DoD awards $18.4M for aircraft accessories, but competition was limited, raising value concerns

Contract Overview

Contract Amount: $18,444,965 ($18.4M)

Contractor: Simmonds Precision Products Inc

Awarding Agency: Department of Defense

Start Date: 2001-01-16

End Date: 2011-07-16

Contract Duration: 3,833 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200107!001560!1700!AC528 !NAVAL AIR SYSTEMS COMMAND !N0001901C0078 !A!N!*!N! !20010116!20010916!001307594!001307594!004467452!N!SIMMONDS PRECISION PRODUCTS IN!100 PANTON RD !VERGENNES !VT!05491!74650!001!50!VERGENNES !ADDISON !VERMONT !+000005790140!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION !2AHP!CH-53 SEA STALLION !336413!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1A!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: VERGENNES, ADDISON County, VERMONT, 05491

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to SIMMONDS PRECISION PRODUCTS INC for work described as: 200107!001560!1700!AC528 !NAVAL AIR SYSTEMS COMMAND !N0001901C0078 !A!N!*!N! !20010116!20010916!001307594!001307594!004467452!N!SIMMONDS PRECISION PRODUCTS IN!100 PANTON RD !VERGENNES !VT!05491!74650!001!50!VERGENNES !ADDIS… Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of over 10 years suggests a long-term need for these aircraft components. 3. The specific part number '336413' indicates a specialized component within the CH-53 Sea Stallion helicopter. 4. The award was made by NAVAL AIR SYSTEMS COMMAND, highlighting its role in naval aviation sustainment. 5. The contractor, Simmonds Precision Products Inc., has a history of supplying aircraft components to the DoD. 6. The contract type is Firm Fixed Price, which shifts some cost risk to the contractor.

Value Assessment

Rating: questionable

The contract value of $18.4 million for aircraft accessories over a 10-year period warrants scrutiny due to the lack of competitive bidding. Without a competitive process, it is difficult to benchmark the pricing against market rates or determine if the government received the best possible value. The firm fixed-price nature provides some cost certainty, but the absence of competition means potential savings may have been forgone. Further analysis would be needed to compare this unit price to similar components or historical pricing for this specific part.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a multi-bidder scenario. This can lead to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: Taxpayers may have paid a premium for these aircraft accessories due to the absence of competition. The government's ability to negotiate favorable terms was likely diminished without alternative offers.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who rely on the CH-53 Sea Stallion helicopter for critical missions. The contract ensures the continued availability of essential aircraft accessories and components for the CH-53 fleet. The geographic impact is primarily within the United States, supporting defense logistics and maintenance operations. The contract supports jobs at Simmonds Precision Products Inc. and potentially its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in higher costs for taxpayers.
Long contract duration (over 10 years) could lock the government into potentially suboptimal pricing.
Lack of transparency in the procurement process due to sole-source nature.
Potential for contractor to leverage sole-source position for future pricing negotiations.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Ensures continued supply of critical components for a vital military aircraft.
Contractor has a track record in supplying aircraft components.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and accessories. The market for specialized helicopter components like those for the CH-53 Sea Stallion is often characterized by limited suppliers due to high technical requirements and certifications. While the overall defense spending is substantial, contracts for specific legacy aircraft parts can be niche. Benchmarking would ideally involve comparing pricing for similar components across different helicopter platforms or historical data for the CH-53.

Small Business Impact

This contract does not appear to have a small business set-aside. The prime contractor, Simmonds Precision Products Inc., is a significant entity. There is no explicit information regarding subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business industrial base in supporting this critical defense need.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified components. Transparency is limited due to the sole-source nature of the award, but contract modifications and performance reports would be subject to internal DoD review and potentially Inspector General oversight if issues arise.

Related Government Programs

CH-53 Sea Stallion Helicopter Sustainment
Naval Air Systems Command Procurement
Aircraft Parts and Accessories Manufacturing
Defense Logistics and Maintenance Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to SIMMONDS PRECISION PRODUCTS INC. 200107!001560!1700!AC528 !NAVAL AIR SYSTEMS COMMAND !N0001901C0078 !A!N!*!N! !20010116!20010916!001307594!001307594!004467452!N!SIMMONDS PRECISION PRODUCTS IN!100 PANTON RD !VERGENNES !VT!05491!74650!001!50!VERGENNES !ADDISON !VERMONT !+000005790140!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION !2AHP!CH-53 SEA STALLION !336413!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is SIMMONDS PRECISION PRODUCTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2001-01-16. End: 2011-07-16.

What is the historical spending pattern for this specific part number (336413) or similar components for the CH-53 Sea Stallion?

Analyzing historical spending for part number 336413 or comparable components for the CH-53 Sea Stallion is crucial for assessing value. Without access to historical contract data, it's challenging to determine if the $18.4 million award represents an increase or decrease in per-unit costs over time. If previous awards for this part were competitively sourced, a comparison could reveal significant price deviations. Furthermore, understanding the frequency and volume of past purchases would provide context for the current contract's duration and total value. This historical perspective is essential for identifying potential cost escalations or efficiencies.

What are the specific technical specifications and criticality of part number 336413?

Part number 336413 is identified as 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS' for the CH-53 Sea Stallion helicopter. The specific technical specifications are not detailed in the provided data but are critical for understanding its function and the complexity of its manufacturing. Aircraft accessories and components are vital for the safe and effective operation of helicopters, especially heavy-lift platforms like the CH-53, which are used in demanding military roles. The criticality of this part implies that its failure could have significant operational consequences, potentially justifying a sole-source award if only one manufacturer possesses the necessary technical expertise, tooling, and certifications to produce it to stringent military standards.

What is the justification for the sole-source award for this contract?

The provided data indicates the contract was awarded under the 'NOT COMPETED' category, implying a sole-source justification. Common reasons for sole-source awards include the unavailability of other sources, urgent and compelling needs, or specific technological requirements that only one contractor can meet. For specialized aircraft components like those for the CH-53 Sea Stallion, it's plausible that Simmonds Precision Products Inc. holds unique intellectual property, proprietary manufacturing processes, or essential certifications that preclude other companies from bidding. A formal justification document, typically required for sole-source procurements, would elaborate on the specific rationale and demonstrate why competition was not feasible or advantageous.

What is the track record of Simmonds Precision Products Inc. in fulfilling DoD contracts, particularly for aircraft components?

Simmonds Precision Products Inc. has a history of supplying aircraft components to the Department of Defense. The data shows this contract (N0001901C0078) was awarded to them. Further investigation into their contract history would reveal their performance on previous awards, including on-time delivery, quality compliance, and any past performance issues or accolades. A positive track record can provide some assurance of capability, but it does not inherently mitigate the concerns associated with a sole-source award regarding price competitiveness. Understanding their broader performance across multiple contracts would offer a more comprehensive view of their reliability as a supplier.

How does the contract duration of over 10 years impact the overall value and risk for the government?

A contract duration exceeding 10 years, as seen in this $18.4 million award (from 2001-01-16 to 2011-07-16), presents both potential benefits and significant risks. On the positive side, it can ensure a stable supply chain for critical components over an extended period, reducing the administrative burden of frequent re-procurement. However, it also locks the government into a specific supplier and pricing structure for a long time. If market prices for raw materials or manufacturing processes decrease, or if more efficient technologies emerge, the government may be unable to capitalize on these changes due to the long-term commitment. The risk of price escalation over such a long period, especially without competitive adjustments, is also a concern.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 100 PANTON RD, VERGENNES, VT, 00

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline