DoD Awards $34M for Airborne Replenishment Spares to Goodrich Corp, Lacking Competition
Contract Overview
Contract Amount: $34,093,972 ($34.1M)
Contractor: Goodrich Corporation
Awarding Agency: Department of Defense
Start Date: 2007-02-01
End Date: 2011-12-31
Contract Duration: 1,794 days
Daily Burn Rate: $19.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: AIRBORNE REPLENISHMENT SPARES
Place of Performance
Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886
Plain-Language Summary
Department of Defense obligated $34.1 million to GOODRICH CORPORATION for work described as: AIRBORNE REPLENISHMENT SPARES Key points: 1. Significant contract value of $34M awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and value. 3. Contract type (Cost Plus Incentive) can lead to cost overruns. 4. Sector is Defense, with specific focus on optical instrument manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive, which historically can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the $34M award represents fair market value for the airborne replenishment spares.
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 negotiation leverage, potentially leading to a higher price for taxpayers.
Taxpayer Impact: The absence of competition for a $34M contract means taxpayers may have paid a premium for these critical spares.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The Department of Defense relies on these spares for critical airborne operations. Dependence on a single supplier for essential components poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive contract type
- Long contract duration (2007-2011)
Positive Signals
- Awarded to a known corporation (Goodrich Corporation)
- Supports critical defense operations
Sector Analysis
This contract falls within the Defense sector, specifically related to optical instrument and lens manufacturing. Spending benchmarks in this niche area are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
No information is available regarding small business participation in this contract. The award was made to Goodrich Corporation, a large entity.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps or justifications for sole-sourcing that are not detailed here. Further review of the procurement process is warranted to ensure accountability.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Supply chain dependency
- Limited transparency on justification
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to GOODRICH CORPORATION. AIRBORNE REPLENISHMENT SPARES
Who is the contractor on this award?
The obligated recipient is GOODRICH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.1 million.
What is the period of performance?
Start: 2007-02-01. End: 2011-12-31.
What was the justification for not competing this $34M contract, and were alternative sourcing strategies considered?
The provided data states the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as urgency, unique capabilities, or proprietary technology. Without this information, it's impossible to definitively assess if alternative sourcing was explored or if the sole-source decision was appropriate and in the best interest of the government.
How did the Cost Plus Incentive fee structure impact the final cost compared to a fixed-price contract for similar spares?
Cost Plus Incentive (CPI) contracts aim to share cost risks and rewards between the government and contractor. While they can incentivize efficiency, they also allow for cost overruns, with the final price dependent on achieving certain performance targets. Without a benchmark or the final cost data, it's difficult to quantify the exact impact, but the inherent flexibility of CPI suggests a higher potential final cost than a fixed-price agreement.
What is the long-term strategic risk of relying on a single supplier for critical airborne replenishment spares, especially given the contract's duration?
Long-term reliance on a single supplier for critical spares creates significant supply chain vulnerability. It limits the government's ability to adapt to changing needs, negotiate better prices, or secure alternative sources if the primary supplier faces production issues, goes out of business, or increases prices substantially. The extended duration of this contract (2007-2011) exacerbates these risks.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 5 OMNI WAY, CHELMSFORD, MA, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,929,091
Exercised Options: $37,929,082
Current Obligation: $34,093,972
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-02-01
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2013-10-17
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