DoD Awards $37.7M Contract to Miltec Corp for Aircraft Engine Spares Amidst Full and Open Competition
Contract Overview
Contract Amount: $14,352,811 ($14.4M)
Contractor: Miltec Corporation
Awarding Agency: Department of Defense
Start Date: 2000-04-18
End Date: 2010-09-15
Contract Duration: 3,802 days
Daily Burn Rate: $3.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200007!2100!001448!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100CR108 !A!*!* !20000418!20000930!009757360!009757360!009757360!N!09KZ5!MILTEC CORPORATION !6767 OLD MADISON PIKE NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000000487010!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A1B!AIRCRAFT ENGINES AND SPARES !1000!NOT DISCERNABLE OR CLASSIFIED !3511!3!*!*!*!B!A!*!A !N!U!2!004!B!* !Z!Y!Z!* !* !N!B!N!A!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $14.4 million to MILTEC CORPORATION for work described as: 200007!2100!001448!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100CR108 !A!*!* !20000418!20000930!009757360!009757360!009757360!N!09KZ5!MILTEC CORPORATION !6767 OLD MADISON PIKE NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MAD… Key points: 1. The contract, valued at $37,757,360, is for aircraft engines and spares. 2. Awarded by the Department of Defense through the Defense Contract Management Agency. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can carry higher risk. 5. Miltec Corporation, based in Huntsville, AL, is the recipient of this award.
Value Assessment
Rating: fair
The contract value of $37.7M for aircraft engines and spares appears within a reasonable range for defense procurement. However, without specific details on the scope and quantity of spares, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it aims to secure the best possible price through market forces.
Public Impact
Ensures continued availability of critical aircraft engine components for military operations. Supports a domestic defense contractor, Miltec Corporation, and its workforce. The contract's duration and value suggest a significant ongoing need for these spares. Potential for follow-on contracts if performance is satisfactory.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Limited information on specific parts and quantities makes detailed cost analysis challenging.
- Long contract duration (over 10 years) may not reflect current market prices.
Positive Signals
- Awarded under full and open competition.
- Miltec Corporation is an established supplier in the defense sector.
- Contract supports critical aviation readiness.
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft engines and spares. Spending in this area is substantial and driven by military readiness requirements. Benchmarks vary widely based on specific aircraft platforms and component types.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The prime contractor, Miltec Corporation, is likely a larger entity, and subcontracting opportunities for small businesses are not detailed here.
Oversight & Accountability
The Department of Defense, through its various contracting and oversight agencies, is responsible for monitoring contract performance and ensuring compliance. The Defense Contract Management Agency plays a key role in this award.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 10 years).
- Lack of specific itemization for spares.
- Potential for cost escalation over the contract's life.
Tags
department-of-defense, al, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to MILTEC CORPORATION. 200007!2100!001448!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100CR108 !A!*!* !20000418!20000930!009757360!009757360!009757360!N!09KZ5!MILTEC CORPORATION !6767 OLD MADISON PIKE NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000000487010!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A1B!AIRCRAFT ENGINES AND SPARES !1000!NOT DISCERNABLE OR CLASSIFIED !3511!3!*!*!*!B!A!*!A !N!U!
Who is the contractor on this award?
The obligated recipient is MILTEC CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.4 million.
What is the period of performance?
Start: 2000-04-18. End: 2010-09-15.
What is the specific breakdown of aircraft engine spares being procured under this contract, and how does the unit cost compare to industry standards for similar components?
The provided data does not detail the specific aircraft engine spares. To assess value, a breakdown of part numbers, quantities, and their respective unit costs would be necessary. Comparing these against publicly available defense logistics agency catalogs or commercial equivalents, where applicable, would reveal if the pricing is competitive or inflated, impacting overall taxpayer value.
Given the Cost Plus Fixed Fee (CPFF) contract type and the long duration, what are the primary risks associated with potential cost overruns and contractor performance?
The CPFF structure carries inherent risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. The long duration increases the likelihood of unforeseen cost increases due to inflation, material price fluctuations, or changes in production methods. Contractor performance risks include potential delays, quality issues, and failure to meet technical specifications, which could impact aircraft readiness.
How does the awarded amount of $37.7M align with historical spending for similar aircraft engine spare parts procurements by the Department of Defense?
Without specific details on the types and quantities of spares, a direct historical spending comparison is challenging. However, $37.7M is a significant sum, suggesting a substantial requirement for these components. Analyzing past contracts for similar platforms or component categories, considering inflation adjustments, would provide a better benchmark to assess if this award is in line with previous spending patterns.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Ducommun Incorporated (UEI: 006907042)
Address: 6767 OLD MADISON PIKE NW, HUNTSVILLE, AL, 05
Business Categories: Category Business, Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-04-18
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2010-06-06
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