of Performance
Location: CORAOPOLIS, ALLEGHENY County, PENNSYLVANIA, 15108, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Transportation obligated $29.7 million to EATON CORPORATION for work described as: FY-08 1ST QUARTER FUNDING Key points: 1. Significant award of $29.7M to a single vendor. 2. Lack of competition raises concerns about price discovery. 3. Long contract duration (2109 days) may impact future pricing. 4. Awarded to a large business, with no small business set-aside noted.
Value Assessment
Rating: questionable
The award amount is substantial. Without competitive bids, it's difficult to assess if the $29.7M represents fair market value. The benchmark of $14,079 for the base award seems low relative to the total contract value, suggesting significant options or modifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This likely resulted in less aggressive pricing than a full and open competition would have achieved, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these electrical supplies and equipment.
Public Impact
Ensures continued availability of essential electrical components for FAA operations. Potential for higher costs due to non-competitive award. Long-term contract may lock in pricing, but could miss out on market innovations. Supports a large business contractor, with no direct benefit to small businesses specified.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for overpayment
Positive Signals
- Addresses a specific need for electrical equipment
- Firm fixed price contract limits cost overrun risk
Sector Analysis
This contract falls within the 'Electrical Apparatus and Equipment' wholesale sector. Spending in this area is crucial for maintaining infrastructure across various government agencies. Benchmarks for similar, competed contracts would be needed for a precise comparison.
Small Business Impact
The contract was awarded to Eaton Corporation, a large business. There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The non-competed nature of this award warrants scrutiny. Further review of the justification for limiting competition and the negotiation process would be beneficial to ensure accountability and value for taxpayer funds.
Related Government Programs
- Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Long contract duration
- Limited transparency on price justification
Tags
electrical-apparatus-and-equipment-wirin, department-of-transportation, pa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $29.7 million to EATON CORPORATION. FY-08 1ST QUARTER FUNDING
Who is the contractor on this award?
The obligated recipient is EATON CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $29.7 million.
What is the period of performance?
Start: 2007-12-19. End: 2013-09-27.
What was the specific justification for not competing this significant award, and how was the price determined to be fair and reasonable without competitive offers?
The justification for not competing this award is not provided in the data. Typically, such decisions are based on factors like urgent needs, unique capabilities, or existing infrastructure compatibility. Price reasonableness is usually determined through market research, historical pricing, or comparison to similar commercial items, but without competition, this process is inherently less robust.
Given the 5-year duration, what mechanisms are in place to ensure the pricing remains competitive and reflects potential market shifts or technological advancements?
The contract is firm fixed price, which locks in the price for the duration. While this protects against cost overruns, it doesn't inherently ensure competitiveness against market shifts. Mechanisms like price adjustment clauses, if included, or periodic reviews of contract performance could help, but the data doesn't specify these.
How does the $29.7M total award value compare to typical spending on similar electrical equipment by the FAA or other transportation agencies, and what is the potential impact of this non-competitive
Without specific benchmarks for competed contracts of this nature, a direct comparison is difficult. However, non-competitive awards often lead to higher prices than those achieved through competition. The potential impact is that taxpayers may have funded this equipment at a premium, diverting funds that could have been used for other critical FAA needs.
Industry Classification
NAICS: Wholesale Trade › Household Appliances and Electrical and Electronic Goods Merchant Wholesalers › Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
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: Sure Power Inc. (UEI: 029337465)
Address: 6055 ROCKSIDE WOODS BLVD, CLEVELAND, OH, 44131
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $117,244,756
Exercised Options: $29,692,043
Current Obligation: $29,692,043
Parent Contract
Parent Award PIID: DTFAAC08D00003
IDV Type: IDC
Timeline
Start Date: 2007-12-19
Current End Date: 2013-09-27
Potential End Date: 2013-09-27 00:00:00
Last Modified: 2015-05-11
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