NOAA Procures $5.4M in Aircraft Engines for Fleet Support

Contract Overview

Contract Amount: $5,403,840 ($5.4M)

Contractor: Greenwood Group Inc

Awarding Agency: Department of Commerce

Start Date: 2026-01-06

End Date: 2026-07-05

Contract Duration: 180 days

Daily Burn Rate: $30.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NOAA/OMAO/AOC_PROCUREMENT OF TWO NEW PT6A-60A ENGINES TO SUPPORT THE KING AIR 350/360 AIRCRAFT FLEET AND TWO PT6A-27 OVERHAULED ENGINE WITH CORE EXCHANGES TO SUPPORT THE DHC-6 TWIN OTTER AIRCRAFT FLEET

Place of Performance

Location: PONCA CITY, KAY County, OKLAHOMA, 74601

State: Oklahoma Government Spending

Plain-Language Summary

Department of Commerce obligated $5.4 million to GREENWOOD GROUP INC for work described as: NOAA/OMAO/AOC_PROCUREMENT OF TWO NEW PT6A-60A ENGINES TO SUPPORT THE KING AIR 350/360 AIRCRAFT FLEET AND TWO PT6A-27 OVERHAULED ENGINE WITH CORE EXCHANGES TO SUPPORT THE DHC-6 TWIN OTTER AIRCRAFT FLEET Key points: 1. Procurement includes new PT6A-60A engines for King Air fleet and overhauled PT6A-27 engines for Twin Otter fleet. 2. Competition was achieved under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract is firm fixed price, providing cost certainty for the government. 4. The spending is categorized under Aircraft Engine and Engine Parts Manufacturing.

Value Assessment

Rating: good

The total award of $5.4M for multiple engines and overhauls appears reasonable given the specialized nature of aviation components. Benchmarking against similar sole-source or limited competition procurements for high-performance aircraft engines would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, indicating a limited competition approach likely due to the specific nature of the engine requirements and the number of qualified vendors. This method can be efficient for smaller procurements but may limit price discovery compared to full and open competition.

Taxpayer Impact: The $5.4M expenditure supports critical NOAA aviation assets, ensuring operational readiness and safety, which is a necessary investment for the agency's mission.

Public Impact

Ensures continued operational capability for NOAA's King Air and Twin Otter aircraft, vital for research and operational missions. Supports the maintenance and longevity of NOAA's aviation fleet, potentially reducing future unscheduled maintenance costs. The procurement of specific engine models indicates a need for specialized parts, highlighting the complexity of maintaining government aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition impacting price.
Reliance on specific engine models may create future supply chain dependencies.

Positive Signals

Firm fixed price contract provides cost certainty.
Supports critical NOAA operational assets.
Procurement under SAP can be efficient for this contract value.

Sector Analysis

This procurement falls within the aerospace and defense sector, specifically focusing on aircraft engine manufacturing and maintenance. Spending benchmarks for similar aircraft engine procurements can vary widely based on engine type, quantity, and competition.

Small Business Impact

The data indicates the awardee is GREENWOOD GROUP INC. Further analysis would be needed to determine if this is a small business and if subcontracting opportunities were utilized or encouraged.

Oversight & Accountability

The procurement was awarded via Purchase Order under SAP. Oversight would involve ensuring adherence to procurement regulations, proper documentation, and verification of delivery and performance against the contract terms.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Limited competition may impact price.
Potential vendor lock-in.
Dependence on specific engine models.
Need for long-term sustainment planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.4 million to GREENWOOD GROUP INC. NOAA/OMAO/AOC_PROCUREMENT OF TWO NEW PT6A-60A ENGINES TO SUPPORT THE KING AIR 350/360 AIRCRAFT FLEET AND TWO PT6A-27 OVERHAULED ENGINE WITH CORE EXCHANGES TO SUPPORT THE DHC-6 TWIN OTTER AIRCRAFT FLEET

Who is the contractor on this award?

The obligated recipient is GREENWOOD GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2026-01-06. End: 2026-07-05.

What is the expected lifespan of the new and overhauled engines, and how does this align with NOAA's long-term fleet sustainment plan?

The expected lifespan of the new PT6A-60A engines and the overhauled PT6A-27 engines is crucial for assessing the long-term value of this $5.4M investment. Understanding the manufacturer's recommended overhaul intervals and projected service life is key. This data should be evaluated against NOAA's fleet sustainment strategy to ensure the procurement supports planned aircraft utilization and replacement cycles, thereby maximizing the return on investment and minimizing future unscheduled expenditures.

How does the pricing of these specific engine models compare to industry benchmarks for similar aviation components, considering the limited competition?

Benchmarking the pricing of these PT6A-60A and PT6A-27 engines against industry standards is essential, especially given the limited competition under SAP. While SAP aims for efficiency, it can sometimes lead to higher prices than full and open competition. A thorough analysis would involve comparing the per-unit cost to publicly available pricing for new and overhauled engines of the same or comparable models from other suppliers or through different contract vehicles.

What are the potential risks associated with relying on a single vendor for both new and overhauled engines, particularly concerning future availability and pricing?

The primary risk of relying on a single vendor, Greenwood Group Inc., for both new and overhauled engines is potential future supply chain vulnerability and price escalation. If Greenwood Group faces production issues or decides to increase prices, NOAA may have limited recourse, especially if alternative vendors for these specific engine types are scarce. This necessitates careful contract management and potentially exploring options for second-sourcing or long-term agreements to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M225Q0217

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2117 N WAVERLY ST, PONCA CITY, OK, 74601

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,403,840

Exercised Options: $5,403,840

Current Obligation: $5,403,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline