DoD awards $851M+ for Manifold Assemblies, with PTI Technologies Inc. securing a significant portion

Contract Overview

Contract Amount: $1,995,625 ($2.0M)

Contractor: PTI Technologies Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-09

End Date: 2028-02-10

Contract Duration: 762 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511840634!MANIFOLD ASSEMBLY,H

Place of Performance

Location: OXNARD, VENTURA County, CALIFORNIA, 93030

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to PTI TECHNOLOGIES INC. for work described as: 8511840634!MANIFOLD ASSEMBLY,H Key points: 1. Contract value exceeds $851 million, indicating substantial demand for manifold assemblies. 2. PTI Technologies Inc. is a key contractor, suggesting a concentrated market for these components. 3. The contract's duration of over two years points to a sustained need for these parts. 4. Fixed-price contract type aims to control costs, but requires careful monitoring of performance. 5. The award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 6. Competition dynamics for this specific component require further investigation to assess value. 7. Geographic concentration in California may indicate a hub for related manufacturing or operations.

Value Assessment

Rating: fair

The total award value of over $851 million for manifold assemblies is significant. Benchmarking this against similar contracts for specialized aerospace components is crucial. Without specific per-unit cost data or comparison to market rates, a definitive value-for-money assessment is challenging. The firm fixed-price structure suggests an attempt to manage costs, but the overall price needs to be evaluated against the technical specifications and expected lifespan of the manifold assemblies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically implies smaller dollar values or specific circumstances allowing for less formal competition. The number of bidders is not specified, making it difficult to assess the level of competition. If SAP was used for a contract of this magnitude, it raises questions about whether a broader competition could have yielded better pricing or more innovative solutions.

Taxpayer Impact: The use of SAP for a contract potentially exceeding $851 million warrants scrutiny to ensure taxpayers received the best possible value through adequate price competition.

Public Impact

The Department of Defense is the primary beneficiary, ensuring operational readiness of aircraft. Manifold assemblies are critical components for various aircraft systems, supporting flight operations. The contract's performance period extends into 2028, ensuring a steady supply chain. Manufacturing and related support activities may create or sustain jobs within the aerospace sector, particularly in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of robust competition due to SAP usage for a large contract.
Limited transparency on the number of bidders and the evaluation process.
Firm fixed-price contracts can lead to contractor risk if costs escalate unexpectedly.
Dependence on a single contractor (PTI Technologies Inc.) for a significant portion of the requirement.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Long-term contract duration ensures supply chain stability for critical components.
Award to an established company (PTI Technologies Inc.) may indicate reliability.
Contract performance period extends over two years, allowing for phased delivery and potential performance monitoring.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized components like manifold assemblies is often characterized by high technical barriers to entry and a limited number of qualified suppliers. Spending in this area is driven by military readiness requirements and the lifecycle support of existing aircraft fleets. Comparable spending benchmarks would involve analyzing other large-value contracts for similar aircraft components awarded by the DoD or other defense agencies.

Small Business Impact

The provided data indicates that small business participation (sb: false) and set-asides (ss: false) were not explicitly part of this award. This suggests that the contract was not specifically targeted towards small businesses. There is no information on subcontracting plans, which could potentially involve small businesses. The absence of small business considerations in the primary award may limit opportunities for smaller firms in this segment of the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and potentially the Defense Contract Audit Agency (DCAA). The Inspector General of the Department of Defense would have jurisdiction for audits and investigations into fraud, waste, or abuse. Transparency is dependent on the level of detail made public regarding the contract's performance and any associated audits or reviews.

Related Government Programs

Aircraft Component Manufacturing
Defense Logistics Agency Procurement
Aerospace Parts Contracts
Department of Defense Supply Chain Management
Fixed-Price Defense Contracts

Risk Flags

Potential for inadequate competition due to SAP.
Lack of transparency regarding bidder numbers.
Risk of cost overruns for contractor impacting performance.
Need for robust quality assurance on critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to PTI TECHNOLOGIES INC.. 8511840634!MANIFOLD ASSEMBLY,H

Who is the contractor on this award?

The obligated recipient is PTI TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2026-01-09. End: 2028-02-10.

What is the historical spending pattern for manifold assemblies by the Defense Logistics Agency?

Analyzing historical spending patterns for manifold assemblies by the Defense Logistics Agency (DLA) is crucial for understanding the context of this $851 million award. Without specific historical data, it's difficult to determine if this represents an increase, decrease, or stable level of expenditure. Trends in DLA spending on similar components can reveal shifts in aircraft fleet maintenance needs, technological upgrades, or changes in procurement strategies. A review of past contracts, including their values, durations, and awarded contractors, would provide insights into market dynamics and potential price fluctuations over time. Understanding historical spending also helps in identifying if this award is part of a larger, multi-year procurement strategy or a response to a sudden surge in demand.

How does the pricing of this contract compare to similar manifold assembly contracts awarded to PTI Technologies Inc. or other suppliers?

Comparing the pricing of this $851 million contract to similar manifold assembly contracts is essential for assessing value for money. This involves identifying comparable contracts awarded to PTI Technologies Inc. in the past, as well as contracts for similar components awarded to other manufacturers. Key metrics for comparison would include the price per unit, considering factors like material, complexity, and volume. Benchmarking against market rates for comparable aerospace components, if available, would also provide valuable context. A significant deviation from historical pricing or market benchmarks could indicate potential issues with cost-effectiveness or suggest that the specific technical requirements of this contract justify a higher price point. Without access to detailed pricing data and specific contract comparisons, a definitive assessment remains challenging.

What are the specific risks associated with a firm fixed-price contract of this magnitude and duration?

A firm fixed-price (FFP) contract of this magnitude ($851M+) and duration (over two years) carries inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or performance to maximize profit if costs exceed initial estimates, especially if oversight is insufficient. Conversely, the contractor bears the risk of cost overruns. If the actual costs of materials, labor, or unforeseen production issues exceed what was factored into the fixed price, PTI Technologies Inc. could face reduced profitability or even losses. Effective risk mitigation requires robust contract administration, clear performance metrics, and diligent monitoring of the contractor's financial health and production quality throughout the contract lifecycle.

What is the expected impact of this contract on the overall readiness and operational capability of the specific aircraft platforms it supports?

This contract for manifold assemblies, valued at over $851 million, is directly linked to the operational readiness and capability of the aircraft platforms that utilize these components. Manifold assemblies are critical for the proper functioning of various aircraft systems, such as hydraulic, fuel, or environmental control systems. Ensuring a steady and reliable supply of these parts through this contract helps the Department of Defense maintain its fleet, reduce downtime for maintenance and repairs, and ultimately ensure that aircraft are available when needed for missions. The contract's duration extending to February 2028 suggests a long-term commitment to supporting these specific aircraft, implying their continued importance in the DoD's operational inventory.

How does the use of Simplified Acquisition Procedures (SAP) for a contract of this size align with standard procurement practices?

The use of Simplified Acquisition Procedures (SAP) for a contract potentially exceeding $851 million raises questions regarding standard procurement practices. SAP is generally intended for acquisitions below the simplified acquisition threshold (SAT), which is currently $250,000, though certain exceptions and higher thresholds exist for specific circumstances like commercial items or certain agency-specific authorities. For a contract of this magnitude, one would typically expect a more formal, full and open competition process to ensure maximum price competition and transparency. If SAP was indeed utilized, it suggests either a specific justification for its use (e.g., unique circumstances, specific types of goods/services) or a potential deviation from standard competitive bidding norms, warranting further investigation into the rationale behind this procurement approach.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 501 DEL NORTE BLVD, OXNARD, CA, 93030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,995,625

Exercised Options: $1,995,625

Current Obligation: $1,995,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline