DoD's $16.47M contract for aircraft components awarded to Loral Fairchild Systems Inc. in 1997

Contract Overview

Contract Amount: $16,473,737 ($16.5M)

Contractor: Loral Fairchild Systems Inc

Awarding Agency: Department of Defense

Start Date: 1997-04-03

End Date: 2005-10-31

Contract Duration: 3,133 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199707!5700!0008!GU72 !ASC/RWKR !F3365796C6502 !A!*!P00003 !19970403!19990820!038155727!613355171!834951691!N!72314!LOCKHEED MARTIN FAIRCHILD SYST!300 ROBBINS LN !SYOSSET !NY!11791!72554!059!36!SYOSSET !NASSAU !NEW YORK !0001!+000006750000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !A1A!AIRFRAMES AND SPARES !3ARE!RF-4C !3812!1!*!*!D!B!A!*!A !N!J!2!002!B!* !A!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to LORAL FAIRCHILD SYSTEMS INC for work described as: 199707!5700!0008!GU72 !ASC/RWKR !F3365796C6502 !A!*!P00003 !19970403!19990820!038155727!613355171!834951691!N!72314!LOCKHEED MARTIN FAIRCHILD SYST!300 ROBBINS LN !SYOSSET !NY!11791!72554!059!36!SYOSSET !NASSAU… Key points: 1. Contract awarded for aircraft components, indicating a need for specialized manufacturing or maintenance services. 2. The award to Loral Fairchild Systems Inc. suggests a focus on established defense contractors with relevant expertise. 3. The contract duration of over 8 years (3133 days) points to a long-term requirement for these components. 4. The 'FULL AND OPEN COMPETITION' indicates a competitive bidding process, potentially leading to better pricing. 5. The primary Product Service Code (PSC) is likely related to aircraft parts or systems, aligning with defense needs. 6. The contract's value of over $16 million suggests a significant procurement for the Department of Defense.

Value Assessment

Rating: fair

The contract value of $16.47 million over an 8-year period averages to approximately $2.06 million per year. Without specific details on the components or services rendered, it's challenging to benchmark against similar contracts. However, the duration suggests a stable, long-term need. The firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for value if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that multiple bidders were likely considered. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, but the designation implies a robust process was followed.

Taxpayer Impact: A full and open competition process typically benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for goods or services.

Public Impact

The primary beneficiaries are likely military branches within the Department of Defense requiring the specified aircraft components. The services delivered involve the manufacturing or supply of critical aircraft components, essential for maintaining operational readiness. The geographic impact is primarily within the United States, supporting defense supply chains and potentially domestic manufacturing. Workforce implications include employment opportunities within Loral Fairchild Systems Inc. and its subcontractors, particularly in manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract's age (awarded in 1997) means current market prices and technological standards may differ significantly.
Lack of specific details on the components makes it difficult to assess if the price reflects current technological advancements or obsolescence.
The long duration could potentially lead to scope creep or changes in requirements that were not fully anticipated at the time of award.

Positive Signals

The 'FULL AND OPEN COMPETITION' indicates a structured procurement process that likely aimed for best value.
The 'FIRM FIXED PRICE' contract type suggests cost certainty for the government, transferring risk to the contractor.
The award to a known entity like Loral Fairchild Systems Inc. implies a level of trust in their capability to deliver.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically related to aircraft components. The market for such components is characterized by high technical requirements, stringent quality control, and long product lifecycles. Spending in this area is driven by military readiness and modernization programs. Comparable spending benchmarks would involve analyzing other DoD contracts for similar aircraft parts or systems, considering factors like quantity, complexity, and technological sophistication.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Loral Fairchild Systems Inc., may engage small businesses as subcontractors for specialized parts or services, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would include performance reviews, quality inspections, and adherence to contract terms. Transparency is generally facilitated through contract databases like FPDS, although detailed performance data may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Component Manufacturing
Defense Procurement
Aerospace Systems
Military Aircraft Maintenance
F-4 Phantom II Support (speculative based on PSC 'RF-4C')

Risk Flags

Contract Awarded Pre-2000
Long Contract Duration
Specific Aircraft Component Focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to LORAL FAIRCHILD SYSTEMS INC. 199707!5700!0008!GU72 !ASC/RWKR !F3365796C6502 !A!*!P00003 !19970403!19990820!038155727!613355171!834951691!N!72314!LOCKHEED MARTIN FAIRCHILD SYST!300 ROBBINS LN !SYOSSET !NY!11791!72554!059!36!SYOSSET !NASSAU !NEW YORK !0001!+000006750000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !A1A!AIRFRAMES AND SPARES !3ARE!RF-4C !3812!1!*!*!D!B!A!*!A !N!J!2!0

Who is the contractor on this award?

The obligated recipient is LORAL FAIRCHILD SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 1997-04-03. End: 2005-10-31.

What specific aircraft components were procured under this contract, and what was their intended use?

The provided data does not specify the exact aircraft components procured. However, the Product Service Code (PSC) 'A1A' (AIRFRAMES AND SPARES) and the '3ARE' (RF-4C) sub-category strongly suggest that the contract was for spare parts or components related to the RF-4C reconnaissance aircraft, a variant of the F-4 Phantom II. These components would have been critical for maintaining the operational readiness and airworthiness of the RF-4C fleet during the contract's period of performance. The exact nature of these parts could range from structural elements to specialized systems integral to the aircraft's reconnaissance capabilities.

How does the $16.47 million contract value compare to other procurements for similar aircraft components during the late 1990s?

Benchmarking the $16.47 million contract value requires detailed comparison with other procurements of similar RF-4C components or comparable aircraft parts from the same era. Without access to a comprehensive database of historical defense procurements with granular detail on component types and quantities, a precise comparison is difficult. However, considering the contract spanned over 8 years (1997-2005), the annual average expenditure was approximately $2.06 million. This figure needs to be evaluated against the complexity, criticality, and volume of the components supplied. If the components were high-value, complex systems, this annual spend might be considered moderate. Conversely, if they were more common spares, it could represent a significant investment.

What were the key performance indicators (KPIs) for Loral Fairchild Systems Inc. under this contract, and how was performance measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a defense contract involving aircraft components, typical KPIs would likely include on-time delivery rates, adherence to quality standards (e.g., defect rates, compliance with specifications), technical performance of the components, and responsiveness to government requests. Performance measurement would have been conducted by the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). This would involve regular inspections, audits, and reviews of delivery schedules and quality reports to ensure compliance with the firm fixed-price contract terms.

What is the historical spending trend for aircraft components within the Department of Defense, and how does this contract fit into that trend?

Historical spending on aircraft components by the Department of Defense has consistently been a significant portion of the overall defense budget, driven by the need to maintain a modern and operational air fleet. During the late 1990s and early 2000s, DoD spending was influenced by post-Cold War adjustments and ongoing operational requirements. This $16.47 million contract for RF-4C components represents a specific, albeit relatively small, slice of the broader spending on aircraft sustainment and modernization. Its significance lies in its contribution to the longevity and operational capability of a specific aircraft type during that period. Trends would show a general increase in spending on advanced materials and systems over time, though specific component needs fluctuate with fleet age and replacement cycles.

Were there any notable issues or challenges reported regarding the performance or delivery of components under this contract?

The provided summary data does not contain information regarding specific issues, challenges, or disputes related to this contract's performance or delivery. Contracts of this duration and value can sometimes encounter challenges such as production delays, quality control issues, or changes in technical requirements. However, without access to contract performance reports, audit findings, or litigation records, it is impossible to determine if any such issues arose for this particular award to Loral Fairchild Systems Inc.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 ROBBINS LN, SYOSSET, NY, 03

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline