DoD awards $14M for helicopter rotor blades to Northstar Aerospace, raising competition concerns
Contract Overview
Contract Amount: $13,994,397 ($14.0M)
Contractor: Northstar Aerospace (chicago) Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-15
End Date: 2010-03-24
Contract Duration: 1,286 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200612!004719!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06D0366 !A!N! !N!0001 ! !20060915!20090930!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK !ILLINOIS !+000014089995!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M! !C! !99990909!B! ! !A! !A!N!J!2!002!K! !A!N!A! ! !N!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60638
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to NORTHSTAR AEROSPACE (CHICAGO) INC. for work described as: 200612!004719!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06D0366 !A!N! !N!0001 ! !20060915!20090930!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK… Key points: 1. Contract awarded for helicopter rotor blades and drive mechanisms. 2. Northstar Aerospace (Chicago) Inc. received the $14M contract. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', indicating potential limitations. 4. The sector is Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: fair
The contract value of $14M for helicopter rotor blades and drive mechanisms appears within a reasonable range for specialized aerospace components. However, without specific unit cost data or detailed scope of work, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract utilized 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, certain sources may have been excluded, potentially impacting price discovery and overall value for taxpayers.
Taxpayer Impact: The limited competition method may have resulted in a higher price than if a broader competitive process had been employed, impacting taxpayer funds.
Public Impact
Taxpayers may have paid more due to restricted competition. The contract supports the readiness of military aviation assets. This award impacts the supply chain for critical helicopter components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Potential for inflated pricing
- Lack of detailed cost breakdown
Positive Signals
- Supports critical defense needs
- Contract awarded to a US-based company
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of aircraft parts. Spending in this area is critical for maintaining military readiness, but often involves high-value, specialized components.
Small Business Impact
The data indicates this contract was awarded to Northstar Aerospace (Chicago) Inc. There is no explicit information provided regarding small business participation or subcontracting in this specific award.
Oversight & Accountability
The contract was awarded by the Department of Defense via the Defense Logistics Agency. Oversight would typically involve contract performance monitoring and compliance checks to ensure delivery and quality standards are met.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Potential for supply chain disruption if the sole awarded vendor faces issues.
- Lack of transparency in the source exclusion process.
- High value contract warrants close scrutiny of performance and cost.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to NORTHSTAR AEROSPACE (CHICAGO) INC.. 200612!004719!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06D0366 !A!N! !N!0001 ! !20060915!20090930!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK !ILLINOIS !+000014089995!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M! !C! !999
Who is the contractor on this award?
The obligated recipient is NORTHSTAR AEROSPACE (CHICAGO) INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2006-09-15. End: 2010-03-24.
What specific factors led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process?
The specific factors leading to source exclusion are not detailed in the provided data. Typically, such exclusions might be due to unique technical capabilities, proprietary technology, or specific security requirements that only a limited number of contractors can meet. Further investigation into the solicitation documents would be necessary to understand the precise rationale.
How does the unit cost of these helicopter rotor blades compare to similar components procured through broader competitive processes?
Without specific unit cost data and a clear definition of 'similar components,' a direct comparison is challenging. However, the 'limited' competition category suggests a potential for higher unit costs compared to contracts awarded under full and open competition without source exclusions. Benchmarking against publicly available data for comparable parts would be needed for a precise assessment.
What is the long-term strategic impact of relying on a limited number of suppliers for critical helicopter components?
Relying on a limited number of suppliers for critical components can create supply chain vulnerabilities and reduce negotiating leverage over time. It may also stifle innovation if new entrants are discouraged from entering the market. Ensuring robust contingency plans and fostering a broader supplier base, where feasible, are key to mitigating these risks.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northstar Aerospace Inc (UEI: 244881835)
Address: 6006 W 73RD ST, BEDFORD PARK, IL, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $37,327
Exercised Options: $37,327
Current Obligation: $13,994,397
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ06D0366
IDV Type: IDC
Timeline
Start Date: 2006-09-15
Current End Date: 2010-03-24
Potential End Date: 2010-03-24 00:00:00
Last Modified: 2010-11-10
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