DoD Awards $150M for Airframe Structural Components, Raising Competition Concerns
Contract Overview
Contract Amount: $16,638,969 ($16.6M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2004-03-11
End Date: 2010-10-30
Contract Duration: 2,424 days
Daily Burn Rate: $6.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200408!000016!1700!AT722 !NAVAL AIR SYSTEMS COMMAND !N0001904CSDGG !A!N! !N! ! !20040311!20060228!149872194!071767334!001344142!N!HAMILTON SUNDSTRAND CORPORATIO!4747 HARRISON AVE !ROCKFORD !IL!61125!65000!201!17!ROCKFORD !WINNEBAGO !ILLINOIS !+000002531250!N!N!000002531250!1560!AIRFRAME STRUCTURAL COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !332912!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096
Plain-Language Summary
Department of Defense obligated $16.6 million to HAMILTON SUNDSTRAND CORPORATION for work described as: 200408!000016!1700!AT722 !NAVAL AIR SYSTEMS COMMAND !N0001904CSDGG !A!N! !N! ! !20040311!20060228!149872194!071767334!001344142!N!HAMILTON SUNDSTRAND CORPORATIO!4747 HARRISON AVE !ROCKFORD !IL!61125!65000!201!17!ROCKFORD !WINN… Key points: 1. Contract awarded to Hamilton Sundstrand Corporation for airframe structural components. 2. Significant portion of the contract value ($150M) awarded without full and open competition. 3. The 'NOT COMPETED' status raises questions about potential overpricing and lack of market testing. 4. This contract falls under the 'Other Aircraft Equipment' category within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $149,872,194 for airframe structural components appears high given the lack of competitive bidding. Without a competitive process, it's difficult to benchmark against similar contracts or market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a 'NOT COMPETED' basis, indicating a lack of full and open competition. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these critical aircraft components.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to a lack of competitive bidding. The Department of Defense relies on specialized components, making competitive sourcing crucial for cost efficiency. This award highlights a potential vulnerability in the procurement process for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited price discovery
Positive Signals
- Award to established corporation
- Specific component for aircraft
Sector Analysis
This contract is for airframe structural components, falling under the broader Defense sector. Spending in this area is critical for military readiness, but competitive sourcing is vital to manage costs effectively.
Small Business Impact
The contract was awarded to Hamilton Sundstrand Corporation, a large business. There is no indication of small business participation in this specific award, which could be an area for improvement.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the government received fair value and that the procurement process was justified. Accountability for cost-effectiveness in non-competitive awards is essential.
Related Government Programs
- Fluid Power Valve and Hose Fitting Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price determination
- No clear small business participation
Tags
fluid-power-valve-and-hose-fitting-manuf, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to HAMILTON SUNDSTRAND CORPORATION. 200408!000016!1700!AT722 !NAVAL AIR SYSTEMS COMMAND !N0001904CSDGG !A!N! !N! ! !20040311!20060228!149872194!071767334!001344142!N!HAMILTON SUNDSTRAND CORPORATIO!4747 HARRISON AVE !ROCKFORD !IL!61125!65000!201!17!ROCKFORD !WINNEBAGO !ILLINOIS !+000002531250!N!N!000002531250!1560!AIRFRAME STRUCTURAL COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !332912!E! !3! ! ! ! ! !999
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 Navy).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2004-03-11. End: 2010-10-30.
What specific justifications were provided for not competing this contract, and were they adequately documented?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to ascertain the specific justifications, such as sole-source necessity due to proprietary technology or urgent need. Without this documentation, it's difficult to assess if the non-competitive award was fully justified and in the government's best interest.
How does the unit cost of these airframe structural components compare to industry benchmarks, if available?
Given that this contract was not competed, obtaining direct comparable unit cost data is challenging. A detailed analysis would require market research into similar components procured competitively by other agencies or defense contractors to establish a fair price benchmark. Without this, the current pricing is difficult to validate.
What is the potential impact on aircraft readiness if these components are not procured at the most cost-effective price?
Procuring critical components at inflated prices can strain the defense budget, potentially diverting funds from other readiness initiatives or requiring budget increases. While the immediate impact on readiness might not be apparent, sustained non-competitive awards at higher costs can indirectly affect the overall capacity and efficiency of military operations.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Fluid Power Valve and Hose Fitting Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4747 HARRISON AVE, ROCKFORD, IL, 17
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-03-11
Current End Date: 2010-10-30
Potential End Date: 2010-10-30 00:00:00
Last Modified: 2010-03-24
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