DoD's $13.3M Martin-Baker Aircraft Spares Contract Lacks Competition, Raises Value Concerns

Contract Overview

Contract Amount: $13,363,065 ($13.4M)

Contractor: Martin-Baker Aircraft Company Limited

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2027-04-27

Contract Duration: 858 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T6 AND T38 REPLENISHMENT SPARES. 28 NSNS

Plain-Language Summary

Department of Defense obligated $13.4 million to MARTIN-BAKER AIRCRAFT COMPANY LIMITED for work described as: T6 AND T38 REPLENISHMENT SPARES. 28 NSNS Key points: 1. Significant spending on replenishment spares for critical aircraft components. 2. Sole-source award to Martin-Baker Aircraft Company Limited limits price discovery. 3. Long contract duration (2027) with potential for escalating costs. 4. Focus on explosives manufacturing highlights a sensitive and specialized sector.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without competitive benchmarks. The lack of competition suggests potential overpricing compared to what a competitive process might yield.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, impacting the overall value for money.

Public Impact

Ensures availability of critical aircraft spares, maintaining operational readiness for the Air Force. Potential for higher costs impacts the defense budget and allocation of resources. Lack of transparency in pricing due to sole-source nature limits public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
Potential for cost overruns

Positive Signals

Ensures critical spares availability
Supports specialized defense manufacturing

Sector Analysis

This contract falls within the defense sector, specifically related to aircraft components and explosives manufacturing. Benchmarks for such specialized spares are often difficult to establish due to limited suppliers and proprietary technology.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.

Oversight & Accountability

The lack of competition raises questions about the effectiveness of oversight in ensuring a fair and reasonable price. Further review of the justification for the sole-source award is warranted.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Supply chain vulnerability
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to MARTIN-BAKER AIRCRAFT COMPANY LIMITED. T6 AND T38 REPLENISHMENT SPARES. 28 NSNS

Who is the contractor on this award?

The obligated recipient is MARTIN-BAKER AIRCRAFT COMPANY LIMITED.

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 $13.4 million.

What is the period of performance?

Start: 2024-12-20. End: 2027-04-27.

What is the justification for awarding this contract on a sole-source basis, and has an independent cost analysis been performed?

The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent need where competition is not feasible. An independent cost analysis is crucial to validate the reasonableness of the price, especially when competition is absent. Without this, it's difficult to ascertain if the government is receiving fair value.

What are the risks associated with relying on a single supplier for critical aircraft spares, particularly concerning supply chain disruptions or price increases?

Relying on a single supplier creates significant supply chain risk. Disruptions due to geopolitical events, natural disasters, or the supplier's own operational issues can halt the delivery of critical spares, impacting aircraft readiness. Furthermore, the lack of competition empowers the sole supplier to potentially increase prices over the contract's duration without market pressure.

How does the pricing of this contract compare to historical data or similar contracts for comparable components, if available?

Without access to detailed historical data or comparable contracts, a direct price comparison is challenging. However, the absence of competition inherently suggests that the negotiated price may be higher than what could be achieved through a competitive bidding process. A thorough review of the contractor's cost proposal and any available market research is necessary.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Killinchy Aerospace Holdings Limited

Address: LOWER ROAD, UXBRIDGE

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,363,065

Exercised Options: $13,363,065

Current Obligation: $13,363,065

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA821320D0004

IDV Type: IDC

Timeline