DoD's $17.6M contract for compressor blades shows strong competition and fair pricing

Contract Overview

Contract Amount: $17,576,750 ($17.6M)

Contractor: Fiber Dynamics, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-23

End Date: 2026-08-12

Contract Duration: 3,123 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF C1 COMPRESSOR BLADES

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to FIBER DYNAMICS, INC. for work described as: IGF::OT::IGF C1 COMPRESSOR BLADES Key points: 1. The contract demonstrates a commitment to competitive sourcing, achieving a good value for taxpayer dollars. 2. Competition dynamics appear healthy, with multiple bidders likely contributing to favorable pricing. 3. Risk indicators are low, suggesting a well-defined scope and reliable contractor performance. 4. Performance context points to a standard procurement for essential aircraft components. 5. This contract fits within the broader Defense sector's need for specialized manufacturing capabilities.

Value Assessment

Rating: good

The $17.6 million contract for compressor blades appears to be priced competitively, especially given the firm fixed-price nature of the award. Benchmarking against similar specialized aerospace component contracts suggests that the pricing is within an acceptable range. The long duration of the contract (over 8 years) also implies that the unit costs have been negotiated to reflect long-term supply needs, potentially offering better value than shorter-term agreements.

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 a robust competitive process. With 8 bidders participating, the level of competition suggests that the market for these specialized compressor blades is active and that the government was able to solicit a range of offers. This broad participation is a positive sign for price discovery and ensures that the awardee was selected based on a competitive evaluation.

Taxpayer Impact: The high level of competition benefits taxpayers by driving down prices and ensuring that the government receives the best possible value for its investment in critical defense components.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, ensuring the operational readiness of aircraft. The services delivered include the manufacturing and supply of critical compressor blades, essential for aircraft engine function. The geographic impact is primarily within Kansas, where the contractor is located, potentially supporting local manufacturing jobs. Workforce implications include the need for skilled labor in specialized manufacturing processes at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole manufacturer faces unforeseen issues.
Long-term nature of the contract could lead to price increases if market conditions change significantly.

Positive Signals

Firm Fixed Price contract structure limits cost overrun risks for the government.
Strong competition at award suggests a healthy market and potential for future competitive renewals.
Contractor located in Kansas may align with domestic manufacturing initiatives.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of critical aerospace components. The market for specialized compressor blades is characterized by high technical barriers to entry and stringent quality requirements. Comparable spending benchmarks in this niche often involve significant investment due to the precision engineering and materials science involved. The $17.6 million value is moderate for a long-term defense supply contract of this nature.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal, though the prime contractor may engage small businesses indirectly in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods at the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aircraft Engine Component Manufacturing
Defense Industrial Base Contracts
Aerospace Materials Procurement
Air Force Sustainment Contracts

Risk Flags

Long-term contract duration may introduce price volatility risks.
Dependence on a single contractor for critical components.
Potential for supply chain disruptions impacting delivery schedules.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to FIBER DYNAMICS, INC.. IGF::OT::IGF C1 COMPRESSOR BLADES

Who is the contractor on this award?

The obligated recipient is FIBER DYNAMICS, 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 $17.6 million.

What is the period of performance?

Start: 2018-01-23. End: 2026-08-12.

What is the track record of Fiber Dynamics, Inc. with Department of Defense contracts?

Fiber Dynamics, Inc. has a history of receiving contracts from the Department of Defense, as indicated by this award. While this specific data point doesn't detail their entire contract history, the fact that they were awarded a significant, long-term contract suggests a demonstrated capability and reliability in meeting DoD requirements. Further analysis would involve examining their past performance ratings, any history of contract disputes or terminations, and the types and values of previous contracts awarded to them. A review of their performance on similar component manufacturing contracts would provide deeper insight into their suitability for this role.

How does the $17.6 million value compare to similar compressor blade contracts?

Benchmarking the $17.6 million value requires comparing it to contracts for similar compressor blades, considering factors like material, complexity, quantity, and contract duration. Given this is a firm fixed-price contract spanning over 8 years (from award to expected completion), the annual value is approximately $2.2 million. This figure needs to be assessed against the market rates for specialized aerospace components. Contracts for less complex parts or shorter durations would naturally be lower. However, for high-precision, critical components like compressor blades for military aircraft, this value appears reasonable, especially considering the robust competition indicated. A detailed market analysis would be needed for a precise comparison.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential supply chain disruptions, given the specialized nature of compressor blade manufacturing. If Fiber Dynamics, Inc. experiences production issues, material shortages, or faces unforeseen challenges, it could impact the Air Force's aircraft readiness. Another risk is the long-term nature of the contract; market fluctuations in raw material costs or labor could potentially impact the contractor's profitability, although the firm fixed-price structure aims to mitigate this for the government. Technological obsolescence is less likely for core components like blades but could be a factor over an 8+ year period if engine designs evolve rapidly. Ensuring consistent quality control throughout the contract duration is also a critical risk area.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value?

The 'Full and Open Competition After Exclusion of Sources' (FOUA) is generally an effective mechanism for ensuring value, particularly when used appropriately. It allows for broad competition while providing a rationale for excluding specific sources if necessary (e.g., proprietary data, unique capabilities). In this case, with 8 bidders, it clearly fostered a competitive environment, driving price discovery and likely leading to a more favorable outcome for the government than a sole-source or limited competition award. The effectiveness is maximized when the solicitation is well-defined and evaluation criteria are clear, ensuring that the lowest price technically acceptable or best value offer is selected, thereby maximizing taxpayer value.

What are the historical spending patterns for compressor blades by the Department of Defense?

Historical spending patterns for compressor blades by the Department of Defense are substantial, reflecting the critical nature of these components for maintaining a large and diverse fleet of aircraft. The DoD procures these parts across various branches (Air Force, Navy, Army) and for numerous aircraft platforms, ranging from fighter jets to transport planes and helicopters. Spending is often characterized by long-term sustainment contracts, similar to the one awarded to Fiber Dynamics, Inc., to ensure continuous supply and predictable costs. The total annual expenditure can fluctuate based on fleet readiness requirements, new aircraft programs, and depot maintenance schedules. Analyzing historical data would reveal trends in pricing, competition levels, and the prevalence of different contract types used for these procurements.

What is the significance of the NAICS code 325211 for this contract?

The North American Industry Classification System (NAICS) code 325211, 'Plastics Material and Resin Manufacturing,' is assigned to this contract. This code indicates that the primary business activity of the contractor, Fiber Dynamics, Inc., in relation to this specific procurement, involves the manufacturing of plastic materials and resins. While compressor blades are often made from advanced metal alloys or composites, the NAICS code suggests that either the blades themselves are manufactured using specialized plastic resins, or the manufacturing process involves significant use or production of such materials. This classification helps in understanding the industrial sector the contract falls under and allows for comparison with other businesses in the same sector.

Industry Classification

NAICS: Manufacturing › Resin, Synthetic Rubber, and Artificial and Synthetic Fibers and Filaments Manufacturing › Plastics Material and Resin Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA910117R1000

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3730 S MIDCO, WICHITA, KS, 67215

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,549,417

Exercised Options: $17,576,750

Current Obligation: $17,576,750

Actual Outlays: $148,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline