DoD's $23M contract for RAN T700 engine support awarded to Asia Pacific Aerospace Pty. Ltd

Contract Overview

Contract Amount: $22,985,266 ($23.0M)

Contractor: Asia Pacific Aerospace PTY. Ltd.

Awarding Agency: Department of Defense

Start Date: 2016-06-15

End Date: 2020-12-14

Contract Duration: 1,643 days

Daily Burn Rate: $14.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RAN T700 ENGINE THROUGH LIFE SUPPORT

Plain-Language Summary

Department of Defense obligated $23.0 million to ASIA PACIFIC AEROSPACE PTY. LTD. for work described as: RAN T700 ENGINE THROUGH LIFE SUPPORT Key points: 1. Contract awarded for aircraft engine and parts manufacturing. 2. Sole source award to Asia Pacific Aerospace Pty. Ltd. 3. Significant spending on engine support over a 4-year period. 4. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $22.9M over four years for engine support appears high given the limited competition. Without a benchmark or more detailed cost breakdown, it's difficult to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, limiting price discovery and potentially leading to higher costs for taxpayers. The lack of competition raises concerns about the government's ability to secure the best possible price.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium for the engine support services.

Public Impact

Ensures continued operational readiness for aircraft relying on the RAN T700 engine. Potential for higher costs due to lack of competitive bidding. Limited transparency on the specific services and parts provided under the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Ensures critical engine support
Long-term contract provides stability

Sector Analysis

This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is critical for defense readiness, but often involves specialized components and limited suppliers, increasing the risk of sole-source awards.

Small Business Impact

There is no indication of small business participation in this contract. Given the specialized nature of aircraft engine parts, it's possible that opportunities for small businesses were limited or not pursued.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure fair pricing and accountability. A review of the justification for sole-sourcing would be beneficial.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.
No small business participation noted.
Lack of detailed cost breakdown hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to ASIA PACIFIC AEROSPACE PTY. LTD.. RAN T700 ENGINE THROUGH LIFE SUPPORT

Who is the contractor on this award?

The obligated recipient is ASIA PACIFIC AEROSPACE PTY. LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2016-06-15. End: 2020-12-14.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source award. The specific justification, such as unique capabilities, proprietary technology, or urgent need, is not detailed in the data. Further investigation into the contract file would be required to understand the rationale behind bypassing competitive bidding processes.

How does the per-unit cost of engine support compare to industry benchmarks?

Without specific per-unit cost data for the services or parts provided, a direct comparison to industry benchmarks is not possible. The total contract value of $22.9M over four years for engine support is substantial, and the lack of competition makes it difficult to ascertain if the pricing is competitive or represents a fair market value.

What is the long-term risk associated with relying on a single supplier for critical engine parts?

Relying on a single supplier for critical engine parts poses significant long-term risks, including potential price escalations, supply chain disruptions, and reduced innovation. If the sole-source provider faces operational issues or decides to discontinue support, the Department of Defense could face severe readiness challenges and be forced into costly emergency procurement situations.

Industry Classification

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

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001915R2005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 750 MACARTHUR AVE, PINKENBA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,985,266

Exercised Options: $22,985,266

Current Obligation: $22,985,266

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline