DoD's $14.5M Transmission Contract Awarded to Northstar Aerospace Amidst Limited Competition Concerns
Contract Overview
Contract Amount: $14,513,637 ($14.5M)
Contractor: Northstar Aerospace (chicago) Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-05
End Date: 2013-05-31
Contract Duration: 1,913 days
Daily Burn Rate: $7.6K/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: TRANSMISSION, MECHAN
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60638
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to NORTHSTAR AEROSPACE (CHICAGO) INC. for work described as: TRANSMISSION, MECHAN Key points: 1. The contract value of $14.5 million for transmission components indicates a significant investment in aerospace sustainment. 2. Competition was limited, raising questions about potential price inflation and the availability of alternative suppliers. 3. The risk profile appears moderate, with the primary concern being the lack of robust competition. 4. The sector is critical for defense readiness, requiring specialized manufacturing capabilities.
Value Assessment
Rating: fair
The award value of $14.5 million for transmission components needs comparison against similar DoD contracts for aircraft parts. Without specific benchmarks, assessing if this price is competitive is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited initial pool of bidders. This method can restrict price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Limited competition may result in taxpayers paying more than necessary for these critical aircraft components.
Public Impact
Ensures continued operational readiness for aircraft requiring these specific transmission components. Supports a niche manufacturing sector within the defense industrial base. Highlights the ongoing need for specialized parts in long-term defense programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price escalation due to restricted bidding
- Dependence on a single supplier for critical components
Positive Signals
- Fulfills a critical need for aircraft sustainment
- Awarded under a fixed-price contract type, providing some cost certainty
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks in this area are highly variable, depending on the complexity and criticality of the components.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. This suggests the prime contractor is a larger entity, and further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause warrants scrutiny to ensure the exclusion of sources was justified and properly documented. Regular performance reviews and cost audits would be essential for oversight.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in source exclusion
- Dependence on a single supplier
- Need for robust cost oversight
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to NORTHSTAR AEROSPACE (CHICAGO) INC.. TRANSMISSION, MECHAN
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 $14.5 million.
What is the period of performance?
Start: 2008-03-05. End: 2013-05-31.
What was the justification for excluding other sources in the competition?
The justification for excluding other sources needs to be thoroughly reviewed. Typically, such exclusions are based on specific technical requirements, proprietary technology, or unique capabilities that only a limited number of contractors possess. Without this justification, the limited competition raises concerns about fairness and potential cost inefficiencies.
How does the unit cost compare to industry benchmarks for similar transmission components?
A detailed cost analysis comparing the per-unit cost of these transmission components against industry benchmarks is crucial. Factors like material costs, manufacturing complexity, and required certifications influence pricing. If the awarded price significantly exceeds benchmarks, it suggests potential overpayment and warrants further investigation into the pricing structure.
What is the long-term strategy for ensuring competitive sourcing of these components?
The long-term strategy should focus on fostering greater competition for these critical components. This could involve encouraging new entrants, developing alternative specifications, or breaking down the requirement into smaller, more accessible contracts. Proactive market research and supplier development are key to mitigating future supply chain risks and ensuring cost-effectiveness.
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, 60638
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $14,513,637
Exercised Options: $14,513,637
Current Obligation: $14,513,637
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ06D0366
IDV Type: IDC
Timeline
Start Date: 2008-03-05
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2018-10-17
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