DoD awards $41.8M contract to Woodward, Inc. for aircraft engine components via full and open competition
Contract Overview
Contract Amount: $41,786,280 ($41.8M)
Contractor: Woodward, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-24
End Date: 2014-02-28
Contract Duration: 735 days
Daily Burn Rate: $56.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NSN: 2815-01-587-7242
Place of Performance
Location: LOVES PARK, WINNEBAGO County, ILLINOIS, 61111
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $41.8 million to WOODWARD, INC. for work described as: NSN: 2815-01-587-7242 Key points: 1. Contract value of $41.8M for aircraft engine components. 2. Awarded to Woodward, Inc., a single source. 3. Competition type: Full and Open Competition after Exclusion of Sources. 4. Sector: Defense Logistics Agency, Aircraft Manufacturing.
Value Assessment
Rating: fair
The contract value of $41.8M appears significant for aircraft engine components. Benchmarking against similar contracts for specialized parts is necessary to assess if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a competitive process but with specific source exclusions. This method aims for best value but the exclusions could limit price discovery.
Taxpayer Impact: Taxpayer funds are utilized for critical defense components. The competitive nature, despite exclusions, suggests an effort to secure fair pricing, but the impact depends on the breadth of eligible bidders.
Public Impact
Ensures availability of critical aircraft engine components for the Department of Defense. Supports a specific manufacturer (Woodward, Inc.) in the aerospace supply chain. Potential impact on readiness and operational capabilities of aircraft fleets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition may limit price discovery.
- Contract duration of 735 days with a single awardee.
Positive Signals
- Full and open competition was utilized.
- Firm fixed price contract type helps control costs.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing. Spending in this area is critical for national security and often involves specialized, high-value components.
Small Business Impact
The data does not indicate any specific benefit or set-aside for small businesses in this contract award.
Oversight & Accountability
Oversight by the Defense Logistics Agency is expected to ensure contract compliance and performance. The firm fixed price structure provides some cost control, but performance monitoring remains crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for limited competition due to source exclusions.
- Dependence on a single supplier for critical components.
- Lack of clear small business participation.
- Need for robust performance monitoring to ensure quality and delivery.
Tags
aircraft-manufacturing, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.8 million to WOODWARD, INC.. NSN: 2815-01-587-7242
Who is the contractor on this award?
The obligated recipient is WOODWARD, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $41.8 million.
What is the period of performance?
Start: 2012-02-24. End: 2014-02-28.
What was the rationale for excluding specific sources in the 'Full and Open Competition after Exclusion of Sources' process?
The rationale for excluding sources typically relates to proprietary technology, unique manufacturing capabilities, or specific security requirements that only a limited number of entities can meet. Understanding these exclusions is key to evaluating the true competitiveness of the bidding process and whether the government secured the best possible pricing and technical solution.
How does the $41.8M contract value compare to industry benchmarks for similar aircraft engine components?
Benchmarking the $41.8M against similar contracts for specialized aircraft engine components is essential. Factors like component complexity, material costs, and required performance specifications influence pricing. Without comparative data, it's difficult to definitively assess if this award represents excellent value or if there's potential for cost savings in future procurements.
What is the potential risk associated with relying on a single awardee for critical aircraft engine components over a 735-day period?
Relying on a single awardee for critical components over an extended period carries risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues, or the supplier's financial instability). It also reduces leverage for price negotiation in the future. Mitigation strategies might include qualifying alternative suppliers or maintaining strategic inventory.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: SPRRA111R0079
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Woodward Governor Company (UEI: 005069380)
Address: 5001 N 2ND ST, LOVES PARK, IL, 16
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: $41,786,280
Exercised Options: $41,786,280
Current Obligation: $41,786,280
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2012-02-24
Current End Date: 2014-02-28
Potential End Date: 2014-02-28 00:00:00
Last Modified: 2013-10-17
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