DoD Awards $27.2M for Transformer Rectifier Units to Champion Aerospace LLC
Contract Overview
Contract Amount: $27,216,293 ($27.2M)
Contractor: Champion Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2027-09-30
Contract Duration: 1,462 days
Daily Burn Rate: $18.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRANSFORMER RECTIFIER UNIT (TRU) USN, TRU RAAF AND TRUS FOR KUWAIT
Place of Performance
Location: LIBERTY, PICKENS County, SOUTH CAROLINA, 29657
Plain-Language Summary
Department of Defense obligated $27.2 million to CHAMPION AEROSPACE LLC for work described as: TRANSFORMER RECTIFIER UNIT (TRU) USN, TRU RAAF AND TRUS FOR KUWAIT Key points: 1. Contract awarded to Champion Aerospace LLC for Transformer Rectifier Units (TRUs). 2. The contract is for a firm-fixed-price definitive contract with a duration of 1462 days. 3. The award was not competed, raising potential concerns about price discovery. 4. The sector is dominated by specialized manufacturers, with limited public data on TRU pricing benchmarks.
Value Assessment
Rating: questionable
The contract value of $27.2M over approximately four years for specialized aerospace components lacks readily available public benchmarks for direct comparison. Without competitive bidding, assessing the pricing's fairness against market rates is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices due to a lack of market pressure and potentially less rigorous price negotiation.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential defense components.
Public Impact
Ensures operational readiness of naval and air force assets requiring TRUs. Supports a specific aerospace manufacturer, potentially impacting broader industry competition. The non-competitive nature raises questions about efficient use of taxpayer funds for critical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Ensures supply of critical components
- Long-term contract provides stability
Sector Analysis
This contract falls within the defense industrial base, specifically focusing on electronic components for aircraft. Spending in this niche sector is driven by defense needs and technological requirements, often involving specialized, high-cost manufacturing.
Small Business Impact
The awardee, Champion Aerospace LLC, is not identified as a small business. The contract does not appear to include specific provisions for small business subcontracting, suggesting limited direct impact on this segment.
Oversight & Accountability
The non-competitive award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, and that future procurements explore competitive options where feasible.
Related Government Programs
- Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of transparency in pricing justification
- Potential for cost overruns
- Limited market competition
Tags
capacitor-resistor-coil-transformer-and-, department-of-defense, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to CHAMPION AEROSPACE LLC. TRANSFORMER RECTIFIER UNIT (TRU) USN, TRU RAAF AND TRUS FOR KUWAIT
Who is the contractor on this award?
The obligated recipient is CHAMPION AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.2 million.
What is the period of performance?
Start: 2023-09-29. End: 2027-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must conduct market research and price analysis, potentially using historical data or independent government cost estimates, to validate reasonableness. Documentation of these efforts is crucial for accountability.
How does the pricing of this TRU contract compare to similar components procured competitively by the DoD or allied nations?
Direct comparison is difficult without access to specific contract details and performance data. However, sole-source contracts often carry a price premium compared to competitively awarded ones due to the absence of market-driven cost reductions. Further analysis would require benchmarking against contracts for similar complexity and function, adjusted for any unique specifications.
What is the long-term strategic impact of relying on a single supplier for these critical Transformer Rectifier Units?
Long-term reliance on a single supplier can create strategic vulnerabilities, including supply chain disruptions, price escalation, and reduced innovation. It limits the government's leverage in negotiations and could hinder the development of alternative technologies or suppliers. Diversifying the supplier base, where possible, enhances resilience and potentially lowers costs.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Calspan Technology Holding Corporation
Address: 1230 OLD NORRIS RD, LIBERTY, SC, 29657
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,058,528
Exercised Options: $27,216,293
Current Obligation: $27,216,293
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-29
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-08-19
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