DoD awards $16.8M for Power and Compressor Systems R&D to Hamilton Sundstrand Corp

Contract Overview

Contract Amount: $16,832,105 ($16.8M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-23

End Date: 2028-01-14

Contract Duration: 1,270 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: POWER AND COMPRESSOR SYSTEM

Place of Performance

Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to HAMILTON SUNDSTRAND CORPORATION for work described as: POWER AND COMPRESSOR SYSTEM Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Hamilton Sundstrand Corporation, a known entity in aerospace, secured this definitive contract. 3. The contract duration spans over three years, indicating a significant R&D commitment. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The contract type is 'Cost No Fee', common in R&D where final costs are less predictable. 6. Focus on power and compressor systems points to critical aerospace or defense technology development.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the 'Cost No Fee' structure, which prioritizes research completion over strict cost adherence. Without specific deliverables or performance metrics tied to cost, a direct value-for-money assessment is difficult. However, the award to a single contractor suggests a belief in their capability to achieve the R&D objectives. Further analysis would require understanding the specific technological advancements sought and their potential impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should theoretically lead to fair pricing and selection of the most capable offeror. The nature of R&D contracts can sometimes limit the pool of highly specialized bidders.

Taxpayer Impact: A competitive bidding process for R&D contracts helps ensure that taxpayer funds are used efficiently by selecting the most innovative and cost-effective solutions available in the market.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the Air Force, gaining advancements in power and compressor system technology. This contract supports research and development activities, aiming to produce new knowledge and capabilities rather than immediate services. The geographic impact is primarily within Connecticut, where Hamilton Sundstrand Corporation is located, potentially creating or sustaining high-skilled jobs. Workforce implications include the employment of specialized engineers, scientists, and technicians involved in advanced research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' structure can lead to cost overruns if not carefully managed, as contractor profit is not directly tied to cost savings.
The specialized nature of R&D may limit the number of truly competitive bids, potentially impacting price discovery.
Long-term R&D projects carry inherent risks of technological obsolescence or failure to achieve desired outcomes.

Positive Signals

Awarded through full and open competition, suggesting a broad search for qualified contractors.
Hamilton Sundstrand Corporation is a reputable contractor with established expertise in aerospace systems.
The contract duration indicates a commitment to achieving significant R&D milestones.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced power and compressor systems is highly specialized, often dominated by large aerospace and defense contractors. Spending in this area is critical for maintaining technological superiority and developing next-generation military capabilities. Comparable spending benchmarks would typically be found within other large-scale R&D efforts by the DoD or NASA.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of power and compressor system R&D, it is likely that the prime contractor, Hamilton Sundstrand Corporation, will subcontract with other specialized firms, which may include small businesses, for specific components or expertise. However, the primary award is not directed towards small businesses.

Oversight & Accountability

Oversight for this definitive contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the achievement of R&D milestones and adherence to the 'Cost No Fee' terms. Transparency is generally maintained through contract databases, though specific R&D progress reports are often sensitive.

Related Government Programs

DoD Research and Development Programs
Aerospace Engineering Contracts
Advanced Propulsion Systems Research
Air Force Science and Technology Investments

Risk Flags

Cost Control Risk (Cost No Fee)
Technical Feasibility Risk
Long-Term R&D Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to HAMILTON SUNDSTRAND CORPORATION. POWER AND COMPRESSOR SYSTEM

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 Air Force).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2024-07-23. End: 2028-01-14.

What is the specific technological objective of this 'Power and Compressor System' R&D contract?

The provided data does not specify the exact technological objective for the 'Power and Compressor System' R&D. However, given the contractor (Hamilton Sundstrand Corporation, a subsidiary of Collins Aerospace, which is part of RTX Corporation) and the awarding agency (Department of the Air Force), it is highly probable that this research pertains to advanced aircraft engine components, auxiliary power units (APUs), or other critical systems for aerospace applications. Such R&D could focus on improving fuel efficiency, increasing power output, reducing weight, enhancing reliability, or developing novel materials and manufacturing techniques for these components. The 'Cost No Fee' contract type suggests the government is prioritizing the exploration and development of new technologies, accepting the inherent risks associated with R&D, rather than procuring a specific, well-defined product at a fixed price.

How does the 'Cost No Fee' (CNF) contract type impact contractor incentives and government oversight?

The 'Cost No Fee' (CNF) contract type is typically used for research and development efforts where the final costs are uncertain and the primary goal is the advancement of knowledge or technology. Under a CNF contract, the contractor is reimbursed for allowable costs incurred, but receives no fee or profit. This structure incentivizes the contractor to focus on achieving the research objectives rather than controlling costs, as their profit is not tied to cost savings. For the government, this means increased oversight is crucial to ensure that costs are reasonable and allocable to the contract, and that the research is progressing effectively towards its stated goals. The government bears the financial risk if costs exceed initial estimates, but also avoids paying a fee on potentially unsuccessful R&D.

What is Hamilton Sundstrand Corporation's track record with the Department of Defense, particularly in R&D?

Hamilton Sundstrand Corporation, now part of Collins Aerospace (an RTX business), has a long and extensive history of contracting with the Department of Defense, particularly the Air Force. They are a major supplier of aerospace systems and components, including propulsion systems, auxiliary power units, and environmental control systems for various military aircraft. Their track record includes numerous R&D contracts, as well as production and sustainment contracts. They are known for their technical expertise in these areas. While specific R&D contract performance data is not detailed here, their continued awards from the DoD suggest a consistent ability to meet technical requirements and deliver on complex aerospace engineering projects.

Are there any comparable R&D contracts for power and compressor systems awarded recently by the DoD?

Identifying directly comparable R&D contracts for 'Power and Compressor Systems' can be challenging without access to detailed contract databases and specific technical scopes. However, the Department of Defense, particularly the Air Force and Navy, frequently awards R&D contracts for advanced propulsion, power generation, and engine technologies. These often involve significant dollar values and long durations, similar to this $16.8 million award over approximately 3.5 years. For instance, contracts related to next-generation fighter jet engines, hypersonic propulsion, or advanced turboshaft engines for helicopters would fall into a similar category. Benchmarking would involve looking at the total value, duration, and the specific technological focus (e.g., materials science, thermodynamics, control systems) of other R&D efforts in related aerospace engineering fields.

What are the potential risks associated with a 'Cost No Fee' R&D contract of this magnitude?

The primary risks associated with a 'Cost No Fee' R&D contract of this magnitude ($16.8 million) include cost overruns, scope creep, and the potential for the research to not yield the desired technological advancements. Since the contractor does not earn a fee, their incentive is to complete the research, but without profit tied to cost efficiency, there's less pressure to minimize expenses. The government must diligently monitor expenditures to ensure they are reasonable and necessary for the R&D effort. Furthermore, R&D inherently carries the risk of technical failure or the development of technology that may become obsolete before it can be fielded. Effective program management and regular technical reviews are critical to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1 HAMILTON RD, WINDSOR LOCKS, CT, 06096

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: $16,832,105

Exercised Options: $16,832,105

Current Obligation: $16,832,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline