DoD Awards $9.31M for Air Heat Exchangers to Hamilton Sundstrand, Lacking Competition
Contract Overview
Contract Amount: $9,310,000 ($9.3M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2025-12-10
End Date: 2028-09-05
Contract Duration: 1,000 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HEAT EXCHANGER,AIR
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096
Plain-Language Summary
Department of Defense obligated $9.3 million to HAMILTON SUNDSTRAND CORPORATION for work described as: HEAT EXCHANGER,AIR Key points: 1. Significant award for critical aircraft components. 2. Sole-source award raises concerns about price discovery. 3. Potential for higher costs due to limited competition. 4. Manufacturing sector for aircraft parts is highly specialized.
Value Assessment
Rating: questionable
The award of $9.31 million for air heat exchangers lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bidding, it's difficult to assess if this price is optimal or reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no direct competition to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential aircraft components.
Public Impact
Ensures continued availability of critical aircraft parts for the Navy. Potential for increased defense spending due to non-competitive award. Highlights reliance on specific manufacturers for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Ensures supply of critical component
- Long-term contract provides stability
Sector Analysis
The award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this specialized manufacturing area is often characterized by high barriers to entry and reliance on established, certified suppliers.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete for this specific requirement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair and reasonable pricing. Robust oversight is needed to justify the absence of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Dependency on a single supplier
- Limited transparency in pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.3 million to HAMILTON SUNDSTRAND CORPORATION. HEAT EXCHANGER,AIR
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 $9.3 million.
What is the period of performance?
Start: 2025-12-10. End: 2028-09-05.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. The Department of Defense should have conducted a thorough market research and justification process to ensure fair and reasonable pricing, potentially through historical data, cost analysis, or negotiation with the sole provider.
What are the potential risks associated with relying on a single supplier for critical aircraft heat exchangers, especially given the long contract duration?
The primary risks include supply chain disruptions if the sole supplier faces production issues, potential price escalations over the contract's duration, and a lack of innovation due to absent competitive pressure. This dependency could also impact the military's operational readiness if the supplier cannot meet demand or quality standards.
How does the $9.31 million award for air heat exchangers compare to industry benchmarks for similar components, and what is the estimated taxpayer impact?
Without competitive data, a direct benchmark is challenging. However, sole-source awards often carry a premium. The taxpayer impact is the potential overpayment compared to a competitive scenario, which could be significant over the contract's lifespan, necessitating careful cost analysis and negotiation.
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 UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1 HAMILTON RD, WINDSOR LOCKS, CT, 06096
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: $19,000,000
Exercised Options: $19,000,000
Current Obligation: $9,310,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SPE4A125G0027
IDV Type: BOA
Timeline
Start Date: 2025-12-10
Current End Date: 2028-09-05
Potential End Date: 2028-09-05 00:00:00
Last Modified: 2025-12-11
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