DoD Spends $24.6M on AH-1Z IMD HUMS Kits from Simmonds Precision Products Inc
Contract Overview
Contract Amount: $24,651,507 ($24.7M)
Contractor: Simmonds Precision Products Inc
Awarding Agency: Department of Defense
Start Date: 2017-02-27
End Date: 2021-04-30
Contract Duration: 1,523 days
Daily Burn Rate: $16.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 14 AH-1Z IMD HUMS KITS
Place of Performance
Location: VERGENNES, ADDISON County, VERMONT, 05491
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to SIMMONDS PRECISION PRODUCTS INC for work described as: LOT 14 AH-1Z IMD HUMS KITS Key points: 1. Significant investment in specialized aircraft parts. 2. Sole-source award raises questions about price discovery. 3. Long contract duration (2017-2021) impacts potential for cost savings. 4. No small business participation noted.
Value Assessment
Rating: questionable
The total award of $24.6M for 1 HUMS kit over four years suggests a high per-unit cost. Without comparable contract data or a competitive bidding process, it's difficult to assess if this price is reasonable compared to similar specialized aviation components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits the government's ability to secure the best possible price and may lead to inflated costs for the taxpayer.
Taxpayer Impact: The absence of competition likely resulted in a higher cost to taxpayers than if multiple vendors had been allowed to bid.
Public Impact
Ensures operational readiness for AH-1Z Viper attack helicopters. Supports critical maintenance and diagnostic capabilities for aviation assets. Potential for increased costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High total value for a single awardee
Positive Signals
- Supports critical defense asset maintenance
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is crucial for maintaining specialized military aviation fleets, but often involves limited suppliers and higher unit costs due to complexity and low volume.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, Simmonds Precision Products Inc., is likely a large business, and opportunities for small businesses in this specialized supply chain were not leveraged.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable. A review of the justification for the sole-source award and the negotiation process would be beneficial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for overpayment due to lack of competitive bidding.
- Long contract duration may not reflect current market prices.
- No small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, vt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to SIMMONDS PRECISION PRODUCTS INC. LOT 14 AH-1Z IMD HUMS 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 $24.7 million.
What is the period of performance?
Start: 2017-02-27. End: 2021-04-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of other responsible sources. Without access to the specific contract file, it's impossible to determine the exact reason. However, the government should have explored all viable alternatives to ensure fair pricing and maximize competition where possible.
How does the per-unit cost of these HUMS kits compare to industry benchmarks for similar specialized aviation components?
Benchmarking the per-unit cost is challenging without knowing the exact specifications and quantity of kits procured under this $24.6M award. However, given the sole-source nature and the duration, it's probable that the cost is higher than if competitive bids were solicited. Further analysis would require detailed technical specifications and market research.
What is the long-term strategy for procuring these critical HUMS kits to ensure future cost-effectiveness and supply chain resilience?
The long-term strategy should involve exploring opportunities for increased competition, potentially through breaking down the requirement into smaller lots or encouraging new entrants into the market. Developing stronger relationships with multiple qualified suppliers and considering performance-based contracts could also enhance cost-effectiveness and resilience.
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: N0001916R0013
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: $24,651,507
Exercised Options: $24,651,507
Current Obligation: $24,651,507
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $197,798
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001916G0013
IDV Type: BOA
Timeline
Start Date: 2017-02-27
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2019-04-26
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