DoD spent $13.5M on aircraft microclimate cooling units, awarded to Mission Systems Orchard Park Inc

Contract Overview

Contract Amount: $13,552,198 ($13.6M)

Contractor: Mission Systems Orchard Park Inc

Awarding Agency: Department of Defense

Start Date: 2007-10-29

End Date: 2008-08-15

Contract Duration: 291 days

Daily Burn Rate: $46.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPLACEMENT MICROCLIMATE COOLING UNITS FOR AIRCRAFT & FLIGHT SUITS

Place of Performance

Location: ORCHARD PARK, ERIE County, NEW YORK, 14127

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to MISSION SYSTEMS ORCHARD PARK INC for work described as: REPLACEMENT MICROCLIMATE COOLING UNITS FOR AIRCRAFT & FLIGHT SUITS Key points: 1. The contract value of $13.5 million for aircraft cooling units appears to be a significant investment in aviation support. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated to ensure the successful delivery of critical aircraft components. 4. Performance context is examined to understand the necessity and impact of these cooling units. 5. The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, indicating specialized industrial support. 6. The award to a single contractor warrants scrutiny regarding market concentration and potential future competition.

Value Assessment

Rating: fair

The contract value of $13.5 million for replacement microclimate cooling units for aircraft and flight suits is substantial. Benchmarking this against similar contracts for specialized aviation components is crucial for assessing value. Without direct comparable data, it's difficult to definitively state if the pricing was optimal. However, the fixed-price nature suggests a degree of cost certainty was sought.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that only one bid was received, despite the open competition, raises questions about market interest or the specific requirements of the solicitation. This could suggest either a highly specialized niche with few capable providers or potential barriers to entry for other firms.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the low number of bids may have limited price negotiation leverage, potentially impacting the final cost.

Public Impact

The primary beneficiaries are military personnel who rely on functional flight suits and aircraft for operational readiness. The services delivered include the provision of essential climate control systems for aircrew and aircraft. The geographic impact is likely concentrated within military aviation bases and operational theaters where these aircraft are deployed. Workforce implications may include support roles for installation, maintenance, and logistics related to these cooling units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low bid count despite full and open competition could indicate market limitations or solicitation issues.
Lack of detailed performance metrics in the provided data makes it hard to assess effectiveness.
The contract duration of 291 days is relatively short, raising questions about long-term sustainment needs.

Positive Signals

Awarded under full and open competition, adhering to principles of fair market access.
Firm Fixed Price contract type provides cost certainty for the government.
The contract addresses a critical need for aircraft and flight suit functionality.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a specialized segment of the aerospace industry focused on components that enhance aircraft performance and crew comfort. This contract for microclimate cooling units fits within this niche, addressing a critical need for maintaining optimal conditions in demanding flight environments. The market for such specialized equipment is often characterized by a limited number of highly capable manufacturers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Mission Systems Orchard Park Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's procurement and contract management regulations. Accountability measures are inherent in the firm fixed-price structure, which places the onus on the contractor to deliver within the agreed cost. Transparency is generally maintained through contract award databases, though specific performance oversight details are not provided.

Related Government Programs

Aircraft Component Manufacturing
Aerospace Support Equipment
Military Aviation Systems
Flight Crew Support

Risk Flags

Low bid count despite full and open competition
Potential for limited market competition
Reliance on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to MISSION SYSTEMS ORCHARD PARK INC. REPLACEMENT MICROCLIMATE COOLING UNITS FOR AIRCRAFT & FLIGHT SUITS

Who is the contractor on this award?

The obligated recipient is MISSION SYSTEMS ORCHARD PARK 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 $13.6 million.

What is the period of performance?

Start: 2007-10-29. End: 2008-08-15.

What is the track record of Mission Systems Orchard Park Inc. with Department of Defense contracts, particularly for similar equipment?

Assessing the track record of Mission Systems Orchard Park Inc. requires a deep dive into historical contract data. While this specific award is for $13.5 million, understanding their past performance on similar procurements, including on-time delivery, quality of goods, and adherence to budget, is crucial. A history of successful contract completion for aviation components would bolster confidence in their ability to meet the current requirements. Conversely, any past performance issues, such as delays, cost overruns, or quality defects, would represent a significant risk factor for this contract and future awards.

How does the $13.5 million contract value compare to the typical cost of similar microclimate cooling systems for aircraft?

The $13.5 million contract value for replacement microclimate cooling units needs to be benchmarked against industry standards and comparable government procurements. The complexity, technological sophistication, and specific performance requirements of these units will heavily influence their cost. If this value is significantly higher than similar systems procured by the DoD or other agencies, it could indicate potential overpricing or unique, costly specifications. Conversely, if it aligns with or is lower than market rates for comparable advanced systems, it suggests a potentially good value for the taxpayer. Detailed analysis would involve comparing unit costs, total contract value, and the scope of work against other relevant contracts.

What are the primary risks associated with this contract, given the limited number of bidders?

The primary risk associated with this contract, despite being awarded under full and open competition, is the low number of bids received (one). This could indicate a lack of robust market competition, potentially leading to less favorable pricing for the government in the long run or reduced innovation. It might also suggest that the solicitation requirements were highly specialized, potentially excluding many capable vendors, or that the market for these specific units is inherently limited. Another risk is the contractor's capacity to scale production or provide adequate support if demand increases unexpectedly. Furthermore, reliance on a single supplier could create vulnerabilities in the supply chain.

How effective are microclimate cooling units in enhancing aircraft and flight suit performance and crew safety?

Microclimate cooling units are critical for maintaining optimal thermal conditions for aircrew, especially in high-performance aircraft and during extended missions. They help prevent heat stress, fatigue, and dehydration, which can significantly impair pilot performance and decision-making. By regulating the temperature within the flight suit and cockpit, these systems contribute directly to crew safety and operational effectiveness. Their effectiveness is measured by their ability to maintain a stable internal temperature despite external environmental conditions and the heat generated by onboard systems and the pilot's metabolism. Reliable functioning is paramount for mission success and aircrew well-being.

What has been the historical spending pattern for aircraft microclimate cooling units by the Department of Defense?

Analyzing historical spending patterns for aircraft microclimate cooling units by the Department of Defense is essential for understanding the scale and consistency of investment in this area. This includes examining the total amount spent over several fiscal years, the number of contracts awarded, the primary contractors involved, and the average contract values. Significant fluctuations or a consistent upward trend in spending could indicate evolving operational needs, technological advancements, or changes in procurement strategies. Understanding this history provides context for the current $13.5 million award and helps in forecasting future budgetary requirements for similar equipment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Cobham PLC (UEI: 217006709)

Address: 10 COBHAM DRIVE, ORCHARD PARK, NY, 23

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,552,198

Exercised Options: $13,552,198

Current Obligation: $13,552,198

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAH2303D0174

IDV Type: IDC

Timeline