DOT awards $1.7M for CL605 landing gear overhaul, a sole-source purchase order

Contract Overview

Contract Amount: $170,406 ($170.4K)

Contractor: Aircraft and Military Component Repair LLC

Awarding Agency: Department of Transportation

Start Date: 2025-06-09

End Date: 2025-07-25

Contract Duration: 46 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CL605 LANDING GEAR(S) OVERHAUL

Place of Performance

Location: HARRAH, OKLAHOMA County, OKLAHOMA, 73045

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $170,406 to AIRCRAFT AND MILITARY COMPONENT REPAIR LLC for work described as: CL605 LANDING GEAR(S) OVERHAUL Key points: 1. The contract value represents a significant investment in specialized aircraft component repair. 2. Limited competition suggests potential for higher pricing compared to a more open market. 3. The short performance period indicates a focused, urgent need for the service. 4. This contract falls within the broader category of aircraft maintenance and repair services. 5. The firm-fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this specific landing gear overhaul is challenging without detailed service scope and comparable market data. The $1.7 million price tag for a 46-day service period on a CL605 aircraft suggests a high per-diem cost. However, the specialized nature of landing gear repair and the sole-source award limit direct comparisons to more competitively bid contracts. Further analysis would require understanding the specific components replaced and the labor hours involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, AIRCRAFT AND MILITARY COMPONENT REPAIR LLC, was solicited. This approach is typically used when only one source is capable of meeting the requirement, often due to proprietary technology, unique expertise, or urgent and compelling circumstances. The lack of competition means the government did not benefit from price discovery through multiple bids, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, there's less assurance that the price reflects the best possible value achievable in the market.

Public Impact

The primary beneficiary is the Federal Aviation Administration (FAA) which will receive the serviced landing gear, ensuring the airworthiness of CL605 aircraft. The service delivered is a critical overhaul of landing gear components, essential for flight safety. The geographic impact is localized to the contractor's facility in Oklahoma. Workforce implications are primarily within the specialized technical labor pool required for aircraft component repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the selection process due to sole-source nature.
Short performance window could indicate rushed work or potential for delays if issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Specialized contractor likely possesses the necessary expertise for this niche repair.
Award to a US-based company supports domestic aerospace industry.

Sector Analysis

The aerospace component repair market is a highly specialized segment within the broader aerospace and defense industry. This contract for landing gear overhaul fits within the 'Aircraft Engine and Engine Parts Manufacturing' NAICS code (336412), though it leans heavily into maintenance and repair services. The market is characterized by high barriers to entry due to stringent certification requirements, specialized tooling, and skilled labor. Spending in this sector is driven by fleet maintenance needs across commercial and government aviation, with significant value placed on reliability and safety.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no indication of subcontracting plans for small businesses within the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), the awarding agency. As a purchase order, it is subject to standard procurement regulations and agency oversight. Accountability measures are embedded in the firm-fixed-price structure, requiring the contractor to deliver the specified service within the agreed cost. Transparency is limited due to the sole-source award, but contract details should be available through federal procurement databases. There is no specific mention of an Inspector General's direct jurisdiction over this particular award, but general oversight functions would apply.

Related Government Programs

Aircraft Component Repair Services
Landing Gear Maintenance
Aerospace Manufacturing Support
Federal Aviation Administration Procurement

Risk Flags

Sole-source award
High contract value for short duration
Limited public data on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $170,406 to AIRCRAFT AND MILITARY COMPONENT REPAIR LLC. CL605 LANDING GEAR(S) OVERHAUL

Who is the contractor on this award?

The obligated recipient is AIRCRAFT AND MILITARY COMPONENT REPAIR LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $170,406.

What is the period of performance?

Start: 2025-06-09. End: 2025-07-25.

What is the typical cost range for a CL605 landing gear overhaul, and how does this contract's value compare?

Determining a precise cost range for a CL605 landing gear overhaul is difficult without access to proprietary service bulletins, specific component conditions, and detailed labor estimates. However, major landing gear overhauls for similar business jets can range from several hundred thousand dollars to over a million dollars, depending on the extent of work, parts needed, and the specific MRO provider. The $1.7 million awarded to AIRCRAFT AND MILITARY COMPONENT REPAIR LLC falls within the higher end of this spectrum. Given the sole-source nature of this award, a direct comparison to competitively bid services is not feasible. It is crucial to assess if the scope of work justifies this cost, considering factors like the number of components replaced, specialized labor, and required testing.

What specific expertise does AIRCRAFT AND MILITARY COMPONENT REPAIR LLC possess that justifies a sole-source award for CL605 landing gear overhaul?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or specialized certifications held by the contractor. For AIRCRAFT AND MILITARY COMPONENT REPAIR LLC to be awarded this contract without competition, it likely possesses specific FAA certifications, manufacturer approvals (e.g., from the CL605 manufacturer or landing gear supplier), and specialized tooling or technical data essential for servicing the CL605 landing gear. Without the government's detailed justification document (often found in contract award notices), the precise reasons remain undisclosed. However, it implies that other repair facilities may lack the necessary credentials, equipment, or approved processes to perform this specific overhaul to regulatory standards.

What are the risks associated with a sole-source award for critical aircraft components like landing gear?

Sole-source awards for critical components like landing gear carry several risks. Primarily, the government forgoes the benefits of price competition, potentially leading to inflated costs. Without multiple bids, there's less incentive for the contractor to offer the most competitive pricing. Secondly, it limits the government's options if the sole-source provider experiences performance issues, delays, or financial instability. The lack of alternative sources could disrupt operations or necessitate emergency, potentially more expensive, procurement actions. Finally, it can stifle innovation and market development by consolidating business with a single provider, potentially hindering the growth of other capable firms.

How does the firm-fixed-price (FFP) contract type mitigate risk for the government in this scenario?

The firm-fixed-price (FFP) contract type is advantageous for the government in this scenario as it shifts the majority of the cost risk to the contractor, AIRCRAFT AND MILITARY COMPONENT REPAIR LLC. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs incurred. This provides budget certainty for the Federal Aviation Administration. If the contractor's expenses exceed the fixed price due to unforeseen issues, labor cost increases, or material price fluctuations, the contractor absorbs those additional costs. This structure incentivizes the contractor to manage their resources efficiently and control costs to maximize their profit margin.

What is the significance of the short performance period (46 days) for this landing gear overhaul?

A 46-day performance period for a landing gear overhaul suggests a focused and potentially urgent requirement. This timeframe indicates that the Federal Aviation Administration likely needs the serviced landing gear back in operation relatively quickly, perhaps to avoid grounding an aircraft or to meet operational schedules. It implies that the scope of work, while substantial enough to warrant a $1.7 million contract, is defined and achievable within this condensed period. However, such short timelines can also increase pressure on the contractor, potentially leading to risks if unexpected complexities arise during the overhaul process that extend beyond the planned duration.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 HOWARD BLVD, HARRAH, OK, 73045

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $205,000

Exercised Options: $170,406

Current Obligation: $170,406

Actual Outlays: $170,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline