DoD's $11.4M contract for aircraft engine parts awarded to TURBOCOMBUSTOR TECHNOLOGY, INC. shows fair value

Contract Overview

Contract Amount: $11,464,800 ($11.5M)

Contractor: Turbocombustor Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-01

End Date: 2009-01-27

Contract Duration: 545 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLAMEHOLDER,AFTERBU

Place of Performance

Location: STUART, MARTIN County, FLORIDA, 34997

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to TURBOCOMBUSTOR TECHNOLOGY, INC. for work described as: FLAMEHOLDER,AFTERBU Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The fixed-price nature of the contract shifts risk to the contractor, potentially benefiting the government. 3. The duration of the contract (545 days) is moderate for this type of specialized manufacturing. 4. The award was made by the Department of the Air Force, indicating a specific military need. 5. The North American Industry Classification System (NAICS) code 336412 points to a specialized manufacturing sector. 6. The contract's value is relatively small in the context of overall defense spending, but significant for the specific component.

Value Assessment

Rating: good

The contract value of $11.4 million for aircraft engine and engine parts appears reasonable given the specialized nature of the product and the firm fixed-price structure. Benchmarking against similar contracts for niche aerospace components is challenging without more specific product details. However, the competitive award process suggests that pricing was scrutinized against market alternatives. The duration of the contract (545 days) also aligns with typical production cycles for such specialized parts, indicating a potentially efficient use of funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of four bidders (no. 4) suggests a healthy level of competition for this specialized manufacturing requirement. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that helps ensure the government is not overpaying for critical aircraft engine components.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other branches of the Department of Defense requiring these specific aircraft engine parts. The services delivered include the manufacturing and supply of specialized aircraft engine components. The geographic impact is primarily centered around the contractor's facilities in Florida, with potential downstream effects on the local economy. Workforce implications include employment opportunities within TURBOCOMBUSTOR TECHNOLOGY, INC. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the contractor faces production issues.
Reliance on a single contractor for a specific component could pose a risk if future needs arise.
The fixed-price contract, while beneficial, could lead to cost overruns for the contractor if material or labor costs escalate unexpectedly.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract structure transfers cost risk to the contractor.
The contractor, TURBOCOMBUSTOR TECHNOLOGY, INC., is likely experienced in aircraft engine component manufacturing.
The contract was awarded by the Department of Defense, suggesting adherence to stringent quality and performance standards.

Sector Analysis

This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector (NAICS 336412), a highly specialized and technologically advanced segment of the aerospace industry. The market is characterized by high barriers to entry due to complex engineering requirements, stringent quality control, and significant capital investment. Spending in this sector is heavily influenced by defense procurement and commercial aviation demand. Comparable spending benchmarks would typically involve other contracts for similar high-performance engine components, often awarded through competitive processes to established aerospace manufacturers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, TURBOCOMBUSTOR TECHNOLOGY, INC., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The lack of a small business set-aside suggests that the competition was open to all qualified offerors, and the nature of the specialized components may have favored larger, established manufacturers with the necessary certifications and production capabilities.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and the relevant program office within the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified components meeting quality standards by the deadline. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Engine Manufacturing
Aerospace Component Supply
Defense Procurement
Military Aircraft Maintenance and Repair
Turbine Engine Parts

Risk Flags

Potential for supply chain vulnerabilities
Reliance on specialized manufacturing capabilities
Quality control adherence critical for safety

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to TURBOCOMBUSTOR TECHNOLOGY, INC.. FLAMEHOLDER,AFTERBU

Who is the contractor on this award?

The obligated recipient is TURBOCOMBUSTOR TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2007-08-01. End: 2009-01-27.

What is the specific type of aircraft engine part being manufactured under this contract?

The provided data does not specify the exact type of aircraft engine part. The NAICS code 336412, 'Aircraft Engine and Engine Parts Manufacturing,' indicates a broad category. However, the contractor's name, TURBOCOMBUSTOR TECHNOLOGY, INC., strongly suggests a focus on components related to turbojet, turboprop, and turboshaft engines, likely involving high-temperature or high-stress applications such as combustion chambers, turbine blades, or related systems. Further details would require access to the contract's statement of work or product descriptions.

How does the $11.4 million contract value compare to historical spending on similar components by the Air Force?

Direct comparison of the $11.4 million contract value to historical spending on identical components is not possible with the provided data. However, the contract's duration of 545 days and its award under full and open competition with four bidders suggest a moderately sized, competitively procured requirement. The value appears reasonable for specialized, low-volume production runs typical of advanced aerospace components. To establish a precise benchmark, one would need to analyze historical contracts for the same or functionally equivalent parts, considering factors like inflation, technological advancements, and changes in production scale over time.

What are the key performance indicators (KPIs) or quality standards associated with this contract?

While specific KPIs are not detailed in the provided summary data, contracts for aircraft engine parts awarded by the Department of Defense invariably include stringent quality and performance standards. These typically encompass adherence to detailed technical specifications, material certifications, dimensional tolerances, and rigorous testing protocols (e.g., non-destructive testing). The firm fixed-price nature implies that meeting these standards is a prerequisite for contractor payment. Compliance with aerospace quality management systems like AS9100 is also highly probable. The Air Force would likely have specific acceptance criteria outlined in the contract's statement of work.

What is the track record of TURBOCOMBUSTOR TECHNOLOGY, INC. in fulfilling government contracts, particularly for the Department of Defense?

The provided data does not include a detailed track record for TURBOCOMBUSTOR TECHNOLOGY, INC. However, being awarded a contract of this nature by the Department of the Air Force suggests they possess the necessary technical capabilities, certifications, and potentially prior experience in defense contracting. A comprehensive assessment would require reviewing their contract history, past performance evaluations (if available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or awards.

What is the potential risk associated with the contract's duration and the specific nature of the components?

The contract duration of 545 days (approximately 1.5 years) is moderate for specialized manufacturing. The primary risks associated with the nature of aircraft engine components include potential production delays due to complex manufacturing processes, material sourcing challenges, or quality control failures. Given the critical role of these parts in aircraft operation, any failure to meet specifications or delivery schedules could have significant operational impacts on the Air Force. The firm fixed-price structure mitigates financial risk for the government but places it on the contractor, potentially incentivizing shortcuts if not adequately overseen.

How does this contract fit into the broader landscape of aircraft engine maintenance and sustainment spending by the DoD?

This contract represents a specific procurement for new or replacement engine parts, contributing to the overall sustainment of the Air Force's aircraft fleet. While the $11.4 million value is a fraction of the total defense budget, such specialized component procurements are crucial for maintaining operational readiness and extending the service life of aircraft. It complements broader sustainment efforts that include maintenance, repair, overhaul (MRO) services, and other spare parts provisioning. The contract's focus on manufacturing suggests it addresses a need for components that may be out of production, require upgrades, or are needed in specific quantities for ongoing operations.

Industry Classification

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

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3651 SE COMMERCE AVE, STUART, FL, 21

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,464,800

Exercised Options: $11,464,800

Current Obligation: $11,464,800

Contract Characteristics

Cost or Pricing Data: NO

Timeline