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: 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
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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