DoD's $3.7M Aircraft Engine Parts Contract Awarded to Hamilton Sundstrand Corporation

Contract Overview

Contract Amount: $3,738,162 ($3.7M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2022-11-07

End Date: 2026-04-06

Contract Duration: 1,246 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUEL CONTROL,MAIN,T

Plain-Language Summary

Department of Defense obligated $3.7 million to HAMILTON SUNDSTRAND CORPORATION for work described as: FUEL CONTROL,MAIN,T Key points: 1. Contract awarded for critical aircraft engine parts. 2. Hamilton Sundstrand Corporation is a significant player in aerospace manufacturing. 3. Potential risk associated with sole-source or limited competition for specialized parts. 4. Spending falls within the broad 'Aircraft Engine and Engine Parts Manufacturing' sector.

Value Assessment

Rating: fair

The contract value of $3.7M over approximately 4 years appears moderate for specialized aircraft components. Without specific unit cost data or comparison to similar contracts for identical parts, a precise value assessment is difficult. However, the firm fixed-price structure offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process. The justification for sole-source should be thoroughly reviewed.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.

Public Impact

Ensures continued operational readiness for Navy aircraft by securing essential engine parts. Supports a key defense contractor, potentially impacting the aerospace supply chain. Raises questions about the availability of alternative suppliers for critical components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price negotiation.
  • Lack of transparency in pricing justification.
  • Potential for overpayment due to non-competitive award.

Positive Signals

  • Ensures availability of critical parts for defense operations.
  • Firm fixed-price contract provides cost predictability.

Sector Analysis

This contract falls under the 'Aircraft Engine and Engine Parts Manufacturing' sector, which is vital for national defense. Spending benchmarks for this niche sector are highly dependent on the specific part and its complexity, making direct comparisons challenging without more detail.

Small Business Impact

The awardee, Hamilton Sundstrand Corporation, is a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors, which is common for highly specialized defense manufacturing.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Navy's contracting officers are responsible for validating the necessity and cost-effectiveness of this award.

Related Government Programs

  • Aircraft Engine and Engine Parts Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award
  • Lack of competitive pricing
  • Potential for cost overruns
  • Limited transparency in justification

Tags

aircraft-engine-and-engine-parts-manufac, department-of-defense, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.7 million to HAMILTON SUNDSTRAND CORPORATION. FUEL CONTROL,MAIN,T

Who is the contractor on this award?

The obligated recipient is HAMILTON SUNDSTRAND CORPORATION.

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: 2022-11-07. End: 2026-04-06.

What is the specific justification for awarding this contract on a sole-source basis, and has a thorough market research been conducted to confirm no other capable sources exist?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A comprehensive market research report should detail the investigation into alternative suppliers and the rationale for concluding that only Hamilton Sundstrand could meet the demand within the required timeframe and specifications.

How does the per-unit cost of these aircraft engine parts compare to industry benchmarks or previous contracts for similar components, especially considering the lack of competition?

Without specific unit cost data and detailed specifications of the parts, a direct comparison is challenging. However, the absence of competition inherently raises concerns about potential price inflation. The government should have conducted a robust price analysis, potentially using historical data, cost realism assessments, or independent government cost estimates, to ensure the negotiated price is fair and reasonable.

What measures are in place to ensure the quality and timely delivery of these critical engine parts, given the sole-source nature of the contract and the potential for complacency?

Quality assurance and timely delivery are typically managed through contract clauses, performance metrics, and government inspection points. For sole-source contracts, the government's oversight role is even more critical. This includes rigorous inspection of deliverables, monitoring contractor performance against established milestones, and potentially incorporating incentives or penalties related to quality and delivery schedules to ensure accountability.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft 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

Parent Company: RTX Corp

Address: 1 HAMILTON RD, WINDSOR LOCKS, CT, 06096

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: $3,738,162

Exercised Options: $3,738,162

Current Obligation: $3,738,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038323DSR01

IDV Type: IDC

Timeline

Start Date: 2022-11-07

Current End Date: 2026-04-06

Potential End Date: 2026-04-06 00:00:00

Last Modified: 2026-01-07

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