Air Force awards $22.9M for F108 engine part remanufacturing to Chromalloy Component Services Inc

Contract Overview

Contract Amount: $22,946,336 ($22.9M)

Contractor: Chromalloy Component Services Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-03

End Date: 2026-09-24

Contract Duration: 570 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REMANUFACTURE F108 MOD 13/15 LPT ASSEMBLY (USAF)

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to CHROMALLOY COMPONENT SERVICES INC for work described as: REMANUFACTURE F108 MOD 13/15 LPT ASSEMBLY (USAF) Key points: 1. Contract value represents a significant investment in maintaining critical aircraft engine components. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide predictability for the Air Force. 4. The duration of the contract (570 days) indicates a substantial period for remanufacturing services. 5. Geographic location of the contractor in Texas may have implications for regional economic impact. 6. The specific part (F108 MOD 13/15 LPT ASSEMBLY) highlights a specialized need within aircraft maintenance.

Value Assessment

Rating: good

The contract value of $22.9 million for remanufacturing F108 engine parts appears reasonable given the specialized nature of the work and the critical components involved. Benchmarking against similar engine part remanufacturing contracts would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to manage costs effectively. The absence of extensive modifications or complex service requirements in the provided data points towards a standard remanufacturing process, which typically has more predictable cost structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and allowed to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Air Force's decision to use full and open competition suggests confidence in the market's ability to supply the required services at a fair price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality services through market forces, maximizing the value of federal dollars spent.

Public Impact

The U.S. Air Force is the primary beneficiary, ensuring the operational readiness of its F108-powered aircraft fleet. Services delivered include the remanufacturing of critical Low-Pressure Turbine (LPT) assemblies for F108 engines. The contract's impact is primarily national, supporting Air Force operations across various bases. The contract supports specialized manufacturing and maintenance jobs within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of unforeseen technical challenges during the remanufacturing process.
Dependence on a single contractor for a critical component could pose future supply risks.

Positive Signals

Contractor's specialization in engine component remanufacturing suggests technical expertise.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition indicates a healthy market for these services.

Sector Analysis

This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a specialized segment of the broader aerospace industry. This sector is characterized by high technical barriers to entry, stringent quality control requirements, and significant R&D investment. The market size for military aircraft engine maintenance and parts is substantial, driven by the global defense spending on air power. This specific contract for F108 engine parts fits within the broader ecosystem of military aviation sustainment, where ensuring the longevity and reliability of complex machinery is paramount.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and there is no indication of a small business subcontracting plan (ss: false). This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through direct subcontracting by Chromalloy Component Services Inc., if they choose to engage them. The impact on the small business ecosystem is therefore indirect, depending on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with data often made publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F108 Engine Maintenance and Repair
Aircraft Component Remanufacturing Programs
Department of Defense Aviation Sustainment Contracts
Air Force Engine Parts Procurement

Risk Flags

Potential for supply chain delays
Technical complexity of remanufacturing
Quality control assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to CHROMALLOY COMPONENT SERVICES INC. REMANUFACTURE F108 MOD 13/15 LPT ASSEMBLY (USAF)

Who is the contractor on this award?

The obligated recipient is CHROMALLOY COMPONENT SERVICES 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 $22.9 million.

What is the period of performance?

Start: 2025-03-03. End: 2026-09-24.

What is the track record of Chromalloy Component Services Inc. in performing similar engine remanufacturing contracts for the Department of Defense?

Chromalloy Component Services Inc. is a known entity in the aerospace industry, specializing in the repair, overhaul, and remanufacturing of gas turbine engine components. While specific contract performance details for this exact F108 engine part remanufacturing are not detailed in the provided data, the company has a history of working with various military branches and commercial aviation clients. Assessing their past performance would involve reviewing contract award histories, performance reviews (if publicly available), and any reported issues or successes on similar, large-scale remanufacturing projects. Their established presence suggests a capacity to handle such requirements, but a deeper dive into their specific DoD contract history would be necessary for a comprehensive assessment of their track record.

How does the awarded amount of $22.9 million compare to historical spending on F108 engine part remanufacturing?

To accurately benchmark the $22.9 million award, historical spending data for F108 engine part remanufacturing would be required. This would involve analyzing past contracts for similar components (LPT assemblies) awarded to Chromalloy or other vendors over several fiscal years. Factors such as inflation, changes in technology, and the volume of parts remanufactured would need to be considered. Without this comparative data, it is difficult to definitively state whether this award is higher, lower, or in line with historical trends. However, the firm fixed-price nature suggests an attempt to achieve cost efficiency within the current market conditions for such specialized services.

What are the primary risks associated with the remanufacturing of F108 engine components, and how are they mitigated in this contract?

Key risks in remanufacturing critical engine components like F108 LPT assemblies include technical challenges in restoring parts to original specifications, potential for material defects, and ensuring consistent quality across multiple units. The firm fixed-price contract structure mitigates financial risk for the Air Force by capping costs. Mitigation of technical and quality risks relies heavily on the contractor's expertise, adherence to stringent quality control processes, and compliance with technical directives. The contract likely includes detailed specifications and performance standards that Chromalloy must meet. Further risk mitigation could involve government source inspection and acceptance testing protocols.

What is the expected impact of this contract on the operational readiness of the U.S. Air Force's F108-powered aircraft fleet?

This contract is directly aimed at enhancing the operational readiness of the U.S. Air Force's F108-powered aircraft fleet. The F108 engine is a critical component for several Air Force aircraft, including the KC-135 Stratotanker and the E-3 Sentry AWACS. By ensuring the availability of remanufactured LPT assemblies, the Air Force can maintain its engines, reduce downtime for aircraft undergoing maintenance, and ensure that these vital platforms are available for their intended missions. The timely and quality execution of this contract directly translates to a more reliable and capable fleet.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are outlined in the contract's statement of work (SOW) or performance work statement (PWS). These metrics often relate to delivery schedules, quality acceptance rates, turnaround times for remanufacturing, and adherence to technical specifications. While not publicly detailed here, the Air Force would have established internal KPIs to monitor the contractor's performance and ensure the successful completion of the remanufacturing services. Contract close-out and payment would be contingent upon meeting these performance requirements.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chromalloy SAN Diego Corp

Address: 303 INDUSTRIAL PK, SAN ANTONIO, TX, 78226

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,946,336

Exercised Options: $22,946,336

Current Obligation: $22,946,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA812220D0002

IDV Type: IDC

Timeline