DoD Awards $10.9M for Aircraft Engine Parts, Sole-Source Contract Raises Concerns

Contract Overview

Contract Amount: $10,886,142 ($10.9M)

Contractor: Hamilton Sundstrand Corporation

Awarding Agency: Department of Defense

Start Date: 2022-12-15

End Date: 2026-04-06

Contract Duration: 1,208 days

Daily Burn Rate: $9.0K/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 $10.9 million to HAMILTON SUNDSTRAND CORPORATION for work described as: FUEL CONTROL,MAIN,T Key points: 1. Significant contract value for specialized aircraft engine components. 2. Sole-source award limits competitive pricing and potential savings. 3. Long contract duration (2026) may not reflect current market conditions. 4. Focus on a niche manufacturing sector (NAICS 336412).

Value Assessment

Rating: questionable

The contract value of $10.9M for aircraft engine parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts or market rates for these specialized components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition on this $10.9M contract may result in the government paying more than necessary for critical aircraft engine parts.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation and efficiency from a single supplier. Ensuring the long-term availability and maintenance of critical aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Essential defense procurement
Specific technical requirements met

Sector Analysis

This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this sector is critical for defense readiness, but competitive procurement is key to cost efficiency.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have competed for this requirement.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award is robust and that the pricing is reasonable given the lack of competition.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Long contract duration may not be cost-effective.
Limited transparency in price negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 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 $10.9 million.

What is the period of performance?

Start: 2022-12-15. End: 2026-04-06.

What is the justification for awarding this contract on a sole-source basis, and has it been reviewed for necessity?

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 thorough review by the contracting agency is essential to validate this necessity and ensure it aligns with federal procurement regulations, preventing potential misuse of sole-source authority.

How does the pricing of this sole-source contract compare to industry benchmarks for similar aircraft engine parts?

Benchmarking the pricing of this sole-source contract against industry standards is challenging without access to competitive data. However, the Department of Defense should conduct an independent cost analysis, comparing the proposed prices to historical data for similar parts, commercial price lists if applicable, and other available market intelligence to ensure reasonableness.

What measures are in place to ensure the quality and timely delivery of these critical engine parts under a sole-source arrangement?

Even with a sole-source award, robust quality assurance and performance monitoring are crucial. The contract should include clear performance standards, inspection protocols, and delivery schedules. The government should actively track the contractor's performance against these metrics and have mechanisms for addressing any deviations or quality issues promptly.

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: $10,886,142

Exercised Options: $10,886,142

Current Obligation: $10,886,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038323DSR01

IDV Type: IDC

Timeline