DoD's $40.1M contract for aircraft parts awarded to The Entwistle Company LLC

Contract Overview

Contract Amount: $40,105,592 ($40.1M)

Contractor: THE Entwistle Company LLC

Awarding Agency: Department of Defense

Start Date: 2007-05-24

End Date: 2009-02-28

Contract Duration: 646 days

Daily Burn Rate: $62.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FORCE MODULE

Place of Performance

Location: HUDSON, MIDDLESEX County, MASSACHUSETTS, 01749

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $40.1 million to THE ENTWISTLE COMPANY LLC for work described as: FORCE MODULE Key points: 1. Value for money appears fair given the firm fixed-price contract type, though specific performance metrics are not detailed. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. Risk indicators are moderate, with a contract duration of over 600 days and a single awardee. 4. Performance context is limited to the manufacturing of aircraft parts, with no specific mission outcomes provided. 5. Sector positioning is within the defense industrial base, specifically supporting aircraft maintenance and readiness. 6. The contract's value of $40.1 million falls within a typical range for specialized aerospace manufacturing components.

Value Assessment

Rating: fair

The contract value of $40.1 million for aircraft parts is difficult to benchmark without detailed specifications and quantities. The firm fixed-price nature suggests that cost overruns are the contractor's responsibility, which is a positive sign for value. However, without comparative data on similar parts or a breakdown of the unit costs, a definitive assessment of value for money is challenging. The award to a single entity after exclusion of sources may indicate specialized capabilities but also limits direct price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, specific sources may have been excluded for reasons such as national security, proprietary technology, or unique capabilities. The fact that there were 3 bidders suggests some level of competition, but the exclusion of other potential sources could limit price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: Taxpayers benefit from the potential for specialized solutions, but the exclusion of sources may mean that a more competitive price was not achieved.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Air Force, ensuring the availability of critical aircraft components. Services delivered include the manufacturing and supply of 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' as per NAICS code 336413. The geographic impact is likely concentrated around the contractor's facilities and the Air Force bases receiving the parts. Workforce implications include employment at The Entwistle Company LLC and potentially its suppliers, supporting skilled manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may impact price competitiveness.
Contract duration of over 600 days could introduce risks related to material price fluctuations or obsolescence.
Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness.
Reliance on a single awardee for specialized parts could create supply chain vulnerabilities.

Positive Signals

Firm fixed-price contract type shifts cost risk to the contractor.
Award to an established company (The Entwistle Company LLC) suggests potential for reliable delivery.
The contract supports critical defense readiness by ensuring aircraft parts availability.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high technological barriers, stringent quality requirements, and significant government procurement. This contract falls within the sub-sector of aircraft parts manufacturing, which is crucial for maintaining military aviation fleets. The market size for such specialized components is substantial, driven by ongoing defense spending and the need for replacement parts for aging aircraft. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft components awarded by the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests no specific small business subcontracting goals were mandated. This means that small businesses are unlikely to be direct beneficiaries of this particular award, and their involvement would depend on The Entwistle Company LLC's independent subcontracting decisions. The impact on the small business ecosystem is therefore minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Component Manufacturing
Defense Logistics Agency Contracts
Air Force Sustainment Programs
Aerospace Parts Procurement
Military Aircraft Maintenance Support

Risk Flags

Limited competition due to source exclusion
Potential for price inflation due to limited competition
Supply chain risk associated with single awardee
Lack of detailed performance metrics for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to THE ENTWISTLE COMPANY LLC. FORCE MODULE

Who is the contractor on this award?

The obligated recipient is THE ENTWISTLE COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $40.1 million.

What is the period of performance?

Start: 2007-05-24. End: 2009-02-28.

What is the track record of The Entwistle Company LLC with the Department of Defense?

The Entwistle Company LLC has a history of contracts with the Department of Defense, primarily in the manufacturing of aircraft components and related services. While this specific $40.1 million contract is a significant award, the company has likely engaged in numerous smaller and larger contracts over time. A deeper analysis would involve reviewing their past performance ratings, any documented issues or commendations, and the types of products and services they have previously delivered to the DoD. Understanding their historical performance provides insight into their reliability, quality, and ability to meet contractual obligations, which is crucial for assessing the risk associated with this current award.

How does the $40.1 million contract value compare to similar aircraft parts contracts?

Benchmarking the $40.1 million contract value requires detailed comparison with contracts for identical or highly similar aircraft parts, considering factors like quantity, specifications, and complexity. Without such granular data, a direct comparison is challenging. However, for specialized, high-specification components essential for military aircraft, a value in the tens of millions of dollars is not uncommon, especially if it involves complex manufacturing processes or advanced materials. Contracts for mass-produced, simpler parts would typically be lower. The 'full and open competition after exclusion of sources' aspect suggests that the parts might be specialized, potentially justifying a higher price point due to limited manufacturing capabilities in the market.

What are the primary risks associated with this contract for the DoD?

The primary risks for the DoD associated with this contract include potential supply chain disruptions if The Entwistle Company LLC faces production issues or financial instability, given they are the sole awardee. The 'exclusion of sources' procurement method, while potentially necessary for specialized parts, could limit competitive pricing, leading to a less than optimal value for taxpayer money. Furthermore, the contract duration of 646 days (approximately 21 months) introduces risks related to material cost fluctuations, technological obsolescence of the parts, and potential delays in delivery. Ensuring strict quality control and adherence to specifications throughout the manufacturing process is also a continuous risk management area.

How effective is the 'full and open competition after exclusion of sources' in ensuring value?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring value is context-dependent. This method is typically employed when specific technical requirements, national security concerns, or unique capabilities necessitate limiting the pool of potential bidders. While it aims for openness within the defined scope, the exclusion of certain sources inherently reduces the breadth of competition compared to a truly open bid. This can lead to less aggressive pricing if the remaining bidders face limited pressure to undercut each other. However, if the exclusion is justified by the unique nature of the product or service, it can ensure that the DoD procures from entities with the necessary specialized expertise, potentially leading to higher quality and reliability, which are critical for defense applications.

What are the historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the DoD?

Historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the DoD are substantial and represent a significant portion of the defense budget allocated to sustainment and readiness. This category encompasses a wide array of components, from engine parts to avionics and structural elements. Annual spending can fluctuate based on fleet readiness needs, modernization programs, and the introduction of new aircraft platforms. The DoD consistently awards numerous contracts in this sector, ranging from small, individual part replacements to large, multi-year supply agreements. Analyzing historical data reveals trends in average contract values, common awardees, and the prevalence of different procurement methods within this critical manufacturing domain.

What are the implications of the contract being awarded under a Firm Fixed Price (FFP) type?

A Firm Fixed Price (FFP) contract type, like the one awarded to The Entwistle Company LLC, places the primary responsibility for cost control on the contractor. This means that the contractor agrees to a set price for the work, and any cost overruns incurred during performance are absorbed by the contractor, not the government. Conversely, if the contractor can complete the work for less than the agreed-upon price, they retain the profit. For the DoD, FFP contracts offer the highest degree of cost certainty and predictability, making budgeting easier. This contract type is generally preferred when the scope of work is well-defined and the risks are manageable, as it incentivizes the contractor to be efficient and minimize costs.

Industry Classification

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

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: THE Entwistle Trust (UEI: 038269291)

Address: BIGELOW STREET, HUDSON, MA, 03

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $40,105,592

Exercised Options: $40,105,592

Current Obligation: $40,105,592

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA851804D0046

IDV Type: IDC

Timeline