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
- Long contract duration (1238 days) increases risk of cost escalation.
- Lack of specific part details makes value assessment challenging.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type limits cost risk for the government.
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
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration.
- Lack of specific part details for value assessment.
- No small business participation.
- Potential for cost escalation over the contract period.
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: Manufacturing › Aerospace Product and Parts Manufacturing › Other 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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