DoD Awards $45.7M for MH-60 IMDS Production to Simmonds Precision Products Inc
Contract Overview
Contract Amount: $45,678,866 ($45.7M)
Contractor: Simmonds Precision Products Inc
Awarding Agency: Department of Defense
Start Date: 2012-06-28
End Date: 2017-04-30
Contract Duration: 1,767 days
Daily Burn Rate: $25.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MH-60 IMDS PRODUCTION/RETROFIT/DELTA AND RAN FMS IMDS PRODUCTION/TROY KITS
Place of Performance
Location: VERGENNES, ADDISON County, VERMONT, 05491
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $45.7 million to SIMMONDS PRECISION PRODUCTS INC for work described as: MH-60 IMDS PRODUCTION/RETROFIT/DELTA AND RAN FMS IMDS PRODUCTION/TROY KITS Key points: 1. Contract awarded to a single, established supplier for specialized aircraft parts. 2. Lack of competition may lead to suboptimal pricing and reduced innovation. 3. High value contract with a long duration presents significant taxpayer risk. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $45.7M over 1767 days suggests a significant investment. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar aircraft component contracts.
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 potentially inflates costs for the government.
Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Taxpayers may be overpaying for essential helicopter components due to lack of competition. The long contract duration could lock in potentially inflated prices for years. Dependence on a single supplier for critical parts poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Definitive contract type
- Firm fixed price agreement
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific component comparisons.
Small Business Impact
The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity to support small business growth within the defense industrial base.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further oversight is needed to confirm the necessity of this non-competitive approach.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for overpayment due to lack of market competition.
- Long contract duration increases long-term cost risk.
- No small business participation noted.
- Dependency on a single supplier creates supply chain risk.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, vt, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.7 million to SIMMONDS PRECISION PRODUCTS INC. MH-60 IMDS PRODUCTION/RETROFIT/DELTA AND RAN FMS IMDS PRODUCTION/TROY KITS
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $45.7 million.
What is the period of performance?
Start: 2012-06-28. End: 2017-04-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the lack of viable alternative sources. Without further documentation, it's impossible to confirm the specific reasons. However, the absence of competition raises questions about whether a thorough market analysis was conducted to identify potential competitors or if the existing supplier's position was simply accepted.
How does the per-unit cost of these IMDS components compare to industry benchmarks?
Without specific per-unit cost data and access to industry benchmarks for MH-60 IMDS production and retrofit kits, a direct comparison is not possible. The lack of competition makes it harder to ascertain if the negotiated price reflects market value. A detailed cost analysis or comparison with similar government or commercial contracts would be necessary to evaluate cost-effectiveness.
What is the long-term strategic impact of relying on a single supplier for these critical components?
Long-term reliance on a single supplier for critical components like the MH-60 IMDS can create significant supply chain vulnerabilities. It increases the risk of production disruptions due to the supplier's operational issues, financial instability, or geopolitical factors. Furthermore, it can stifle innovation and lead to escalating costs over time as the supplier faces less pressure to improve efficiency or offer competitive pricing.
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
Solicitation ID: N0001912R0034
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 100 PANTON RD, VERGENNES, VT, 05491
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: $45,678,866
Exercised Options: $45,678,866
Current Obligation: $45,678,866
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-28
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2016-06-08
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