DoD Awards $155M for Cylinder Blocks to Hamilton Sundstrand, Lacking Competition
Contract Overview
Contract Amount: $15,517,719 ($15.5M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2024-06-03
End Date: 2026-08-20
Contract Duration: 808 days
Daily Burn Rate: $19.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510672182!CYLINDER BLOCK UNIT
Place of Performance
Location: ROCKFORD, WINNEBAGO County, ILLINOIS, 61108
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $15.5 million to HAMILTON SUNDSTRAND CORPORATION for work described as: 8510672182!CYLINDER BLOCK UNIT Key points: 1. Significant award value of $155.18 million for critical aircraft parts. 2. Sole-source award raises concerns about price discovery and potential overspending. 3. Lack of competition limits opportunities for small businesses in this sector. 4. Long contract duration of 808 days requires ongoing oversight.
Value Assessment
Rating: questionable
The contract's firm fixed price structure is standard, but without competitive bidding, it's difficult to assess if the $155.18 million price represents fair market value. Benchmarking against similar cylinder block contracts would be necessary for a definitive assessment.
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 considered. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential aircraft parts, as there was no market pressure to drive down costs.
Public Impact
Essential aircraft parts procurement impacts military readiness. Taxpayer funds are allocated without competitive price validation. Potential for higher costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation identified
Positive Signals
- Firm fixed price contract
- Essential defense procurement
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for defense logistics. Spending benchmarks for similar sole-source awards in this category are difficult to establish without competitive data, but large sole-source contracts often warrant close scrutiny.
Small Business Impact
The contract was not awarded to a small business, and the sole-source nature of the award provides no clear pathway for small business subcontracting opportunities. Further investigation into potential subcontracting is warranted.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate robust oversight from the Defense Logistics Agency to ensure performance standards are met and costs remain justifiable throughout the contract period.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- No identified small business participation.
- Long contract duration increases oversight burden.
- Dependency on a single supplier for critical parts.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to HAMILTON SUNDSTRAND CORPORATION. 8510672182!CYLINDER BLOCK UNIT
Who is the contractor on this award?
The obligated recipient is HAMILTON SUNDSTRAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $15.5 million.
What is the period of performance?
Start: 2024-06-03. End: 2026-08-20.
What is the justification for the sole-source award of this critical aircraft part contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Without specific documentation, it's presumed the Defense Logistics Agency determined Hamilton Sundstrand Corporation was the only viable option, necessitating a review of that determination to ensure no competitive alternatives were overlooked.
How can the agency ensure fair pricing without competition for this $155 million contract?
The agency can employ several strategies to mitigate the risks of unfair pricing in a sole-source scenario. This includes conducting thorough market research to establish a price reasonableness benchmark, negotiating aggressively based on cost data and profit margins, and potentially incorporating price adjustment clauses tied to objective market indicators. Independent cost analysis can also provide valuable insights.
What is the potential impact on military readiness if Hamilton Sundstrand faces production issues with these cylinder blocks?
A production issue with these critical cylinder blocks, especially under a sole-source contract, could significantly impact military readiness. The lack of alternative suppliers means the Defense Logistics Agency would face substantial delays in acquiring replacements, potentially grounding aircraft or limiting operational capabilities. Contingency planning and close monitoring of the supplier's performance are crucial.
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
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: $15,517,719
Exercised Options: $15,517,719
Current Obligation: $15,517,719
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX22D9404
IDV Type: IDC
Timeline
Start Date: 2024-06-03
Current End Date: 2026-08-20
Potential End Date: 2026-08-20 00:00:00
Last Modified: 2025-12-18
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