DoD awards $23.9M for aircraft engine parts, with Hamilton Sundstrand Corporation as the sole awardee

Contract Overview

Contract Amount: $23,948,892 ($23.9M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-22

End Date: 2012-12-31

Contract Duration: 1,196 days

Daily Burn Rate: $20.0K/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: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to HAMILTON SUNDSTRAND CORPORATION for work described as: CONTROL UNIT, SUPERV Key points: 1. Value for money is difficult to assess without detailed cost breakdowns and comparisons to similar contracts. 2. Competition dynamics indicate a sole-source award after exclusion of sources, potentially limiting price discovery. 3. Risk indicators include the sole-source nature of the award and the long duration of the contract. 4. Performance context is limited to the provision of aircraft engine parts, with no specific performance metrics provided. 5. Sector positioning places this contract within the Defense Logistics Agency's procurement of aircraft engine components.

Value Assessment

Rating: questionable

The contract value of $23.9 million for aircraft engine parts is substantial. However, without access to detailed cost breakdowns, independent cost estimates, or comparisons to similar contracts awarded to other entities, it is challenging to definitively assess the value for money. The fixed-price nature of the contract shifts some risk to the contractor, but the absence of competitive bidding raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of sole-source justification. This implies that while the initial solicitation may have been broad, only one source was ultimately deemed capable or available to fulfill the requirement. The limited competition means there was no direct price comparison against other potential suppliers, potentially leading to a higher price than if multiple bids were received.

Taxpayer Impact: The lack of robust competition for this contract means taxpayers may not have benefited from the cost savings typically achieved through a competitive bidding process. This could result in a higher overall expenditure for these aircraft engine parts.

Public Impact

The Department of Defense benefits from the supply of critical aircraft engine parts. The services delivered are the manufacturing and supply of aircraft engine components. The geographic impact is primarily within Connecticut, where Hamilton Sundstrand Corporation is located. Workforce implications include continued employment for those involved in the manufacturing and supply chain at Hamilton Sundstrand.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration (over 3 years) may not reflect current market price fluctuations.
Lack of transparency in the 'exclusion of sources' justification requires further scrutiny.
Potential for cost overruns if not managed tightly due to fixed-price nature without competitive baseline.

Positive Signals

Hamilton Sundstrand Corporation is a known entity in aerospace manufacturing, suggesting established capabilities.
Fixed-price contract type provides cost certainty for the government, assuming the price is fair.
Contract awarded by the Defense Logistics Agency, a key agency for military supply chain management.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft engine components. The market for such specialized parts is often characterized by high barriers to entry due to technical expertise, stringent quality control, and established relationships with prime contractors. Spending in this area is critical for maintaining military readiness. Comparable spending benchmarks would typically involve analyzing other contracts for similar engine parts or maintenance services within the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee is expected to fulfill the contract requirements directly, with limited direct benefit or opportunity for the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), which are responsible for monitoring contractor performance, costs, and compliance. The Defense Logistics Agency (DLA) would also have oversight responsibilities for the overall program. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance data.

Related Government Programs

Aircraft Engine Maintenance, Repair, and Overhaul
Aerospace Parts Manufacturing
Defense Logistics Agency Procurement
Department of Defense Supply Chain Management

Risk Flags

Sole-source award raises concerns about price competition.
Lack of detailed performance metrics hinders assessment of value.
Justification for 'exclusion of sources' not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to HAMILTON SUNDSTRAND CORPORATION. CONTROL UNIT, SUPERV

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 $23.9 million.

What is the period of performance?

Start: 2009-09-22. End: 2012-12-31.

What is the specific justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The provided data indicates the contract type as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (CT: 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'). This designation typically means that while the initial solicitation process aimed for broad competition, specific circumstances led to the exclusion of all but one potential bidder. Common reasons for such exclusions include proprietary technical data, unique manufacturing capabilities, urgent and compelling needs where only one source can respond in the timeframe, or specific government-mandated requirements that only one contractor can meet. Without further documentation or a detailed justification narrative from the contracting agency (Defense Logistics Agency in this case), the precise reason for excluding other sources remains unspecified. This lack of transparency can raise concerns about whether the exclusion was fully warranted and if it potentially limited the government's ability to obtain the best value.

How does the $23.9 million contract value compare to historical spending on similar aircraft engine parts by the DoD?

Comparing the $23.9 million contract value to historical spending requires access to a broader dataset of similar contracts for aircraft engine parts. The provided data snippet includes a single contract award to Hamilton Sundstrand Corporation. To establish a benchmark, one would need to analyze: 1) Previous contracts awarded to Hamilton Sundstrand for the same or similar engine parts, noting any price trends over time. 2) Contracts awarded to other manufacturers for comparable engine parts, to understand market pricing across different suppliers. 3) The specific type and quantity of parts being procured under this $23.9 million award, as 'aircraft engine parts' is a broad category. Without this comparative data, it's difficult to ascertain if $23.9 million represents a typical, high, or low expenditure for the goods and services acquired.

What are the key performance indicators (KPIs) associated with this contract, and how has the contractor performed against them?

The provided data does not include any specific Key Performance Indicators (KPIs) or performance metrics for this contract. Contracts for critical components like aircraft engine parts typically include requirements related to delivery timeliness, quality acceptance rates, defect reporting, and adherence to technical specifications. The absence of this information in the summary data makes it impossible to assess Hamilton Sundstrand Corporation's performance under this award. A thorough review would require accessing the contract's statement of work (SOW) and any associated performance reports or contractor performance assessment reporting (CPARs) data, which are not included here.

What is the risk profile of Hamilton Sundstrand Corporation as a contractor, based on past performance and financial stability?

The provided data snippet does not contain information regarding Hamilton Sundstrand Corporation's past performance history, financial stability, or any past issues with government contracts. Hamilton Sundstrand is a well-established aerospace manufacturer, part of RTX Corporation (formerly Raytheon Technologies), which generally suggests a level of stability and experience. However, a comprehensive risk assessment would necessitate reviewing their Contractor Performance Assessment Reporting System (CPARS) scores, any past performance issues, litigation history, and financial health indicators. Without this specific data, the risk profile based solely on this contract award remains largely unknown, beyond the inherent risks associated with sole-source procurements.

How does the 'Aircraft Engine and Engine Parts Manufacturing' (NAICS 336412) sector perform in terms of competition and pricing within DoD procurements?

The 'Aircraft Engine and Engine Parts Manufacturing' sector (NAICS 336412) is a critical but often concentrated segment of the defense industrial base. Competition within this sector for major engine components can be limited due to the high capital investment, specialized technology, long development cycles, and stringent quality requirements. Consequently, procurements in this area frequently involve a small number of qualified suppliers, sometimes leading to sole-source or limited-competition awards, as seen in this example. Pricing can be influenced by factors such as the complexity of the parts, the volume of production, and the level of innovation required. While fixed-price contracts aim to control costs, the limited number of bidders can reduce downward price pressure, potentially resulting in higher unit costs compared to more commoditized manufacturing sectors.

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

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, 01

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: $23,948,892

Exercised Options: $23,948,892

Current Obligation: $23,948,892

Contract Characteristics

Cost or Pricing Data: NO

Timeline