ATAP INC Awarded $9.3M for Aircraft Parts, Highlighting Strong Competition and Value

Contract Overview

Contract Amount: $9,303,840 ($9.3M)

Contractor: Atap Inc

Awarding Agency: Department of Defense

Start Date: 2024-03-04

End Date: 2026-11-04

Contract Duration: 975 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BEAR POWER UNIT (BPU)

Place of Performance

Location: EASTABOGA, TALLADEGA County, ALABAMA, 36260

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to ATAP INC for work described as: BEAR POWER UNIT (BPU) Key points: 1. Contract value of $9.3 million indicates significant investment in aircraft parts. 2. Full and open competition after exclusion of sources suggests a robust bidding process. 3. The contract duration of 975 days allows for sustained supply and potential economies of scale. 4. Fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 5. Awarded by the Department of the Air Force, this contract supports critical defense operations. 6. The North American Industry Classification System (NAICS) code 336413 points to specialized manufacturing capabilities.

Value Assessment

Rating: good

The contract value of $9.3 million for aircraft parts appears reasonable given the duration and scope. Benchmarking against similar contracts for specialized aircraft components would provide a more precise value assessment. The firm fixed-price structure is generally favorable for the government, as it caps costs and incentivizes contractor efficiency. However, without specific details on the parts or services rendered, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources might have been limited, the final award was made through a competitive process open to all eligible bidders. The presence of 5 bidders (implied by 'no': 5) suggests a healthy level of competition for this specialized requirement. This competitive environment is expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

The Department of the Air Force benefits from a reliable supply of essential aircraft parts. This contract supports the operational readiness and maintenance of military aircraft. The geographic impact is primarily within Alabama (ST: AL, SN: ALABAMA), where the contractor is located. The contract likely supports jobs within the specialized aircraft parts manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if the scope of 'Other Aircraft Parts' is broad and not tightly defined.
Dependence on a single contractor (ATAP INC) for a critical supply chain component could pose a risk.
Ensuring the quality and compliance of 'Other Aircraft Parts' requires rigorous government oversight.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The competitive bidding process suggests ATAP INC offered a strong value proposition.
The multi-year duration allows for stable planning and execution of aircraft maintenance schedules.

Sector Analysis

The aerospace manufacturing sector is highly specialized and capital-intensive. This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413), which is a critical segment supporting the broader aerospace and defense industry. Spending in this area is often driven by defense procurement needs, aircraft fleet maintenance, and technological upgrades. Comparable spending benchmarks would typically be found within the Department of Defense's overall aircraft procurement and sustainment budgets.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if ATAP INC engages them. Without explicit subcontracting plans or goals, it's difficult to assess the direct benefit to the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified parts. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Agency Contracts
Air Force Sustainment Programs
Aerospace Manufacturing Contracts

Risk Flags

Potential supply chain disruption if contractor fails to deliver.
Quality control risks for specialized aircraft components.
Dependence on a single awardee for critical parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to ATAP INC. BEAR POWER UNIT (BPU)

Who is the contractor on this award?

The obligated recipient is ATAP 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 $9.3 million.

What is the period of performance?

Start: 2024-03-04. End: 2026-11-04.

What is the specific nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured under this contract?

The provided data does not specify the exact nature of the 'Other Aircraft Parts and Auxiliary Equipment.' The NAICS code 336413 covers a broad range of components, including engine parts, landing gear, fuselage sections, and auxiliary systems not elsewhere classified. To fully assess the contract's value and risk, a detailed breakdown of the specific parts, their technical specifications, and their criticality to aircraft operations would be necessary. This information is typically found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the awarded price of $9.3 million compare to historical spending on similar aircraft parts by the Department of the Air Force?

Without access to a comprehensive database of historical contract awards for specific aircraft parts, a direct comparison is challenging. However, the value of $9.3 million over approximately 2.6 years (975 days) suggests a significant procurement. The Department of the Air Force spends billions annually on aircraft sustainment and parts. To benchmark this contract effectively, one would need to identify contracts with similar parts, quantities, and specifications awarded over comparable periods. The firm fixed-price nature and the competitive award process (5 bidders) suggest the government likely secured a competitive price, but a precise historical comparison requires more granular data.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. Typically, for aircraft parts, KPIs would include on-time delivery rates, defect rates, compliance with technical specifications, and adherence to safety standards. QA measures would involve government inspection and acceptance processes, contractor quality control systems, and potentially third-party testing. The firm fixed-price contract implies that the contractor is responsible for meeting all performance and quality requirements to receive payment.

What is the track record of ATAP INC in delivering similar aircraft components to the government?

The provided data does not include information on ATAP INC's past performance or track record. A thorough assessment would require reviewing their contract history, including past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their experience with similar parts, their production capacity, and their ability to meet delivery schedules and quality standards is crucial for evaluating the risk associated with this award.

What is the potential impact of this contract on the broader aerospace supply chain, particularly for small businesses?

As this contract was not a small business set-aside and no subcontracting goals are specified, its direct positive impact on the small business ecosystem may be limited. However, ATAP INC might engage small businesses as subcontractors for specific components or services, thereby creating indirect opportunities. The overall impact on the aerospace supply chain depends on the criticality of the parts ATAP INC is supplying and whether they are a sole source for certain items. Increased demand for these parts could stimulate production and potentially benefit upstream suppliers, which may include small businesses.

Are there any identified risks associated with ATAP INC as the contractor for this specific requirement?

Based solely on the provided data, specific risks associated with ATAP INC are not detailed. Potential risks could include financial stability, production capacity limitations, quality control issues, or past performance problems. The 'Full and Open Competition After Exclusion of Sources' might suggest that initial market research identified a limited pool of qualified sources, but the final award was competitive. A comprehensive risk assessment would involve reviewing the contractor's financial health, technical capabilities, past performance history, and any known issues with their operations or product quality.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 130 INDUSTRY WAY, EASTABOGA, AL, 36260

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

Financial Breakdown

Contract Ceiling: $9,303,840

Exercised Options: $9,303,840

Current Obligation: $9,303,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA853221D0004

IDV Type: IDC

Timeline