DoD's $11.7M NP2000 EPCS Contract Awarded to Hamilton Sundstrand, Lacking Competition
Contract Overview
Contract Amount: $11,717,344 ($11.7M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2030-07-31
Contract Duration: 1,765 days
Daily Burn Rate: $6.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NP2000 ELECTRONIC PROPELLER CONTROL SYSTEM (EPCS) KITS, SPARES, AND SERVICES.
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096
Plain-Language Summary
Department of Defense obligated $11.7 million to HAMILTON SUNDSTRAND CORPORATION for work described as: NP2000 ELECTRONIC PROPELLER CONTROL SYSTEM (EPCS) KITS, SPARES, AND SERVICES. Key points: 1. The contract for NP2000 Electronic Propeller Control System (EPCS) kits, spares, and services is valued at $11.7 million. 2. Hamilton Sundstrand Corporation is the sole awardee, indicating a lack of competitive bidding. 3. The contract duration extends until July 2030, suggesting a long-term need for these components. 4. The primary sector impacted is Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract's value of $11.7 million for specialized aircraft components requires careful benchmarking against similar sole-source procurements. Without competitive data, assessing optimal pricing is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, raising concerns about price discovery. A sole-source award limits opportunities for market competition to drive down costs and ensure the best value for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Ensures continued operational readiness for Air Force aircraft relying on the NP2000 EPCS. Supports critical maintenance and supply chain for a specific aircraft component. Potential for increased costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Ensures availability of critical aircraft parts
- Supports established supply chain
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often characterized by specialized suppliers and potential sole-source awards due to proprietary technology or limited manufacturers.
Small Business Impact
The awardee, Hamilton Sundstrand Corporation, is a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential overspending. The Department of the Air Force must diligently monitor contract performance and costs.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Long contract duration (until 2030) may lead to price creep without regular re-evaluation.
- Lack of transparency regarding the specific justification for sole-sourcing.
- Potential for vendor lock-in with a critical component.
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 $11.7 million to HAMILTON SUNDSTRAND CORPORATION. NP2000 ELECTRONIC PROPELLER CONTROL SYSTEM (EPCS) KITS, SPARES, AND SERVICES.
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 $11.7 million.
What is the period of performance?
Start: 2025-09-30. End: 2030-07-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other responsible sources. To ensure fair and reasonable pricing, the procuring agency should conduct a thorough price analysis, potentially including cost breakdowns from the contractor, market research on comparable items, and negotiation strategies to achieve the best possible value despite the lack of competition.
What are the potential risks associated with a long-term sole-source contract for critical aircraft components?
Long-term sole-source contracts for critical components carry risks such as price escalation over time without competitive pressure, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. There's also a risk that the government becomes overly reliant on a single supplier, making it difficult to switch or find alternatives if issues arise.
How does this contract contribute to the overall effectiveness and readiness of the Air Force's aviation assets?
This contract is essential for maintaining the operational effectiveness and readiness of Air Force aircraft equipped with the NP2000 EPCS. By ensuring the availability of necessary kits, spares, and services, it directly supports aircraft maintenance, repair, and operational uptime, thereby contributing to the overall mission capability of the fleet.
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: $11,717,344
Exercised Options: $11,717,344
Current Obligation: $11,717,344
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,612,433
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: 2025-09-30
Current End Date: 2030-07-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2025-09-30
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