DoD Awards $73.9M for Aircraft Powertrain Components to W. G. Yates & Sons Construction Company
Contract Overview
Contract Amount: $73,884,464 ($73.9M)
Contractor: W. G. Yates & Sons Construction Company
Awarding Agency: Department of Defense
Start Date: 2020-09-24
End Date: 2024-05-31
Contract Duration: 1,345 days
Daily Burn Rate: $54.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P-71594 POWERTRAIN AIRCRAFT COMPONENT
Place of Performance
Location: CORPUS CHRISTI, NUECES County, TEXAS, 78401
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $73.9 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: P-71594 POWERTRAIN AIRCRAFT COMPONENT Key points: 1. Significant contract value for specialized aircraft components. 2. Competition was full and open, suggesting market availability. 3. Risk is moderate due to contract duration and fixed-price nature. 4. Sector is primarily construction, but components are for aviation.
Value Assessment
Rating: fair
The contract value of $73.9M over approximately 3.7 years suggests a substantial investment. Benchmarking against similar specialized aircraft component contracts is difficult without more specific data on the components themselves.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and value for the government.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best possible price.
Public Impact
Ensures continued operational readiness for naval aircraft. Supports a specific construction company, potentially impacting local economies. Investment in critical defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1345 days).
- No small business participation noted.
- Specific component details are not provided.
Positive Signals
- Full and open competition was utilized.
- Firm fixed price contract type.
Sector Analysis
This contract falls under commercial and institutional building construction (NAICS 236220), but the product is for aircraft powertrain components. This suggests a construction firm is acting as a prime contractor for specialized manufacturing or assembly, possibly related to facility upgrades or specialized support equipment.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This may be due to the specialized nature of the components or the prime contractor's capabilities.
Oversight & Accountability
The Department of the Navy awarded this definitive contract. Oversight would typically involve contract management teams ensuring timely delivery, quality standards, and adherence to the firm fixed price.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (1345 days).
- No small business participation.
- Lack of specific component details.
- Potential for price escalation not borne by contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.9 million to W. G. YATES & SONS CONSTRUCTION COMPANY. P-71594 POWERTRAIN AIRCRAFT COMPONENT
Who is the contractor on this award?
The obligated recipient is W. G. YATES & SONS CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $73.9 million.
What is the period of performance?
Start: 2020-09-24. End: 2024-05-31.
What is the specific nature of the 'aircraft powertrain components' being procured, and how does their complexity influence the contract value?
The specific nature of the 'aircraft powertrain components' is not detailed in the provided data. However, the substantial contract value of $73.9 million suggests these are likely complex, high-value parts critical to aircraft operation. Their complexity directly influences the cost, requiring specialized manufacturing processes, materials, and rigorous quality control, thus justifying the significant investment.
Given the long contract duration and firm fixed price, what are the primary risks to the government regarding cost overruns or performance issues?
The primary risks to the government with a long-duration, firm fixed-price contract include potential cost increases if material or labor costs escalate beyond initial projections, though the contractor absorbs this. Performance risk exists if the contractor struggles to meet quality or delivery schedules, potentially impacting aircraft readiness. The government's recourse is typically through contract clauses for non-performance, but delays can still occur.
How effectively does the full and open competition method ensure value for money when procuring highly specialized, potentially niche, aircraft components?
Full and open competition is generally effective in driving value by allowing multiple qualified bidders to compete. For specialized components, its success depends on the number of capable suppliers. If the market is limited, competition might be less robust, potentially leading to higher prices than in a broader market. However, it still provides a benchmark against which bids can be evaluated for reasonableness.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6945020R0013
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE GULLY AVE, PHILADELPHIA, MS, 39350
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,884,464
Exercised Options: $73,884,464
Current Obligation: $73,884,464
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-24
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2024-09-24
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