DoD spent $17.3M on propeller assemblies, with 4 bids received for this firm-fixed-price contract

Contract Overview

Contract Amount: $17,373,732 ($17.4M)

Contractor: Pacific Propeller International LLC

Awarding Agency: Department of Defense

Start Date: 2010-12-22

End Date: 2016-06-30

Contract Duration: 2,017 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TN 54H60-77 PROPELLER ASSEMBLIES

Place of Performance

Location: KENT, KING County, WASHINGTON, 98032

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to PACIFIC PROPELLER INTERNATIONAL LLC for work described as: TN 54H60-77 PROPELLER ASSEMBLIES Key points: 1. The contract value of $17.3 million for propeller assemblies appears reasonable given the duration and scope. 2. The procurement process involved full and open competition, suggesting a competitive market for these parts. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing final costs. 4. This contract falls within the broader category of aircraft parts manufacturing, a critical defense sector. 5. The award to Pacific Propeller International LLC indicates their established position in supplying defense components.

Value Assessment

Rating: good

The total award of $17.3 million over approximately 5.5 years for propeller assemblies suggests a moderate annual spend. Benchmarking against similar contracts for specialized aircraft components is challenging without more granular data on specific part numbers and quantities. However, the firm-fixed-price structure generally indicates a predictable cost outcome for the government, assuming the contractor manages their own expenses effectively. The number of bids (4) suggests a reasonable level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The solicitation resulted in four bids, indicating a healthy level of competition for this requirement. A competitive environment like this typically drives down prices and encourages innovation as contractors vie for the award. The presence of multiple bidders suggests that the market is not overly concentrated and that the government had a good selection of potential suppliers.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to achieve the best possible price for the propeller assemblies.

Public Impact

The Department of Defense is the primary beneficiary, ensuring operational readiness of aircraft. Services delivered include the provision of critical propeller assemblies for aircraft maintenance and operation. The geographic impact is primarily within the United States, supporting defense logistics and operations. Workforce implications include supporting jobs in the aerospace manufacturing and maintenance sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of older propeller designs if not managed proactively.
Dependence on a single contractor for specific, critical components could pose a supply chain risk.
Ensuring consistent quality control across all delivered units is paramount for flight safety.

Positive Signals

Firm-fixed-price contract minimizes cost overrun risk for the government.
Full and open competition suggests a robust supplier base and competitive pricing.
The contract duration allows for stable supply chain planning and execution.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and stringent quality requirements. This contract for propeller assemblies fits within the broader 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry. The market for such specialized components is often dominated by a few key players with the necessary certifications and expertise. Spending in this area is driven by military aircraft sustainment and modernization programs, with significant government outlays annually.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and the prime contractor, Pacific Propeller International LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether smaller firms are part of the supply chain or if opportunities were missed due to the lack of a specific set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability is maintained through contract clauses, performance metrics, and payment schedules tied to delivery and acceptance. Transparency is facilitated through contract award databases, though detailed performance reports may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics and Sustainment
Propulsion Systems
Aerospace Component Supply

Risk Flags

Potential for supply chain disruption
Contractor financial stability risk
Quality control assurance for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to PACIFIC PROPELLER INTERNATIONAL LLC. TN 54H60-77 PROPELLER ASSEMBLIES

Who is the contractor on this award?

The obligated recipient is PACIFIC PROPELLER INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2010-12-22. End: 2016-06-30.

What is the historical spending trend for propeller assemblies by the Department of Defense?

Analyzing historical spending on propeller assemblies by the Department of Defense requires access to comprehensive procurement data over multiple fiscal years. While this specific contract represents $17.3 million from 2010 to 2016, broader trends would involve aggregating data across various contracts, agencies, and fiscal periods. Factors influencing spending include the size and age of the military aircraft fleet, operational tempo, modernization initiatives, and the availability of commercial off-the-shelf versus proprietary components. Without a broader dataset, it's difficult to ascertain if this $17.3 million expenditure is indicative of a consistent spending pattern or an anomaly related to specific fleet needs or upgrades during that timeframe.

How does the per-unit cost of these propeller assemblies compare to market rates or similar government contracts?

Determining the precise per-unit cost and comparing it to market rates or similar government contracts is challenging with the provided data. The total award is $17.3 million, and the number of units is not specified. Furthermore, 'propeller assemblies' can vary significantly in complexity, size, and material, impacting cost. To perform a robust comparison, one would need to identify the specific National Stock Number (NSN) or part number, the exact quantity procured, and the unit price. Benchmarking would then involve searching databases like FPDS or GSA Advantage for comparable NSNs or part numbers awarded under similar contract types (e.g., firm-fixed-price) to assess if the pricing achieved through this full and open competition was competitive.

What is Pacific Propeller International LLC's track record with government contracts, particularly for propeller assemblies?

Pacific Propeller International LLC has a history of receiving government contracts, including those related to propeller systems. A review of federal procurement data would reveal the extent of their contract awards, including values, agencies served, and contract types. For this specific contract (336413), the award of $17.3 million suggests a significant engagement. Assessing their track record involves examining past performance evaluations, any contract disputes or terminations, and their success rate in competitive bidding. Their ability to secure this $17.3 million firm-fixed-price contract under full and open competition indicates a level of established capability and competitiveness in the defense aerospace supply chain.

What are the potential risks associated with relying on a firm-fixed-price contract for specialized aircraft parts?

While firm-fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, specialized aircraft parts can present unique risks. If the contractor underestimates production costs, encounters unforeseen technical challenges, or experiences supply chain disruptions for rare materials, they might face financial losses. This could potentially lead to quality compromises if the contractor seeks to cut corners to maintain profitability, or it could result in contractor default or requests for equitable adjustments, negating the cost certainty FFP aims to provide. For highly specialized or low-volume parts, the initial cost estimation by the contractor is critical, and the government must ensure the solicitation adequately defines requirements to prevent ambiguity that could lead to disputes.

How does the competition level (4 bidders) for this contract influence the perceived value for money?

A competition level of four bidders for this $17.3 million contract for propeller assemblies generally suggests a good level of market interest and a reasonable expectation of value for money. With multiple bidders, the government can leverage competitive dynamics to secure more favorable pricing and terms. The presence of four offers indicates that the requirement was understood and that several companies possessed the capability and willingness to compete. This level of competition typically prevents a single supplier from dominating pricing and encourages all bidders to submit their most competitive proposals. Therefore, four bidders is often seen as a positive indicator for achieving fair and reasonable pricing.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001910R0033

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Precision Aerospace Corporation (UEI: 175484187)

Address: 5802 S 228TH ST, KENT, WA, 98032

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $17,390,912

Exercised Options: $17,390,912

Current Obligation: $17,373,732

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline