DoD Awards $15M for CH-53 Helicopter Kits to Simmonds Precision Products Inc
Contract Overview
Contract Amount: $14,980,950 ($15.0M)
Contractor: Simmonds Precision Products Inc
Awarding Agency: Department of Defense
Start Date: 2022-06-17
End Date: 2026-11-25
Contract Duration: 1,622 days
Daily Burn Rate: $9.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-KITS (IVHMU AND PHMS) FOR CH-53 AND MH-53 AND ONE (1) IVHMU
Place of Performance
Location: VERGENNES, ADDISON County, VERMONT, 05491
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $15.0 million to SIMMONDS PRECISION PRODUCTS INC for work described as: B-KITS (IVHMU AND PHMS) FOR CH-53 AND MH-53 AND ONE (1) IVHMU Key points: 1. Contract awarded to a single, established supplier for specialized helicopter components. 2. Limited competition raises questions about potential overpricing and lack of market pressure. 3. High-value contract for critical aircraft parts necessitates careful oversight. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $14,980,950 for B-KITS (IVHMU AND PHMS) appears to be a significant investment. Without specific per-unit cost data or benchmarks for similar IVHMU/PHMS kits for the CH-53/MH-53 platforms, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Simmonds Precision Products Inc. This lack of competition limits price discovery and may result in higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for these essential helicopter components.
Public Impact
Ensures continued operational readiness for the CH-53 and MH-53 helicopter fleets. Supports critical maintenance and upgrade requirements for aging military aircraft. Potential for increased costs due to sole-source procurement impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost breakdown makes value assessment challenging.
- Long contract duration (over 4 years) increases exposure to potential cost overruns.
Positive Signals
- Award to an established supplier with likely relevant expertise.
- Firm Fixed Price contract provides cost certainty once negotiated.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining the operational readiness of military aviation assets, with benchmarks often tied to specific aircraft models and component complexity.
Small Business Impact
The contract was awarded to Simmonds Precision Products Inc., a company that does not appear to be a small business based on the data provided. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is essential to ensure fair pricing and timely delivery, especially given the sole-source nature of the award.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency in cost structure
- Long-term contract duration
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 $15.0 million to SIMMONDS PRECISION PRODUCTS INC. B-KITS (IVHMU AND PHMS) FOR CH-53 AND MH-53 AND ONE (1) IVHMU
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 $15.0 million.
What is the period of performance?
Start: 2022-06-17. End: 2026-11-25.
What is the historical pricing for similar IVHMU and PHMS kits for the CH-53/MH-53 platforms to establish a fair market value benchmark?
Establishing a historical pricing benchmark for similar IVHMU and PHMS kits is crucial for assessing the value of this sole-source award. Without access to previous contract data for these specific components on the CH-53/MH-53 platforms, it is difficult to determine if the $14.98 million award represents a fair market price. Further analysis would require comparing this award to other government contracts for comparable systems or seeking independent cost estimates.
What steps are being taken to mitigate the risk of overpayment associated with this sole-source procurement?
Given the sole-source nature of this award, mitigation strategies against overpayment are critical. The Department of Defense should conduct thorough price analysis, potentially using independent cost estimates or historical data from similar, albeit not identical, procurements. Regular performance reviews and audits during the contract's duration can also help identify and address any potential cost escalations or inefficiencies, ensuring taxpayer funds are used judiciously.
How will the effectiveness of these B-KITS in enhancing the operational capabilities and safety of the CH-53 and MH-53 helicopters be measured?
The effectiveness of the B-KITS will likely be measured through a combination of technical performance metrics and operational impact assessments. This includes evaluating the reliability and functionality of the IVHMU (Integrated Vehicle Health Management Unit) and PHMS (Propulsion Health Monitoring System) in real-world flight conditions. Feedback from aircrews and maintenance personnel, along with data on reduced downtime and improved safety incidents, will provide key indicators of the kits' effectiveness.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $14,980,950
Exercised Options: $14,980,950
Current Obligation: $14,980,950
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $4,914,416
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0015
IDV Type: BOA
Timeline
Start Date: 2022-06-17
Current End Date: 2026-11-25
Potential End Date: 2026-11-25 00:00:00
Last Modified: 2025-12-16
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