DoD awards $29.2M for aircraft parts, raising concerns over limited competition and taxpayer impact
Contract Overview
Contract Amount: $29,216,492 ($29.2M)
Contractor: Hamilton Sundstrand Corporation
Awarding Agency: Department of Defense
Start Date: 2019-03-20
End Date: 2024-10-30
Contract Duration: 2,051 days
Daily Burn Rate: $14.2K/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 $29.2 million to HAMILTON SUNDSTRAND CORPORATION for work described as: GENERATOR,DIRECT CU Key points: 1. Significant contract value of $29.2 million for aircraft parts. 2. Limited competition raises questions about price discovery and potential overspending. 3. Long contract duration of 2051 days could indicate potential for cost escalation. 4. Sector context: Defense Logistics Agency's role in procuring aircraft components.
Value Assessment
Rating: questionable
The contract's value of $29.2 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar aircraft part contracts. Benchmarking is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. This lack of competition may have hindered effective price discovery, potentially leading to higher costs for the government.
Taxpayer Impact: The absence of full and open competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The long contract duration could lead to unforeseen cost increases over time. Dependence on a single source for critical aircraft parts can pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Potential for price inflation
Positive Signals
- Essential for aircraft parts procurement
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military readiness, but competitive sourcing is key to cost efficiency.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine if small business participation was considered or possible.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable. Accountability for procurement decisions is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
- 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 $29.2 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 $29.2 million.
What is the period of performance?
Start: 2019-03-20. End: 2024-10-30.
What was the specific justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, agencies must document reasons like urgency, sole-source availability, or specific technical requirements. The price determination process, whether through negotiation or comparison to historical data, needs to be scrutinized to ensure it reflects fair market value despite the lack of competition.
What are the potential risks associated with a long-term, non-competed contract for aircraft parts?
A long-term, non-competed contract for aircraft parts carries risks of price escalation over time as market conditions change. It also creates a dependency on a single supplier, potentially leading to supply chain vulnerabilities if that supplier faces production issues or goes out of business. Furthermore, the lack of competition can stifle innovation and reduce the incentive for the contractor to offer cost-saving efficiencies.
How does this contract's structure impact the Defense Logistics Agency's ability to achieve cost savings and maintain readiness?
This contract's structure, being non-competed and long-term, likely limits the DLA's ability to achieve significant cost savings through competitive bidding. While it ensures a supply of parts, the lack of competition may mean higher unit costs than could be achieved otherwise. This could strain the DLA's budget and potentially impact readiness if funds are diverted from other critical needs due to inefficient spending on these 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: SPRPA118QX324
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: $29,216,492
Exercised Options: $29,216,492
Current Obligation: $29,216,492
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRPA113G001X
IDV Type: BOA
Timeline
Start Date: 2019-03-20
Current End Date: 2024-10-30
Potential End Date: 2024-10-30 00:00:00
Last Modified: 2021-03-08
More Contracts from Hamilton Sundstrand Corporation
- Define & Integrate EVA Requirements for Shuttle & ISS Expeditions/Sustaining Engineering EVA — $511.3M (National Aeronautics and Space Administration)
- Generator,Direct CU — $68.3M (Department of Defense)
- Sensor Cooling Package — $47.5M (National Aeronautics and Space Administration)
- Modern Pump Housing Hardware KIT — $46.3M (Department of Defense)
- Cbms II Systems — $29.2M (Department of Defense)
View all Hamilton Sundstrand Corporation federal contracts →
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)