DoD Awards $10.8M for NP2000 Propeller Systems to Hamilton Sundstrand, Lacking Competition
Contract Overview
Contract Amount: $10,853,579 ($10.9M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-31
End Date: 2025-03-03
Contract Duration: 276 days
Daily Burn Rate: $39.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NP2000 8-BLADE PROPELLER AND ELECTRONIC PROPELLER CONTROL SYSTEM PRODUCTION
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096
Plain-Language Summary
Department of Defense obligated $10.9 million to HAMILTON SUNDSTRAND CORPORATION for work described as: NP2000 8-BLADE PROPELLER AND ELECTRONIC PROPELLER CONTROL SYSTEM PRODUCTION Key points: 1. High value contract for critical aircraft components. 2. Sole-source award raises concerns about price discovery. 3. Potential for higher costs due to lack of competition. 4. Sector: Defense - Aircraft Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $10.8M for propeller systems appears significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar advanced propeller systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there is no market pressure to drive down the price.
Taxpayer Impact: The lack of competition could lead to inflated prices, impacting taxpayer funds allocated for defense procurement.
Public Impact
Ensures continued operation and maintenance of critical military aircraft. Potential for increased defense spending without competitive justification. Impacts the availability of advanced propeller technology for the fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Essential defense procurement
- Supports aircraft readiness
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending benchmarks for sole-source awards in this specialized area are hard to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business. Analysis of small business participation in the supply chain for these advanced components would be beneficial.
Oversight & Accountability
Oversight by the Defense Contract Management Agency (DCMA) is crucial to ensure performance and adherence to contract terms, especially given the sole-source nature of this award.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs.
- Lack of transparency in price justification.
- No small business participation indicated.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to HAMILTON SUNDSTRAND CORPORATION. NP2000 8-BLADE PROPELLER AND ELECTRONIC PROPELLER CONTROL SYSTEM PRODUCTION
Who is the contractor on this award?
The obligated recipient is HAMILTON SUNDSTRAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2024-05-31. End: 2025-03-03.
What is the justification for the sole-source award of the NP2000 propeller system contract?
The justification for a sole-source award typically involves factors such as unique technical capabilities, proprietary technology, or the absence of adequate competition. Further investigation into the specific reasons cited by the Department of Defense for not competing this contract is warranted to understand the necessity and potential impact on cost.
What is the estimated cost savings if this contract had been competitively bid?
Quantifying exact cost savings without a competitive bid is speculative. However, competitive procurements often yield savings of 10-30% or more compared to sole-source awards, depending on the market and complexity. A thorough market analysis or should-cost estimate would be needed to provide a more precise range for this specific propeller system.
How does the performance of the NP2000 system compare to previous propeller systems, and does this justify the lack of competition?
The NP2000 system is designed for enhanced performance, fuel efficiency, and reduced noise compared to older models. While technological advancements can sometimes justify sole-source awards if only one entity possesses the capability, the long-term cost implications for the DoD and taxpayers must be continuously evaluated against potential future competitive opportunities or alternative solutions.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $10,853,579
Exercised Options: $10,853,579
Current Obligation: $10,853,579
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $924,462
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA850423D0002
IDV Type: IDC
Timeline
Start Date: 2024-05-31
Current End Date: 2025-03-03
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-09-23
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