DoD Awards $18.4M Non-Recurring Engineering Contract to Hamilton Sundstrand Corporation for Machine Shops

Contract Overview

Contract Amount: $18,449,877 ($18.4M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2016-05-27

End Date: 2025-12-31

Contract Duration: 3,505 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF ACRU NON-RECURRING ENGINEERING.

Place of Performance

Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to HAMILTON SUNDSTRAND CORPORATION for work described as: IGF::CT::IGF ACRU NON-RECURRING ENGINEERING. Key points: 1. Contract awarded for non-recurring engineering services related to machine shops. 2. Hamilton Sundstrand Corporation is the sole awardee. 3. The contract has a significant duration, extending to December 2025. 4. The contract type is Firm Fixed Price, indicating price certainty.

Value Assessment

Rating: questionable

The contract value of $18.4M for non-recurring engineering is substantial. Without specific benchmarks for this type of specialized engineering, it is difficult to definitively assess its value. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to higher costs for taxpayers as the government did not explore alternative vendors or pricing structures.

Taxpayer Impact: The sole-source nature of this award raises concerns about the potential for inflated costs, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The long contract duration could lock in potentially suboptimal pricing for an extended period. The specific nature of 'non-recurring engineering' makes it hard for the public to gauge value without specialized knowledge.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration may not reflect current market conditions.
Lack of transparency in 'non-recurring engineering' costs.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to established corporation suggests potential for quality delivery.

Sector Analysis

The machine shop sector, particularly for specialized engineering services like non-recurring engineering, can be niche. Benchmarking is challenging without detailed project scope, but large sole-source awards warrant scrutiny for cost-effectiveness compared to competitive alternatives.

Small Business Impact

This contract was not awarded to a small business. The sole-source nature of the award further indicates that small businesses were not considered or given an opportunity to compete for this specific requirement.

Oversight & Accountability

The sole-source award necessitates robust oversight to ensure the contractor is delivering on the non-recurring engineering tasks efficiently and at a reasonable cost, despite the absence of competitive pressure. The long duration also requires ongoing monitoring.

Related Government Programs

Machine Shops
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing.
High contract value for undefined 'non-recurring engineering'.
Long contract duration (over 9 years) may not reflect current market value.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to HAMILTON SUNDSTRAND CORPORATION. IGF::CT::IGF ACRU NON-RECURRING ENGINEERING.

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 $18.4 million.

What is the period of performance?

Start: 2016-05-27. End: 2025-12-31.

What specific non-recurring engineering tasks are included in this $18.4M contract, and how were these tasks scoped to justify the cost without competition?

The contract details for 'IGF ACRU NON-RECURRING ENGINEERING' are not fully elaborated in the provided data. Typically, non-recurring engineering (NRE) involves one-time costs for design, development, and testing of new products or processes. Without a detailed breakdown of the specific engineering efforts, the $18.4M price tag is difficult to validate. The sole-source award implies the government determined only Hamilton Sundstrand could perform these specific, potentially proprietary, tasks.

Given the sole-source nature, what mechanisms are in place to mitigate the risk of cost overruns or suboptimal performance from Hamilton Sundstrand Corporation?

The primary risk mitigation in a sole-source, Firm Fixed Price (FFP) contract lies in the initial negotiation and the contract's defined scope. For FFP, the contractor bears the risk of cost overruns. However, the government must ensure the scope is well-defined and that performance metrics are established. Robust oversight by the Department of the Navy is crucial to monitor progress and ensure adherence to the contract's terms, even without competitive pressure.

How does this $18.4M investment in non-recurring engineering align with the Department of the Navy's long-term strategic goals for its machine shop capabilities?

The strategic alignment of this NRE contract depends on the specific technological advancements or process improvements it aims to achieve for the Navy's machine shops. If it enables modernization, enhances production capacity, or introduces critical new capabilities, it could be strategically vital. However, without understanding the project's objectives and expected outcomes, its long-term effectiveness and contribution to strategic goals remain unclear, especially given the lack of competitive validation.

Industry Classification

NAICS: Manufacturing › Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing › Machine Shops

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6449816R5004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $18,548,229

Exercised Options: $18,548,229

Current Obligation: $18,449,877

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $1,320,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline