DoD's $20M Mechanical Actuator Contract Awarded to Triumph Gear Systems Inc. with No Competition

Contract Overview

Contract Amount: $20,109,493 ($20.1M)

Contractor: Triumph Gear Systems Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-08

End Date: 2026-01-31

Contract Duration: 1,272 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACTUATOR,MECHANICAL

Place of Performance

Location: PARK CITY, SUMMIT County, UTAH, 84098

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to TRIUMPH GEAR SYSTEMS INC for work described as: ACTUATOR,MECHANICAL Key points: 1. The contract for mechanical actuators is valued at $20,010,949.01. 2. Triumph Gear Systems Inc. is the sole awardee, indicating a lack of competition. 3. The award method is 'NOT COMPETED', raising potential concerns about price discovery. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a specialized area.

Value Assessment

Rating: questionable

The contract value of $20M for mechanical actuators is significant. Without competitive bidding, it's difficult to assess if this price is optimal or if it represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis ('NOT COMPETED'). This limits price discovery and may lead to higher costs for taxpayers as there was no opportunity for multiple vendors to bid.

Taxpayer Impact: The lack of competition could result in the government paying a premium for these mechanical actuators, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for critical aircraft components due to the absence of competitive bidding. The reliance on a single supplier could create supply chain vulnerabilities for the Department of Defense. Future procurements in this specialized manufacturing sector might continue to lack competition if not addressed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for overpayment

Positive Signals

Award to established supplier
Supports critical defense needs

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area can be high due to specialized requirements and limited suppliers, making competitive sourcing crucial.

Small Business Impact

The awardee, Triumph Gear Systems Inc., is not identified as a small business. This contract does not appear to include provisions or set-asides for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement is valid and that the pricing is reasonable. Accountability for the lack of competition is essential.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing.
Lack of transparency in award justification.
Risk of supply chain dependency.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to TRIUMPH GEAR SYSTEMS INC. ACTUATOR,MECHANICAL

Who is the contractor on this award?

The obligated recipient is TRIUMPH GEAR 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 $20.1 million.

What is the period of performance?

Start: 2022-08-08. End: 2026-01-31.

What is the justification for awarding this contract on a sole-source basis, and has the government explored all avenues for competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific details on this contract's justification, it's impossible to definitively state if all avenues for competition were explored. However, the 'NOT COMPETED' designation suggests that, at the time of award, competition was deemed impractical or impossible by the contracting agency.

How does the pricing of this $20M contract compare to industry benchmarks for similar mechanical actuators, given the lack of competitive bids?

Assessing the pricing without competitive bids is challenging. The government likely relied on historical pricing, cost analysis, or negotiation with the sole source. However, without a competitive process, there's an inherent risk that the price may not reflect the lowest achievable market rate. Benchmarking against similar, competitively awarded contracts would be necessary for a true comparison.

What are the potential long-term risks associated with awarding a significant contract like this without competition to a single supplier?

Long-term risks include potential price escalation in future contracts, reduced innovation due to lack of market pressure, and increased vulnerability to supply chain disruptions if the sole supplier faces issues. It can also set a precedent, discouraging competition in subsequent procurements within this specialized sector.

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

Solicitation ID: N0038322RB181

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Triumph Group, Inc.

Address: 6125 SILVER CREEK DR, PARK CITY, UT, 84098

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: $20,109,493

Exercised Options: $20,109,493

Current Obligation: $20,109,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038322GS801

IDV Type: BOA

Timeline