DoD awards $83.5M for Helicopter Rotor Blades and Drive Mechanisms to Northstar Aerospace
Contract Overview
Contract Amount: $12,816,472 ($12.8M)
Contractor: Northstar Aerospace (chicago) Inc.
Awarding Agency: Department of Defense
Start Date: 2005-05-20
End Date: 2009-12-31
Contract Duration: 1,686 days
Daily Burn Rate: $7.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200508!002486!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05G0009 !A!N! !N!0002 ! !20050520!20120131!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK !ILLINOIS !+000005336696!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1B!AIRCRAFT ENGINES AND SPARES !278 !CH-47F !336413!E! !4! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1A!A!N!A! ! !N!B!N!N! ! !A! !A!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 $12.8 million to NORTHSTAR AEROSPACE (CHICAGO) INC. for work described as: 200508!002486!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05G0009 !A!N! !N!0002 ! !20050520!20120131!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 critical helicopter components, indicating sustained demand in aviation maintenance. 2. Sole-source award raises questions about competition and potential for better pricing. 3. Long contract duration suggests a need for long-term supply chain stability. 4. Focus on CH-47F components highlights specific fleet support requirements.
Value Assessment
Rating: questionable
The contract value of $83.5M for helicopter rotor blades and drive mechanisms appears high given the 'NOT COMPETED' status. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely results in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Ensures continued operational readiness for the CH-47F Chinook helicopter fleet. Supports critical defense supply chains for aviation components. Potential for increased costs due to sole-source award affects overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High contract value for a single vendor
Positive Signals
- Ensures availability of critical helicopter parts
- Supports long-term fleet readiness
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft components. Spending benchmarks for such specialized parts can vary widely based on technology and production volume.
Small Business Impact
The awardee, Northstar Aerospace (Chicago) Inc., is a private company. Analysis of its small business status or subcontracting plans is not available from this data, but the sole-source nature limits opportunities for other small businesses.
Oversight & Accountability
The sole-source justification for this significant contract warrants further oversight to ensure the government received the best possible value and that competition was not improperly excluded.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Lack of transparency in vendor selection.
- High contract value concentrated with one supplier.
Tags
department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to NORTHSTAR AEROSPACE (CHICAGO) INC.. 200508!002486!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05G0009 !A!N! !N!0002 ! !20050520!20120131!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK !ILLINOIS !+000005336696!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1B!AIRCRAFT ENGINES AND SPARES !278 !CH-47F !336413!E! !4! ! ! ! ! !202
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2005-05-20. End: 2009-12-31.
What was the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was applied. Common reasons include urgency, lack of available sources, or specific technical requirements. A detailed review of the justification documentation would be needed to understand the specific rationale and assess its validity.
How does the unit cost of these rotor blades compare to industry benchmarks?
Without specific unit cost data or detailed specifications for the rotor blades and drive mechanisms, a direct comparison to industry benchmarks is not possible. The total contract value of $83.5M spread over the duration and quantity (if known) would need to be broken down to estimate unit costs for such an analysis.
What is the long-term impact on the CH-47F fleet's readiness and maintenance costs?
Securing a long-term supply of critical components like rotor blades and drive mechanisms is essential for maintaining the operational readiness of the CH-47F fleet. However, the sole-source nature of this award could lead to higher procurement costs, potentially impacting the overall maintenance budget and long-term sustainment strategy.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northstar Aerospace (canada) Inc (UEI: 249506650)
Address: 6006 W 73RD ST, BEDFORD PARK, IL, 60638
Business Categories: Category Business, Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W58RGZ05G0009
IDV Type: IDC
Timeline
Start Date: 2005-05-20
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 12:12:00
Last Modified: 2018-10-17
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