DoD awards $36.2M contract for aircraft engine parts, with a 5-year performance period

Contract Overview

Contract Amount: $36,195,636 ($36.2M)

Contractor: Triumph Engine Control Systems LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-17

End Date: 2028-06-30

Contract Duration: 1,260 days

Daily Burn Rate: $28.7K/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: CONTROL UNIT,SUPERV

Place of Performance

Location: WALLINGFORD, NEW HAVEN County, CONNECTICUT, 06492

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to TRIUMPH ENGINE CONTROL SYSTEMS LLC for work described as: CONTROL UNIT,SUPERV Key points: 1. Contract value appears reasonable given the 5-year duration and specialized nature of aircraft engine components. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract, indicating a long-term agreement for goods or services. 4. The award is for aircraft engine and engine parts manufacturing, a critical defense sector. 5. The contractor, TRIUMPH ENGINE CONTROL SYSTEMS LLC, is a known entity in this specialized market. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $36.2 million over approximately five years averages to about $7.24 million annually. Benchmarking this against similar contracts for specialized aircraft engine components is challenging without more specific data on the exact parts and quantities. However, the firm fixed-price nature suggests that the pricing was determined through negotiation and competition, aiming for value. The duration and scope indicate a significant commitment, and the value seems aligned with the complexity and criticality of maintaining aircraft engine readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the 'after exclusion of sources' clause suggests that certain potential bidders may have been excluded based on specific criteria. The number of bidders is not provided, which limits a full assessment of the competitive landscape. However, the 'full and open' aspect generally promotes a wider range of offers, potentially leading to better pricing and innovation.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to solicit the best possible offers, driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units, ensuring the continued operational readiness of aircraft. The contract delivers essential parts for aircraft engines, crucial for maintenance, repair, and overhaul (MRO) operations. The geographic impact is primarily within the United States, supporting domestic defense industrial capabilities. This contract supports jobs within the aerospace manufacturing sector, specifically in the production of critical engine components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the field.
Reliance on a single contractor for a critical component could pose supply chain risks.
The complexity of aircraft engine parts may lead to unforeseen technical challenges or cost overruns, despite fixed pricing.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Full and open competition, even with exclusions, generally fosters a competitive environment.
The contractor is established in the specialized field of engine control systems.
Long-term contract provides stability for both the government and the contractor.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft engine components. This is a highly specialized and technologically advanced industry characterized by stringent quality requirements and long product lifecycles. The market is dominated by a few key players due to high barriers to entry, including significant R&D investment and complex manufacturing processes. Spending in this area is critical for maintaining national security and supporting military aviation capabilities.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside. This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided information. The overall impact on the small business ecosystem for this specific contract appears minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for ensuring compliance with contract terms, quality standards, and financial accountability. The firm fixed-price nature simplifies some financial oversight compared to cost-plus contracts. Transparency is generally maintained through contract databases like FPDS, and any significant issues would likely be flagged by program managers or through quality assurance inspections.

Related Government Programs

Aircraft Engine Maintenance, Repair, and Overhaul (MRO)
Defense Industrial Base
Aerospace Manufacturing
Propulsion Systems
Military Aircraft Support

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Supply chain vulnerability for specialized components.
Quality control risks inherent in complex manufacturing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to TRIUMPH ENGINE CONTROL SYSTEMS LLC. CONTROL UNIT,SUPERV

Who is the contractor on this award?

The obligated recipient is TRIUMPH ENGINE CONTROL SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $36.2 million.

What is the period of performance?

Start: 2025-01-17. End: 2028-06-30.

What is the track record of TRIUMPH ENGINE CONTROL SYSTEMS LLC with the Department of Defense and specifically the Defense Logistics Agency?

TRIUMPH ENGINE CONTROL SYSTEMS LLC has a history of contracts with the Department of Defense, primarily related to aircraft engine components and control systems. Their performance with the Defense Logistics Agency (DLA) would be specific to the types of parts and services they provide. A deeper dive into DLA's contract history with this vendor would reveal the number of previous awards, their values, and any reported performance issues or commendations. Given their specialization, it's likely they have a substantial portfolio of work supporting various military aircraft platforms. Analyzing past performance metrics, such as on-time delivery rates and quality compliance, would provide a clearer picture of their reliability in fulfilling defense requirements.

How does the $36.2 million value compare to similar contracts for aircraft engine parts over a 5-year period?

The $36.2 million contract value, spread over approximately five years, equates to an average annual value of roughly $7.24 million. Comparing this to similar contracts requires access to a broader dataset of aircraft engine component procurements. However, for specialized, high-reliability parts essential for military aviation, this value range is not uncommon. Factors influencing cost include the complexity of the components, the required certifications, the volume of production, and the specific aircraft platforms supported. Contracts for less complex or more commoditized parts would likely be significantly lower, while those for entirely new engine development or major overhaul services would be substantially higher. This contract appears to be for ongoing sustainment and parts provision.

What are the primary risks associated with this firm fixed-price contract for specialized aircraft engine parts?

The primary risk with a firm fixed-price (FFP) contract for specialized aircraft engine parts lies with the contractor, TRIUMPH ENGINE CONTROL SYSTEMS LLC. If the cost of materials, labor, or manufacturing exceeds their initial estimates, the contractor absorbs the loss, potentially impacting their profitability and future bidding. Conversely, the government's risk is that the contractor may cut corners on quality to maintain profit margins, although stringent quality assurance processes are designed to mitigate this. Another risk is potential supply chain disruptions for raw materials or specialized components needed for production, which could lead to delivery delays. The 'after exclusion of sources' clause also introduces a risk if it inadvertently limited the pool of qualified bidders, potentially leading to a less competitive price than could have been achieved otherwise.

What is the expected program effectiveness and impact on aircraft readiness based on this contract?

The effectiveness of this contract is directly tied to the reliable delivery of high-quality aircraft engine parts by TRIUMPH ENGINE CONTROL SYSTEMS LLC. Successful execution will ensure that the Defense Logistics Agency (DLA) has the necessary components to support the maintenance, repair, and overhaul (MRO) of military aircraft engines. This, in turn, directly contributes to maintaining the operational readiness of the Air Force, Navy, or other branches utilizing these engines. Consistent and timely delivery of these parts is crucial to minimize aircraft downtime and ensure that flight missions can be accomplished. The firm fixed-price nature incentivizes the contractor to deliver efficiently, supporting program goals.

How does historical spending on aircraft engine parts by the DoD compare to this award?

The Department of Defense (DoD) historically spends billions of dollars annually on aircraft sustainment, which includes the procurement of engine parts. This $36.2 million contract represents a portion of that larger spending. The DoD's spending patterns in this area are driven by the size and age of its aircraft fleet, operational tempo, and modernization efforts. Awards for engine parts are typically recurring, reflecting the continuous need for replacements due to wear and tear, as well as upgrades. Analyzing historical spending data for similar components or platforms would provide context on whether this award is consistent with past procurement levels or represents a significant increase or decrease.

What are the implications of the 'Aircraft Engine and Engine Parts Manufacturing' NAICS code (336412) for this contract?

The North American Industry Classification System (NAICS) code 336412, 'Aircraft Engine and Engine Parts Manufacturing,' signifies that the primary business activity of the contractor, TRIUMPH ENGINE CONTROL SYSTEMS LLC, for this contract is the production of engines, engine parts, and related components for aircraft. This classification indicates a highly specialized manufacturing capability, often involving advanced materials, precision engineering, and rigorous testing protocols. Contracts under this code are critical for the defense industrial base, ensuring the availability of essential components for military aviation. It also suggests that the market for these goods is concentrated among a limited number of highly qualified manufacturers capable of meeting the stringent requirements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPRRA124R0054

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Triumph Group, Inc.

Address: 1 CHARTER OAK BLVD, WEST HARTFORD, CT, 06110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,195,636

Exercised Options: $36,195,636

Current Obligation: $36,195,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline