DoD's $144M Contract for Aircraft Parts: Full & Open Competition Awarded to Beechcraft Corporation
Contract Overview
Contract Amount: $144,102,231 ($144.1M)
Contractor: Beechcraft Corporation
Awarding Agency: Department of Defense
Start Date: 1999-12-28
End Date: 2013-12-06
Contract Duration: 5,092 days
Daily Burn Rate: $28.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $144.1 million to BEECHCRAFT CORPORATION for work described as: Key points: 1. Significant contract value of $144.1 million awarded to a major aerospace manufacturer. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. Contract duration spans over 13 years, indicating long-term supply needs. 4. No explicit small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: good
The contract value of $144.1 million for aircraft parts appears reasonable given the long duration and the nature of aerospace components. Benchmarking against similar, long-term contracts for specialized aircraft parts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple vendors to bid. This method generally leads to competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of this award suggests taxpayers likely benefited from market-driven pricing, avoiding potential overpayment associated with less competitive procurement methods.
Public Impact
Ensures continued availability of critical aircraft parts for the Air Force. Supports a major aerospace manufacturer and its supply chain. Long contract duration may indicate stable operational requirements for specific aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Long contract duration could mask potential cost escalations
Positive Signals
- Full and open competition utilized
- Award to established manufacturer
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness. Benchmarks for similar long-term contracts for specialized parts can vary widely based on technological complexity and volume.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award. While the prime contractor is a large entity, opportunities for small business subcontracting were not explicitly detailed, which could be a missed avenue for economic inclusion.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Further oversight would involve monitoring contract performance, adherence to delivery schedules, and any potential modifications or cost adjustments over its extensive duration.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of small business participation
- Long contract duration (over 13 years)
- Potential for price escalation over contract life
- No specific details on part criticality or obsolescence management
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ks, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $144.1 million to BEECHCRAFT CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BEECHCRAFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $144.1 million.
What is the period of performance?
Start: 1999-12-28. End: 2013-12-06.
What specific types of aircraft parts are covered under this contract, and how critical are they to Air Force operations?
The contract covers 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' for the Department of the Air Force. While specific part details are not provided, the significant value and long duration suggest these are likely essential components for maintaining the operational readiness of various Air Force aircraft platforms, potentially including engines, structural elements, or complex avionics subsystems.
Given the 13-year duration, what mechanisms are in place to mitigate risks of price inflation or obsolescence of parts?
The contract utilizes a Firm Fixed Price (FFP) structure, which generally shifts the risk of cost overruns to the contractor. However, long-term FFP contracts can still be vulnerable to inflation if not adequately indexed or reviewed. Mechanisms like periodic price reviews, clear specifications for part interchangeability, and potential clauses for obsolescence management would be crucial for mitigating these risks over such an extended period.
How does the utilization of full and open competition in this instance compare to typical procurement strategies for similar aircraft parts within the DoD?
Utilizing full and open competition for a contract of this magnitude and duration is generally considered a best practice within the DoD, aiming for maximum value and competitive pricing. This approach suggests that the required parts were not subject to unique technological barriers or proprietary restrictions that would necessitate a sole-source or limited competition award, indicating a healthy market for these components.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 10511 E CENTRAL AVE, WICHITA, KS, 04
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-12-28
Current End Date: 2013-12-06
Potential End Date: 2013-12-06 00:00:00
Last Modified: 2013-09-30
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