DoD awards $21.8M for F-35 Transparency Removal System parts to Pacific Scientific Energetic Materials

Contract Overview

Contract Amount: $21,799,815 ($21.8M)

Contractor: Pacific Scientific Energetic Materials Company (california LLC)

Awarding Agency: Department of Defense

Start Date: 2023-05-18

End Date: 2025-04-21

Contract Duration: 704 days

Daily Burn Rate: $31.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-35 TRANSPARENCY REMOVAL SYSTEM (TRS) PARTS: FLEXIBLE LINEAR SHAPE CHARGE ASSEMBLY, RAPID DEFLAGRATING CORD TRANSFER LINE, DONOR, INTERNAL ARM-FIRE (AFI) HANDLE JAU-92/A, ACCEPTOR, HOT GAS INITIATOR (HGI)

Place of Performance

Location: HOLLISTER, SAN BENITO County, CALIFORNIA, 95023

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY (CALIFORNIA LLC) for work described as: F-35 TRANSPARENCY REMOVAL SYSTEM (TRS) PARTS: FLEXIBLE LINEAR SHAPE CHARGE ASSEMBLY, RAPID DEFLAGRATING CORD TRANSFER LINE, DONOR, INTERNAL ARM-FIRE (AFI) HANDLE JAU-92/A, ACCEPTOR, HOT GAS INITIATOR (HGI) Key points: 1. The contract is for specialized explosive components crucial for the F-35's ejection system. 2. Pacific Scientific Energetic Materials is the sole provider for these specific components. 3. The award is a delivery order against an existing contract, indicating a continued need. 4. The sector is defense manufacturing, specifically explosives for aircraft safety systems.

Value Assessment

Rating: questionable

The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $21.8 million price is optimal. Benchmarking against similar explosive components or previous contracts for these specific parts would be necessary for a thorough value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, implying a sole-source or limited competition scenario. This lack of competition raises concerns about potential price inflation and limits the government's ability to secure the best possible pricing through market forces.

Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers, as there is no market pressure to drive down prices for these critical F-35 components.

Public Impact

Ensures continued operational readiness of the F-35 fighter jet fleet by providing essential safety system components. Supports a specific manufacturer in California, contributing to the defense industrial base. Highlights the reliance on specialized, single-source suppliers for critical military hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Lack of transparency on cost justification.
Potential for price escalation due to single supplier.

Positive Signals

Ensures availability of critical safety components.
Supports existing F-35 program requirements.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on energetic materials for aircraft safety systems. Spending in this niche area is often characterized by high barriers to entry and reliance on specialized expertise, leading to limited competition.

Small Business Impact

The awardee, Pacific Scientific Energetic Materials Company, is an LLC. Information regarding their small business status or subcontracting plans for small businesses is not provided in this data, suggesting this contract may not directly benefit small businesses.

Oversight & Accountability

The award is a delivery order against an existing contract, suggesting some level of prior oversight. However, the sole-source nature of this specific order warrants further scrutiny to ensure fair pricing and prevent potential overspending.

Related Government Programs

Explosives Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price escalation
Limited transparency on cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY (CALIFORNIA LLC). F-35 TRANSPARENCY REMOVAL SYSTEM (TRS) PARTS: FLEXIBLE LINEAR SHAPE CHARGE ASSEMBLY, RAPID DEFLAGRATING CORD TRANSFER LINE, DONOR, INTERNAL ARM-FIRE (AFI) HANDLE JAU-92/A, ACCEPTOR, HOT GAS INITIATOR (HGI)

Who is the contractor on this award?

The obligated recipient is PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY (CALIFORNIA LLC).

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 $21.8 million.

What is the period of performance?

Start: 2023-05-18. End: 2025-04-21.

What is the justification for the sole-source award of these critical F-35 components?

The justification for a sole-source award typically stems from unique technical capabilities, proprietary technology, or the absence of alternative suppliers meeting stringent military specifications. For specialized components like the F-35's Transparency Removal System parts, it's plausible that only Pacific Scientific Energetic Materials possesses the necessary certifications, manufacturing processes, and established supply chain integration to produce these items reliably and safely.

How is the government ensuring fair pricing without a competitive bidding process for these components?

Without competitive bidding, the government relies on mechanisms like cost analysis, historical pricing data, and negotiation with the sole-source provider. They may require detailed cost breakdowns from the contractor to verify reasonableness. However, the inherent lack of market comparison makes it challenging to definitively ensure the 'best' price is achieved, increasing the importance of robust internal cost evaluation and negotiation.

What is the long-term strategy for securing these components to mitigate sole-source risks?

The long-term strategy likely involves exploring potential second-source qualification processes, even if costly and time-consuming, to introduce future competition. Alternatively, the government might engage in longer-term strategic partnerships or sole-source agreements with built-in price review mechanisms. Continuous market research and investment in developing alternative capabilities within the defense industrial base are also crucial to reduce reliance on single suppliers.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA821320R3038

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 3601 UNION RD, HOLLISTER, CA, 95023

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

Financial Breakdown

Contract Ceiling: $21,799,815

Exercised Options: $21,799,815

Current Obligation: $21,799,815

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA821321D0006

IDV Type: IDC

Timeline