DoD awards $32.8M for Aircraft Parts & Training Aids, highlighting potential value and competition concerns
Contract Overview
Contract Amount: $32,833,002 ($32.8M)
Contractor: Sytronics Inc
Awarding Agency: Department of Defense
Start Date: 2006-01-01
End Date: 2015-09-30
Contract Duration: 3,559 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200605!000027!5700!FA8223!OO-ALC/PKT/YWK !F3365701D2069 !A!N! !N!QP01 !01 !20060101!20060930!122543739!122543739!122543739!N!SYTRONICS INC !4433 DAYTON XENIA RD !DAYTON !OH!45432!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000001651545!N!N!000000000000!J069!MAINT&REPAIR OF EQ/TRAINING AIDS&DEVICES !S1 !SERVICES !000 !NOT DISCERNABLE !336413!E! !5!A!S!C! ! !99990909!B! ! !A! !A!N!J!2!003!K! !C!N!Z! ! !N!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: BEAVERCREEK, GREENE County, OHIO, 45432, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to SYTRONICS INC for work described as: 200605!000027!5700!FA8223!OO-ALC/PKT/YWK !F3365701D2069 !A!N! !N!QP01 !01 !20060101!20060930!122543739!122543739!122543739!N!SYTRONICS INC !4433 DAYTON XENIA RD !DAYTON !OH!45432!21000!113!39!DAYTON !MONT… Key points: 1. The contract value of $32.8M for aircraft parts and training aids is significant. 2. Competition was full and open after exclusion of sources, suggesting some limitations. 3. The long duration (2006-2015) may indicate a need for ongoing support or potential for price creep. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a specialized area within defense.
Value Assessment
Rating: fair
The total award of $32.8M over nearly 10 years suggests an average annual spend of approximately $3.3M. Without specific unit cost data or comparison to similar contracts, it's difficult to definitively assess value, but the duration implies a sustained need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, it was not entirely unrestricted, potentially impacting price discovery and the breadth of offers received.
Taxpayer Impact: The $32.8M expenditure represents taxpayer funds allocated to defense procurement. The method of competition may have influenced the final price paid.
Public Impact
Taxpayers fund critical defense equipment maintenance and training. The contract supports a specific segment of the aerospace manufacturing industry. Long-term contracts can provide stability for contractors but require careful monitoring for cost efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the long contract duration.
- Limited competition method could lead to suboptimal pricing.
- Lack of specific unit cost data hinders detailed value assessment.
Positive Signals
- Awarded to a single entity, potentially streamlining management.
- Clear contract type (Firm Fixed Price) provides cost certainty.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a niche within the broader aerospace and defense industry. Spending benchmarks in this area are highly dependent on the specific components and services required.
Small Business Impact
The data does not indicate whether SYTRONICS INC is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve contract management teams ensuring performance and adherence to terms.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration increases risk of price escalation.
- Limited competition method may have reduced cost savings.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for scope creep over the extended period.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to SYTRONICS INC. 200605!000027!5700!FA8223!OO-ALC/PKT/YWK !F3365701D2069 !A!N! !N!QP01 !01 !20060101!20060930!122543739!122543739!122543739!N!SYTRONICS INC !4433 DAYTON XENIA RD !DAYTON !OH!45432!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000001651545!N!N!000000000000!J069!MAINT&REPAIR OF EQ/TRAINING AIDS&DEVICES !S1 !SERVICES !000 !NOT DISCERNABLE !336413!E! !5!A!S!C! ! !9999090
Who is the contractor on this award?
The obligated recipient is SYTRONICS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $32.8 million.
What is the period of performance?
Start: 2006-01-01. End: 2015-09-30.
What specific aircraft parts and training devices were procured under this contract, and how do their costs compare to market rates?
The provided data lacks specifics on the exact parts and devices. A detailed review of contract line items and historical pricing would be necessary to compare costs against market rates. Understanding the technical specifications and quantities is crucial for a meaningful cost analysis.
What were the reasons for excluding other sources in the competition, and did this exclusion lead to a higher price?
The reason for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, proprietary technology, or urgent needs. Investigating the justification for exclusion is key to understanding its potential impact on price and overall value.
How effectively did the 'Firm Fixed Price' contract type protect the government from cost overruns given the long duration?
A Firm Fixed Price (FFP) contract generally shifts cost overrun risk to the contractor. However, over a long duration (2006-2015), the initial FFP might not have accounted for significant market fluctuations or unforeseen technical challenges, potentially leading to contractor requests for equitable adjustments or future contract renegotiations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4433 DAYTON XENIA RD, DAYTON, OH, 45432
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $32,574,877
Exercised Options: $32,833,002
Current Obligation: $32,833,002
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: F3365701D2069
IDV Type: IDC
Timeline
Start Date: 2006-01-01
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2015-05-07
More Contracts from Sytronics Inc
- Windows 10 Upgrade for the Engine Test Cell — $6.3M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)