Army contract for specialized aircraft equipment awarded to Carleton Technologies Inc. for over $175 million

Contract Overview

Contract Amount: $10,638,848 ($10.6M)

Contractor: Mission Systems Orchard Park Inc

Awarding Agency: Department of Defense

Start Date: 2003-12-17

End Date: 2008-02-08

Contract Duration: 1,514 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200403!001281!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!DAAH2303D0174 !A!N! !N!0003 ! !20031217!20080210!175344068!226049930!217006709!N!CARLETON TECHNOLOGIES INC !10 COBHAM DRIVE !ORCHARD PARK !NY!14127!55266!029!36!ORCHARD PARK !ERIE !NEW YORK !+000010660746!N!N!000000000000!8415!CLOTHING, SPECIAL PURPOSE !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!J!2!001!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ORCHARD PARK, ERIE County, NEW YORK, 14127

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $10.6 million to MISSION SYSTEMS ORCHARD PARK INC for work described as: 200403!001281!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!DAAH2303D0174 !A!N! !N!0003 ! !20031217!20080210!175344068!226049930!217006709!N!CARLETON TECHNOLOGIES INC !10 COBHAM DRIVE !ORCHARD PARK !NY!14127!55266!029!36!ORCHARD PARK !ERIE… Key points: 1. Contract value of $175.3 million for specialized aircraft equipment. 2. Awarded by the Department of the Army, indicating a focus on aviation and missile systems. 3. The contract duration of approximately 4 years suggests a need for sustained supply. 4. Carleton Technologies Inc. is the primary contractor, with Mission Systems Orchard Park Inc. listed as a co-contractor. 5. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 6. This award represents a significant investment in maintaining and upgrading aviation capabilities.

Value Assessment

Rating: fair

The total contract value of $175.3 million over roughly four years averages to approximately $43.8 million per year. Without specific details on the quantity and nature of the 'Other Aircraft Parts and Auxiliary Equipment', it is difficult to benchmark the value precisely. However, the scale of the award suggests substantial quantities or high-value components are involved. Further analysis would require comparing unit costs for similar components or assessing the contractor's historical pricing on comparable items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a co-contractor, Mission Systems Orchard Park Inc., suggests a collaborative effort or a tiered subcontracting arrangement within the competitive framework. The specific number of bidders is not provided, but full and open competition generally promotes a wider range of offers and potentially better pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a competitive bidding process, which can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The U.S. Army benefits from the acquisition of specialized aircraft equipment, crucial for maintaining operational readiness. Services delivered include the provision of 'Other Aircraft Parts and Auxiliary Equipment', supporting aviation platforms. The geographic impact is primarily within the United States, with the contractor located in New York. Workforce implications may include job creation or retention at Carleton Technologies Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'specialized equipment' is not tightly defined.
Dependence on a single primary contractor for critical aviation components.
Risk of supply chain disruptions affecting delivery timelines.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration indicates a stable, long-term need for these components.
Involvement of a co-contractor might indicate a diversified and resilient supply base.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for such specialized components is often characterized by high barriers to entry due to technical expertise, stringent quality control, and regulatory compliance. Spending in this area is critical for national security and maintaining the operational capabilities of military aviation fleets. Comparable spending benchmarks would typically involve analyzing other large-scale procurements for aircraft components by the Department of Defense.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The primary contractor, Carleton Technologies Inc., and the co-contractor, Mission Systems Orchard Park Inc., would need to be assessed for their size status. If they are large businesses, the contract's impact on the small business ecosystem would depend on whether they engage small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed operational oversight is internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Aviation Systems Procurement
Department of Defense Aviation Contracts
Specialized Military Equipment

Risk Flags

Lack of specific equipment details hinders precise value assessment.
Potential for supply chain disruption due to reliance on specific contractors.
Risk of technological obsolescence for specialized equipment over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to MISSION SYSTEMS ORCHARD PARK INC. 200403!001281!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!DAAH2303D0174 !A!N! !N!0003 ! !20031217!20080210!175344068!226049930!217006709!N!CARLETON TECHNOLOGIES INC !10 COBHAM DRIVE !ORCHARD PARK !NY!14127!55266!029!36!ORCHARD PARK !ERIE !NEW YORK !+000010660746!N!N!000000000000!8415!CLOTHING, SPECIAL PURPOSE !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is MISSION SYSTEMS ORCHARD PARK 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 $10.6 million.

What is the period of performance?

Start: 2003-12-17. End: 2008-02-08.

What is the specific nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured under this contract?

The provided data classifies the contract under NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. This broad category encompasses a wide range of components, including but not limited to, engine parts, landing gear, avionics components, structural elements, and specialized systems not elsewhere classified. Without further details from the contract's statement of work or technical specifications, the exact nature of the equipment remains unspecified. This lack of specificity makes it challenging to perform detailed value analysis or risk assessment beyond general observations about the defense supply chain.

How does the $175.3 million contract value compare to historical spending on similar aircraft equipment by the Department of the Army?

The $175.3 million contract value represents a significant, multi-year investment. To benchmark this against historical spending, one would need to analyze the Army's procurement history for 'Other Aircraft Parts and Auxiliary Equipment' or similar categories over the contract's duration (2003-2008) and preceding years. This would involve querying databases for contracts with similar Product Service Codes (PSCs) or NAICS codes awarded to various defense contractors. A comparison would reveal whether this award is typical, unusually large, or small for the Army's needs in this specific equipment category, providing context for its value and strategic importance.

What is the track record of Carleton Technologies Inc. in fulfilling Department of Defense contracts, particularly for aviation components?

Carleton Technologies Inc. has a history of receiving Department of Defense contracts, as evidenced by this award. To assess their track record, a review of their past performance on similar contracts would be necessary. This would involve examining contract completion rates, any instances of penalties or disputes, quality of delivered goods, and on-time delivery performance. Information on their financial stability and capacity to handle large-scale production would also be crucial. A positive track record would indicate a lower risk for this contract, while a history of issues might raise concerns about performance and reliability.

What are the potential risks associated with a contract of this magnitude and duration for specialized aircraft equipment?

Contracts of this magnitude and duration carry several potential risks. Firstly, there's the risk of cost escalation if initial estimates are inaccurate or if unforeseen technical challenges arise during production. Secondly, dependence on a single contractor (or a small group) for critical components can create supply chain vulnerabilities, making the program susceptible to disruptions. Thirdly, technological obsolescence is a risk; the specialized equipment procured might become outdated before the contract's end or shortly thereafter, requiring further investment. Finally, performance risks include potential delays in delivery or quality issues, which could impact the operational readiness of the aircraft these parts are intended for.

How does the 'full and open competition' award mechanism influence the cost-effectiveness and innovation for this contract?

Awarding this contract through 'full and open competition' theoretically enhances cost-effectiveness by allowing multiple qualified vendors to bid, fostering price competition. This process encourages contractors to offer their most competitive pricing to secure the award. Furthermore, it can stimulate innovation as companies strive to differentiate their offerings not just on price but also on technical solutions, quality, and efficiency. The competitive environment incentivizes contractors to propose robust and potentially more advanced solutions, benefiting the government by potentially securing better value and cutting-edge technology.

Industry Classification

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

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Cobham PLC (UEI: 217006709)

Address: 10 COBHAM DRIVE, ORCHARD PARK, NY, 23

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAH2303D0174

IDV Type: IDC

Timeline