DoD Awards $31.2M for Electro-Mechanical Actuators to Moog Inc. Under Sole-Source Contract
Contract Overview
Contract Amount: $31,210,514 ($31.2M)
Contractor: Moog Inc
Awarding Agency: Department of Defense
Start Date: 2022-03-31
End Date: 2024-12-31
Contract Duration: 1,006 days
Daily Burn Rate: $31.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACTUATOR,ELECTRO-ME
Place of Performance
Location: ELMA, ERIE County, NEW YORK, 14059
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $31.2 million to MOOG INC for work described as: ACTUATOR,ELECTRO-ME Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award raises questions about competition and potential price inflation. 3. High-risk award due to lack of competitive bidding. 4. Manufacturing sector focused on critical defense aerospace parts.
Value Assessment
Rating: questionable
The contract value of $31.2 million for electro-mechanical actuators is substantial. Without competitive benchmarking, it's difficult to definitively assess pricing fairness. However, sole-source awards often carry a premium.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no other vendors were considered. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying more than necessary for these critical components.
Public Impact
Ensures continued supply of critical components for Navy aircraft. Potential for higher costs due to lack of competitive bidding. Limited transparency in the procurement process. Supports a key defense contractor, Moog Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Ensures critical component supply
- Supports established defense contractor
Sector Analysis
This award falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector, a critical niche supporting aerospace and defense. Spending in this sector is often characterized by high technical requirements and specialized production capabilities, sometimes leading to limited vendor pools.
Small Business Impact
This contract was awarded to Moog Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Accountability mechanisms should focus on validating the necessity of the sole-source justification and monitoring contract performance and costs.
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 competition.
- Potential for inflated pricing.
- Lack of transparency in procurement.
- No small business participation.
- High reliance on a single vendor.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.2 million to MOOG INC. ACTUATOR,ELECTRO-ME
Who is the contractor on this award?
The obligated recipient is MOOG 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 $31.2 million.
What is the period of performance?
Start: 2022-03-31. End: 2024-12-31.
What is the justification for the sole-source award, and has it been adequately documented and approved?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. For this contract, the Department of Defense must have provided specific documentation to support why only Moog Inc. could fulfill the requirement. Adequate approval processes are crucial to ensure this exception to full and open competition is warranted and not simply a matter of convenience.
How will the government ensure fair pricing without competitive bidding?
Without competition, the government must rely on robust price analysis techniques. This includes comparing proposed prices to historical prices for similar items, using cost realism analyses, and potentially negotiating profit margins. Independent government cost estimators and contract specialists play a vital role in scrutinizing Moog Inc.'s proposed costs to ensure they are reasonable and reflect efficient performance.
What is the long-term strategy for acquiring these actuators to foster competition?
The long-term strategy should focus on developing alternative sources or encouraging existing ones to meet the required specifications. This might involve market research, incentivizing new entrants, or breaking down the requirement into smaller components that could be competitively procured. Proactive planning is essential to avoid recurring sole-source awards for critical components.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 JAMISON RD PLANT 26, ELMA, NY, 14059
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: $31,210,514
Exercised Options: $31,210,514
Current Obligation: $31,210,514
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $177,188
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038319DP901
IDV Type: IDC
Timeline
Start Date: 2022-03-31
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-04-24
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