DoD's $1.95M Energy Absorber Contract Awarded to York Precision Machining
Contract Overview
Contract Amount: $19,463,294 ($19.5M)
Contractor: York Precision Machining and Hydraulics, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-26
End Date: 2025-10-21
Contract Duration: 999 days
Daily Burn Rate: $19.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509597841!ENERGY ABSORBER
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17406
Plain-Language Summary
Department of Defense obligated $19.5 million to YORK PRECISION MACHINING AND HYDRAULICS, LLC for work described as: 8509597841!ENERGY ABSORBER Key points: 1. Contract awarded for energy absorbers, a critical component in aerospace. 2. Competition was limited under SAP, potentially impacting price discovery. 3. The contract duration is long (999 days), raising concerns about flexibility. 4. No small business participation noted, missing an opportunity for economic inclusion.
Value Assessment
Rating: fair
The contract's firm fixed price structure provides cost certainty. However, without more detailed benchmarks for similar energy absorbers, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited number of bidders. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The use of SAP for a contract of this value might mean taxpayers did not benefit from the lowest possible price due to restricted competition.
Public Impact
Supports critical Department of Defense aviation maintenance and readiness. Ensures availability of specialized components for aircraft. Potential for long-term supply chain stability for this specific part.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Long contract duration
- No small business participation
Positive Signals
- Firm Fixed Price contract type
- Supports critical defense logistics
Sector Analysis
This contract falls within the Defense Logistics Agency's support activities for air transportation, a sector heavily reliant on specialized components like energy absorbers. Spending benchmarks for such niche aerospace parts are difficult to establish without specific market data.
Small Business Impact
The contract data indicates no small business participation. This represents a missed opportunity to engage small businesses in the defense supply chain for this specific component.
Oversight & Accountability
The use of SAP suggests a streamlined acquisition process, but oversight is needed to ensure fair pricing and adequate competition within the SAP limitations.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition
- Potential for price not being the lowest achievable
- Long contract duration may lead to obsolescence
- No small business participation
Tags
other-support-activities-for-air-transpo, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 million to YORK PRECISION MACHINING AND HYDRAULICS, LLC. 8509597841!ENERGY ABSORBER
Who is the contractor on this award?
The obligated recipient is YORK PRECISION MACHINING AND HYDRAULICS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $19.5 million.
What is the period of performance?
Start: 2023-01-26. End: 2025-10-21.
What is the typical lead time and cost for similar energy absorbers from other suppliers?
Determining the typical lead time and cost for similar energy absorbers requires in-depth market research. Factors like material specifications, performance requirements, and production volume significantly influence pricing. Without access to proprietary supplier data or a broader competitive bidding process, establishing a precise benchmark is difficult, but a range could be estimated based on industry reports and publicly available defense contract awards for comparable components.
How does the long contract duration impact the potential for technological obsolescence or price fluctuations?
A long contract duration, such as 999 days, increases the risk of technological obsolescence if newer, more efficient energy absorber designs emerge. It also exposes the government to potential price fluctuations if raw material costs or manufacturing processes change significantly over the contract period, despite the firm fixed price.
What measures are in place to ensure the quality and performance of these energy absorbers throughout the contract period?
Quality assurance measures typically involve stringent testing and inspection protocols outlined in the contract specifications. The Defense Logistics Agency likely has quality assurance representatives overseeing production and delivery to ensure components meet all performance requirements and standards throughout the contract's lifespan.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: SPE7M221R0023
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 706 WILLOW SPRINGS LN, YORK, PA, 17406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,463,294
Exercised Options: $19,463,294
Current Obligation: $19,463,294
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-01-26
Current End Date: 2025-10-21
Potential End Date: 2025-10-21 00:00:00
Last Modified: 2026-02-23
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