DoD awards $18.9M for Electro-Mechanical Actuators to Moog Inc., a sole-source contract
Contract Overview
Contract Amount: $18,918,239 ($18.9M)
Contractor: Moog Inc
Awarding Agency: Department of Defense
Start Date: 2017-10-20
End Date: 2018-10-19
Contract Duration: 364 days
Daily Burn Rate: $52.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACTUATOR,ELECTRO-ME
Place of Performance
Location: ELMA, ERIE County, NEW YORK, 14059
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to MOOG INC for work described as: ACTUATOR,ELECTRO-ME Key points: 1. Contract awarded to a single supplier, raising questions about price competitiveness. 2. The award is for aircraft parts, a sector with significant defense spending. 3. Lack of competition may lead to higher costs for taxpayers. 4. The contract duration is one year, suggesting a need for ongoing supply.
Value Assessment
Rating: questionable
The contract's value of $18.9M for a one-year duration for aircraft parts needs comparison to similar sole-source awards. Without competitive bidding, it's difficult to ascertain if the 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 method limits price discovery and potentially increases costs compared to a competitive environment.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single supplier could pose supply chain risks. The Department of Defense continues to award significant sole-source contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Awarded to established company
- Specific need for part
Sector Analysis
This award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industry. Spending in this area is substantial, and competitive pricing is crucial for efficient resource allocation.
Small Business Impact
This contract was awarded to Moog Inc., a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification for the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency in pricing
- Supply chain dependency
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to MOOG INC. ACTUATOR,ELECTRO-ME
Who is the contractor on this award?
The obligated recipient is MOOG 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 $18.9 million.
What is the period of performance?
Start: 2017-10-20. End: 2018-10-19.
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 available alternatives. Without further documentation, it's difficult to assess the validity of this justification and whether it truly prevents competition or is a convenient reason to avoid the process.
How does the price compare to similar components procured competitively?
Benchmarking this $18.9M award against similar electro-mechanical actuators procured through competitive bidding is essential. Sole-source contracts often carry a price premium due to the absence of market pressure. A detailed cost analysis would be needed to determine the extent of any overpayment.
What are the long-term implications of relying on a sole-source supplier for critical aircraft parts?
Long-term reliance on a sole-source supplier can create vulnerabilities in the supply chain, increase costs, and reduce innovation. It also limits the government's leverage in negotiations. Diversifying suppliers or fostering competition for future procurements should be a strategic consideration.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 JAMISON RD, EAST AURORA, NY, 14052
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: $18,918,239
Exercised Options: $18,918,239
Current Obligation: $18,918,239
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038315D033N
IDV Type: IDC
Timeline
Start Date: 2017-10-20
Current End Date: 2018-10-19
Potential End Date: 2018-10-19 00:00:00
Last Modified: 2025-04-23
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