DoD Awards $6.5M Contract for Low-Velocity Parachutes to Falcon Engineering Corp
Contract Overview
Contract Amount: $6,492,064 ($6.5M)
Contractor: Falcon Engineering Corp
Awarding Agency: Department of Defense
Start Date: 2025-12-02
End Date: 2027-08-30
Contract Duration: 636 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8511682907!PARACHUTE,LOW-VELOC
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85212
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $6.5 million to FALCON ENGINEERING CORP for work described as: 8511682907!PARACHUTE,LOW-VELOC Key points: 1. Contract awarded to Falcon Engineering Corp for low-velocity parachutes. 2. Defense Logistics Agency is the contracting agency. 3. Contract type is Firm Fixed Price with an estimated value of $6.5M. 4. Competition was full and open after exclusion of sources.
Value Assessment
Rating: good
The contract value of $6.5M for low-velocity parachutes appears reasonable given the duration and the nature of specialized defense equipment. Benchmarking against similar parachute contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential defense equipment, with competition likely ensuring a fair price.
Public Impact
Ensures readiness for military operations requiring parachute deployment. Supports the Defense Logistics Agency's supply chain for critical equipment. Potential for job creation and economic activity within the textile product manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions if Falcon Engineering Corp faces production issues.
- Need to monitor contract performance to ensure timely delivery and quality.
- Reliance on a single awardee for this specific parachute type.
Positive Signals
- Competitive bidding process likely secured a fair price.
- Contract supports a critical national defense need.
- Clear contract duration and delivery schedule.
Sector Analysis
This contract falls within the 'Other Miscellaneous Textile Product Mills' sector, specifically for defense-related equipment. Spending in this niche sector is driven by military procurement needs.
Small Business Impact
The contract was awarded to Falcon Engineering Corp, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The contract is managed by the Defense Logistics Agency, which has established oversight mechanisms for defense procurement. Monitoring performance against the definitive contract terms is crucial for accountability.
Related Government Programs
- All Other Miscellaneous Textile Product Mills
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract duration is substantial (over 2 years).
- Awardee is a single entity.
- Specific details on competition exclusions are not provided.
- No explicit mention of small business subcontracting goals.
Tags
all-other-miscellaneous-textile-product-, department-of-defense, az, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to FALCON ENGINEERING CORP. 8511682907!PARACHUTE,LOW-VELOC
Who is the contractor on this award?
The obligated recipient is FALCON ENGINEERING CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $6.5 million.
What is the period of performance?
Start: 2025-12-02. End: 2027-08-30.
What is the specific technical requirement for these low-velocity parachutes, and how does Falcon Engineering Corp's offering meet it?
The specific technical requirements for these low-velocity parachutes are detailed in the contract's Statement of Work (SOW). These likely include specifications for deployment speed, load capacity, material durability, and environmental resistance. Falcon Engineering Corp's proposal would have been evaluated against these technical criteria to ensure it meets the DoD's operational needs for safe and effective personnel or equipment deployment.
What are the potential risks associated with relying on Falcon Engineering Corp for this critical defense item?
Potential risks include production delays, quality control issues, or financial instability of the contractor. If Falcon Engineering Corp experiences unforeseen challenges, it could impact the DoD's supply chain and operational readiness. The 'full and open competition after exclusion of sources' method, while competitive, still results in a single awardee, concentrating risk.
How effectively does this contract leverage taxpayer funds for essential defense capabilities?
The contract appears to leverage taxpayer funds effectively by utilizing a competitive bidding process, which should drive a fair market price for the low-velocity parachutes. The firm fixed price structure also provides cost certainty. Ensuring the parachutes meet all performance specifications and are delivered on time will be key indicators of effective fund utilization for this defense capability.
Industry Classification
NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SPE4A725R0760
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7665 E VELOCITY WAY, MESA, AZ, 85212
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $6,492,064
Exercised Options: $6,492,064
Current Obligation: $6,492,064
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-02
Current End Date: 2027-08-30
Potential End Date: 2027-08-30 00:00:00
Last Modified: 2026-01-13
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