DoD Awards $19.1M for U-2 Life Support to David Clark Co. Inc. Amidst Limited Competition
Contract Overview
Contract Amount: $19,905,413 ($19.9M)
Contractor: David Clark CO Inc
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2026-03-25
Contract Duration: 545 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: U-2 LIFE SUPPORT
Place of Performance
Location: WORCESTER, WORCESTER County, MASSACHUSETTS, 01615
Plain-Language Summary
Department of Defense obligated $19.9 million to DAVID CLARK CO INC for work described as: U-2 LIFE SUPPORT Key points: 1. Significant contract value for specialized aerospace components. 2. David Clark Co. Inc. is a key supplier in this niche. 3. Potential risk associated with limited competition for critical life support systems. 4. Spending falls within the 'Other Guided Missile and Space Vehicle Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $19.1M for 545 days appears reasonable given the specialized nature of U-2 aircraft life support systems. However, without detailed cost breakdowns or comparisons to similar sole-source contracts, a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers, as there was no market pressure to drive down prices.
Public Impact
Ensures continued operational readiness of critical U-2 reconnaissance aircraft. Supports specialized manufacturing capabilities within the aerospace supply chain. Highlights reliance on specific vendors for advanced defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration (545 days) may mask potential cost escalations.
- Lack of small business participation noted.
Positive Signals
- Ensures availability of critical life support components.
- Supports a known, established supplier for specialized equipment.
Sector Analysis
This contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche is often characterized by high technical requirements and limited supplier bases, leading to higher unit costs.
Small Business Impact
The data indicates no small business participation in this contract. This is common for highly specialized defense contracts requiring extensive certifications and established supply chains, potentially limiting opportunities for smaller, innovative firms.
Oversight & Accountability
The contract was awarded as a delivery order under an existing agreement, suggesting some level of prior oversight. However, the sole-source nature warrants close monitoring to ensure fair pricing and performance.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of small business participation
- Potential for cost overruns
- Critical system dependency
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to DAVID CLARK CO INC. U-2 LIFE SUPPORT
Who is the contractor on this award?
The obligated recipient is DAVID CLARK CO 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 $19.9 million.
What is the period of performance?
Start: 2024-09-26. End: 2026-03-25.
What is the historical pricing trend for similar life support components awarded sole-source to David Clark Co. Inc. or other vendors?
Analyzing historical pricing for comparable sole-source contracts is crucial for assessing value. Without this data, it's difficult to determine if the current $19.1M award represents a fair market price or if it's inflated due to the lack of competition. Benchmarking against previous awards for similar systems, even from the same vendor, can reveal cost escalation patterns.
What are the specific risks associated with relying on a sole-source provider for critical U-2 life support systems?
The primary risk is the potential for supply chain disruption if David Clark Co. Inc. faces production issues, financial instability, or decides to discontinue the product line. Furthermore, the lack of competition removes the incentive for the vendor to innovate or reduce costs, potentially leading to higher long-term expenses for the Air Force and taxpayers.
How effective is the current procurement strategy in ensuring the long-term availability and affordability of U-2 life support components?
The current strategy, relying on a sole-source award, is effective in ensuring immediate availability of critical components from a known supplier. However, it is likely ineffective in terms of long-term affordability and fostering a competitive market. Future strategies should explore options for developing alternative sources or negotiating longer-term, performance-based contracts with built-in cost reduction incentives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 360 FRANKLIN ST, WORCESTER, MA, 01604
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,674,780
Exercised Options: $20,674,780
Current Obligation: $19,905,413
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852824D0001
IDV Type: IDC
Timeline
Start Date: 2024-09-26
Current End Date: 2026-03-25
Potential End Date: 2026-03-25 00:00:00
Last Modified: 2025-11-26
More Contracts from David Clark CO Inc
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)