DoD's $68M Contract for Aircraft Parts Awarded to Hamilton Sundstrand Amidst Limited Competition
Contract Overview
Contract Amount: $68,285,064 ($68.3M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2018-02-27
End Date: 2021-09-30
Contract Duration: 1,311 days
Daily Burn Rate: $52.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GENERATOR,DIRECT CU
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096
Plain-Language Summary
Department of Defense obligated $68.3 million to HAMILTON SUNDSTRAND CORPORATION for work described as: GENERATOR,DIRECT CU Key points: 1. Significant spending of $68.2M on aircraft parts. 2. Sole-source award to Hamilton Sundstrand Corporation raises competition concerns. 3. Contract duration of over three years (1311 days) suggests a substantial need. 4. The 'Other Aircraft Parts' NAICS code indicates a specialized manufacturing sector.
Value Assessment
Rating: questionable
The award amount of $68.2M is substantial. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this $68.2M contract may result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Military readiness may be impacted by the availability and cost of these essential aircraft parts. Taxpayers bear the financial burden of a contract awarded without competitive bidding. The defense sector's reliance on specific manufacturers can create vulnerabilities in supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Essential for aircraft maintenance
- Long-term contract ensures supply
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is critical for maintaining military aviation capabilities. Spending benchmarks in this specialized area can vary widely based on the specific components and technologies involved.
Small Business Impact
The data indicates this contract was awarded to Hamilton Sundstrand Corporation and does not specify any set-asides for small businesses. Therefore, the direct impact on small businesses is unclear, but they were likely not primary beneficiaries of this sole-source award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lack of robust oversight in the procurement process, as competitive bidding is a key mechanism for ensuring accountability and value for taxpayer money.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in procurement
- Dependency on a single supplier
- No small business participation indicated
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.3 million to HAMILTON SUNDSTRAND CORPORATION. GENERATOR,DIRECT CU
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 $68.3 million.
What is the period of performance?
Start: 2018-02-27. End: 2021-09-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation, it's impossible to determine the exact reason. However, such awards warrant scrutiny to ensure they are truly necessary and not a result of convenience or insufficient market research.
What are the potential risks associated with relying on a single supplier for critical aircraft parts over a multi-year period?
Relying on a single supplier for critical aircraft parts over several years poses risks such as price escalation, supply chain disruptions if the supplier faces issues, and a lack of innovation. It also reduces leverage for the government in negotiations, potentially leading to higher costs and less favorable terms.
How does the lack of competition on this $68.2M contract affect the overall cost-effectiveness for the Department of Defense?
The lack of competition directly impacts cost-effectiveness by removing the downward pressure on prices that a bidding process provides. This sole-source award means the government likely paid a premium, reducing the overall value for taxpayer dollars spent on these essential aircraft parts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRPA115RX506
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
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: $68,285,064
Exercised Options: $68,285,064
Current Obligation: $68,285,064
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SPRPA113G001X
IDV Type: BOA
Timeline
Start Date: 2018-02-27
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2020-01-23
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