DoD Spends $21.5M on UH-60 Display Units Under Continuous Refreshment, Lacking Competition
Contract Overview
Contract Amount: $21,463,176 ($21.5M)
Contractor: Tyonek Fabrication Corporation
Awarding Agency: Department of Defense
Start Date: 2007-01-31
End Date: 2012-05-28
Contract Duration: 1,944 days
Daily Burn Rate: $11.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UH-60 CENTRAL DISPLAY UNIT/PILOT DISPLAY UNIT UNDER CONTINUOUS TECHNOLOGY REFRESHMENT INITIATIVE.
Place of Performance
Location: MADISON, MADISON County, ALABAMA, 35758, UNITED STATES OF AMERICA
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to TYONEK FABRICATION CORPORATION for work described as: UH-60 CENTRAL DISPLAY UNIT/PILOT DISPLAY UNIT UNDER CONTINUOUS TECHNOLOGY REFRESHMENT INITIATIVE. Key points: 1. Significant spending on critical aircraft components highlights ongoing modernization efforts. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract's duration and continuous refreshment model may lead to escalating costs. 4. Focus on a single vendor for display units could create dependency and hinder market competition.
Value Assessment
Rating: questionable
The contract value of $21.5 million for display units is difficult to assess without comparable contract data. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential pricing inefficiencies due to a lack of market pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection process. This lack of competitive bidding likely resulted in higher prices and reduced opportunities for innovative solutions from other vendors.
Taxpayer Impact: Taxpayers may be paying a premium for these display units due to the absence of competitive pricing mechanisms.
Public Impact
Ensures continued operational readiness for UH-60 helicopters. Supports technological advancement in aviation displays. Potential for increased costs impacts overall defense budget allocation. Lack of competition may limit options for future upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Technology refresh dependency
Positive Signals
- Maintains critical aircraft functionality
- Supports ongoing modernization
Sector Analysis
Spending in the aircraft engine and parts manufacturing sector is substantial, driven by defense needs. This contract for display units falls within this category, where continuous technological updates are common but often come with higher costs due to specialized requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The limited competition further reduces potential opportunities for small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification for sole-source or limited-source procurement. Oversight should focus on ensuring fair pricing and exploring future competitive opportunities.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited vendor options
- Dependency on a single supplier
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, al, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to TYONEK FABRICATION CORPORATION. UH-60 CENTRAL DISPLAY UNIT/PILOT DISPLAY UNIT UNDER CONTINUOUS TECHNOLOGY REFRESHMENT INITIATIVE.
Who is the contractor on this award?
The obligated recipient is TYONEK FABRICATION CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.5 million.
What is the period of performance?
Start: 2007-01-31. End: 2012-05-28.
What is the justification for limiting competition on this contract, and has it been reviewed for potential future competitive opportunities?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review should be conducted to understand the specific reasons for this limitation, such as unique technical requirements or proprietary technology. Furthermore, an assessment should be made to determine if future contract actions could be opened to competition to ensure fair pricing and foster innovation.
How does the cost of these display units compare to similar commercial or military off-the-shelf (COTS/MOTS) components, considering the 'continuous technology refreshment' aspect?
Without specific cost data for the display units and benchmarks for comparable COTS/MOTS components, a direct cost comparison is challenging. The 'continuous technology refreshment' model, especially without competition, could lead to costs exceeding market rates. Analyzing the total lifecycle cost and comparing it to alternatives with similar functionality is crucial for assessing value.
What is the long-term strategy for UH-60 display unit upgrades, and does the current procurement approach align with achieving cost-effective modernization?
The current approach of continuous technology refreshment under limited competition raises questions about long-term cost-effectiveness. A strategic review should explore alternative procurement strategies, such as phased upgrades or competitive development contracts, to ensure future modernization efforts are both technologically advanced and fiscally responsible for the taxpayer.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: THE Tyonek Native Corporation (UEI: 153808613)
Address: 229 PALMER ROAD, MADISON, AL, 35758
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,463,176
Exercised Options: $21,463,176
Current Obligation: $21,463,176
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q04D0061
IDV Type: IDC
Timeline
Start Date: 2007-01-31
Current End Date: 2012-05-28
Potential End Date: 2012-05-28 00:00:00
Last Modified: 2015-01-20
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