DoD awards $5.8M contract for rotary compressors to Meggitt Defense Systems, Inc
Contract Overview
Contract Amount: $5,827,902 ($5.8M)
Contractor: Meggitt Defense Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-10-27
End Date: 2029-12-26
Contract Duration: 1,521 days
Daily Burn Rate: $3.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMPRESSOR,ROTARY
Place of Performance
Location: IRVINE, ORANGE County, CALIFORNIA, 92618
Plain-Language Summary
Department of Defense obligated $5.8 million to MEGGITT DEFENSE SYSTEMS, INC. for work described as: COMPRESSOR,ROTARY Key points: 1. Contract awarded for rotary compressors, a critical component in various defense systems. 2. Sole-source award to Meggitt Defense Systems, Inc. raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector context: Defense manufacturing, specifically pumping equipment.
Value Assessment
Rating: questionable
The contract value of $5.8M for rotary compressors needs comparison against similar procurements. Without competitive data, it's difficult to ascertain if this price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these compressors, impacting overall defense spending efficiency.
Public Impact
Taxpayers may be overpaying for essential defense equipment due to a lack of competitive bidding. The Department of the Navy relies on a single supplier, potentially creating supply chain risks. Future procurements of this nature could set a precedent for non-competitive awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Definitive contract awarded
- Long-term award (2029)
Sector Analysis
The defense sector often procures specialized equipment like rotary compressors. Benchmarks for similar contracts are crucial for assessing value, especially in sole-source situations.
Small Business Impact
This contract does not appear to involve small businesses, as the award is to a specific large corporation. Further analysis would be needed to confirm if any subcontracting opportunities exist.
Oversight & Accountability
Oversight is needed to ensure the justification for a sole-source award is robust and that pricing is fair. Regular reviews of contract performance and cost are essential.
Related Government Programs
- Measuring, Dispensing, and Other Pumping Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency on justification
Tags
measuring-dispensing-and-other-pumping-e, department-of-defense, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to MEGGITT DEFENSE SYSTEMS, INC.. COMPRESSOR,ROTARY
Who is the contractor on this award?
The obligated recipient is MEGGITT DEFENSE SYSTEMS, 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 $5.8 million.
What is the period of performance?
Start: 2025-10-27. End: 2029-12-26.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. Without further documentation, it's impossible to confirm the specific reason. However, sole-source awards warrant scrutiny to ensure they are truly necessary and not a result of inadequate market research or planning.
What are the potential risks associated with a sole-source contract for critical defense components?
Sole-source contracts carry risks such as inflated pricing due to lack of competition, potential supply chain vulnerabilities if the sole provider faces issues, and reduced innovation. For critical defense components, this can impact readiness and operational effectiveness. It also limits the government's leverage in negotiations and can lead to long-term dependency on a single vendor.
How can the effectiveness of this contract be measured given the lack of competition?
Effectiveness can be measured by tracking delivery performance against the schedule, ensuring the compressors meet all technical specifications and quality standards, and monitoring the contractor's responsiveness to any issues. While price cannot be benchmarked against competitors, the government can still assess if the price is reasonable based on internal cost analyses or historical data for similar, albeit potentially different, procurements.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Measuring, Dispensing, and Other Pumping Equipment Manufacturing
Product/Service Code: PUMPS AND COMPRESSORS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0010425RQA92
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Purolator Facet, Inc.
Address: 9801 MUIRLANDS BLVD, IRVINE, CA, 92618
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: $5,827,902
Exercised Options: $5,827,902
Current Obligation: $5,827,902
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-10-27
Current End Date: 2029-12-26
Potential End Date: 2029-12-26 00:00:00
Last Modified: 2025-12-19
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