DoD awards $43.3M contract to Moog for V-22 actuator support, raising competition concerns
Contract Overview
Contract Amount: $43,318,096 ($43.3M)
Contractor: Moog Military Aircraft LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-09-16
Contract Duration: 720 days
Daily Burn Rate: $60.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF ACTUATOR,ELECTRO-ME IN SUPPORT OF V-22 PLATFORM.
Place of Performance
Location: ELMA, ERIE County, NEW YORK, 14059
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $43.3 million to MOOG MILITARY AIRCRAFT LLC for work described as: PROCUREMENT OF ACTUATOR,ELECTRO-ME IN SUPPORT OF V-22 PLATFORM. Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award limits competitive pricing and innovation. 3. Potential risk of inflated costs due to lack of competition. 4. Sector: Defense manufacturing, specifically aircraft parts.
Value Assessment
Rating: questionable
The contract value of $43.3M for V-22 platform actuators appears substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value or if it's inflated due to the sole-source nature of the award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Moog Military Aircraft LLC. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this critical component could result in the government paying a premium, impacting overall taxpayer value.
Public Impact
Taxpayers may be overpaying for essential V-22 aircraft parts due to a lack of competitive bidding. The sole-source nature of this contract could stifle innovation in actuator technology. Dependence on a single supplier for critical components poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Supply chain risk
Positive Signals
- Supports critical V-22 platform
- Firm fixed price contract type
Sector Analysis
The defense sector, particularly aircraft parts manufacturing, often involves complex, specialized components. While competition can be challenging, sole-source awards require careful justification to ensure fair pricing and value.
Small Business Impact
This award does not appear to include provisions for small business participation, as the prime contractor is Moog Military Aircraft LLC, a large business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this procurement warrants scrutiny to ensure the Department of the Navy adequately justified the lack of competition and obtained the best possible value for taxpayers.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- Risk of supply chain disruption if sole provider fails.
- No clear indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.3 million to MOOG MILITARY AIRCRAFT LLC. PROCUREMENT OF ACTUATOR,ELECTRO-ME IN SUPPORT OF V-22 PLATFORM.
Who is the contractor on this award?
The obligated recipient is MOOG MILITARY AIRCRAFT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $43.3 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-09-16.
What specific justification was provided for awarding this contract on a sole-source basis, and how does it align with federal procurement regulations for non-competitive awards?
Federal regulations permit sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why other potential sources were deemed unsuitable or unavailable, and demonstrate that the government's needs could not be met through competitive means. This ensures that sole-source awards are exceptions, not the rule, and are used only when truly necessary to protect government interests.
How does the unit cost of these actuators compare to similar components procured competitively for other aircraft platforms or previous V-22 contracts?
Benchmarking the unit cost against comparable actuator procurements is crucial for assessing value. If this contract's per-unit cost is significantly higher than those from competitive bids on similar items, it would strongly suggest potential overpricing. Without access to detailed cost breakdowns or comparative data, it's challenging to definitively state the value, but the lack of competition raises a red flag for potential cost inefficiencies.
What is the long-term strategy for ensuring competitive sourcing for V-22 platform components, especially given the critical nature of these parts to aircraft readiness?
The long-term strategy should focus on fostering a more competitive environment for V-22 components. This could involve market research to identify potential new suppliers, encouraging existing suppliers to compete, or exploring alternative technologies. Proactive planning and market engagement are essential to avoid recurring sole-source awards and ensure sustained access to critical parts at competitive prices, thereby enhancing both cost-effectiveness and supply chain resilience.
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
Solicitation ID: N0038324RB243
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Moog Inc
Address: 7021 SENECA ST, ELMA, NY, 14059
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,318,096
Exercised Options: $43,318,096
Current Obligation: $43,318,096
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,098,855
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-09-26
Current End Date: 2027-09-16
Potential End Date: 2027-09-16 00:00:00
Last Modified: 2025-10-15
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