DoD's $25.8M contract for aircraft parts awarded to Goodrich Corporation shows fair value despite limited competition

Contract Overview

Contract Amount: $25,807,137 ($25.8M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2016-05-31

Contract Duration: 980 days

Daily Burn Rate: $26.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACAT III, BIG SAFARI, MS177

Place of Performance

Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to GOODRICH CORPORATION for work described as: ACAT III, BIG SAFARI, MS177 Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Limited competition may have influenced pricing, but the fixed-price structure mitigates some risk. 3. The contractor, Goodrich Corporation, has a substantial track record in defense contracting. 4. This procurement supports critical aircraft maintenance and operational readiness for the Air Force. 5. The contract falls within the broader 'Other Aircraft Parts' manufacturing sector. 6. Performance was rated 'Good', indicating satisfactory delivery against contract requirements.

Value Assessment

Rating: good

The total award amount of $25.8 million for aircraft parts appears to be within a reasonable range when compared to similar procurements for specialized components. While specific per-unit cost data is not provided, the firm fixed-price nature of the contract suggests that the government secured predictable costs. The contractor's performance rating of 'Good' further supports the assessment that the value received was satisfactory for the investment made.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers as the government lacks the leverage of multiple bidders. It also limits opportunities for other capable businesses to secure government contracts.

Public Impact

The primary beneficiaries are the U.S. Air Force and its operational readiness, ensuring aircraft are equipped with necessary parts. Services delivered include the manufacturing and supply of specialized aircraft parts. The geographic impact is primarily within the defense supply chain, supporting national security objectives. Workforce implications include supporting jobs in aerospace manufacturing and defense logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if market prices fluctuate significantly after award.

Positive Signals

Contractor (Goodrich Corporation) has extensive experience in defense contracting.
Firm Fixed Price contract provides cost certainty for the government.
Performance was rated 'Good', indicating satisfactory delivery.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the aerospace industry. This sector is characterized by high technical requirements, stringent quality control, and significant R&D investment. Spending in this area is directly tied to defense readiness and the operational lifespan of military aircraft. Comparable spending benchmarks are difficult to establish without more specific part details, but the overall defense aerospace parts market is substantial.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The award to a large corporation like Goodrich Corporation suggests a focus on established prime contractors with the capacity to fulfill complex defense requirements. This may limit opportunities for small businesses to participate directly in this specific contract, though they may be part of the broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. The 'Good' performance rating suggests that contract administration and oversight were adequate during its execution. Transparency regarding the sole-source justification and the specific parts procured would be key areas for further review. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Component Manufacturing
Defense Logistics Support
Air Force Maintenance and Repair
Aerospace Parts Procurement

Risk Flags

Sole-source award without clear justification.
Potential for non-competitive pricing.
Limited transparency on specific parts procured.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to GOODRICH CORPORATION. ACAT III, BIG SAFARI, MS177

Who is the contractor on this award?

The obligated recipient is GOODRICH CORPORATION.

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 $25.8 million.

What is the period of performance?

Start: 2013-09-24. End: 2016-05-31.

What is Goodrich Corporation's track record with the Department of Defense, particularly for aircraft parts?

Goodrich Corporation, now part of Collins Aerospace (a Raytheon Technologies company), has a long and extensive history of supplying aircraft components and systems to the Department of Defense. Their portfolio includes a wide range of products, from engine components and landing gear to avionics and structural parts. Historical data indicates numerous contracts, many of significant value, awarded to Goodrich for various military aircraft platforms. Their track record generally reflects a strong capability in meeting defense specifications and delivery schedules, though like any large contractor, specific contract performance can vary. This particular contract's 'Good' rating aligns with a generally positive performance history, but a deeper dive into past performance reviews for similar sole-source awards would provide more granular insights.

How does the $25.8 million award compare to similar aircraft parts procurements by the DoD?

Benchmarking the $25.8 million award requires specific details about the type and quantity of aircraft parts procured, which are not fully detailed in the provided data. However, for specialized or complex aircraft components, $25.8 million is a substantial but not extraordinary amount for a definitive contract spanning nearly three years. Many DoD contracts for major aircraft systems or extensive component overhauls can reach hundreds of millions or even billions. For individual part categories, this figure could represent a significant procurement. Without knowing if these were high-value, low-volume parts or lower-value, high-volume parts, a precise comparison is challenging. However, given the contractor's expertise and the 'Good' performance rating, the value is likely commensurate with the complexity and criticality of the parts supplied.

What are the primary risks associated with this sole-source contract for aircraft parts?

The primary risk associated with this sole-source contract is the lack of competitive pressure, which can lead to suboptimal pricing for the government. Without competing bids, there's a reduced incentive for the contractor to offer the lowest possible price. Another risk is the potential for vendor lock-in, where the government becomes dependent on a single supplier for critical parts, potentially limiting future flexibility and negotiation power. Furthermore, if the justification for the sole-source award was not robust or if alternative sources later emerge, it represents a missed opportunity for cost savings and broader industrial base engagement. The firm fixed-price nature mitigates cost overrun risk for the government, but the initial price might be higher than in a competitive scenario.

How effective was this contract in ensuring the operational readiness of Air Force aircraft?

The effectiveness of this contract in ensuring Air Force aircraft operational readiness is suggested by the 'Good' performance rating. This rating implies that the contractor, Goodrich Corporation, successfully delivered the required aircraft parts according to the contract's terms and specifications within the agreed timeframe. Timely delivery of critical components is essential for maintaining aircraft serviceability, minimizing downtime, and ensuring that Air Force assets are available when needed. While the contract value and duration indicate a significant supply of parts, the ultimate measure of effectiveness lies in the actual impact on aircraft availability rates and mission capable status, which are typically tracked through separate operational readiness metrics.

What are the historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense?

Historical spending patterns by the Department of Defense in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413) are substantial and fluctuate based on modernization programs, fleet readiness needs, and geopolitical factors. The DoD is a major consumer of these parts, supporting a vast inventory of aircraft across multiple branches. Spending typically involves both competitive procurements for common parts and sole-source or limited-competition awards for highly specialized, proprietary, or legacy components, similar to the contract in question. Annual spending in this sector can range from billions to tens of billions of dollars, reflecting the continuous demand for maintenance, repair, and overhaul (MRO) services, as well as upgrades and new production.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 7 TECHNOLOGY PARK DR, WESTFORD, MA, 01886

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

Financial Breakdown

Contract Ceiling: $25,807,137

Exercised Options: $25,807,137

Current Obligation: $25,807,137

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $1,401,488

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline