DoD awards $2.8M for structural panels, with 14 bidders vying for the contract

Contract Overview

Contract Amount: $2,870,006 ($2.9M)

Contractor: Jemco Components & Fabrication, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-20

End Date: 2026-05-14

Contract Duration: 814 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8510455815!PANEL,STRUCTURAL,AI

Place of Performance

Location: NEVADA, VERNON County, MISSOURI, 64772

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $2.9 million to JEMCO COMPONENTS & FABRICATION, INC. for work described as: 8510455815!PANEL,STRUCTURAL,AI Key points: 1. The contract value appears reasonable given the competitive nature of the award. 2. Strong competition suggests potential for favorable pricing and innovation. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This award supports the sustainment of critical aircraft components. 5. The supplier is positioned within the aerospace manufacturing sector. 6. The duration of the contract aligns with expected operational needs.

Value Assessment

Rating: good

The award of $2.8 million for structural panels seems competitive given the 14 bids received. While a direct per-unit cost comparison is not available without more detailed specifications, the number of bidders suggests a healthy market. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 14 bidders submitting proposals. This high level of competition is a strong indicator of a robust market for these specialized structural panels. The extensive bidding process likely drove down prices and ensured the government received a technically sound and cost-effective solution.

Taxpayer Impact: The broad competition benefits taxpayers by ensuring the government secured the best possible price and quality for these essential aircraft components, minimizing the risk of overpayment.

Public Impact

The Department of Defense benefits from the supply of critical structural panels for aircraft. This contract ensures the continued airworthiness and operational readiness of military aircraft. The contract's impact is primarily within the defense logistics and aerospace manufacturing sectors. Workforce implications are likely within specialized manufacturing and fabrication roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if JEMCO Components & Fabrication, Inc. faces production issues.
Dependence on a single supplier for a critical component could pose a long-term risk.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for multiple qualified suppliers.
Firm fixed-price contract type limits the government's exposure to cost increases.
The contract duration of over two years suggests a stable supply chain and production capability.
The supplier has secured a significant contract, indicating a level of trust and capability.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. The market for structural components is characterized by stringent quality requirements and specialized manufacturing processes. Benchmarking against similar contracts for aircraft structural components would require detailed specifications, but the competitive bidding suggests a fair market price was achieved.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While JEMCO Components & Fabrication, Inc. may be a small business, the contract was not specifically designated as a small business set-aside. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, is responsible for oversight. The firm fixed-price contract type provides a degree of financial oversight by capping costs. Transparency is facilitated by the public nature of contract awards, and any specific Inspector General investigations would be publicly reported if initiated.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Support
Aerospace Component Fabrication
Military Aircraft Sustainment

Risk Flags

Potential for sole-source if competition diminishes in the future.
Dependence on specific manufacturing capabilities.
Supply chain vulnerability for specialized materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to JEMCO COMPONENTS & FABRICATION, INC.. 8510455815!PANEL,STRUCTURAL,AI

Who is the contractor on this award?

The obligated recipient is JEMCO COMPONENTS & FABRICATION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2024-02-20. End: 2026-05-14.

What is the historical spending pattern for structural panels by the Department of Defense?

Analyzing historical spending for structural panels by the Department of Defense requires access to comprehensive contract databases. However, general trends indicate consistent and significant investment in aircraft components to maintain fleet readiness. Spending often fluctuates based on modernization programs, sustainment needs, and the retirement of older aircraft. The total value of contracts awarded in this category can range from tens of millions to billions of dollars annually, depending on the specific types of panels and the scale of procurement. Factors such as geopolitical events, technological advancements, and budget allocations heavily influence these patterns. Without specific data on 'PANEL,STRUCTURAL,AI' over multiple years, a precise historical comparison is difficult, but the consistent need for such components suggests ongoing, substantial expenditure.

How does the number of bidders (14) compare to similar contracts for aircraft structural components?

A count of 14 bidders for aircraft structural components is generally considered a strong indicator of robust competition within the defense industrial base. For specialized components, the number of qualified bidders can vary significantly. Contracts for highly complex or proprietary parts might see fewer than five bidders, while more standardized components could attract a larger pool. A range of 5-15 bidders is often seen as healthy, suggesting that the market has multiple capable suppliers and that the government's requirements are accessible. Fewer than 5 bidders might raise concerns about market concentration or barriers to entry, while significantly more than 15 could indicate a highly commoditized market or potentially overly broad specifications. Therefore, 14 bidders suggests a favorable competitive environment for this specific award.

What are the primary risks associated with a firm fixed-price contract for structural panels?

The primary risks associated with a firm fixed-price (FFP) contract for structural panels are generally borne by the contractor, not the government. The government benefits from cost certainty, as the price is fixed regardless of the contractor's actual costs. However, risks for the contractor include underestimating costs, material price fluctuations, or unforeseen production challenges, which could lead to reduced profit margins or even losses. For the government, the main risk with FFP contracts is ensuring that the fixed price accurately reflects the value of the goods or services. If the initial price is set too high due to inadequate market research or contractor negotiation tactics, the government may overpay. Additionally, contractors might be incentivized to cut corners on quality to protect their profit margins, although this is mitigated by stringent quality assurance and acceptance testing protocols inherent in defense contracts.

What is the typical performance period for contracts of this nature and value?

The typical performance period for contracts of this nature and value, particularly for specialized manufactured components like structural panels, can vary but often spans 1 to 3 years. This contract has a duration of approximately 2 years (February 2024 to May 2026), which falls well within this typical range. Longer durations might be considered for large-scale production runs or multi-year sustainment efforts, while shorter periods could be for initial development or smaller quantities. The duration is often influenced by factors such as production lead times, the anticipated demand for the components, and the need for periodic re-competition to ensure continued market competitiveness and fair pricing. A 2-year period allows for stable production while still providing opportunities to reassess the market relatively soon.

How does the NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing) reflect the scope of this contract?

The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' accurately reflects the scope of this contract for structural panels. This code encompasses establishments primarily engaged in manufacturing aircraft parts and auxiliary equipment, except engines, engine parts, propellers, and landing gear. Structural panels are fundamental components of an aircraft's airframe and fall squarely within this definition. Companies operating under this NAICS code typically possess specialized manufacturing capabilities, adhere to rigorous quality standards (such as AS9100), and are familiar with the regulatory environment of the aerospace industry. The award to JEMCO Components & Fabrication, Inc., operating within this sector, aligns with the government's need for precisely manufactured, high-reliability aircraft components.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 603 5TH PL S, KIRKLAND, WA, 98033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,870,006

Exercised Options: $2,870,006

Current Obligation: $2,870,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: SPE4A222D0017

IDV Type: IDC

Timeline