Air Force awards $39M for aircraft parts, with 2,427 days duration, to Goodrich Corporation

Contract Overview

Contract Amount: $39,024,828 ($39.0M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2017-12-28

End Date: 2024-08-20

Contract Duration: 2,427 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JORDAN PRODUCTION UNDEFINITIZED CONTRACT ACTION ORDER ON DB-110 INDEFINITE DELIVERY INDEFINITE QUANTITY

Place of Performance

Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to GOODRICH CORPORATION for work described as: JORDAN PRODUCTION UNDEFINITIZED CONTRACT ACTION ORDER ON DB-110 INDEFINITE DELIVERY INDEFINITE QUANTITY Key points: 1. Value appears reasonable given the extended performance period and specialized nature of aircraft parts. 2. Competition was limited, raising questions about potential price overruns and optimal value. 3. The long contract duration (over 6 years) presents risks related to obsolescence and changing requirements. 4. This contract supports the sustainment of existing Air Force aircraft, indicating a focus on readiness. 5. The supplier, Goodrich Corporation, is a significant player in the aerospace and defense sector.

Value Assessment

Rating: good

The contract value of approximately $39 million over more than six years suggests a moderate annual spend. Benchmarking against similar indefinite delivery/indefinite quantity (IDIQ) contracts for aircraft parts is challenging without more specific details on the exact components and services. However, the firm-fixed-price nature of the award indicates that the contractor bears the risk of cost overruns, which can be a positive sign for value if managed effectively. The duration of the contract is notably long, which could imply stable demand or potential risks if technology or requirements shift.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when there is an urgent need that cannot be met through a competitive process. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from multiple bids, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not secure the most competitive pricing available in the market.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the availability of necessary aircraft parts for operational readiness. Services delivered include the manufacturing and supply of aircraft parts, crucial for maintaining and repairing Air Force fleets. The geographic impact is primarily national, supporting Air Force bases and maintenance depots across the United States. Workforce implications include supporting jobs within Goodrich Corporation and its supply chain, particularly in manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Extended contract duration (over 6 years) increases risk of obsolescence and requirement misalignment.
Lack of transparency in the specific parts or services procured hinders detailed value assessment.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Award to an established aerospace manufacturer like Goodrich suggests a focus on reliability and quality.
Long-term nature of the contract may indicate stable demand and support for critical defense assets.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical segment of the aerospace and defense industry. This sector is characterized by high technological demands, stringent quality control, and significant R&D investment. The market size for aircraft parts manufacturing is substantial, driven by both military and commercial aviation needs. This specific contract supports the sustainment of existing Air Force platforms, a common and essential spending category within defense procurement, ensuring the operational readiness of aging fleets.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'st': 'MA' (Massachusetts) and 'sn': 'MASSACHUSETTS' likely refer to the location of the awardee or a specific contract vehicle, not necessarily a small business designation. Without specific subcontracting plans mandated or reported, the direct impact on the small business ecosystem is unclear, though large prime contractors like Goodrich often utilize small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, there may be heightened scrutiny to ensure fair and reasonable pricing. Transparency is limited by the nature of the award and the proprietary information often associated with defense manufacturing. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Support
Aerospace Manufacturing Contracts
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Air Force Sustainment Programs

Risk Flags

Sole-source award
Long contract duration
Lack of specific item details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to GOODRICH CORPORATION. JORDAN PRODUCTION UNDEFINITIZED CONTRACT ACTION ORDER ON DB-110 INDEFINITE DELIVERY INDEFINITE QUANTITY

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 $39.0 million.

What is the period of performance?

Start: 2017-12-28. End: 2024-08-20.

What is the track record of Goodrich Corporation in fulfilling similar sole-source contracts for the Department of Defense?

Goodrich Corporation, now part of Collins Aerospace (a Raytheon Technologies company), has a long history of supplying complex systems and components to the Department of Defense. While specific data on their sole-source contract fulfillment for similar aircraft parts is not detailed here, the company is a major defense contractor with extensive experience. Their track record generally involves delivering high-quality, specialized components. However, sole-source awards, by their nature, limit public data on competitive performance. Analysis would typically involve reviewing past performance evaluations (if available), on-time delivery rates, and quality metrics from previous DoD contracts, particularly those awarded without full and open competition, to assess their reliability and cost-effectiveness in such scenarios.

How does the annual value of this contract compare to other Air Force aircraft parts procurement contracts?

The total award is $39,024,828.29 over approximately 2,427 days (about 6.65 years). This averages to roughly $5.87 million per year. Comparing this to other Air Force aircraft parts procurement contracts requires access to a broader dataset of similar IDIQ or delivery order awards. However, this annual figure appears moderate for a specialized defense component supplier. Contracts for major aircraft systems or extensive overhaul services would likely be significantly higher. Conversely, contracts for common, off-the-shelf parts might have lower annual values but higher volumes. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code suggests a broad range of potential items, making direct comparison difficult without knowing the specific parts procured under this IDIQ.

What are the primary risks associated with the long performance period (over 6 years) for this contract?

The extended performance period of over six years presents several key risks. Firstly, technological obsolescence is a significant concern; aircraft systems and the components they require can become outdated rapidly in the fast-paced aerospace industry. If the parts procured are for older platforms, this risk might be lower, but for systems with ongoing upgrades, it's a factor. Secondly, requirements creep or changes in Air Force operational needs could render the procured parts less relevant or entirely unnecessary over such a long timeframe. Thirdly, market conditions and material costs can fluctuate significantly over six years, potentially impacting the contractor's ability to maintain the firm-fixed-price, or leading to requests for equitable adjustments if not carefully managed. Finally, long durations can sometimes mask inefficiencies or reduce the urgency for innovation compared to shorter-term contracts.

Given the sole-source nature, what mechanisms are in place to ensure the contractor is not overcharging for these aircraft parts?

When a contract is awarded sole-source, the government relies on specific mechanisms to ensure fair and reasonable pricing, as full and open competition is absent. This typically involves obtaining a certified cost or pricing data submission from the contractor, which allows the government to analyze the contractor's cost structure, including direct costs, indirect costs, and profit. The contracting officer will then negotiate the price based on this data, comparing it against historical pricing for similar items, commercial price lists (if applicable), and independent government cost estimates. Defense Contract Audit Agency (DCAA) audits may also be employed to verify the accuracy of the submitted cost data. The firm-fixed-price (FFP) structure itself places the risk of cost overruns on the contractor, incentivizing them to manage costs efficiently, but the initial price negotiation is critical.

What is the significance of the 'MASSACHUSETTS' designation (st: MA, sn: MASSACHUSETTS) in the context of this contract?

The 'st': 'MA' and 'sn': 'MASSACHUSETTS' likely refer to the state where the contractor, Goodrich Corporation (or a relevant facility), is located or where the contract is administered. In the context of federal procurement, state designations can sometimes be relevant for tracking economic impact, workforce development initiatives, or specific state-level incentives. However, for this particular contract, it does not appear to indicate a small business set-aside or a specific geographic delivery requirement beyond the contractor's operational base. It primarily serves as locational information for the awardee.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $40,801,162

Exercised Options: $40,801,162

Current Obligation: $39,024,828

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $137,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862018D3014

IDV Type: IDC

Timeline