DoD Awards $14.8M for MC-130W WST Parts, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $14,855,607 ($14.9M)

Contractor: Flightsafety International Inc

Awarding Agency: Department of Defense

Start Date: 2008-07-29

End Date: 2011-12-19

Contract Duration: 1,238 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MC-130W WST

Place of Performance

Location: BROKEN ARROW, TULSA County, OKLAHOMA, 74012

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to FLIGHTSAFETY INTERNATIONAL INC for work described as: MC-130W WST Key points: 1. Significant contract value of $14.8 million for specialized aircraft parts. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk factors include the long duration and potential for cost overruns. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: fair

The contract value of $14.8 million for 1238 days suggests a moderate per-unit cost. Without specific part details, a precise benchmark is difficult, but the duration implies significant scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final price achieved relative to market value requires further analysis.

Taxpayer Impact: Taxpayer funds are being utilized for specialized aircraft components. The effectiveness of the competitive process in securing the best value for taxpayers is a key consideration.

Public Impact

Ensures operational readiness for MC-130W aircraft. Supports the aerospace manufacturing sector. Potential for long-term sustainment needs for the aircraft fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector, which is critical for defense readiness. Spending benchmarks in this niche can vary widely based on part complexity and volume.

Small Business Impact

The contract data indicates no small business participation. This suggests that the prime contractor, Flight Safety International Inc., is likely a large business, and opportunities for small businesses in this specific award were not captured.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The long duration and specialized nature of the parts warrant close monitoring to ensure performance and cost control.

Related Government Programs

Risk Flags

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to FLIGHTSAFETY INTERNATIONAL INC. MC-130W WST

Who is the contractor on this award?

The obligated recipient is FLIGHTSAFETY INTERNATIONAL INC.

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 $14.9 million.

What is the period of performance?

Start: 2008-07-29. End: 2011-12-19.

What specific components are being procured under this contract, and how do their costs compare to industry standards for similar parts?

The provided data does not specify the exact components. To assess value, a detailed breakdown of the parts, their specifications, and quantities is necessary. Benchmarking against commercial or military equivalents, considering factors like material, manufacturing complexity, and certification requirements, would reveal if the $14.8 million award represents a fair price.

Given the full and open competition, what was the range of bids received, and how did the winning bid compare to the government's estimate?

Information on the number of bids received and the specific bid amounts is not available in the provided data. While 'full and open competition' suggests a broad solicitation, understanding the competitive landscape requires knowing the bid spread and the government's independent cost estimate to confirm effective price discovery.

What is the expected impact of these MC-130W WST parts on the operational readiness and sustainment of the Air Force's fleet?

These parts are crucial for maintaining the operational capability of the MC-130W Combat Spear aircraft, which are vital for special operations missions. Ensuring a timely and cost-effective supply of these components directly supports fleet readiness and reduces downtime, thereby enhancing the Air Force's ability to execute its mission.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)

Address: 2700 N HEMLOCK CIR, BROKEN ARROW, OK, 01

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

Financial Breakdown

Contract Ceiling: $14,855,607

Exercised Options: $14,855,607

Current Obligation: $14,855,607

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2008-07-29

Current End Date: 2011-12-19

Potential End Date: 2011-12-19 00:00:00

Last Modified: 2012-03-07

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