DoD Awards $1.64B Contract to Spirit Aerosystems for CALIENTE WING TEST
Contract Overview
Contract Amount: $16,408,337 ($16.4M)
Contractor: Spirit Aerosystems Inc
Awarding Agency: Department of Defense
Start Date: 2024-03-12
End Date: 2026-06-30
Contract Duration: 840 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CALIENTE WING TEST
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67210
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to SPIRIT AEROSYSTEMS INC for work described as: CALIENTE WING TEST Key points: 1. Significant investment in advanced wing technology research and development. 2. Spirit Aerosystems, a major aerospace manufacturer, is the sole awardee. 3. Potential for technological advancements in defense capabilities. 4. Contract falls under R&D services for physical and engineering sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is substantial, requiring close monitoring of expenditures against the fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is Spirit Aerosystems, indicating they were the selected entity from the competitive pool.
Taxpayer Impact: Taxpayer funds are being allocated to advanced aerospace research, aiming for future technological superiority and potential cost savings through improved designs.
Public Impact
Advancement in aerospace technology could lead to more efficient and capable military aircraft. Investment in a key US aerospace manufacturer supports domestic industry and jobs. The research may yield breakthroughs applicable to both defense and commercial aviation sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Sole awardee may limit broader market innovation if not managed effectively.
- Long contract duration requires sustained oversight.
Positive Signals
- Awarded under full and open competition.
- Significant investment in critical R&D area.
- Supports a major domestic aerospace supplier.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The $1.64 billion award is a substantial investment, reflecting the high costs associated with advanced aerospace engineering and testing.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor, Spirit Aerosystems, is a large aerospace manufacturer.
Oversight & Accountability
The Department of Defense, through DARPA, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs remain within reasonable bounds and the fixed fee is justified.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (840 days).
- Potential for scope creep in R&D projects.
- Reliance on a single large contractor.
Tags
research-and-development-in-the-physical, department-of-defense, ks, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to SPIRIT AEROSYSTEMS INC. CALIENTE WING TEST
Who is the contractor on this award?
The obligated recipient is SPIRIT AEROSYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $16.4 million.
What is the period of performance?
Start: 2024-03-12. End: 2026-06-30.
What specific technological advancements are anticipated from the CALIENTE WING TEST, and how will they translate into tangible benefits for defense capabilities?
The CALIENTE WING TEST likely aims to explore novel aerodynamic designs, materials, or control systems for aircraft wings. Anticipated benefits could include increased fuel efficiency, enhanced maneuverability, reduced radar signature, or improved payload capacity. These advancements are expected to provide a strategic advantage by enabling more effective and survivable military platforms in future operational environments.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives good value for its investment?
Mitigation strategies for CPFF contracts typically involve robust government oversight of contractor expenditures, detailed progress reporting, and clear performance metrics. The contracting agency will likely conduct regular audits and reviews to validate costs incurred. Furthermore, the fixed fee itself provides a ceiling on the contractor's profit, incentivizing efficiency to avoid unnecessary spending that could jeopardize their fee.
How will the success of the CALIENTE WING TEST be measured, and what are the key performance indicators (KPIs) that will determine the effectiveness of this research and development effort?
Success will likely be measured against predefined technical objectives outlined in the contract Statement of Work. Key Performance Indicators could include achieving specific aerodynamic performance targets (e.g., lift-to-drag ratio improvements), successful demonstration of new materials or manufacturing techniques, validation of simulation models through physical testing, and adherence to safety and reliability standards. The ultimate effectiveness will be judged by the potential for these tested technologies to be incorporated into future weapon systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: HR001123S0042
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Spirit Aerosystems Holdings, Inc.
Address: 3801 S OLIVER ST, WICHITA, KS, 67210
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: $16,408,337
Exercised Options: $16,408,337
Current Obligation: $16,408,337
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-12
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-22
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