DoD awards $12.6M for Black Hawk navigation systems to Tyonek Fabrication Corp

Contract Overview

Contract Amount: $12,654,560 ($12.7M)

Contractor: Tyonek Fabrication Corporation

Awarding Agency: Department of Defense

Start Date: 2007-03-30

End Date: 2007-03-30

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NEGOTIATION OF 6 EACH FIRST ARTICLES AND A PRODUCTION QUANTITY OF 344 EACH FOR THE UH-60 BLACKHAWK, ENHANCED SURVIVABILITY IMU GPS NAVIGATION SYSTEM (ESIGNS) IN SUPPORT OF THE CONTINUOUS TECHNOLOGY REFRESHMENT (CTR) INITATIVE.

Place of Performance

Location: MADISON, MADISON County, ALABAMA, 35758

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to TYONEK FABRICATION CORPORATION for work described as: NEGOTIATION OF 6 EACH FIRST ARTICLES AND A PRODUCTION QUANTITY OF 344 EACH FOR THE UH-60 BLACKHAWK, ENHANCED SURVIVABILITY IMU GPS NAVIGATION SYSTEM (ESIGNS) IN SUPPORT OF THE CONTINUOUS TECHNOLOGY REFRESHMENT (CTR) INITATIVE. Key points: 1. Contract awarded for enhanced survivability IMU GPS navigation systems for UH-60 Black Hawk. 2. Sole-source award to Tyonek Fabrication Corporation for 344 production units and 6 first articles. 3. The contract is a Firm Fixed Price delivery order, indicating defined costs. 4. This procurement supports the Army's Continuous Technology Refreshment initiative.

Value Assessment

Rating: questionable

The contract value of $12.6M for 344 units and first articles is difficult to assess without a per-unit cost benchmark. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Ensures continued operational readiness of the UH-60 Black Hawk fleet. Supports technological upgrades for critical navigation systems. Potential for increased costs due to sole-source nature. Impacts the supply chain for specialized aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in pricing due to no competition.
Potential for cost overruns without competitive pressure.

Positive Signals

Supports critical technology refresh for a key military asset.
Ensures continued availability of essential navigation systems.

Sector Analysis

This contract falls under Aircraft Engine and Engine Parts Manufacturing. Spending in this sector can be high due to the specialized nature and high-tech components required for military aircraft.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or subcontracted.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Oversight should focus on justification for the lack of competition.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to TYONEK FABRICATION CORPORATION. NEGOTIATION OF 6 EACH FIRST ARTICLES AND A PRODUCTION QUANTITY OF 344 EACH FOR THE UH-60 BLACKHAWK, ENHANCED SURVIVABILITY IMU GPS NAVIGATION SYSTEM (ESIGNS) IN SUPPORT OF THE CONTINUOUS TECHNOLOGY REFRESHMENT (CTR) INITATIVE.

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 $12.7 million.

What is the period of performance?

Start: 2007-03-30. End: 2007-03-30.

What is the per-unit cost for the ESIGNS system, and how does it compare to industry benchmarks for similar navigation systems?

The total award is $12,654,560 for 344 production units and 6 first articles. This equates to approximately $36,700 per production unit, excluding the first articles. Without specific industry benchmarks for the ESIGNS system, it's challenging to definitively assess value. However, given the sole-source nature, a thorough review of the contractor's cost proposal would be essential to ensure reasonableness.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Typically, this requires demonstrating that only one responsible source can provide the unique capabilities needed. The government should have conducted a thorough price analysis, potentially including cost breakdowns from the contractor, to ensure the negotiated price was fair and reasonable despite the lack of competition.

What is the expected impact of this technology refresh on the operational effectiveness and maintenance costs of the UH-60 Black Hawk fleet?

The Enhanced Survivability IMU GPS Navigation System (ESIGNS) is intended to improve navigation capabilities and survivability. This technology refresh is expected to enhance the operational effectiveness of the UH-60 Black Hawk fleet by providing more accurate and reliable navigation. While initial investment is significant, improved system reliability and reduced reliance on older technologies could potentially lead to lower long-term maintenance costs and reduced operational risks.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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: $14,600,988

Exercised Options: $14,600,988

Current Obligation: $12,654,560

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q04D0061

IDV Type: IDC

Timeline