DoD's $15.1M Michelin Aircraft Tire Contract Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $15,187,563 ($15.2M)
Contractor: Michelin Aircraft Tire Company, LLC
Awarding Agency: Department of Defense
Start Date: 2010-01-19
End Date: 2012-03-29
Contract Duration: 800 days
Daily Burn Rate: $19.0K/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, 29615
Plain-Language Summary
Department of Defense obligated $15.2 million to MICHELIN AIRCRAFT TIRE COMPANY, LLC for work described as: TIRES&TUBES PNEUMATIC AIRCRAFT Key points: 1. Contract awarded to Michelin Aircraft Tire Company, LLC for aircraft tires. 2. The award was made under a full and open competition. 3. The contract value is approximately $15.1 million. 4. The contract was awarded by the Department of the Navy. 5. The period of performance was from January 2010 to March 2012.
Value Assessment
Rating: good
The contract value of $15.1 million for aircraft tires appears reasonable given the duration and quantity. Benchmarking against similar large-scale aircraft tire procurements would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing. The government likely received competitive bids, leading to a fair market price discovery.
Taxpayer Impact: The use of full and open competition suggests that taxpayers benefited from a competitive bidding process, potentially leading to cost savings.
Public Impact
Ensures operational readiness for naval aircraft by providing essential tire components. Supports the aviation industry through procurement of specialized aircraft parts. The contract contributes to the supply chain for military aviation maintenance and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data makes detailed value assessment difficult.
- Contract duration is relatively short, potentially limiting long-term price stability.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Procurement by a major agency (Department of Defense) suggests adherence to established standards.
Sector Analysis
The procurement falls within the Tire Manufacturing (except Retreading) sector, a niche but critical component of the broader aerospace and defense industry. Spending benchmarks for specialized aircraft components can vary significantly based on technological requirements and market dynamics.
Small Business Impact
The contract was awarded to a large corporation (Michelin Aircraft Tire Company, LLC) and there is no indication of small business participation in this specific award. Future procurements could explore opportunities for small business set-asides or subcontracting.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for procurement. The use of Firm Fixed Price contract type provides cost certainty.
Related Government Programs
- Tire Manufacturing (except Retreading)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited transparency on per-unit cost and quantity.
- Potential for price fluctuations in specialized materials.
- Dependence on a single large supplier for critical components.
- Contract duration may not fully leverage long-term pricing agreements.
Tags
tire-manufacturing-except-retreading, department-of-defense, sc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 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 $15.2 million.
What is the period of performance?
Start: 2010-01-19. End: 2012-03-29.
What was the specific quantity of tires and tubes procured under this contract, and how does the per-unit cost compare to commercial equivalents?
The data does not specify the exact quantity of tires and tubes. Without this information, a precise per-unit cost calculation and comparison to commercial equivalents is not possible. However, the total award of $15.1 million over approximately two years suggests a significant volume of high-performance, specialized aircraft components.
Were there any performance issues or contract modifications that impacted the final cost or delivery schedule?
The provided data indicates the contract was awarded under a Firm Fixed Price (FFP) agreement and completed within its scheduled period of performance (January 2010 - March 2012). There is no immediate indication of significant performance issues or major modifications that would suggest cost overruns or delays, though a deeper dive into contract modification logs would be needed for absolute certainty.
How does the pricing of these specialized aircraft tires compare to other similar government contracts or industry benchmarks?
Benchmarking is challenging without specific per-unit pricing and quantity details. However, the contract was awarded through full and open competition, which generally drives prices toward market rates. The $15.1 million total value for a two-year period suggests a substantial investment in critical aviation components, likely reflecting specialized materials and stringent safety standards.
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: $15,187,563
Exercised Options: $15,187,563
Current Obligation: $15,187,563
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038300D042G
IDV Type: IDC
Timeline
Start Date: 2010-01-19
Current End Date: 2012-03-29
Potential End Date: 2012-03-29 00:00:00
Last Modified: 2014-11-25
More Contracts from Michelin Aircraft Tire Company, LLC
- Navy Aviation — $16.0M (Department of Defense)
- Tires & Tubes Pneumatic Aircraft — $14.5M (Department of Defense)
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