DoD's $29.8M Contract for Aircraft Parts: A Look at Value, Competition, and Oversight
Contract Overview
Contract Amount: $29,824,045 ($29.8M)
Contractor: Astronics Test Systems Inc
Awarding Agency: Department of Defense
Start Date: 2008-12-24
End Date: 2016-03-31
Contract Duration: 2,654 days
Daily Burn Rate: $11.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION UNITS SETI
Place of Performance
Location: IRVINE, ORANGE County, CALIFORNIA, 92618
Plain-Language Summary
Department of Defense obligated $29.8 million to ASTRONICS TEST SYSTEMS INC for work described as: PRODUCTION UNITS SETI Key points: 1. The contract awarded to Astronics Test Systems Inc. for production units totaled $29.8 million. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract duration was 2,654 days, spanning from 2008 to 2016. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating specialized defense components.
Value Assessment
Rating: fair
The contract value of $29.8 million over nearly 7.5 years suggests a moderate annual spend. Benchmarking against similar contracts for specialized aircraft parts is difficult without more granular data on the specific 'production units' and their complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It implies multiple vendors had the opportunity to bid, potentially driving down costs compared to sole-source or limited competition scenarios.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the exact savings are not quantifiable without a baseline.
Public Impact
Ensures availability of critical aircraft parts for the Department of the Navy. Supports a specific manufacturing sector within the defense industrial base. Long contract duration may indicate a stable, ongoing need for these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data makes value assessment challenging.
- Long contract duration could mask potential inefficiencies or price creep over time.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a single entity, simplifying management.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the aerospace and defense industry. Spending in this area is often driven by specific platform needs and sustainment requirements.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee is Astronics Test Systems Inc., a significant player in the aerospace sector.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms. However, the long duration necessitates ongoing monitoring to ensure continued value and performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (2008-2016).
- Lack of detailed product/unit information.
- No explicit mention of small business participation.
- Potential for inflation/obsolescence over contract life.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to ASTRONICS TEST SYSTEMS INC. PRODUCTION UNITS SETI
Who is the contractor on this award?
The obligated recipient is ASTRONICS TEST 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 $29.8 million.
What is the period of performance?
Start: 2008-12-24. End: 2016-03-31.
What specific 'production units' were procured under this contract, and how do their technical specifications compare to industry standards?
The provided data lacks specifics on the 'production units.' Understanding their technical nature, complexity, and intended use is crucial for a thorough value assessment. Without this, it's difficult to determine if the $29.8 million price tag represents a fair market value or if the units meet the highest industry standards for performance and reliability.
Given the 2008 start date and 2016 end date, what was the actual impact of inflation and technological obsolescence on the contract's value and the utility of the procured units?
A contract spanning nearly eight years is susceptible to inflation and technological advancements. While the firm fixed price mitigates some risk, the real value of the funds expended could have diminished over time due to inflation. Furthermore, the procured units might have faced obsolescence issues towards the end of the contract, potentially impacting their long-term effectiveness and requiring early replacement.
How effectively did the 'full and open competition' process ensure competitive pricing and identify the best value solution for the Department of the Navy?
Full and open competition is generally a strong mechanism for achieving competitive pricing. However, its effectiveness hinges on the number and capability of bidders. Without knowing the number of bids received or the evaluation criteria, it's challenging to definitively assess if the process yielded the absolute best value. The long duration might also suggest a highly specialized need where bidder pool was limited despite open competition.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N6833508R0041
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Astronics Corporation (UEI: 049829302)
Address: 4 GOODYEAR, IRVINE, CA, 92618
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,035,390
Exercised Options: $29,824,045
Current Obligation: $29,824,045
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-24
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2016-04-29
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