DoD awards $10.2M contract for CH-47 Chinook forward rotor head maintenance, with competition

Contract Overview

Contract Amount: $10,224,422 ($10.2M)

Contractor: Columbia Helicopters, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-19

End Date: 2026-02-28

Contract Duration: 1,258 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE AND OVERHAUL OF THE CH-47 CHINOOK FORWARD ROTOR HEAD, NATIONAL STOCK NUMBER: 1615-01-391-4398

Place of Performance

Location: AURORA, MARION County, OREGON, 97002

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to COLUMBIA HELICOPTERS, INC. for work described as: MAINTENANCE AND OVERHAUL OF THE CH-47 CHINOOK FORWARD ROTOR HEAD, NATIONAL STOCK NUMBER: 1615-01-391-4398 Key points: 1. Contract value appears reasonable given the specialized nature of aviation component maintenance. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract duration of approximately 3.5 years allows for sustained support. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The National Stock Number (NSN) indicates a specific, standardized part. 6. The award to Columbia Helicopters, Inc. suggests a focus on specialized aviation MRO providers.

Value Assessment

Rating: good

The contract value of $10.2 million for maintenance and overhaul of CH-47 Chinook forward rotor heads appears to be within a reasonable range for specialized aerospace components. Benchmarking against similar contracts for complex aviation parts is challenging without more specific data on the scope of work and required overhaul hours. However, the firm fixed-price nature of the contract suggests that the contractor has priced in potential risks, which can sometimes lead to a slightly higher initial price but provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific technical capabilities, security requirements, or prior performance. The number of bidders is not specified, but the exclusion of sources suggests a more targeted approach than a completely unrestricted competition, which could potentially limit the number of competitive offers received.

Taxpayer Impact: This procurement method aims to balance the benefits of competition with the need for specialized capabilities, potentially leading to a fair price but possibly not the absolute lowest price achievable in a completely open market.

Public Impact

The U.S. Army benefits from the continued operational readiness of its CH-47 Chinook fleet. This contract ensures the availability of critical components for one of the military's primary heavy-lift helicopters. The geographic impact is primarily within the United States, where maintenance and overhaul activities will likely occur. The contract supports specialized jobs in the aerospace maintenance and manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Reliance on a single contractor for a critical component could pose supply chain risks if not managed.
Ensuring consistent quality and turnaround times for overhaul services.

Positive Signals

Firm fixed-price contract provides cost certainty.
Long-term contract duration allows for sustained support and planning.
Award to a specialized aviation company suggests expertise in handling complex components.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized aviation maintenance, repair, and overhaul (MRO) services is competitive, with a few key players possessing the necessary certifications and expertise for military aircraft components. Spending in this area is driven by the need to maintain aging fleets and ensure operational readiness, with significant government investment allocated annually to sustain aircraft readiness.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Columbia Helicopters, Inc., is likely a larger entity capable of performing the work in-house or has established relationships with other large businesses for any necessary support. The impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms, quality standards, and delivery schedules. Accountability is established through the firm fixed-price structure, which incentivizes the contractor to meet performance requirements within the agreed-upon budget. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available.

Related Government Programs

CH-47 Chinook Helicopter Support
Aviation Component Maintenance and Overhaul
Department of Defense Aircraft Parts Procurement
Aerospace Manufacturing Services

Risk Flags

Potential for limited competition
Reliance on specialized contractor
Complexity of aviation component maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to COLUMBIA HELICOPTERS, INC.. MAINTENANCE AND OVERHAUL OF THE CH-47 CHINOOK FORWARD ROTOR HEAD, NATIONAL STOCK NUMBER: 1615-01-391-4398

Who is the contractor on this award?

The obligated recipient is COLUMBIA HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2022-09-19. End: 2026-02-28.

What is the track record of Columbia Helicopters, Inc. with Department of Defense contracts, particularly for CH-47 components?

Columbia Helicopters, Inc. has a history of performing contracts for the Department of Defense, often related to aviation support and maintenance. While specific details on their track record for CH-47 forward rotor head maintenance require deeper database analysis, their established presence in the aerospace MRO sector suggests experience with complex aviation systems. Past performance evaluations, if available through government contracting databases, would provide a more granular view of their reliability, quality of work, and adherence to schedules on similar DoD contracts. Their ability to secure this current contract indicates a satisfactory performance history or a competitive proposal that met the DoD's requirements.

How does the awarded value of $10.2 million compare to historical spending on similar CH-47 component maintenance contracts?

Direct comparison of the $10.2 million award to historical spending on identical CH-47 forward rotor head maintenance requires access to detailed historical contract data, including scope of work, number of units overhauled, and specific service periods. However, given the specialized nature of Chinook components and the firm fixed-price structure, this value appears within a plausible range for such services. Fluctuations in market rates for specialized labor, materials, and the overall economic environment can influence year-over-year spending. Without specific historical benchmarks for this NSN and service type, a precise value comparison is difficult, but the contract's duration and the nature of the work suggest a significant, but not necessarily outlier, investment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential supply chain disruptions for specialized parts needed for overhaul, contractor performance issues (delays or quality defects), and the possibility of cost overruns if the firm fixed-price contract does not adequately account for unforeseen technical challenges. Mitigation strategies likely include robust quality assurance clauses within the contract, performance monitoring by the COR, and potentially requiring the contractor to maintain adequate inventory levels or have contingency plans for parts sourcing. The 'Full and Open Competition After Exclusion of Sources' might also be a mitigation strategy to ensure a capable contractor is selected, reducing performance risk.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers on this contract?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of broad competition with the necessity of specialized capabilities. By excluding certain sources, the DoD likely targeted contractors with proven expertise in CH-47 components, potentially leading to higher quality and fewer technical issues. While this approach may limit the number of bidders compared to unrestricted competition, it can still drive competitive pricing among qualified firms. The effectiveness for taxpayers hinges on whether the exclusion criteria were justified and if the resulting competition yielded a fair price for the specialized services required, avoiding unnecessary costs associated with less capable bidders.

What is the expected impact of this contract on the operational readiness of the CH-47 Chinook fleet?

This contract is expected to have a positive and direct impact on the operational readiness of the CH-47 Chinook fleet. By ensuring the maintenance and overhaul of critical forward rotor head components, the contract guarantees that these essential parts will be available and in good working order. The CH-47 is a vital asset for troop transport, cargo movement, and special operations. Maintaining the integrity and functionality of its components, like the forward rotor head, is crucial for flight safety, mission accomplishment, and overall fleet availability, thereby directly supporting the U.S. Army's operational capabilities.

Are there any significant historical spending patterns related to this specific National Stock Number (NSN) or component type?

Analyzing historical spending patterns for NSN 1615-01-391-4398 requires access to comprehensive federal procurement databases. Generally, spending on critical aircraft components like rotor heads tends to be consistent, driven by the operational tempo and age of the fleet. Significant increases in spending could indicate aging components requiring more frequent overhauls, a surge in operational tempo, or a shift in procurement strategy. Conversely, decreases might suggest improved component lifespan, reduced operational demands, or a move towards component replacement rather than overhaul. Without specific historical data for this NSN, it's difficult to identify precise patterns, but consistent investment is typical for such essential parts.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14452 ARNDT RD NE, AURORA, OR, 97002

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,224,422

Exercised Options: $10,224,422

Current Obligation: $10,224,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W58RGZ19D0098

IDV Type: IDC

Timeline