DoD's $19.6M contract for mechanical actuators awarded to Triumph Gear Systems Inc. without competition

Contract Overview

Contract Amount: $19,591,643 ($19.6M)

Contractor: Triumph Gear Systems Inc

Awarding Agency: Department of Defense

Start Date: 2024-02-27

End Date: 2026-08-31

Contract Duration: 916 days

Daily Burn Rate: $21.4K/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 $19.6 million to TRIUMPH GEAR SYSTEMS INC for work described as: ACTUATOR,MECHANICAL Key points: 1. Contract awarded on a firm-fixed-price basis, indicating price certainty. 2. The contract duration of 916 days suggests a significant, long-term need. 3. Awarded as a delivery order under a larger contract vehicle. 4. The North American Industry Classification System (NAICS) code 336413 points to aircraft parts manufacturing. 5. The contract is not set aside for small businesses. 6. The contractor, Triumph Gear Systems Inc., is a significant player in aerospace manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this $19.6 million contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source procurements. The firm-fixed-price structure offers some cost control, but the lack of competition raises concerns about whether the government secured the best possible price. Without competitive bids, it's difficult to assess if the pricing is aligned with market rates for specialized mechanical actuators.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition limits the government's ability to leverage market forces to drive down costs and potentially explore innovative solutions from a wider range of vendors.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. The government may pay a premium when competition is absent.

Public Impact

The Department of the Navy benefits from the acquisition of critical mechanical actuators for its aircraft. This contract supports the operational readiness and maintenance of naval aviation assets. The contract is geographically located in Utah (UT), indicating a concentration of economic activity and potential job creation in that state. The aerospace manufacturing workforce in Utah may see direct or indirect employment benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential new entrants.
Dependence on a single supplier could create supply chain risks.
Limited transparency into the pricing justification due to non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost certainty once awarded.
The contractor is an established entity with presumed expertise in the field.
The contract duration suggests a stable, long-term supply of critical components.

Sector Analysis

The aerospace parts manufacturing sector is highly specialized and often characterized by complex supply chains and stringent quality requirements. Companies like Triumph Gear Systems Inc. operate within a market that demands high technical expertise and adherence to rigorous standards. This contract for mechanical actuators fits within the broader defense industrial base, specifically supporting aircraft maintenance and production. Comparable spending benchmarks are difficult to establish without more specific details on the actuator's function and specifications, but the defense sector frequently procures high-value components for its advanced platforms.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to a large, established contractor like Triumph Gear Systems Inc. suggests that the primary focus was on securing specialized capabilities rather than promoting small business participation. This could mean limited opportunities for small businesses to engage directly with this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, making detailed public scrutiny of the pricing justification more difficult. The Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Aircraft Procurement
Naval Aviation Maintenance and Sustainment Programs
Aerospace Component Manufacturing Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Potential for non-competitive pricing
Limited transparency on cost justification
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 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 $19.6 million.

What is the period of performance?

Start: 2024-02-27. End: 2026-08-31.

What is the specific function and criticality of these mechanical actuators for naval aircraft?

The provided data identifies the contract as being for 'ACTUATOR, MECHANICAL' under NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). While the exact function isn't detailed, mechanical actuators are critical components in aircraft systems, responsible for moving or controlling mechanical components. In naval aviation, these could be involved in flight control surfaces (like ailerons, elevators, rudders), landing gear deployment, wing folding mechanisms, or other essential operational systems. Their criticality stems from their direct impact on aircraft performance, safety, and mission capability. Failure of a critical actuator could lead to loss of control or mission failure, underscoring the importance of reliable sourcing and maintenance.

How does the $19.6 million value compare to similar sole-source procurements for aircraft actuators?

Direct comparison of the $19.6 million value for this sole-source contract to similar procurements is challenging without more specific details on the type, complexity, and quantity of actuators. Sole-source awards, by their nature, lack a competitive benchmark, making it difficult to ascertain if the price is optimal. However, the aerospace industry, particularly for defense applications, often involves high-value, specialized components. The duration of the contract (916 days) suggests a substantial quantity or a long-term supply agreement, which could justify a significant dollar amount. Further analysis would require access to historical sole-source awards for comparable components or detailed cost breakdowns from the contractor.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $19.6 million contract on a sole-source basis include potential overpayment due to the absence of competitive pricing, reduced incentive for the contractor to innovate or offer cost efficiencies, and increased supply chain vulnerability if the sole source faces production issues or business failure. Taxpayers may not receive the best value for their money. Furthermore, it limits the government's ability to explore alternative technologies or suppliers that might offer better performance or lower lifecycle costs. The lack of competition also reduces transparency in the procurement process, making it harder to justify the expenditure publicly.

What is Triumph Gear Systems Inc.'s track record with the Department of Defense, particularly for similar components?

Triumph Gear Systems Inc. is a known entity within the aerospace manufacturing sector and has a history of supplying components to defense contractors and government agencies. While specific details on their track record for mechanical actuators under sole-source DoD contracts are not provided in the abbreviated data, their presence in the industry suggests established capabilities. A deeper dive into contract databases (like SAM.gov or FPDS) would reveal their past performance ratings, the types of contracts they have held, and their history of delivering on time and to specification for the DoD. Their role as a supplier to major aerospace primes often indicates a level of quality and reliability expected by the industry.

What are the potential implications for future competition if this sole-source award is extended or repeated?

If this sole-source award is extended or repeated without re-evaluating competitive options, it could solidify Triumph Gear Systems Inc.'s position as the sole provider for these specific actuators in the eyes of the Department of the Navy. This could deter potential competitors from investing in the necessary capabilities or certifications, assuming future awards will also be sole-source. Over time, this can lead to a less dynamic market, potentially higher prices in the long run, and reduced government leverage. It is crucial for the agency to periodically assess if the conditions justifying a sole-source award still exist and to actively seek opportunities to introduce competition where feasible.

How does the firm-fixed-price (FFP) contract type mitigate risks in a sole-source scenario?

The firm-fixed-price (FFP) contract type is beneficial in a sole-source scenario as it shifts the majority of the cost risk to the contractor. This means that Triumph Gear Systems Inc. is obligated to deliver the specified mechanical actuators for the agreed-upon price, regardless of their actual costs incurred. This provides the government with significant cost certainty, preventing unexpected cost overruns that could occur with cost-reimbursement contracts. While it doesn't address the risk of paying a non-competitive price, the FFP structure ensures that the total expenditure for the defined scope of work remains fixed, simplifying budget management and financial planning for the Department of the Navy.

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

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: $19,591,643

Exercised Options: $19,591,643

Current Obligation: $19,591,643

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038322GS801

IDV Type: BOA

Timeline