DoD awards $15M for aircraft parts to Universal Propulsion Company, Inc
Contract Overview
Contract Amount: $15,059,983 ($15.1M)
Contractor: Universal Propulsion Company Inc
Awarding Agency: Department of Defense
Start Date: 2002-12-17
End Date: 2011-07-21
Contract Duration: 3,138 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200309!000007!5700!GW10 !HSW/YACK !F4162403C1102 !A!N! !N! !20021217!20071231!009696139!009696139!004467452!N!UNIVERSAL PROPULSION COMPANY, !25401 N CENTRAL AVENUE !PHOENIX !AZ!85027!55000!013!04!PHOENIX !MARICOPA !ARIZONA !+000004922028!Y!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3AFH!F-16 FALCON !336413!E! !1! ! ! ! ! !99990909!B! ! !B! !D!N!J!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!* !A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85085
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $15.1 million to UNIVERSAL PROPULSION COMPANY INC for work described as: 200309!000007!5700!GW10 !HSW/YACK !F4162403C1102 !A!N! !N! !20021217!20071231!009696139!009696139!004467452!N!UNIVERSAL PROPULSION COMPANY, !25401 N CENTRAL AVENUE !PHOENIX !AZ!85027!55000!013!04!PHOENIX !MARIC… Key points: 1. The contract is for aircraft accessories and components, with a significant value of $15,059,983.4. 2. Universal Propulsion Company, Inc. is the sole awardee, raising questions about competition. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The sector is Defense, specifically focusing on aircraft equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $15,059,983.4 appears high for a single award without clear competitive benchmarking. Further analysis is needed to compare this to similar contracts for aircraft accessories and components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices than if multiple vendors had competed.
Taxpayer Impact: The sole-source award potentially results in a higher cost to taxpayers due to the absence of competitive price discovery.
Public Impact
Taxpayers may be overpaying for aircraft parts due to the lack of competition. The Department of Defense relies on specialized components, making sole-source awards sometimes necessary but requiring careful justification. The long contract duration (over 9 years) suggests a sustained need for these specific parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potentially inflates price.
- Long contract duration may indicate potential for price creep or evolving needs.
- Lack of clear justification for sole-source award.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Awardee is a specialized manufacturer in the aircraft components sector.
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft equipment manufacturing. Spending benchmarks in this area can vary widely based on the specificity of the components and the platform they support.
Small Business Impact
The awardee, Universal Propulsion Company, Inc., is a single entity and its small business status is not indicated. The contract was not set aside for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and necessity. A review of the justification for the sole-source award is recommended.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Long contract duration
- Limited transparency on justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to UNIVERSAL PROPULSION COMPANY INC. 200309!000007!5700!GW10 !HSW/YACK !F4162403C1102 !A!N! !N! !20021217!20071231!009696139!009696139!004467452!N!UNIVERSAL PROPULSION COMPANY, !25401 N CENTRAL AVENUE !PHOENIX !AZ!85027!55000!013!04!PHOENIX !MARICOPA !ARIZONA !+000004922028!Y!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3AFH!F-16 FALCON !336413!E! !1! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is UNIVERSAL PROPULSION COMPANY 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 $15.1 million.
What is the period of performance?
Start: 2002-12-17. End: 2011-07-21.
What is the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full justification for a sole-source award typically involves reasons such as only one responsible source being available, or a compelling urgency. Without this specific justification, it's difficult to assess the validity of the sole-source decision and its impact on pricing and taxpayer value.
How does the awarded price compare to market rates for similar aircraft components?
Benchmarking the price is challenging without more specific details on the components. However, the absence of competition suggests the awarded price might be higher than if multiple vendors had bid. A thorough market research analysis would be required to determine if this price is reasonable compared to industry standards for comparable parts.
What is the potential impact of the long contract duration on overall cost-effectiveness?
A contract duration of over 9 years (from award to final delivery) can lead to cost savings through economies of scale and stable production. However, it also increases the risk of price escalation due to inflation or changes in material costs. The firm fixed price helps mitigate some of this risk, but ongoing monitoring is crucial.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 25401 N CENTRAL AVENUE, PHOENIX, AZ, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-12-17
Current End Date: 2011-07-21
Potential End Date: 2011-07-21 00:00:00
Last Modified: 2010-07-21
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