DoD awards $46.3M for pump housing hardware, with no competition and a long performance period

Contract Overview

Contract Amount: $46,278,466 ($46.3M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-08

End Date: 2028-09-30

Contract Duration: 2,033 days

Daily Burn Rate: $22.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODERN PUMP HOUSING HARDWARE KIT

Place of Performance

Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to HAMILTON SUNDSTRAND CORPORATION for work described as: MODERN PUMP HOUSING HARDWARE KIT Key points: 1. The contract's value is substantial, indicating a significant need for these specialized hardware kits. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The extended performance period of over five years could expose the government to price fluctuations and evolving technological needs. 4. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, suggesting a niche but critical component for military aviation. 5. The firm-fixed-price contract type aims to provide cost certainty, but the absence of competition may undermine this benefit.

Value Assessment

Rating: questionable

Benchmarking the value of this specific hardware kit is challenging without comparable contract data. However, the total award amount of $46.3 million over approximately five years suggests a significant investment. The firm-fixed-price nature of the contract provides some cost predictability, but the lack of competition means there's no direct market comparison to assess if the price is truly competitive or represents good value for money. Further analysis would require understanding the unit costs and the specific technical requirements of the pump housing hardware.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Hamilton Sundstrand Corporation, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. Without competition, there is no direct comparison of pricing or technical solutions from other qualified suppliers, potentially leading to higher costs for the government and limiting the government's ability to secure the best possible value.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this hardware, as there was no market pressure to drive down prices. This also limits the opportunity to discover innovative or more cost-effective solutions from a wider range of suppliers.

Public Impact

The Department of the Navy benefits from the acquisition of essential pump housing hardware for its operations. This contract supports the maintenance and operational readiness of naval aircraft or related systems. The primary beneficiaries are likely the end-users within the Department of Defense who rely on the functionality provided by this hardware. The contract's duration implies a sustained need for these components, potentially impacting long-term maintenance schedules and supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Extended contract duration increases exposure to market volatility and technological obsolescence.
Lack of competition may stifle innovation and prevent the government from accessing potentially superior solutions.
The specific nature of 'pump housing hardware' suggests a critical component where supply chain disruptions could have significant operational impacts.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Hamilton Sundstrand Corporation is likely an established supplier with existing knowledge of DoD requirements.
The contract specifies a clear product (Modern Pump Housing Hardware Kit), indicating defined requirements.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry (NAICS 336413). This sector is characterized by the production of specialized components for aircraft, engines, and related systems. The market is often driven by defense spending and the need for high-reliability, precision-engineered parts. Given the sole-source nature, Hamilton Sundstrand Corporation likely holds a unique position or proprietary technology related to this specific hardware, making direct spending benchmarks difficult without more granular data on comparable aircraft parts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB=false) and there is no indication of subcontracting requirements for small businesses (SS=false). Therefore, this large sole-source award is unlikely to directly benefit the small business ecosystem. The primary contractor, Hamilton Sundstrand Corporation, is likely a large business, and the absence of small business participation clauses means opportunities for subcontracting to smaller firms are not mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency may be limited due to the lack of competitive bidding. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, but the initial award process itself may have had less public scrutiny than a competed contract.

Related Government Programs

Aircraft Parts Manufacturing
Defense Procurement
Naval Aviation Support Equipment
Sole-Source Contracts
Firm Fixed Price Contracts

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to HAMILTON SUNDSTRAND CORPORATION. MODERN PUMP HOUSING HARDWARE KIT

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 $46.3 million.

What is the period of performance?

Start: 2023-03-08. End: 2028-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available, or when a compelling urgency, national security, or unique capability necessitates it. For this contract, the justification would likely stem from proprietary technology, unique manufacturing capabilities held by Hamilton Sundstrand Corporation, or a specific requirement that cannot be met by other vendors. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to definitively state the reason for bypassing the competitive process. This lack of transparency is a common concern with sole-source awards.

How does the pricing of this contract compare to similar pump housing hardware kits, if available?

Direct price comparison for this specific 'MODERN PUMP HOUSING HARDWARE KIT' is not feasible with the provided data. The contract is sole-sourced, meaning no competitive bids were received to establish a market-driven price. Furthermore, the exact specifications and performance requirements of this particular kit are not detailed. To conduct a meaningful comparison, one would need access to data on similar kits procured competitively by the DoD or other government agencies, including unit costs, material specifications, and performance metrics. Without such comparative data, assessing the value-for-money proposition of this $46.3 million award remains speculative.

What are the potential risks associated with the long performance period (2028-09-30)?

The extended performance period, ending in September 2028, presents several risks. Firstly, it exposes the government to potential price increases over the contract's life, especially if market conditions for raw materials or labor change significantly. Secondly, technology in the aerospace sector can evolve rapidly; a hardware solution procured today might become outdated or less efficient before the contract expires, potentially leading to performance issues or the need for costly modifications. Lastly, a long-term commitment limits the government's flexibility to adopt newer, potentially more cost-effective or technologically superior solutions that may emerge during the contract duration. This extended commitment also ties up significant funding that could otherwise be reallocated.

What is Hamilton Sundstrand Corporation's track record with the Department of the Navy and similar contracts?

Hamilton Sundstrand Corporation, now part of Collins Aerospace (a Raytheon Technologies company), has a long history of supplying aerospace components and systems to the Department of Defense, including the Navy. They are a well-established prime contractor known for producing complex systems for military aircraft. While specific details on their past performance for 'pump housing hardware kits' are not provided here, their general track record suggests they possess the technical capability and manufacturing capacity to fulfill such requirements. However, the absence of competition for this particular award means that past performance alone does not guarantee optimal value or pricing compared to potential alternatives.

How does this contract fit into the broader spending patterns for aircraft parts and auxiliary equipment within the Department of the Navy?

This $46.3 million contract represents a significant, albeit specific, investment within the Department of the Navy's broader spending on aircraft parts and auxiliary equipment. The NAICS code 336413 indicates a focus on manufacturing these components. The Navy, like other branches of the military, relies heavily on a robust supply chain for specialized parts to maintain its fleet's operational readiness. Spending in this category is often driven by fleet size, aircraft modernization programs, and sustainment requirements. A sole-source award of this magnitude suggests this particular hardware kit is either critical, unique, or sourced from a supplier with established, long-term relationships and potentially proprietary technology within the Navy's aviation sustainment strategy.

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: 1 HAMILTON RD MAILSTOP 2-M-1-A, 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: $64,823,798

Exercised Options: $49,228,509

Current Obligation: $46,278,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001919G0007

IDV Type: BOA

Timeline