Air Force awards $31.6M contract for aircraft parts, with a 4-year performance period
Contract Overview
Contract Amount: $31,596,514 ($31.6M)
Contractor: Flightsafety Defense Corporation
Awarding Agency: Department of Defense
Start Date: 2006-08-31
End Date: 2012-05-09
Contract Duration: 2,078 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200611!000143!5700!FA8223!OO-ALC/PKT/YWK !F3365701D2078 !A!N! !N!QP03 ! !20060831!20100430!105699292!046173175!001024314!N!FLIGHTSAFETY SERVICES CORPORAT!10770 E BRIARWOOD AVE STE !CENTENNIAL !CO!80112!12815!005!08!CENTENNIAL !ARAPAHOE !COLORADO !+000027715619!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !5!B!M! !A!C!20100705!B! ! !A! !A!U!J!2!005!B! !A!N!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $31.6 million to FLIGHTSAFETY DEFENSE CORPORATION for work described as: 200611!000143!5700!FA8223!OO-ALC/PKT/YWK !F3365701D2078 !A!N! !N!QP03 ! !20060831!20100430!105699292!046173175!001024314!N!FLIGHTSAFETY SERVICES CORPORAT!10770 E BRIARWOOD AVE STE !CENTENNIAL !CO!80112!12815!005!08!CENTENNIAL !ARAP… Key points: 1. Contract awarded for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' to FlightSafety Defense Corporation. 2. The contract was competed under 'Full and Open Competition After Exclusion of Sources'. 3. Performance period spans from August 31, 2006, to May 9, 2012, totaling over 4 years. 4. The contract type is Firm Fixed Price, indicating predictable costs for the government. 5. The contractor is located in Centennial, Colorado, with the contract administered by the Air Force Sustainment Center. 6. The North American Industry Classification System (NAICS) code is 336413, specific to aircraft parts manufacturing.
Value Assessment
Rating: fair
The total award amount is $31,596,513.60. Without specific benchmarks for this type of aircraft part or comparable contracts, it is difficult to definitively assess value for money. The firm fixed-price nature of the contract helps manage cost certainty for the government. However, the lack of detailed cost breakdowns or comparisons makes a thorough value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, certain sources may have been excluded for specific reasons. The number of bidders is not explicitly stated, but the competition type suggests a limited pool rather than a completely unrestricted process. This could potentially impact price discovery and the extent of cost savings achieved.
Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible prices that could have been achieved through a broader, unrestricted competition.
Public Impact
The primary beneficiaries are entities within the Department of Defense, specifically the Air Force, receiving essential aircraft parts. The contract supports the maintenance and operational readiness of fixed-wing aircraft. The geographic impact is centered around the contractor's location in Centennial, Colorado, and the Air Force units utilizing the parts. The contract supports jobs within the aerospace manufacturing sector, particularly in the specialized area of aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have restricted price optimization.
- Lack of detailed cost breakdown hinders precise value assessment.
- The specific nature of 'Other Aircraft Parts' could imply specialized, potentially higher-cost components.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Contract awarded to a specific entity, indicating a clear supplier relationship.
- The contract duration of over 4 years suggests a stable, long-term need for these parts.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The NAICS code 336413 signifies a specialized segment of manufacturing. The market for aircraft parts is often characterized by high technical requirements, stringent quality control, and long product lifecycles. Comparable spending would involve other contracts for similar aircraft components or maintenance services within the Department of Defense.
Small Business Impact
There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The contract appears to be awarded to a larger entity, FlightSafety Defense Corporation. Further investigation would be needed to determine if any small business subcontracting goals were established or met.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Air Force's contracting and financial management offices. The Air Force Sustainment Center likely plays a role in contract administration. Inspector General investigations could be initiated if any irregularities or fraud were suspected. Transparency is generally facilitated through contract databases, though detailed performance metrics may not always be publicly available.
Related Government Programs
- Aircraft Parts and Auxiliary Equipment Manufacturing
- Aerospace Defense Contracts
- Air Force Sustainment Contracts
- Firm Fixed Price Contracts
Risk Flags
- Limited competition may impact price discovery.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for supply chain disruptions in specialized manufacturing.
Tags
defense, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, aircraft-parts, aerospace, manufacturing, colorado, centennial, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.6 million to FLIGHTSAFETY DEFENSE CORPORATION. 200611!000143!5700!FA8223!OO-ALC/PKT/YWK !F3365701D2078 !A!N! !N!QP03 ! !20060831!20100430!105699292!046173175!001024314!N!FLIGHTSAFETY SERVICES CORPORAT!10770 E BRIARWOOD AVE STE !CENTENNIAL !CO!80112!12815!005!08!CENTENNIAL !ARAPAHOE !COLORADO !+000027715619!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !5!B!M! !A!C!201
Who is the contractor on this award?
The obligated recipient is FLIGHTSAFETY DEFENSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $31.6 million.
What is the period of performance?
Start: 2006-08-31. End: 2012-05-09.
What is the track record of FlightSafety Defense Corporation with government contracts, particularly within the Department of Defense?
FlightSafety Defense Corporation, the contractor for this award, has a history of engaging with government contracts. While the provided data focuses on this specific $31.6 million award for aircraft parts, a comprehensive analysis of their track record would involve examining their performance on other contracts, including their on-time delivery rates, quality of goods/services provided, and any history of contract disputes or terminations. Their presence in the aerospace and defense sector suggests a specialization that aligns with the needs of the Air Force. Further research into contract databases like FPDS or SAM.gov would reveal the full scope of their government contracting history, including other agencies they have served and the types of goods and services they have supplied.
How does the awarded price of $31.6 million compare to similar contracts for aircraft parts or auxiliary equipment?
Benchmarking the $31.6 million award requires identifying comparable contracts for similar aircraft parts or auxiliary equipment. This involves looking at contracts with the same or similar NAICS codes (336413), awarded around the same time period, and for comparable quantities or specifications. Without access to a detailed database of such comparisons, it's challenging to make a precise value-for-money assessment. Factors like the specific type of aircraft, the criticality of the parts, and the complexity of manufacturing all influence pricing. The firm fixed-price nature of this contract suggests cost certainty, but the actual value is best judged against market rates for equivalent items or services procured through similarly competitive processes.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks for this contract include potential supply chain disruptions for specialized aircraft parts, quality control issues that could impact aircraft safety, and cost overruns if the firm fixed-price model does not adequately account for unforeseen manufacturing challenges. Mitigation strategies would typically involve robust quality assurance processes by the contractor, clear performance standards outlined in the contract, and potentially government oversight of production. The 'Full and Open Competition After Exclusion of Sources' might introduce a risk if the exclusion criteria were not fully justified, potentially limiting the competitive landscape. The long performance period also carries a risk of obsolescence if the parts are for aging aircraft systems.
How effective has the Air Force been in managing contracts for aircraft parts and auxiliary equipment, based on historical spending patterns?
Historical spending patterns for aircraft parts and auxiliary equipment by the Air Force reveal a consistent and significant investment in maintaining its fleet. The effectiveness of this management can be assessed through various metrics, including the overall cost trends, the success rate of competitions, the prevalence of sole-source awards, and the frequency of contract modifications or disputes. A high volume of spending suggests a critical need, but it also presents opportunities for cost savings through strategic sourcing and competitive contracting. Analyzing trends in contract values, durations, and types (e.g., fixed-price vs. cost-plus) can indicate whether the Air Force is achieving good value and managing risks effectively over time.
What is the significance of the NAICS code 336413 in understanding the scope and nature of this contract?
The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' is crucial for defining the specific industry and type of goods or services procured under this contract. This code signifies that the contract is for the manufacturing of components and accessories for aircraft, excluding engines and engine parts. Understanding this classification helps in identifying the relevant market, potential competitors, and appropriate benchmarks for pricing and performance. It indicates a specialized manufacturing capability is required, likely involving complex engineering, precise fabrication, and adherence to strict aerospace quality standards.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)
Address: 10770 E BRIARWOOD AVE STE, CENTENNIAL, CO, 06
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: F3365701D2078
IDV Type: IDC
Timeline
Start Date: 2006-08-31
Current End Date: 2012-05-09
Potential End Date: 2012-05-09 00:00:00
Last Modified: 2012-02-22
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