DoD's $8.35M Contract for Helicopter Rotor Blades Awarded to Northstar Aerospace Faces Competition Concerns
Contract Overview
Contract Amount: $9,947,650 ($9.9M)
Contractor: Northstar Aerospace (chicago) Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-14
End Date: 2009-11-30
Contract Duration: 1,265 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!003642!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05G0009 !A!N! !N!0005 !01 !20060614!20091231!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK !ILLINOIS !+000005116991!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1B!AIRCRAFT ENGINES AND SPARES !278 !CH-47F !336413!E! !4! !S!D! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!A!Y!A! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60638
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to NORTHSTAR AEROSPACE (CHICAGO) INC. for work described as: 200608!003642!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05G0009 !A!N! !N!0005 !01 !20060614!20091231!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK… Key points: 1. The contract value of $8.35 million for helicopter rotor blades and drive mechanisms is moderate. 2. Northstar Aerospace (Chicago) Inc. was the sole awardee, raising questions about competition. 3. The contract was 'NOT COMPETED', indicating a potential lack of market research or justification. 4. The sector is Defense, specifically aircraft components, which can have specialized requirements.
Value Assessment
Rating: questionable
The contract value of $8.35 million for helicopter rotor blades and related components appears reasonable for specialized aerospace parts. However, without specific benchmarks for CH-47F components, a definitive pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'NOT COMPETED' status, suggesting limited or no competition. This method of award limits price discovery and may not yield the best value for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether the government secured the most cost-effective solution, potentially leading to higher taxpayer costs.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding for critical helicopter components. The sole-source nature of the award could stifle innovation and cost-saving efforts from other potential suppliers. Dependence on a single supplier for essential aircraft parts can create supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
- Limited market research implied
Positive Signals
- Specific component for CH-47F, indicating a targeted need
- Firm Fixed Price contract type can provide cost certainty
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft engines and spares, including helicopter rotor blades. Spending in this area is critical for military readiness but requires careful oversight due to specialized nature and potential for sole-sourcing.
Small Business Impact
The awardee, Northstar Aerospace (Chicago) Inc., is a firm. There is no indication in the provided data whether this contract offered opportunities for small business participation or subcontracting.
Oversight & Accountability
The 'NOT COMPETED' status warrants further investigation into the justification for not seeking competitive bids. Oversight should focus on ensuring adequate market research was performed and that this award aligns with procurement regulations.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
- Limited transparency in award justification
- Supply chain risk due to single supplier
Tags
department-of-defense, il, do, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to NORTHSTAR AEROSPACE (CHICAGO) INC.. 200608!003642!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05G0009 !A!N! !N!0005 !01 !20060614!20091231!835052390!835052390!835052390!N!NORTHSTAR AEROSPACE (CHICAGO) !6006 W 73RD ST !BEDFORD PARK !IL!60638!14000!031!17!CHICAGO !COOK !ILLINOIS !+000005116991!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1B!AIRCRAFT ENGINES AND SPARES !278 !CH-47F !336413!E! !4! !S!D! ! !999
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2006-06-14. End: 2009-11-30.
What was the specific justification for awarding this contract on a sole-source basis, and was adequate market research conducted to ensure no other capable vendors could provide these components?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to ascertain the specific justification, such as a critical need, lack of alternatives, or previous long-term relationship. Without this justification, it's difficult to assess if market research was adequate or if competitive options were overlooked, potentially impacting value for money.
How does the unit cost of these helicopter rotor blades compare to similar components purchased competitively by the DoD or other government agencies?
Benchmarking the unit cost is crucial for assessing value. Given the 'NOT COMPETED' status, a direct comparison is challenging. An analysis would require identifying comparable contracts for similar rotor blades or drive mechanisms, ideally those awarded competitively, to determine if Northstar Aerospace's pricing was reasonable or inflated.
What is the long-term strategic impact of awarding critical helicopter components to a single supplier, particularly concerning supply chain resilience and future innovation?
Awarding critical components like rotor blades to a single supplier can create significant supply chain vulnerabilities. It limits the government's options in case of supplier issues and reduces leverage for future negotiations. Furthermore, it may disincentivize innovation from other potential manufacturers who are excluded from the market.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, 90
Business Categories: Category Business, Small Business
Parent Contract
Parent Award PIID: W58RGZ05G0009
IDV Type: IDC
Timeline
Start Date: 2006-06-14
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2012-01-26
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