DoD's $8.8M Contract for Aircraft Components to Spectral Systems Inc. Raises Questions on Competition
Contract Overview
Contract Amount: $14,577,044 ($14.6M)
Contractor: Spectral Systems Inc
Awarding Agency: Department of Defense
Start Date: 2005-03-14
End Date: 2007-05-31
Contract Duration: 808 days
Daily Burn Rate: $18.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200506!000258!5700!FA8620!ASC/RAK !F3365702G4036 !A!N! !N!0007 ! !20050314!20070430!884659145!884659145!094373495!N!SPECTRAL SYSTEMS INC !2611 COMMONS BLVD !BEAVERCREEK !OH!45431!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000008216448!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334515!E! !4! ! ! ! ! !20200930!B! ! !N!Z!D!U!U!1!001!N!6A!Z!Y!Z! ! !N!B!Y!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45431
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to SPECTRAL SYSTEMS INC for work described as: 200506!000258!5700!FA8620!ASC/RAK !F3365702G4036 !A!N! !N!0007 ! !20050314!20070430!884659145!884659145!094373495!N!SPECTRAL SYSTEMS INC !2611 COMMONS BLVD !BEAVERCREEK !OH!45431!21000!113!39!DAYTON !MONT… Key points: 1. The contract awarded to Spectral Systems Inc. for aircraft accessories and components is valued at $8.8 million. 2. The procurement method was 'NOT COMPETED', indicating a lack of competitive bidding. 3. The contract type is 'COST PLUS FIXED FEE', which can lead to cost overruns if not managed carefully. 4. The sector is 'Other Electronic Component Manufacturing', with a specific product code for aircraft equipment.
Value Assessment
Rating: questionable
The contract value of $8.8 million for aircraft accessories and components appears high given the lack of competition and the cost-plus-fixed-fee structure. Benchmarking against similar contracts for specialized aircraft parts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft components.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to a lack of competitive bidding. The Department of Defense relies on specialized components, and ensuring fair pricing is crucial for budget efficiency. Transparency in sole-source contracts is vital to maintain public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus-fixed-fee contract type
- Potential for inflated pricing
Positive Signals
- Awarded to a specific company for specialized components
- Contract duration of over two years
Sector Analysis
This contract falls under the 'Other Electronic Component Manufacturing' sector, specifically for MSL Aircraft Accessories and Components. Spending in this niche area is critical for defense readiness, but competitive sourcing is key to cost-effectiveness.
Small Business Impact
There is no indication in the provided data whether this contract involved small businesses as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny. Oversight should focus on the justification for the sole-source award and ensure that the pricing reflects fair market value, even in the absence of competition.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus-fixed-fee contract type
- Potential for overpricing
- Limited transparency on justification for sole-source award
Tags
other-electronic-component-manufacturing, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to SPECTRAL SYSTEMS INC. 200506!000258!5700!FA8620!ASC/RAK !F3365702G4036 !A!N! !N!0007 ! !20050314!20070430!884659145!884659145!094373495!N!SPECTRAL SYSTEMS INC !2611 COMMONS BLVD !BEAVERCREEK !OH!45431!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000008216448!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334515!E! !4! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is SPECTRAL SYSTEMS INC.
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 $14.6 million.
What is the period of performance?
Start: 2005-03-14. End: 2007-05-31.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A detailed justification would typically be required by the agency, outlining reasons such as the unavailability of other sources, urgent and compelling needs, or specific technical requirements that only Spectral Systems Inc. could meet. Without this documentation, the rationale remains unclear.
How does the cost-plus-fixed-fee structure impact the final price compared to other contract types for similar components?
Cost-plus-fixed-fee contracts allow the contractor to recover costs plus a predetermined fee. This can incentivize cost control but also carries the risk of cost overruns if the government's oversight is insufficient. For specialized aircraft components, a fixed-price contract might offer better cost certainty if requirements are well-defined, but the complexity or evolving nature of the parts could necessitate a cost-reimbursement approach.
What is the potential impact on future procurements if sole-source awards for critical components become common?
If sole-source awards become common for critical components, it could stifle innovation and competition within the defense industrial base. This could lead to sustained higher prices for taxpayers, reduced availability of parts due to limited supplier options, and a potential decrease in overall technological advancement as market pressures diminish.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5200 SPRINGFIELD STREET, S, DAYTON, OH, 10
Business Categories: Category Business, Small Business, Woman Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365702G4036
IDV Type: IDC
Timeline
Start Date: 2005-03-14
Current End Date: 2007-05-31
Potential End Date: 2007-05-31 00:00:00
Last Modified: 2010-03-13
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