Naval Air Warfare Center contract for equipment repair awarded to Hamilton Sundstrand for over $16.4 million

Contract Overview

Contract Amount: $16,400,296 ($16.4M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2004-06-10

End Date: 2015-06-03

Contract Duration: 4,010 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200409!000739!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0221 !A!N! !Y! ! !20040610!20050916!144357381!071767334!001344142!N!HAMILTON SUNDSTRAND CORPORATIO!4400 RUFFIN ROAD !SAN DIEGO !CA!92186!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001596921!N!N!000009894265!J066!MAINT & REPAIR OF EQ/INSTRUMENTS & LAB EQUIPMENT !S1 !SERVICES !000 !* !811219!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!Z!N!Z! ! !Y!C!U! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92186, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to RTX CORPORATION for work described as: 200409!000739!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0221 !A!N! !Y! ! !20040610!20050916!144357381!071767334!001344142!N!HAMILTON SUNDSTRAND CORPORATIO!4400 RUFFIN ROAD !SAN DIEGO !CA!92186!66000!073!06!SAN DIEGO !SAN … Key points: 1. Contract awarded for maintenance and repair of equipment, instruments, and lab equipment. 2. Significant value suggests critical support for naval aviation assets. 3. Sole-source award raises questions about competition and potential cost savings. 4. Long contract duration (over 10 years) indicates a sustained need for these services. 5. Contractor is a subsidiary of RTX Corporation, a major defense contractor. 6. Geographic location of contractor in San Diego, California.

Value Assessment

Rating: questionable

The contract value of $16.4 million for equipment repair and maintenance is substantial. Without specific benchmarks for the types of equipment serviced, it's difficult to definitively assess value for money. However, the sole-source nature of the award suggests a lack of competitive pressure, which could lead to inflated pricing compared to a competitively bid contract. Further analysis would require detailed cost breakdowns and comparisons to similar repair services for comparable naval equipment.

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 solicited. This approach is typically used when only one source is capable of meeting the government's needs, often due to proprietary technology, unique expertise, or urgent requirements. The lack of competition means that the government did not benefit from multiple bids to drive down prices or encourage innovation. The specific justification for the sole-source award is not detailed here but is crucial for understanding why competition was bypassed.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This can also limit opportunities for other qualified businesses to compete for government contracts.

Public Impact

Naval aviation operations benefit from the maintenance and repair of critical equipment. Ensures the readiness and operational capability of naval aircraft and associated systems. Supports specialized technical services within the defense sector. The contractor, Hamilton Sundstrand, likely employs skilled technicians and support staff in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration may indicate a lack of market exploration for alternative solutions.
Lack of detailed performance metrics in the provided data makes it hard to assess service quality.
Contract type (Firm Fixed Price) can shift risk to the government if scope creep occurs without modification.

Positive Signals

Contract awarded to a known entity (Hamilton Sundstrand, part of RTX) suggesting established capabilities.
Firm Fixed Price contract provides cost certainty for the government, assuming scope is well-defined.
The contract addresses a critical need for maintenance and repair of essential equipment.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on maintenance, repair, and overhaul (MRO) services for electronic and precision equipment. The MRO market within defense is substantial, driven by the need to maintain complex and aging military assets. Comparable spending benchmarks would involve analyzing other MRO contracts for naval aviation or similar defense platforms, considering the specific types of equipment and the level of service required.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss=false) and does not explicitly mention subcontracting plans for small businesses. As a sole-source award to a large corporation (RTX), it is unlikely to have direct small business set-aside provisions. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small businesses for subcontracting, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management structure, likely through the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is often limited for sole-source awards, but contract awards are generally reported in federal databases. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Air Systems Command (NAVAIR) contracts
Defense Contract Management Agency (DCMA) oversight
Aerospace Maintenance and Repair Services
RTX Corporation (formerly Raytheon Technologies) contracts
Sole-source defense procurements

Risk Flags

Sole-source award may indicate limited competition.
Contract duration is lengthy, requiring sustained oversight.
Specific performance metrics not detailed in summary data.
Potential for cost inefficiencies due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to RTX CORPORATION. 200409!000739!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0221 !A!N! !Y! ! !20040610!20050916!144357381!071767334!001344142!N!HAMILTON SUNDSTRAND CORPORATIO!4400 RUFFIN ROAD !SAN DIEGO !CA!92186!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001596921!N!N!000009894265!J066!MAINT & REPAIR OF EQ/INSTRUMENTS & LAB EQUIPMENT !S1 !SERVICES !000 !* !811219!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is RTX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2004-06-10. End: 2015-06-03.

What specific types of equipment and instruments were covered under this maintenance and repair contract?

The provided data categorizes the service under NAICS code 811219, described as 'Other Electronic and Precision Equipment Repair and Maintenance'. This broad category suggests a range of equipment, likely including avionics, sensors, communication systems, and other specialized electronic or precision instruments integral to naval aircraft operations. Without more specific contract line item details, the exact inventory of equipment serviced remains unspecified. However, given the 'NAVAL AIR WARFARE CENTER' as the issuing entity, the focus would be on equipment critical for air warfare capabilities, encompassing both operational and testing/laboratory instruments.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED' (ct=NOT COMPETED), indicating a sole-source or limited competition award. The specific justification for this sole-source determination is not provided in the abbreviated data. Typically, sole-source awards require a formal justification from the agency, citing reasons such as unique capabilities of the contractor, proprietary technology, urgent and compelling needs where only one source can fulfill the requirement, or a lack of other responsible sources. For this contract, the Naval Air Warfare Center would have documented the rationale, which is often available through agency procurement records upon request.

How does the total contract value of over $16.4 million compare to similar equipment repair contracts within the Navy or DoD?

Comparing the $16.4 million value requires context regarding the scope and duration. This contract spanned from June 10, 2004, to June 3, 2015 (over 11 years), with a duration of 4010 days. While substantial, its 'value for money' is difficult to assess without knowing the specific equipment maintained and the complexity of repairs. Larger naval platforms or fleets might have MRO contracts in the hundreds of millions or billions. However, for a specific set of equipment or a particular warfare center's needs, $16.4 million over a decade could represent a significant, but not necessarily outlier, expenditure. Benchmarking would involve identifying contracts with similar NAICS codes (811219) and similar issuing agencies (e.g., other Naval commands) to gauge typical spending levels.

What is the track record of Hamilton Sundstrand (now part of RTX) in fulfilling similar defense maintenance and repair contracts?

Hamilton Sundstrand, now integrated into RTX's Collins Aerospace division, has a long history as a major defense contractor. They are known for providing systems and services for a wide range of military aircraft, including engines, avionics, and environmental control systems. Their track record in fulfilling complex maintenance and repair contracts for the Department of Defense is generally extensive. While specific performance metrics for this particular contract are not detailed here, RTX's overall standing suggests a capacity to handle such requirements. Past performance evaluations and contract histories within federal procurement databases would offer more granular insights into their specific performance on similar agreements.

What were the potential risks associated with this contract, and how were they managed?

Potential risks for this contract could include cost overruns (though mitigated by Firm Fixed Price), schedule delays impacting naval readiness, performance issues leading to equipment failures, and contractor dependency. Given the sole-source nature, a key risk is the lack of competitive pricing. Management of these risks would typically involve stringent oversight by the Naval Air Warfare Center and DCMA, clear performance metrics and deliverables outlined in the contract, and potentially phased payments tied to milestones. The long duration also presents risks related to technological obsolescence or changes in requirements, which would need to be managed through contract modifications or reviews.

How has spending on 'Other Electronic and Precision Equipment Repair and Maintenance' (NAICS 811219) evolved within the Department of Defense over time?

Spending within NAICS code 811219 by the Department of Defense has generally trended upwards over the past two decades, reflecting the increasing complexity and aging of military hardware. As defense platforms become more sophisticated, the need for specialized maintenance and repair services grows. Factors influencing this trend include modernization programs, sustainment requirements for existing fleets, and the outsourcing of maintenance functions to specialized contractors. While this specific contract represents a single data point from 2004-2015, broader DoD spending patterns show a consistent demand for these types of services across various branches and warfare centers.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: RTX Corp (UEI: 001344142)

Address: 4400 RUFFIN ROAD, SAN DIEGO, CA, 92186

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline