DoD awards $3.6M for Aircraft Engine Parts to Woodward, Inc. via sole-source delivery order
Contract Overview
Contract Amount: $3,664,645 ($3.7M)
Contractor: Woodward, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-02-08
End Date: 2024-02-08
Contract Duration: 365 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FUEL CONTROL,MAIN,T
Place of Performance
Location: LOVES PARK, WINNEBAGO County, ILLINOIS, 61111
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $3.7 million to WOODWARD, INC. for work described as: FUEL CONTROL,MAIN,T Key points: 1. Significant contract value for specialized aircraft engine components. 2. Sole-source award raises questions about competition and potential price inflation. 3. Risk associated with single supplier dependency for critical defense parts. 4. Manufacturing sector focus on high-precision aerospace components.
Value Assessment
Rating: questionable
The contract value of $3.66 million for aircraft engine parts is difficult to assess without specific component details and market benchmarks. The sole-source nature prevents direct comparison with similar competitively awarded contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source delivery order, indicating no competition was sought. This method limits price discovery and may lead to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award potentially results in taxpayers paying a premium for these critical aircraft engine parts.
Public Impact
Ensures continued operational readiness for naval aircraft by securing essential engine parts. Potential for increased costs due to the absence of competitive bidding. Highlights reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Single supplier dependency
Positive Signals
- Ensures availability of critical parts
- Supports defense readiness
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized area within defense manufacturing. Spending in this sector is driven by the need for advanced technology and reliable components for military aviation.
Small Business Impact
The awardee, Woodward, Inc., is a large business. There is no indication that small businesses were involved in this specific sole-source award, nor is there a clear opportunity for them to participate under this contract structure.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, and that future opportunities for competition are explored.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Dependency on a single supplier.
- Lack of transparency in price negotiation.
- No clear small business participation.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.7 million to WOODWARD, INC.. FUEL CONTROL,MAIN,T
Who is the contractor on this award?
The obligated recipient is WOODWARD, 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 $3.7 million.
What is the period of performance?
Start: 2023-02-08. End: 2024-02-08.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must still conduct price analysis, using historical data, commercial price lists, or other methods, to ensure the price is fair and reasonable. Documentation of this analysis is crucial for accountability.
What is the risk associated with relying on a single supplier for these critical aircraft engine parts, especially in a dynamic geopolitical environment?
Reliance on a single supplier creates significant supply chain risk. Disruptions due to the supplier's operational issues, financial instability, or geopolitical factors could ground aircraft, impacting readiness. Diversification strategies or robust contingency planning are essential to mitigate such risks.
How does this sole-source award impact the overall cost-effectiveness of the Department of the Navy's aircraft maintenance and sustainment programs?
Sole-source awards generally reduce cost-effectiveness due to the absence of competitive pressure. Without competition, prices may be higher than market rates, increasing the overall sustainment costs for the Navy. This can divert funds from other critical areas or necessitate budget increases.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINE ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5001 N 2ND ST, LOVES PARK, IL, 61111
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: $3,664,645
Exercised Options: $3,664,645
Current Obligation: $3,664,645
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: N0038323DDN01
IDV Type: IDC
Timeline
Start Date: 2023-02-08
Current End Date: 2024-02-08
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-01-14
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