DoD awards $4.4M for linear valves, with limited competition and a 999-day duration
Contract Overview
Contract Amount: $4,428,520 ($4.4M)
Contractor: Sargent Aerospace & Defense, LLC
Awarding Agency: Department of Defense
Start Date: 2026-01-09
End Date: 2028-10-04
Contract Duration: 999 days
Daily Burn Rate: $4.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: VALVE,LINEAR,DIRECT
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85743
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $4.4 million to SARGENT AEROSPACE & DEFENSE, LLC for work described as: VALVE,LINEAR,DIRECT Key points: 1. Contract awarded for linear valves, a critical component in fluid control systems. 2. Limited competition suggests potential for higher pricing and reduced innovation. 3. Long contract duration of 999 days may indicate a stable, long-term need. 4. The award is a definitive contract with a firm fixed price, offering cost certainty. 5. Contractor has a track record in aerospace and defense manufacturing. 6. Geographic focus on Arizona for manufacturing or delivery.
Value Assessment
Rating: fair
The contract value of $4.4 million for linear valves over nearly three years appears reasonable given the specialized nature of aerospace and defense components. However, without specific unit cost data or comparisons to similar contracts for identical specifications, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost predictability for the government. Benchmarking against industry standards for similar valve types and quantities would be necessary for a more definitive evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed openly, indicating a limited competition scenario. This could be due to specific technical requirements, existing relationships, or a lack of readily available alternative suppliers meeting the stringent defense specifications. The limited number of bidders, or potentially a single source identified, may have influenced the final negotiated price and could suggest missed opportunities for cost savings through broader market engagement.
Taxpayer Impact: Limited competition can lead to higher costs for taxpayers if alternative, more cost-effective suppliers were not considered or available. It also reduces the government's leverage in price negotiations.
Public Impact
The Department of Defense (Navy) benefits from the acquisition of essential linear valves. These valves are likely critical for operational readiness and maintenance of naval systems. The contract supports manufacturing activities within Arizona. Potential impact on the specialized manufacturing workforce in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Long contract duration could lead to vendor lock-in or reduced flexibility.
- Lack of detailed performance metrics in the provided data makes outcome assessment difficult.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Contractor is an established entity in the aerospace and defense sector.
- Long duration suggests a stable and predictable requirement.
Sector Analysis
This contract falls within the 'Other Metal Valve and Pipe Fitting Manufacturing' sector, a niche within the broader industrial manufacturing landscape. The aerospace and defense industry relies heavily on specialized components like these linear valves, which are crucial for the operation of complex machinery and systems. The market for such components is often characterized by high barriers to entry due to stringent quality and performance requirements, leading to a concentrated supplier base. Comparable spending benchmarks would typically be found within defense procurement data for similar specialized fluid control systems.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false) and does not explicitly mention subcontracting goals for small businesses (sb: false). Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, Sargent Aerospace & Defense, LLC, may engage small businesses as subcontractors, which is not detailed here. Further investigation into subcontracting plans would be needed to assess the broader impact.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which shifts cost risk to the contractor. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Naval Ship Systems
- Defense Industrial Base
- Aerospace Component Manufacturing
- Fluid Control Systems
- Government Fixed-Price Contracts
Risk Flags
- Limited competition
- Long contract duration
- Lack of detailed performance metrics
Tags
defense, department-of-defense, department-of-the-navy, definitive-contract, firm-fixed-price, not-competed, aerospace-and-defense, arizona, manufacturing, valves, industrial-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.4 million to SARGENT AEROSPACE & DEFENSE, LLC. VALVE,LINEAR,DIRECT
Who is the contractor on this award?
The obligated recipient is SARGENT AEROSPACE & DEFENSE, 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 $4.4 million.
What is the period of performance?
Start: 2026-01-09. End: 2028-10-04.
What is the specific application or system for which these linear valves are intended within the Department of Defense?
The provided data does not specify the exact application or system for which these linear valves are intended. However, given the contractor's specialization in aerospace and defense and the 'VALVE,LINEAR,DIRECT' description, they are likely critical components for fluid control systems within naval platforms, such as ships, submarines, or aircraft. These could range from hydraulic systems, fuel lines, or cooling systems, where precise and reliable linear valve operation is essential for mission success and safety. Further details would typically be found in the contract's statement of work or technical specifications.
How does the $4.4 million contract value compare to historical spending on similar linear valves by the Department of Defense?
Without specific historical data on comparable linear valve procurements by the Department of Defense, a direct comparison is difficult. The $4.4 million value over a 999-day period suggests an average annual spend of approximately $1.6 million. This figure needs to be contextualized by the specific type, quantity, and technical specifications of the valves. The 'NOT COMPETED' status also implies that pricing might not have been optimized through market competition, potentially making it higher than if it had been broadly solicited. Benchmarking against similar procurements for specialized defense components would be necessary for a robust comparison.
What are the primary risks associated with a 'NOT COMPETED' contract of this duration?
The primary risks associated with a 'NOT COMPETED' contract of this duration (999 days) include potential overpricing due to lack of market competition, reduced incentive for the contractor to innovate or improve efficiency, and the risk of vendor lock-in. Taxpayers may not receive the best value if alternative suppliers offering comparable quality at a lower price were not considered. Furthermore, a long duration without competitive pressure could lead to complacency from the contractor regarding quality or delivery timelines. The government also loses flexibility to switch to a better-performing or more cost-effective supplier during the contract period.
What is Sargent Aerospace & Defense, LLC's track record with the Department of Defense and similar contracts?
Sargent Aerospace & Defense, LLC is a known entity within the aerospace and defense sector, suggesting a degree of established capability and experience. While the provided data doesn't detail their entire contract history, their presence in this industry implies familiarity with the stringent requirements and quality standards demanded by defense agencies. Their ability to secure this contract, even if not fully competed, indicates they likely possess the necessary certifications, manufacturing capabilities, and past performance that meet the Navy's needs. A deeper dive into their contract award history would reveal the volume and types of previous DoD awards.
What are the implications of the firm fixed-price (FFP) contract type for cost control and risk management?
The Firm Fixed-Price (FFP) contract type is generally favorable for cost control and risk management from the government's perspective. Under an FFP agreement, the contractor assumes the majority of the cost risk, meaning they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides the government with budget certainty and protects against cost overruns. For the contractor, it incentivizes efficiency and cost management to maximize profit. However, for complex or uncertain requirements, an FFP contract can lead to higher initial pricing as the contractor may build in a contingency premium to cover potential risks.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Metal Valve and Pipe Fitting Manufacturing
Product/Service Code: VALVES
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: RBC Bearings Incorporated
Address: 5675 W BURLINGAME RD, TUCSON, AZ, 85743
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: $4,428,520
Exercised Options: $4,428,520
Current Obligation: $4,428,520
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-01-09
Current End Date: 2028-10-04
Potential End Date: 2028-10-04 00:00:00
Last Modified: 2026-01-13
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