DoD awards $6.9M contract for BEAR POWER UNIT, with 5 bidders competing for Air Force needs

Contract Overview

Contract Amount: $6,952,320 ($7.0M)

Contractor: Kuog Corp

Awarding Agency: Department of Defense

Start Date: 2023-08-10

End Date: 2024-06-13

Contract Duration: 308 days

Daily Burn Rate: $22.6K/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

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to KUOG CORP for work described as: BEAR POWER UNIT Key points: 1. The contract value of $6.9M appears reasonable given the specialized nature of aircraft components. 2. Strong competition among 5 bidders suggests a healthy market for this type of equipment. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This award supports the Air Force's operational readiness by providing essential power units. 5. The contract is positioned within the broader aerospace and defense manufacturing sector.

Value Assessment

Rating: good

The awarded amount of $6.9M for the BEAR POWER UNIT seems aligned with industry standards for specialized aerospace components. While direct comparisons are difficult without specific technical details, the presence of multiple bidders indicates competitive pricing. The firm fixed-price structure further enhances value by capping the government's expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. With five distinct bidders participating, the competition level suggests that the market is accessible and that the Department of Defense received a range of offers. This broad participation is generally conducive to achieving competitive pricing.

Taxpayer Impact: The high level of competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide the best value. This process helps prevent price gouging and encourages cost-effectiveness.

Public Impact

The primary beneficiary is the Department of the Air Force, ensuring operational readiness. The service delivered is the provision of critical BEAR POWER UNITS for aircraft. The geographic impact is primarily within the United States, supporting Air Force installations. This contract supports jobs in the aerospace manufacturing sector, specifically in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single supplier if follow-on contracts are not competed.
Ensuring the long-term availability and maintenance support for these specialized units.

Positive Signals

The contract was awarded through full and open competition, indicating a healthy market.
Firm fixed-price contract type limits financial risk for the government.
The award supports a critical defense need, contributing to national security.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for such components is characterized by high technical barriers to entry, stringent quality control, and significant government procurement. Comparable spending benchmarks would typically involve other specialized aircraft systems and components, where values can range widely based on complexity and quantity.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed in the procurement process.

Oversight & Accountability

The Department of Defense employs various oversight mechanisms, including contract performance monitoring and quality assurance. Accountability is typically managed through contract clauses and performance metrics. Transparency is facilitated through contract databases like FPDS. Inspector General offices within the DoD provide an additional layer of oversight for fraud, waste, and abuse.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace Component Procurement
Defense Logistics Support
Air Force Equipment Sustainment

Risk Flags

Potential supply chain risks for specialized components.
Dependence on specific contractor capabilities.
Ensuring long-term sustainment and maintenance support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to KUOG CORP. BEAR POWER UNIT

Who is the contractor on this award?

The obligated recipient is KUOG CORP.

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 $7.0 million.

What is the period of performance?

Start: 2023-08-10. End: 2024-06-13.

What is the specific function and technical complexity of the BEAR POWER UNIT?

The BEAR POWER UNIT, while not explicitly defined in the provided data, likely refers to a critical component within an aircraft's power generation or distribution system. Its technical complexity would depend on its role, potentially involving advanced electronics, thermal management, or high-power output capabilities. Understanding its specific function is crucial for assessing its value and the necessity of the awarded contract. Without detailed specifications, it's challenging to benchmark its cost against highly specific technical requirements.

How does the awarded price of $6.9M compare to similar BEAR POWER UNITS or comparable aircraft power systems?

Benchmarking the $6.9M award for the BEAR POWER UNIT against similar systems is challenging without more specific technical details and market data for comparable units. However, given that it's an aircraft component procured by the Department of Defense, specialized systems can command significant prices due to rigorous testing, certification, and performance requirements. The fact that five bidders competed suggests that the price was likely within a competitive range for such specialized equipment. Further investigation into industry pricing for similar power units would be needed for a definitive comparison.

What are the key performance indicators (KPIs) for this BEAR POWER UNIT contract?

Key performance indicators for this BEAR POWER UNIT contract would likely focus on reliability, durability, performance under various environmental conditions (temperature, altitude, vibration), power output consistency, and adherence to strict military specifications. The firm fixed-price nature of the contract implies that the contractor is responsible for meeting these performance standards. Failure to meet KPIs could result in penalties or contract termination, underscoring the importance of these metrics for both the government and the contractor.

What is KUOG CORP's track record with Department of Defense contracts, particularly for aircraft components?

KUOG CORP, as the contractor, would have a performance history with the Department of Defense. Analyzing their past contracts, including on-time delivery rates, quality of goods/services provided, and any past performance issues or awards, is essential. For aircraft components, a strong track record of reliability and adherence to stringent quality standards is paramount. A review of their contract history would reveal their experience and capability in fulfilling similar requirements for the Air Force or other DoD branches.

What is the historical spending trend for BEAR POWER UNITS or similar components by the Department of the Air Force?

Analyzing historical spending on BEAR POWER UNITS or analogous aircraft power systems by the Department of the Air Force would provide context for the current $6.9M award. Understanding if this represents an increase, decrease, or stable spending level is important. Factors influencing historical spending could include fleet size, operational tempo, technological upgrades, and the lifecycle of existing equipment. A trend analysis would help determine if the current procurement is part of a larger, ongoing investment or a new initiative.

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: 7027 OLD MADISON PIKE NW STE 108, HUNTSVILLE, AL, 35806

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,952,320

Exercised Options: $6,952,320

Current Obligation: $6,952,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA853221D0009

IDV Type: IDC

Timeline