DoD's $14.75M contract for mechanical transmission parts awarded to Purdy Corporation shows fair value
Contract Overview
Contract Amount: $14,750,679 ($14.8M)
Contractor: Purdy Corporation (3708)
Awarding Agency: Department of Defense
Start Date: 2008-01-03
End Date: 2009-11-30
Contract Duration: 697 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: Defense
Official Description: TRANSMISSION, MECH
Place of Performance
Location: MANCHESTER, HARTFORD County, CONNECTICUT, 06045
Plain-Language Summary
Department of Defense obligated $14.8 million to PURDY CORPORATION (3708) for work described as: TRANSMISSION, MECH Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. Fixed-price contract type suggests predictable costs for the government. 3. Delivery order structure implies a need for specific, scheduled equipment. 4. Contract duration of nearly two years suggests a moderate-term requirement. 5. The award to Purdy Corporation, a known entity in aircraft parts, suggests a degree of contractor reliability. 6. Spending falls within the broader category of aircraft parts manufacturing.
Value Assessment
Rating: good
The contract value of $14.75 million for mechanical transmission parts appears reasonable given the duration and the nature of the goods. Benchmarking against similar contracts for specialized aircraft components is challenging without more specific data on the exact parts and quantities. However, the fixed-price nature of the contract provides cost certainty. The award was made after exclusion of sources, which warrants further investigation into the justification for this approach, but the overall value seems to align with industry standards for such specialized manufacturing.
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 open, certain sources were excluded. The specific reasons for exclusion are not detailed here but could impact the breadth of competition. The number of bidders is not specified, but the exclusion of sources suggests it may have been less than a truly unrestricted full and open competition.
Taxpayer Impact: The exclusion of sources, even if justified, may limit the potential for the most competitive pricing. Taxpayers benefit from competition, and any restriction on the pool of bidders could potentially lead to higher costs than if all qualified sources were considered.
Public Impact
The Department of the Army benefits from the acquisition of essential mechanical transmission parts for its aircraft. This contract supports the operational readiness and maintenance of military aviation assets. The contract's geographic impact is primarily linked to the manufacturing location of Purdy Corporation in Connecticut. It likely supports jobs within the aerospace manufacturing sector, specifically in specialized component production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'after exclusion of sources' clause requires scrutiny to ensure fair opportunity and prevent undue restrictions on competition.
- Lack of specific details on the excluded sources makes it difficult to fully assess the competitive landscape.
- The fixed-price nature, while providing cost certainty, could disadvantage the government if costs escalate unexpectedly for the contractor.
Positive Signals
- Awarded through a mechanism that still allows for open competition, albeit with exclusions.
- Fixed-price contract type helps manage budget predictability.
- The contractor, Purdy Corporation, is likely experienced in this specialized manufacturing domain.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components is often characterized by high barriers to entry due to technical expertise, quality control requirements, and certifications. Spending in this area is critical for maintaining military readiness and supporting the defense industrial base. Comparable spending benchmarks would typically be found within the broader category of "Other Aircraft Parts and Auxiliary Equipment Manufacturing" (NAICS 336413).
Small Business Impact
The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was not specifically targeted for small businesses. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Purdy Corporation voluntarily engages small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. Accountability measures are inherent in the fixed-price delivery order structure, requiring the contractor to deliver specified goods. Transparency is facilitated by contract databases like FPDS, which provide basic award information. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Aircraft Parts Manufacturing
- Defense Procurement
- Mechanical Components
- Department of the Army Contracts
- Fixed-Price Contracts
Risk Flags
- Competition Limitation
- Potential for Overpricing due to Source Exclusion
Tags
defense, department-of-the-army, aircraft-parts, mechanical-transmission, fixed-price, delivery-order, full-and-open-competition-after-exclusion-of-sources, purdy-corporation, connecticut, manufacturing, 336413
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to PURDY CORPORATION (3708). TRANSMISSION, MECH
Who is the contractor on this award?
The obligated recipient is PURDY CORPORATION (3708).
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.8 million.
What is the period of performance?
Start: 2008-01-03. End: 2009-11-30.
What specific types of mechanical transmission parts were procured under this contract?
The provided data identifies the contract's subject as 'TRANSMISSION, MECH' and the NAICS code as '336413 - Other Aircraft Parts and Auxiliary Equipment Manufacturing.' However, it does not specify the exact types or technical specifications of the mechanical transmission parts. These could range from gears, shafts, bearings, housings, or other complex assemblies critical for the operation of aircraft transmission systems. A deeper dive into the contract's statement of work or line item details would be necessary to identify the precise components.
What was the justification for excluding certain sources in the competition?
The contract type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, specific potential bidders were deliberately excluded. The justification for such exclusions typically involves factors like proprietary data rights, unique capabilities, urgent and compelling needs that limit the time for full competition, or specific government property requirements. Without access to the contract's justification and approval documents (J&A), the precise reasons for excluding sources remain unknown. This exclusion warrants careful review to ensure it was appropriate and did not unduly limit competition.
How does the $14.75 million contract value compare to similar procurements for aircraft transmission parts?
Benchmarking the $14.75 million contract value requires comparing it to similar procurements for specialized aircraft transmission components. Given the contract duration of nearly two years (697 days) and the nature of defense contracting, this value appears moderate. However, a precise comparison is difficult without knowing the specific parts, quantities, technical requirements, and the specific aircraft platforms they are intended for. Contracts for highly specialized, low-volume, or technologically advanced components can vary significantly in price. The fixed-price nature suggests cost certainty, but the actual value proposition depends on the contractor's efficiency and the market rate for these specific parts.
What is Purdy Corporation's track record with the Department of Defense?
Purdy Corporation (CAGE code 3708) has a history of contracting with the Department of Defense. The provided data shows this specific award. Further analysis of federal procurement databases would reveal the extent of their past performance, including the types of contracts awarded, their values, and their performance history. A positive track record with the DoD generally indicates a level of reliability and capability in meeting government requirements, although each contract should be assessed on its own merits.
What are the potential risks associated with this fixed-price contract?
While fixed-price contracts offer cost certainty to the government, potential risks exist. If Purdy Corporation underestimated its costs or encountered unforeseen production challenges, it might face financial strain, potentially impacting delivery schedules or quality. Conversely, if the initial price was set too high due to a lack of robust competition or accurate cost estimation, the government might overpay. The 'exclusion of sources' also introduces a risk that the government did not secure the absolute best price achievable through broader competition.
How does the contract's duration (697 days) impact its overall value assessment?
The contract duration of 697 days (approximately 23 months) suggests a medium-term requirement for these mechanical transmission parts. This duration allows for a more stable production schedule for the contractor and ensures a consistent supply for the Department of the Army over a significant period. For value assessment, it means the $14.75 million is spread over nearly two years, making the annual spending approximately $7.9 million. This longer duration can sometimes lead to better per-unit pricing through economies of scale compared to very short-term, urgent procurements, assuming efficient production.
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: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 586 HILLIARD ST, MANCHESTER, CT, 06040
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $14,750,679
Exercised Options: $14,750,679
Current Obligation: $14,750,679
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ06D0368
IDV Type: IDC
Timeline
Start Date: 2008-01-03
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2018-10-17
More Contracts from Purdy Corporation (3708)
- 200612!004722!2100!w58rgz!usa Aviation and Missile Command!w58rgz06d0368 !A!N! !N!0001 ! !20060915!20090930!001141407!001141407!001141407!n!purdy Corporation !586 Hilliard ST !manchester !ct!06040!44770!003!09!manchester !hartford !conn !+000014130670!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! ! — $14.1M (Department of Defense)
- 200605!001958!2100!w58rgz!usa Aviation and Missile Command!w58rgz06d0143 !A!N! !N!0001 ! !20060228!20090914!047800297!006265946!009256819!n!mcdonnell Douglas Helicopter C!5000 E Mcdowell RD !mesa !az!85215!46000!013!04!mesa !maricopa !arizona !+000009956400!n!n!000000000000!1680!msl Aircraft Accessories and Components !a1a!airframes and Spares !000 !NOT Discernable !336413!E! !5!B!S! ! ! !99990909!B! ! !A! !a!n!j!2!002!n!3a!a!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $10.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)