Kaman Aerospace Corporation awarded $18.9M for aircraft transportation and non-recurring engineering services

Contract Overview

Contract Amount: $18,893,110 ($18.9M)

Contractor: Kaman Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2011-06-30

Contract Duration: 1,008 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NON-RECURRING ENGINEERING & AIRCRAFT TRANSPORTATION

Place of Performance

Location: BLOOMFIELD, HARTFORD County, CONNECTICUT, 06002

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to KAMAN AEROSPACE CORPORATION for work described as: NON-RECURRING ENGINEERING & AIRCRAFT TRANSPORTATION Key points: 1. Contract value appears reasonable given the scope of specialized engineering and transportation services. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. Fixed-price contract structure shifts performance risk to the contractor. 4. Contract duration of approximately 3 years provides a stable period for service delivery. 5. This contract falls within the broader aircraft manufacturing and support sector. 6. The award was made by the Department of the Navy, indicating a defense-related need.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the 'non-recurring engineering' scope and the exact nature of aircraft transportation. However, the total award of $18.9 million over roughly three years suggests an average annual value of approximately $6.3 million. This figure needs to be compared against similar specialized engineering and logistics contracts within the Department of Defense to determine if it represents good value for money. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can sometimes lead to higher initial pricing to account for that risk.

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 potential vendors. This typically occurs when only one vendor possesses the unique capabilities, proprietary technology, or specific qualifications required for the service. The lack of competition means that price discovery through a bidding process was absent, potentially leading to a higher price than if multiple companies had vied for the contract. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: For taxpayers, sole-source awards mean there is less assurance that the government secured the best possible price. Without competitive pressure, the awarded price may not reflect the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving specialized aircraft transportation and engineering support. Services delivered include non-recurring engineering, which likely involves design, development, or modification of aircraft components or systems. The geographic impact is primarily tied to the Navy's operational bases and Kaman Aerospace's facilities. Workforce implications include employment for engineers, technicians, and logistics personnel at Kaman Aerospace Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of detailed public information on 'non-recurring engineering' scope makes value assessment difficult.
Contract performance risks are borne by the contractor, but initial pricing may be inflated to compensate.

Positive Signals

Firm fixed-price contract shifts performance risk to the contractor.
Award to an established aerospace corporation suggests technical capability.
Contract duration provides stability for service provision.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and specialized manufacturing capabilities. Contracts like this, involving aircraft transportation and engineering, are common within the defense industry. The North American Industry Classification System (NAICS) code 336411 (Aircraft Manufacturing) indicates the broader industry context. Spending in this sector is heavily influenced by government procurement, with major players often holding sole-source or limited-competition contracts due to unique technological requirements or existing platform integration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Kaman Aerospace Corporation is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Kaman Aerospace voluntarily engages small businesses as subcontractors for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm fixed-price contract, oversight would focus on ensuring delivery of the specified services and adherence to the contract terms. Transparency is limited due to the sole-source nature and the proprietary aspects of 'non-recurring engineering'. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Manufacturing
Aerospace Engineering Services
Defense Logistics Support
Naval Aviation Support Contracts

Risk Flags

Sole-source award
Limited public detail on scope of work

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to KAMAN AEROSPACE CORPORATION. NON-RECURRING ENGINEERING & AIRCRAFT TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is KAMAN AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2008-09-25. End: 2011-06-30.

What is the specific nature and scope of the 'non-recurring engineering' services provided under this contract?

The term 'non-recurring engineering' (NRE) typically refers to the engineering design and development work required to bring a new product or system into existence, or to make significant modifications to an existing one. This can include activities such as conceptual design, detailed design, prototyping, testing, and validation. For this specific contract with Kaman Aerospace Corporation, the NRE likely pertains to modifications, upgrades, or specialized adaptations of aircraft or their components, possibly related to transportation systems. Without access to the contract's Statement of Work (SOW), the precise deliverables, technical specifications, and engineering processes involved remain unspecified. This lack of detail makes it difficult to fully assess the value and necessity of the engineering effort.

How does the $18.9 million contract value compare to similar sole-source aircraft transportation and engineering contracts awarded by the DoD?

Comparing this $18.9 million contract value to similar sole-source awards requires access to a comprehensive database of defense contracts, including their scope, duration, and competition level. However, as a general benchmark, $18.9 million spread over approximately three years (1008 days) represents an average annual expenditure of roughly $6.3 million. Sole-source contracts, by their nature, often command higher prices due to the absence of competitive bidding. To assess value, one would need to identify contracts for comparable aircraft types, engineering complexity (e.g., avionics upgrades, structural modifications), and transportation logistics within the Navy or other DoD branches. If similar, more complex sole-source contracts were awarded at comparable or lower annual rates, this contract might be considered fair. Conversely, if simpler services commanded higher rates, it could indicate potential overpricing.

What specific factors led to this contract being awarded on a sole-source basis rather than through full and open competition?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or capable of providing the required service. For Kaman Aerospace Corporation, potential justifications could include possessing unique proprietary technology essential for the aircraft's operation or modification, holding specific certifications or licenses required by the Navy that competitors lack, or having established expertise and infrastructure directly tied to the specific aircraft platform being serviced. Another possibility is that the required engineering services are so specialized and integrated with existing Kaman systems that breaking it out for competitive bidding would be impractical or detrimental to the program. The Department of the Navy would have had to formally document and approve the justification for other than full and open competition.

What are the potential risks associated with a firm fixed-price contract for non-recurring engineering and aircraft transportation?

While a firm fixed-price (FFP) contract shifts the risk of cost overruns to the contractor (Kaman Aerospace Corporation in this case), it introduces other potential risks. For non-recurring engineering, the fixed price might incentivize the contractor to cut corners on design rigor or testing to protect their profit margin, potentially leading to performance issues later. If the scope of 'non-recurring engineering' proves more complex than initially estimated by the contractor, they might face significant financial losses, potentially impacting their ability to complete the contract or leading to disputes. For aircraft transportation, the FFP structure assumes predictable logistics costs; unforeseen fuel price spikes or operational disruptions could strain the contractor's resources. The government's primary risk is paying a potentially inflated price upfront to compensate the contractor for these risks.

What is Kaman Aerospace Corporation's track record with similar DoD contracts, particularly those involving aircraft manufacturing and specialized engineering?

Kaman Aerospace Corporation has a long history of working with the Department of Defense, particularly in areas related to aerospace manufacturing, component supply, and specialized support services. They are known for producing rotorcraft and aerostructures, and have been involved in various upgrade and sustainment programs for military aircraft. Their track record generally indicates a capacity to handle complex engineering and manufacturing tasks. However, a detailed assessment would require reviewing their past performance evaluations on specific contracts, including any instances of cost overruns, schedule delays, or quality issues. Given their established presence in the defense sector, it's likely they possess the necessary clearances and expertise for specialized engineering and transportation roles.

How has federal spending on aircraft manufacturing and related support services (NAICS 336411) trended over the past decade?

Federal spending on aircraft manufacturing and related support services, often categorized under NAICS code 336411, has historically been substantial, driven primarily by defense procurement. Over the past decade, spending in this sector has seen fluctuations influenced by defense budgets, modernization priorities, and geopolitical events. While specific figures vary annually, the overall trend has generally remained robust, with significant investments in new aircraft development, upgrades to existing fleets, and sustainment/maintenance services. Periods of increased global tension or the initiation of new military programs tend to drive higher spending. Conversely, budget sequestration or shifts towards different defense priorities can lead to temporary downturns. The consistent need for advanced aviation capabilities ensures sustained government interest and funding in this sector.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001908R0094

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kaman Corp (UEI: 001155225)

Address: OLD WINDSOR RD, BLOOMFIELD, CT, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,893,110

Exercised Options: $18,893,110

Current Obligation: $18,893,110

Contract Characteristics

Cost or Pricing Data: NO

Timeline