Navy Aviation Contract for Tires Awarded to Michelin for $16M, Full and Open Competition

Contract Overview

Contract Amount: $15,979,837 ($16.0M)

Contractor: Michelin Aircraft Tire Company, LLC

Awarding Agency: Department of Defense

Start Date: 2007-01-19

End Date: 2009-06-19

Contract Duration: 882 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVY AVIATION

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29605

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to MICHELIN AIRCRAFT TIRE COMPANY, LLC for work described as: NAVY AVIATION Key points: 1. Contract value of $15.98M for tire manufacturing. 2. Michelin Aircraft Tire Company, LLC is the sole awardee. 3. Full and open competition was utilized. 4. The contract duration was 882 days.

Value Assessment

Rating: good

The contract value of $15.98M for tire manufacturing appears reasonable given the scope and duration. Benchmarking against similar large-scale aviation tire procurements would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method typically leads to competitive pricing by allowing all qualified vendors to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.

Public Impact

Ensures operational readiness for Navy aviation assets through reliable tire supply. Supports a major defense contractor, contributing to the aerospace supply chain. The contract's fixed-price nature provides cost certainty for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if raw material costs fluctuate significantly.
Dependence on a single supplier for critical aviation components.

Positive Signals

Utilized full and open competition, maximizing potential for competitive pricing.
Firm fixed price contract provides budget predictability.

Sector Analysis

This contract falls within the manufacturing sector, specifically for specialized aviation components. Defense procurement in this area often involves high-performance, safety-critical items with established industry players.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting the primary awardee is a large corporation. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The contract was awarded under full and open competition, implying a structured procurement process. Oversight would focus on contract performance, delivery schedules, and adherence to specifications.

Related Government Programs

Tire Manufacturing (except Retreading)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential supply chain disruptions affecting Michelin.
Technological obsolescence of tire design over time.
Fluctuations in raw material costs impacting profitability.
Dependence on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to MICHELIN AIRCRAFT TIRE COMPANY, LLC. NAVY AVIATION

Who is the contractor on this award?

The obligated recipient is MICHELIN AIRCRAFT TIRE COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2007-01-19. End: 2009-06-19.

What was the specific type and quantity of tires procured under this contract?

The provided data does not specify the exact type or quantity of tires. Further details would be required from the contract's statement of work or line item breakdown to ascertain this information. This level of detail is crucial for a comprehensive value assessment.

Were there any performance issues or contract modifications during the contract period?

The data does not indicate any performance issues or modifications. A review of contract performance reports, modification history, and any associated claims or disputes would be necessary to assess the contractor's adherence to terms and identify any challenges encountered.

How does the per-unit cost compare to industry benchmarks for similar aviation tires?

Without specific unit details, a direct per-unit cost comparison is not feasible. However, the overall contract value and duration suggest a significant procurement. Benchmarking would require detailed specifications of the tires and their intended use within Navy aviation.

Industry Classification

NAICS: Manufacturing › Rubber Product Manufacturing › Tire Manufacturing (except Retreading)

Product/Service Code: TIRES AND TUBES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PARKWAY S, GREENVILLE, SC, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $50,396,380

Exercised Options: $50,396,380

Current Obligation: $15,979,837

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038300D042G

IDV Type: IDC

Timeline