DoD's $2.58M contract for aircraft parts awarded to Fulcrum Concepts LLC, with 1,448 days duration

Contract Overview

Contract Amount: $2,585,129 ($2.6M)

Contractor: Fulcrum Concepts LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-13

End Date: 2026-12-31

Contract Duration: 1,448 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 60 EFFECTS

Place of Performance

Location: MATTAPONI, KING AND QUEEN County, VIRGINIA, 23110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to FULCRUM CONCEPTS LLC for work described as: 60 EFFECTS Key points: 1. Value for money appears fair given the long-term nature of the contract and the specialized nature of aircraft parts. 2. Competition dynamics are limited, as the contract was not competed. 3. Risk indicators include the 'Cost Plus Fixed Fee' pricing structure, which can incentivize cost overruns. 4. Performance context is tied to U.S. Special Operations Command needs, suggesting critical operational requirements. 5. Sector positioning is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry, a niche but vital segment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the 'NOT AVAILABLE FOR COMPETITION' status and the specific nature of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. Without comparable sole-source awards or detailed cost breakdowns, a precise value-for-money assessment is difficult, but the duration suggests a significant, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or security clearances, or in urgent situations. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not benefit from potential price reductions that could arise from multiple offers.

Public Impact

The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving essential aircraft parts. Services delivered include the provision of specialized aircraft parts and auxiliary equipment. The geographic impact is primarily within the operational theaters of SOCOM, though the manufacturing may occur elsewhere. Workforce implications are likely within the specialized manufacturing sector for aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Cost Plus Fixed Fee structure may lead to cost overruns.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of parts.

Positive Signals

Contract supports critical U.S. Special Operations Command missions.
Long contract duration (1448 days) indicates a stable, long-term requirement.
Awardee is a specialized manufacturer in aircraft parts.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a specialized segment within the broader aerospace and defense industry. This contract likely supports niche requirements for aircraft operated by U.S. Special Operations Command, which often involve unique modifications or high-performance components. The total addressable market for such specialized parts can be significant, driven by defense spending and the need for advanced aviation capabilities. Comparable spending benchmarks are difficult to establish without more specific product details, but defense procurement in this area is substantial.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the sole-source nature and the specialized industry, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award process, unless Fulcrum Concepts LLC has specific small business subcontracting plans not detailed here.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense and U.S. Special Operations Command. Accountability measures would be tied to contract performance clauses and the CPFF structure, requiring detailed reporting from the contractor. Transparency is limited due to the sole-source award, with justifications for this approach typically reviewed internally or by relevant oversight bodies. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency (DLA) Aviation
Naval Air Systems Command (NAVAIR) Contracts
Air Force Materiel Command (AFMC) Procurement
Special Operations Forces Support Activity

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee pricing increases cost overrun risk.
Long contract duration may lead to obsolescence or price volatility.
Lack of public justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to FULCRUM CONCEPTS LLC. 60 EFFECTS

Who is the contractor on this award?

The obligated recipient is FULCRUM CONCEPTS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2023-01-13. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis to Fulcrum Concepts LLC?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a strong indicator of a sole-source award. The specific justification would typically be documented by the U.S. Special Operations Command (SOCOM) in accordance with Federal Acquisition Regulation (FAR) Part 6. Justifications often cite reasons such as unique capabilities, proprietary technology, urgent and compelling needs where only one source can be identified, or specific national security requirements. Without access to SOCOM's internal documentation, the precise reason remains undisclosed in this dataset, but it implies that Fulcrum Concepts LLC is believed to be the only responsible source capable of meeting the requirement.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar aircraft parts?

Cost Plus Fixed Fee (CPFF) contracts are characterized by the government reimbursing the contractor for all allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, such as in research and development or complex systems integration. For aircraft parts, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) are generally preferred by the government as they offer better cost control and incentivize contractor efficiency. CPFF contracts carry a higher risk of cost overruns for the government compared to fixed-price arrangements, as the contractor has less incentive to control costs once the fee is fixed. However, they can be appropriate when innovation or flexibility is paramount and cost certainty is secondary.

What are the potential risks associated with a 1,448-day contract duration for aircraft parts?

A contract duration of 1,448 days (approximately four years) for aircraft parts presents several potential risks. Firstly, technological obsolescence is a concern; aircraft components can become outdated quickly due to advancements in materials, design, or avionics. Secondly, market prices for raw materials and manufacturing processes can fluctuate significantly over such a long period, potentially impacting the cost-effectiveness of the CPFF structure. Thirdly, maintaining consistent quality and performance standards over an extended period requires robust oversight and quality assurance processes. Finally, the long duration might also indicate a lack of readily available alternatives or a highly specialized, long-lifecycle requirement, which could limit future flexibility and potentially lead to vendor lock-in if not managed carefully.

What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the U.S. Special Operations Command?

Analyzing historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the U.S. Special Operations Command (SOCOM) requires access to detailed procurement databases beyond the scope of this single contract. Generally, SOCOM's spending in this category would be driven by the unique operational needs of special forces, which often involve specialized aircraft, modifications, and sustainment for demanding environments. Historical data would likely show fluctuations based on specific platform requirements, modernization programs, and operational tempo. Without aggregated data, it's difficult to determine if this $2.58 million award represents a typical, increased, or decreased level of spending for SOCOM in this niche sector.

What is the track record of Fulcrum Concepts LLC in fulfilling government contracts, particularly within the defense sector?

Information regarding the specific track record of Fulcrum Concepts LLC in fulfilling government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any reported issues or disputes, and their success rate in delivering goods and services on time and within budget. For a sole-source award, especially one with a CPFF structure and a long duration, the government's confidence in the contractor's past performance and capability is crucial. Further due diligence would involve checking databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) for relevant performance data.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1776 PATRIOT WAY, MATTAPONI, VA, 23110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,585,129

Exercised Options: $2,585,129

Current Obligation: $2,585,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9224121D0003

IDV Type: IDC

Timeline