DoD awards $26.9M contract for Rosemount Hardware, raising questions about competition and value

Contract Overview

Contract Amount: $26,888,553 ($26.9M)

Contractor: Rosemount Aerospace Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-06

End Date: 2023-09-29

Contract Duration: 1,849 days

Daily Burn Rate: $14.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ECP 6392C2 ROSEMOUNT HARDWARE

Place of Performance

Location: BURNSVILLE, DAKOTA County, MINNESOTA, 55306

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to ROSEMOUNT AEROSPACE INC for work described as: ECP 6392C2 ROSEMOUNT HARDWARE Key points: 1. Significant contract value of $26.9M for aircraft parts. 2. Sole-source award limits competitive pricing and potential savings. 3. Long contract duration of 1849 days may indicate potential for cost overruns. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The contract value of $26.9M for 'Other Aircraft Parts' is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar hardware.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these aircraft parts, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the necessity and pricing of specific hardware components. Potential for reduced innovation and quality if competition is stifled.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
No small business participation

Positive Signals

Definitive contract type
Firm fixed price

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive procurement is key to ensuring cost-effectiveness.

Small Business Impact

The contract data indicates no small business participation. This suggests that opportunities for small businesses in this supply chain may have been overlooked or were not pursued.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure fair pricing and prevent potential waste, fraud, and abuse.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing due to lack of competition.
Long contract duration increases risk of cost escalation.
No small business participation noted.
Limited transparency on specific hardware components and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to ROSEMOUNT AEROSPACE INC. ECP 6392C2 ROSEMOUNT HARDWARE

Who is the contractor on this award?

The obligated recipient is ROSEMOUNT AEROSPACE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2018-09-06. End: 2023-09-29.

What specific justification was provided for the sole-source award of this contract?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent and compelling needs. Without this specific justification, it's hard to fully assess the necessity of bypassing competition.

How does the $26.9M contract value compare to industry benchmarks for similar aircraft hardware?

Benchmarking this contract's value against industry standards is challenging without detailed specifications of the 'Rosemount Hardware.' However, given the sole-source nature and long duration, there's a risk that the price may exceed competitive market rates. Further analysis would require detailed product specifications and market research.

What measures are in place to ensure the effectiveness and quality of the 'Rosemount Hardware' under this long-term, non-competed contract?

With a firm fixed-price contract, the onus is on the contractor to deliver quality goods. However, the lack of competition and long duration could reduce incentives for continuous improvement or proactive quality assurance. Robust government inspection and acceptance protocols are crucial to ensure the hardware meets all required specifications and performance standards.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001918R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 14300 JUDICIAL RD, BURNSVILLE, MN, 55306

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,888,553

Exercised Options: $26,888,553

Current Obligation: $26,888,553

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $88,002

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline