DoD awards $3.9M contract for aircraft parts, highlighting sole-source procurement for specialized needs

Contract Overview

Contract Amount: $3,942,640 ($3.9M)

Contractor: Dayton T. Brown, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-05-30

End Date: 2027-03-30

Contract Duration: 669 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FY25 RDT&E M-FOB 1

Place of Performance

Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.9 million to DAYTON T. BROWN, INC. for work described as: FY25 RDT&E M-FOB 1 Key points: 1. Contract awarded to DAYTON T. BROWN, INC. for specialized aircraft parts. 2. Procurement method was 'NOT COMPETED', indicating potential sole-source justification. 3. Contract duration is approximately 22 months, ending March 2027. 4. The contract type is 'COST PLUS FIXED FEE', which can carry cost overrun risks. 5. This award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 6. The contract is a Delivery Order under a larger contract vehicle. 7. The base value is $3.9M, with potential for adjustments based on cost-plus terms.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent contract's terms and the specific parts procured. However, the 'COST PLUS FIXED FEE' structure suggests that the final cost could exceed initial estimates if costs escalate. The absence of competition also limits the ability to assess if the pricing is at market rates. Further analysis would require understanding the necessity of this specific contractor and the criticality of the parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' procedure, which typically implies a sole-source justification. This means the government likely determined that only one contractor could fulfill the requirement, possibly due to proprietary technology, unique capabilities, or urgent needs. The lack of a competitive bidding process means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for these aircraft parts.

Public Impact

The Department of the Navy benefits from the acquisition of essential aircraft parts. This contract supports the operational readiness of naval aviation assets. The services delivered are related to the manufacturing and supply of specialized aircraft components. The geographic impact is primarily within the supply chain and potentially at naval air stations where these parts are utilized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces risk of cost overruns.
Sole-source procurement limits price competition and potentially increases costs.
Lack of transparency in the 'NOT COMPETED' justification requires further scrutiny.
The specific nature of 'Other Aircraft Parts' could imply specialized, potentially expensive components.

Positive Signals

Award to an established entity (DAYTON T. BROWN, INC.) may indicate reliability.
Delivery Order structure suggests it's part of a pre-existing, potentially vetted, contract vehicle.
Contract supports critical Department of Defense aviation needs.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413) encompasses a wide range of components. Spending in this area is critical for maintaining military aviation fleets. Comparable spending benchmarks would typically be found within broader defense procurement data for aircraft components and sustainment.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem through this specific award. The prime contractor's own small business subcontracting plan, if applicable, would be the primary avenue for small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Delivery Order under a larger contract, oversight may be integrated into the parent contract's management. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Agency (DLA) Procurement
Naval Air Systems Command (NAVAIR) Contracts
Aerospace Component Supply Contracts

Risk Flags

Sole-source procurement requires strong justification.
Cost Plus Fixed Fee contracts carry inherent cost overrun risks.
Lack of competition limits price discovery.
Specialized nature of parts may indicate limited supplier base.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.9 million to DAYTON T. BROWN, INC.. FY25 RDT&E M-FOB 1

Who is the contractor on this award?

The obligated recipient is DAYTON T. BROWN, 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 $3.9 million.

What is the period of performance?

Start: 2025-05-30. End: 2027-03-30.

What specific aircraft parts are being procured under this contract, and why are they considered specialized?

The provided data does not specify the exact aircraft parts. However, the NAICS code 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' suggests components beyond standard engines or airframes, potentially including specialized avionics, structural elements, or unique support equipment. The 'NOT COMPETED' status implies these parts may be proprietary, require unique manufacturing processes, or are critical for specific platforms where only one supplier can meet the technical specifications or urgent delivery timelines. Further investigation into the parent contract and associated documentation would be needed to identify the precise items and the rationale for sole-source procurement.

What is the typical cost structure for 'COST PLUS FIXED FEE' contracts in the defense sector, and what are the associated risks?

A Cost Plus Fixed Fee (CPFF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fixed amount of profit (fee). The 'fixed fee' is negotiated at the outset and does not change regardless of the final cost. Risks for the government include potential cost overruns if the contractor's actual costs exceed estimates, as the government is obligated to cover these. The contractor has less incentive to control costs compared to fixed-price contracts, as their profit is fixed. However, it is often used for research and development or complex projects where the scope is not well-defined, allowing flexibility. For taxpayers, the risk lies in the potential for higher final costs than initially projected.

How does the 'NOT COMPETED' status impact the government's ability to secure competitive pricing for aircraft parts?

The 'NOT COMPETED' status, indicating a sole-source or limited competition award, significantly hinders the government's ability to secure competitive pricing. In a competitive environment, multiple bidders vie for the contract, driving prices down through market forces. When competition is absent, the government negotiates with a single provider, potentially leading to higher prices as the contractor faces less pressure to offer the most cost-effective solution. This necessitates a strong justification for the sole-source award and rigorous negotiation by the contracting officer to ensure fair and reasonable pricing, though the absence of alternatives inherently limits leverage.

What is the historical spending pattern for DAYTON T. BROWN, INC. with the Department of Defense, particularly for aircraft parts?

Historical spending data for DAYTON T. BROWN, INC. with the Department of Defense, especially concerning aircraft parts, would require accessing federal procurement databases (like FPDS or SAM.gov). Without direct access to this specific historical data, it's impossible to provide a precise pattern. However, the company's presence in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector suggests a history of supplying such components. Analyzing past contracts awarded to them by DoD agencies would reveal trends in contract types, values, competition levels, and the specific types of parts supplied, offering insights into their track record and pricing consistency.

What are the potential implications of this contract on the broader aerospace parts manufacturing market?

This specific contract, being a sole-source award for a relatively modest sum ($3.9M), is unlikely to have a significant impact on the broader aerospace parts manufacturing market. Its primary implication is for the specific platform or program it supports within the Department of the Navy. However, if this award is indicative of a trend where critical or specialized parts are increasingly being sourced through non-competitive means, it could signal challenges in the supply chain or a consolidation of specialized manufacturing capabilities among a few key players. This could, in turn, affect market dynamics for other potential suppliers and influence future R&D investments in the sector.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1175 CHURCH STREET, BOHEMIA, NY, 11716

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,758,473

Exercised Options: $3,942,640

Current Obligation: $3,942,640

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042123G0005

IDV Type: BOA

Timeline