Navy Awards $11.6M Contract to Martin-Baker for Explosives Manufacturing

Contract Overview

Contract Amount: $11,626,103 ($11.6M)

Contractor: Martin-Baker Aircraft Company Limited

Awarding Agency: Department of Defense

Start Date: 2024-05-10

End Date: 2027-12-11

Contract Duration: 1,310 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DODIC: JN92

Plain-Language Summary

Department of Defense obligated $11.6 million to MARTIN-BAKER AIRCRAFT COMPANY LIMITED for work described as: DODIC: JN92 Key points: 1. Significant contract value for specialized explosives. 2. Sole-source award raises questions about competition. 3. Long contract duration (over 3 years) warrants close monitoring. 4. Focus on explosives manufacturing indicates critical defense supply chain role.

Value Assessment

Rating: questionable

The contract value of $11.6M for explosives manufacturing is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to assess if this price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.

Public Impact

Ensures supply of critical explosives for naval operations. Potential for higher costs due to lack of competition. Long-term commitment may impact future procurement flexibility. Supports a specialized manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Critical defense component
Established supplier

Sector Analysis

This contract falls within the explosives manufacturing sector, a critical component of the defense industrial base. Spending in this niche area is often characterized by specialized suppliers and high barriers to entry.

Small Business Impact

The awardee, Martin-Baker Aircraft Company Limited, is a large business. There is no indication that small businesses were involved in this specific sole-source procurement.

Oversight & Accountability

The Department of the Navy is the awarding agency. Oversight will be crucial to ensure performance and manage costs throughout the contract's duration, especially given the sole-source nature.

Related Government Programs

Explosives Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Supply chain vulnerability
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to MARTIN-BAKER AIRCRAFT COMPANY LIMITED. DODIC: JN92

Who is the contractor on this award?

The obligated recipient is MARTIN-BAKER AIRCRAFT COMPANY 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 $11.6 million.

What is the period of performance?

Start: 2024-05-10. End: 2027-12-11.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense should have documented this rationale. To ensure fair pricing, the agency might rely on historical pricing data, independent cost estimates, or engage in detailed price negotiations with the contractor, though competitive benchmarking remains the most effective method.

What are the risks associated with relying on a single supplier for critical explosives, and are there contingency plans?

The primary risk is supply chain disruption due to the single point of failure. This could stem from production issues, geopolitical events, or the contractor's financial stability. Contingency plans might include identifying potential alternative suppliers, maintaining strategic stockpiles, or developing domestic production capabilities to mitigate long-term reliance.

How does this contract align with the Navy's long-term strategic needs for explosives, and are there opportunities for future competition?

This contract likely supports immediate operational requirements. Long-term alignment depends on evolving naval strategies and technological advancements in ordnance. Future competition could be fostered by encouraging new entrants, investing in research and development for alternative solutions, or breaking down future requirements into smaller, more accessible contract packages.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0010423RK049

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Killinchy Aerospace Holdings Limited

Address: LOWER ROAD, UXBRIDGE

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

Financial Breakdown

Contract Ceiling: $11,626,103

Exercised Options: $11,626,103

Current Obligation: $11,626,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline