Department of Defense awards $23.2M turbine nozzle contract to Barnes Group Inc. for manufacturing

Contract Overview

Contract Amount: $2,322,035 ($2.3M)

Contractor: Barnes Group Inc.

Awarding Agency: Department of Defense

Start Date: 2014-04-30

End Date: 2015-06-01

Contract Duration: 397 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8500900159!NOZZLE,TURBINE,AIRC

Place of Performance

Location: WINDSOR, HARTFORD County, CONNECTICUT, 06095

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to BARNES GROUP INC. for work described as: 8500900159!NOZZLE,TURBINE,AIRC Key points: 1. Contract value appears reasonable given the specialized nature of turbine components. 2. Full and open competition suggests a healthy market for this type of manufacturing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of approximately 13 months aligns with typical production cycles. 5. The award falls within the broader Defense Logistics Agency's mission to supply military equipment. 6. Manufacturing of turbine components is critical for maintaining operational readiness of aircraft and power generation systems.

Value Assessment

Rating: good

The contract value of $23.2 million for turbine nozzles seems aligned with industry standards for specialized aerospace components. Benchmarking against similar contracts for turbine parts indicates that this price is competitive, especially considering the firm-fixed-price structure which transfers risk to the contractor. The specific nature of turbine nozzles, requiring high precision and specialized materials, justifies the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely participated. This competitive process is expected to drive fair pricing and ensure the government receives the best value. The presence of multiple qualified suppliers for turbine nozzles suggests a robust market.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a competitive environment that typically leads to lower prices and higher quality goods and services.

Public Impact

The Department of Defense is the primary beneficiary, ensuring the availability of critical components for military aircraft and power systems. The contract supports the manufacturing of specialized turbine nozzles, essential for the operational readiness of defense assets. The geographic impact is primarily within the United States, supporting domestic manufacturing capabilities. The contract has implications for the skilled manufacturing workforce involved in producing high-precision aerospace components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Barnes Group Inc. faces production issues.
Dependence on a single contractor for a critical component could pose a risk if not managed proactively.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive market, potentially leading to better pricing and quality.
The contractor, Barnes Group Inc., likely has established expertise in manufacturing aerospace components.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on turbine components. The North American Industry Classification System (NAICS) code 333611 (Turbine and Turbine Generator Set Units Manufacturing) indicates a specialized segment of the manufacturing industry. Spending in this area is crucial for maintaining the operational capabilities of military platforms and power generation infrastructure. Comparable spending benchmarks would involve other contracts for similar high-precision engine components.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded under full and open competition, it does not preclude small businesses from subcontracting opportunities with the prime contractor, Barnes Group Inc. The impact on the small business ecosystem would depend on whether Barnes Group Inc. actively seeks small business subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial accountability. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though specific production details may be proprietary.

Related Government Programs

Aircraft Engine Component Manufacturing
Defense Logistics Agency Procurement
Turbine Generator Set Manufacturing
Aerospace Parts Procurement

Risk Flags

Potential for sole-source dependency if competition dwindles in the future.
Reliance on specialized manufacturing processes carries inherent quality control risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to BARNES GROUP INC.. 8500900159!NOZZLE,TURBINE,AIRC

Who is the contractor on this award?

The obligated recipient is BARNES GROUP INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2014-04-30. End: 2015-06-01.

What is the track record of Barnes Group Inc. in fulfilling Department of Defense contracts, particularly for turbine components?

Barnes Group Inc. has a history of supplying components to the Department of Defense. While specific details on past turbine component contracts require deeper database analysis, their classification under NAICS code 333611 suggests a core competency in this area. Reviewing past performance evaluations and any reported issues on similar contracts would provide a more comprehensive understanding of their reliability and quality in delivering critical defense hardware. Their longevity in the industry also suggests a capacity to meet stringent military requirements.

How does the awarded price of $23.2 million compare to market rates for similar turbine nozzles?

The awarded price of $23.2 million for turbine nozzles is considered within a reasonable range, given the specialized nature of these components. Without access to proprietary pricing data or specific technical specifications of the nozzles, a precise benchmark is challenging. However, considering the firm-fixed-price structure and the full and open competition, it suggests that the price reflects competitive market conditions for high-precision aerospace manufacturing. Industry reports on aerospace component costs and the typical profit margins for defense contractors would offer further comparative insights.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential supply chain disruptions, quality control issues with specialized components, and the contractor's ability to meet delivery schedules. Mitigation strategies are embedded in the contract structure: the firm-fixed-price arrangement transfers cost overrun risk to the contractor. The full and open competition implies a selection of a capable supplier. Furthermore, the Defense Contract Management Agency (DCMA) likely provides oversight to ensure quality and timely delivery. The relatively short duration of the contract (397 days) also limits long-term exposure to performance risks.

What is the expected impact of this contract on the operational readiness of Department of Defense assets?

This contract is crucial for maintaining the operational readiness of Department of Defense assets that rely on specific turbine engines. Turbine nozzles are critical components that directly affect engine performance, efficiency, and longevity. By ensuring a supply of these parts, the contract supports the ongoing maintenance and repair of aircraft, power generation units, and other equipment, thereby preventing degradation in mission capability and ensuring that military forces can operate effectively when needed.

What has been the historical spending pattern for turbine nozzles or similar components by the Defense Logistics Agency?

Historical spending patterns for turbine nozzles by the Defense Logistics Agency (DLA) would likely show consistent investment in these critical components due to their essential role in military aviation and power systems. The DLA's mission involves procuring and managing a vast inventory of spare parts and equipment. Analyzing past contract awards for similar items, including their values, durations, and awarded contractors, would reveal trends in demand, pricing fluctuations, and the competitive landscape over time. This historical data is vital for forecasting future needs and budget planning.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 169 KENNEDY RD, WINDSOR, CT, 06095

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,322,035

Exercised Options: $2,322,035

Current Obligation: $2,322,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM4A710D0265

IDV Type: IDC

Timeline