DoD Awards $430M for Aircraft Components to Logic S.p.A. Amidst Limited Competition
Contract Overview
Contract Amount: $12,631,192 ($12.6M)
Contractor: Logic SPA
Awarding Agency: Department of Defense
Start Date: 2001-02-07
End Date: 2008-04-22
Contract Duration: 2,631 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200106!000459!1700!AT729 !NAVAL AIR SYSTEMS COMMAND !N0001901C0055 !A!N!*!N! !20010207!20020206!430685594!428486443!514158971!N!LOGIC S P A !VIA BRESCIA 29 !CERNUSCO SUL N !IT!* !* !* !IT!* !* !ITALY !+000004761165!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1B!AIRCRAFT ENGINES AND SPARES !2AHJ!H-46 SEA KNIGHT !334519!*!*!3! ! ! !*!*!*!B!*!*!A! !D !U!J!1!001!N!1A!Z!N!Z!B !IT!Y!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001!
Plain-Language Summary
Department of Defense obligated $12.6 million to LOGIC SPA for work described as: 200106!000459!1700!AT729 !NAVAL AIR SYSTEMS COMMAND !N0001901C0055 !A!N!*!N! !20010207!20020206!430685594!428486443!514158971!N!LOGIC S P A !VIA BRESCIA 29 !CERNUSCO SUL N !IT!* !* !* !IT!* !* … Key points: 1. Significant contract value of $430.6 million awarded. 2. Sole-source procurement raises concerns about competition and potential overpricing. 3. Contract duration of over 7 years suggests long-term reliance on this supplier. 4. Focus on aircraft accessories and components for the Naval Air Systems Command.
Value Assessment
Rating: questionable
The contract value of $430.6 million for aircraft accessories and components appears high, especially given the sole-source nature. Without competitive bidding, it's difficult to benchmark against similar contracts to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source award limits competitive pressure, potentially resulting in higher prices and reduced value for taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock the government into a potentially suboptimal pricing arrangement. Dependence on a single supplier for critical aircraft components poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of price competition
Positive Signals
- Potential for specialized expertise from Logic S.p.A.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically for aircraft parts. Spending in this sector is often characterized by high R&D costs and specialized manufacturing, but competitive bidding is crucial for cost control.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this sole-source contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the justification for sole-sourcing is robust.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Long contract duration
- Potential for overpricing
- Limited oversight on price justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to LOGIC SPA. 200106!000459!1700!AT729 !NAVAL AIR SYSTEMS COMMAND !N0001901C0055 !A!N!*!N! !20010207!20020206!430685594!428486443!514158971!N!LOGIC S P A !VIA BRESCIA 29 !CERNUSCO SUL N !IT!* !* !* !IT!* !* !ITALY !+000004761165!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1B!AIRCRAFT ENGINES AND SPARES !2AHJ!H-46 SEA KNIGHT !334519!*!*!3! ! ! !*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is LOGIC SPA.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2001-02-07. End: 2008-04-22.
What is the justification for awarding this contract on a sole-source basis, and has it been reviewed for necessity?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A thorough review would assess if these conditions truly exist and if alternatives were adequately explored. Without this information, the decision to bypass competition raises concerns about potential cost inefficiencies and missed opportunities for better pricing.
How does the unit cost of these aircraft components compare to industry benchmarks, given the lack of competitive bids?
Benchmarking unit costs is challenging without competitive data. The absence of bids means there's no market-driven price discovery. The government should conduct an independent cost analysis or rely on historical pricing data for similar components, if available, to assess if the negotiated price is reasonable. Any significant deviation from benchmarks without clear justification would be a red flag.
What are the risks associated with a sole-source contract of this magnitude and duration for critical aircraft components?
The primary risks include inflated pricing due to lack of competition, potential for supplier complacency, and limited flexibility if requirements change. A long-term sole-source agreement can also create vendor lock-in, making it difficult and costly to switch suppliers later. Furthermore, it limits opportunities for innovation that might arise from a competitive environment.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Finanziaria TRE Gigli SPA (UEI: 338331005)
Address: VIA BRESCIA 29, CERNUSCO SUL N
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2001-02-07
Current End Date: 2008-04-22
Potential End Date: 2008-04-22 00:00:00
Last Modified: 2008-04-22
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