DoD Spends $14.5M on Aircraft Tires & Tubes from Michelin, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $14,467,405 ($14.5M)

Contractor: Michelin Aircraft Tire Company, LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-19

End Date: 2010-04-02

Contract Duration: 804 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TIRES & TUBES PNEUMATIC AIRCRAFT

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29605

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to MICHELIN AIRCRAFT TIRE COMPANY, LLC for work described as: TIRES & TUBES PNEUMATIC AIRCRAFT Key points: 1. Significant expenditure on essential aircraft components. 2. Michelin, a major player, secured the contract. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The contract falls under the Tire Manufacturing sector.

Value Assessment

Rating: good

The total award value of $14.5M over approximately 2.6 years appears reasonable for specialized aircraft tires. Benchmarking against similar large-scale military tire procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers benefited from potentially lower prices than a sole-source or limited competition scenario.

Public Impact

Ensures operational readiness for Navy aircraft by providing critical tire components. Supports a major tire manufacturer, potentially impacting employment and supply chains. The procurement highlights the ongoing need for specialized equipment in defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 804 days may lead to potential obsolescence or need for updates.
Lack of small business participation noted.

Positive Signals

Awarded via full and open competition.
Utilizes a firm fixed price contract type, providing cost certainty.

Sector Analysis

This procurement falls within the broader manufacturing sector, specifically tire manufacturing. Defense spending on such components is crucial for maintaining fleet readiness and operational capabilities, often involving specialized, high-performance products.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if opportunities were missed for small business participation in the supply chain or subcontracting.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price.

Related Government Programs

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

Risk Flags

No small business participation.
Long contract duration.
Potential for price fluctuations in raw materials impacting contractor margins.
Dependence on a single large manufacturer.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to MICHELIN AIRCRAFT TIRE COMPANY, LLC. TIRES & TUBES PNEUMATIC AIRCRAFT

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 $14.5 million.

What is the period of performance?

Start: 2008-01-19. End: 2010-04-02.

What was the average price per tire unit under this contract?

The provided data does not include the number of units or specific pricing per unit, making it impossible to calculate an average price per tire. The total award was $14,467,405.25 for 804 days. To determine unit cost, we would need the quantity of tires and tubes procured.

What are the primary risks associated with a firm fixed price contract for aircraft tires?

A primary risk with firm fixed price contracts is that the contractor may face unforeseen cost increases (e.g., raw materials, labor) that reduce their profit margin, potentially leading to quality compromises or disputes. Conversely, the government bears the risk if market prices decrease significantly after the contract is awarded.

How effective was the full and open competition in achieving cost savings for this tire procurement?

While full and open competition generally promotes cost savings, the effectiveness in this specific case is difficult to ascertain without comparative data. The $14.5M award suggests a substantial investment. Analyzing bid prices from competing firms and comparing them to market benchmarks would be necessary to quantify the savings achieved.

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: $33,179,427

Exercised Options: $33,179,427

Current Obligation: $14,467,405

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038300D042G

IDV Type: IDC

Timeline