Navy Awards $29.4M for P-8A Aircraft Wing Pylons to Hamble Aerostructures

Contract Overview

Contract Amount: $29,449,202 ($29.4M)

Contractor: Hamble Aerostructures Limited

Awarding Agency: Department of Defense

Start Date: 2016-01-07

End Date: 2020-05-29

Contract Duration: 1,604 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USN P-8A LOTS 6, 7 AND 8 WING PYLONS SHIP SETS

Plain-Language Summary

Department of Defense obligated $29.4 million to HAMBLE AEROSTRUCTURES LIMITED for work described as: USN P-8A LOTS 6, 7 AND 8 WING PYLONS SHIP SETS Key points: 1. Contract awarded to a single supplier, raising questions about competition. 2. Significant value of $29.4 million for specialized aircraft components. 3. Potential risk associated with sole-source procurement and price discovery. 4. Aircraft manufacturing sector context for specialized component production.

Value Assessment

Rating: questionable

The contract value of $29.4 million for wing pylon ship sets is difficult to benchmark without comparable sole-source contracts. The lack of competition makes it challenging to assess if the price is optimal compared to a competitive market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The absence of competition in this sole-source award means taxpayers may not be receiving the best possible price for these critical aircraft components.

Public Impact

Impacts the operational readiness of the P-8A Poseidon maritime patrol aircraft. Ensures continued supply of essential components for a key defense asset. Highlights reliance on specific suppliers for specialized defense manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for inflated pricing

Positive Signals

Supports critical defense platform
Ensures component availability

Sector Analysis

This contract falls within the aircraft manufacturing sector, specifically for specialized components. Benchmarking spending in this niche area is challenging due to proprietary designs and limited supplier bases, especially in sole-source scenarios.

Small Business Impact

The contract was awarded to Hamble Aerostructures Limited, and there is no indication of small business subcontracting. The sole-source nature of the award further limits opportunities for small businesses to participate.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Navy's procurement process for this award warrants scrutiny to confirm justification for the lack of competition.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for price escalation
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to HAMBLE AEROSTRUCTURES LIMITED. USN P-8A LOTS 6, 7 AND 8 WING PYLONS SHIP SETS

Who is the contractor on this award?

The obligated recipient is HAMBLE AEROSTRUCTURES LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2016-01-07. End: 2020-05-29.

What is the justification for the sole-source award of this contract?

The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without further documentation, it's difficult to ascertain the specific rationale behind this particular award to Hamble Aerostructures Limited.

What is the potential cost impact of this sole-source award on taxpayers?

Sole-source contracts inherently carry a higher risk of cost inflation due to the absence of competitive pressure. Taxpayers may bear a higher cost than if the contract had been competed, as the government lacks the leverage to negotiate the lowest possible price from multiple bidders.

How does this contract contribute to the overall effectiveness of the P-8A aircraft program?

This contract is essential for the continued operation and maintenance of the P-8A Poseidon aircraft, a critical asset for maritime patrol and reconnaissance. Ensuring a reliable supply of wing pylons directly supports the program's effectiveness and the Navy's mission readiness.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001914R0055

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aernnova Aerospace Corporation, S.A.

Address: KINGS AVENUE, SOUTHAMPTON

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

Financial Breakdown

Contract Ceiling: $29,449,202

Exercised Options: $29,449,202

Current Obligation: $29,449,202

Actual Outlays: $5,275,616

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $65,298

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline