DoD Awards $5.5M Contract for Structural Aircraft Panels to LCF Systems, Inc
Contract Overview
Contract Amount: $5,500,000 ($5.5M)
Contractor: LCF Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2026-01-12
End Date: 2029-03-12
Contract Duration: 1,155 days
Daily Burn Rate: $4.8K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511827674!PANEL,STRUCTURAL,AI
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85260
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $5.5 million to LCF SYSTEMS, INC. for work described as: 8511827674!PANEL,STRUCTURAL,AI Key points: 1. Contract awarded to LCF Systems, Inc. for structural aircraft panels. 2. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited competition. 3. The contract has a duration of 1155 days, ending in March 2029. 4. The North American Industry Classification System (NAICS) code is 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing).
Value Assessment
Rating: fair
The contract value is $5.5 million. Without specific per-unit cost data or benchmarks for similar structural aircraft panels, a precise value assessment is difficult. The firm fixed-price structure provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves limited competition. This method may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for this value range, but potential savings from broader competition may be foregone.
Public Impact
Ensures continued availability of critical structural components for aircraft maintenance and operations. Supports the Defense Logistics Agency's mission to provide logistics support to the U.S. Armed Forces. Impact on small businesses is not explicitly detailed, but the contract is not set-aside for small businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may lead to higher prices.
- Lack of detailed cost breakdown makes value assessment challenging.
- Potential for price increases over the contract duration.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Long-term contract ensures supply chain stability for critical parts.
- Awarded to a single vendor, potentially simplifying management.
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is driven by defense needs and aircraft fleet maintenance requirements. Benchmarks for similar contracts are not readily available without more specific part details.
Small Business Impact
The contract was not set-aside for small businesses, and there is no indication of subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Defense Logistics Agency. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm fixed-price terms to ensure accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price escalation over the contract term.
- Limited competition may not yield best value.
- Dependence on a single supplier for critical components.
- Lack of detailed technical specifications in the award notice.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, az, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to LCF SYSTEMS, INC.. 8511827674!PANEL,STRUCTURAL,AI
Who is the contractor on this award?
The obligated recipient is LCF SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $5.5 million.
What is the period of performance?
Start: 2026-01-12. End: 2029-03-12.
What is the historical pricing performance of LCF Systems, Inc. on similar contracts?
Historical pricing data for LCF Systems, Inc. on comparable structural aircraft panel contracts is not provided in the available information. Analyzing past performance would require accessing procurement databases and comparing unit costs, delivery times, and any documented issues. This would offer insight into their reliability and cost-competitiveness beyond this single award.
What are the specific technical requirements for these structural aircraft panels?
The specific technical requirements for the 'PANEL,STRUCTURAL,AI' are not detailed in the provided data. Understanding these specifications is crucial for assessing the complexity of the manufacturing process, the potential for innovation, and the risks associated with material sourcing or specialized production techniques. This information would also aid in benchmarking against industry standards.
How does the 'COMPETED UNDER SAP' process compare to full and open competition for this type of product?
Competing under Simplified Acquisition Procedures (SAP) generally involves less stringent documentation and outreach than full and open competition. While faster and less burdensome for smaller procurements, it may limit the pool of potential bidders, potentially resulting in less aggressive pricing. For specialized aircraft parts, the effectiveness depends on whether SAP adequately reached all capable sources.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: SPE4A726R0101
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E GELDING DR STE C105, SCOTTSDALE, AZ, 85260
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,500,000
Exercised Options: $5,500,000
Current Obligation: $5,500,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-01-12
Current End Date: 2029-03-12
Potential End Date: 2029-03-12 00:00:00
Last Modified: 2026-01-12
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