DoD Awards $10.4M for Observer Seat Kits, KIHOMAC Inc. Secures Contract
Contract Overview
Contract Amount: $10,447,387 ($10.4M)
Contractor: Kihomac Inc
Awarding Agency: Department of Defense
Start Date: 2023-09-20
End Date: 2027-03-09
Contract Duration: 1,266 days
Daily Burn Rate: $8.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OBSERVER SEAT KIT FABRICATION
Place of Performance
Location: LAYTON, DAVIS County, UTAH, 84041
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to KIHOMAC INC for work described as: OBSERVER SEAT KIT FABRICATION Key points: 1. Contract value of $10.4M for observer seat kits. 2. KIHOMAC Inc. is the sole awardee. 3. Potential risks include limited competition and price escalation. 4. Spending falls under the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $10.4M for observer seat kits appears reasonable given the duration and scope. However, without specific per-unit cost data or benchmarks for similar kits, a definitive assessment of value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific award mechanism (Delivery Order) and the absence of detailed pricing information make it difficult to assess the effectiveness of price discovery.
Taxpayer Impact: Taxpayer funds are being used for aircraft component fabrication. The competitive award process aims to ensure fair pricing, but ongoing monitoring is needed to confirm value.
Public Impact
Enhances operational capabilities for military aircraft. Supports the Department of the Navy's aviation readiness. Contributes to the aerospace manufacturing supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data.
- Potential for price creep over the contract duration.
- Limited visibility into the specific components and complexity of the kits.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost overruns.
- Long-term contract provides stable supply.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for maintaining and upgrading military aviation fleets. Benchmarks for similar component fabrication contracts would provide better context for cost-effectiveness.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The firm fixed price contract type provides some accountability for cost. However, detailed performance metrics and quality assurance reports are essential for comprehensive oversight.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition data available.
- Potential for price escalation over contract duration.
- Lack of detailed per-unit cost breakdown.
- No clear indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to KIHOMAC INC. OBSERVER SEAT KIT FABRICATION
Who is the contractor on this award?
The obligated recipient is KIHOMAC 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 $10.4 million.
What is the period of performance?
Start: 2023-09-20. End: 2027-03-09.
What is the average per-unit cost for similar observer seat kits across other defense contracts?
Determining the average per-unit cost for similar observer seat kits requires access to a broader dataset of defense contracts and detailed specifications for the kits. Without this comparative data, it's difficult to establish a precise benchmark. However, factors like material costs, labor, complexity, and required certifications significantly influence pricing in the aerospace sector.
What are the primary risks associated with the long-term nature of this contract?
The primary risks associated with the long-term nature of this contract include potential price escalation due to inflation or material cost fluctuations, and the possibility of technological obsolescence of the observer seat kits over the contract's duration. Additionally, a prolonged contract could reduce flexibility to adopt newer, potentially more effective or cost-efficient solutions if they emerge.
How effectively does the firm fixed price contract type ensure value for taxpayer money in this specific instance?
The firm fixed price contract type is designed to transfer risk to the contractor, ensuring that the government pays a predetermined price regardless of actual costs incurred. This promotes cost certainty for the taxpayer. However, its effectiveness in ensuring value hinges on the initial price negotiation and the contractor's ability to manage costs efficiently without compromising quality.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042118R0054
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kihomac, Inc.
Address: 2100 RESTON PKWY STE 310, RESTON, VA, 20191
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $10,447,388
Exercised Options: $10,447,388
Current Obligation: $10,447,387
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $2,104,414
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042120D0109
IDV Type: IDC
Timeline
Start Date: 2023-09-20
Current End Date: 2027-03-09
Potential End Date: 2027-03-09 00:00:00
Last Modified: 2025-12-22
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