DoD's $19.7M Contract for Aircraft Parts with Meggitt Aircraft Braking Systems Corporation Under Scrutiny
Contract Overview
Contract Amount: $19,711,979 ($19.7M)
Contractor: Meggitt Aircraft Braking Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2011-07-08
End Date: 2020-06-30
Contract Duration: 3,280 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B1WBSI
Place of Performance
Location: AKRON, SUMMIT County, OHIO, 44306
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $19.7 million to MEGGITT AIRCRAFT BRAKING SYSTEMS CORPORATION for work described as: B1WBSI Key points: 1. Significant contract value of $19.7 million awarded to a single vendor. 2. Competition method was 'Full and Open', suggesting potential for broader vendor participation. 3. Contract duration spans nearly 9 years, raising questions about long-term pricing and obsolescence. 4. Sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense component.
Value Assessment
Rating: fair
The contract's fixed price nature provides some cost certainty. However, the long duration and lack of specific unit cost data make a precise value assessment challenging without further details on the scope of work and delivery schedules.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the long duration and the specific nature of aircraft parts may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are utilized for critical defense logistics. The long-term nature of the contract necessitates careful monitoring to ensure continued value for money.
Public Impact
Ensures availability of critical aircraft braking system parts for military operations. Supports a key manufacturing sector within the defense industrial base. Potential for long-term supply chain stability for essential components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (9 years) increases risk of price escalation and obsolescence.
- Lack of specific per-unit cost data hinders detailed value analysis.
- Sole awardee for a significant value contract warrants closer review of competition effectiveness.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type offers cost predictability.
- Supports critical defense readiness.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for maintaining military aviation readiness. Spending in this area is often characterized by specialized requirements and long product lifecycles.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities for small business subcontracting were adequately explored or mandated.
Oversight & Accountability
The long duration of this contract suggests a need for ongoing oversight to ensure performance, manage potential cost overruns, and address any changes in technology or requirements.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration.
- Lack of detailed cost breakdown.
- Potential for obsolescence of parts over the contract term.
- Limited visibility into specific performance metrics.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to MEGGITT AIRCRAFT BRAKING SYSTEMS CORPORATION. B1WBSI
Who is the contractor on this award?
The obligated recipient is MEGGITT AIRCRAFT BRAKING SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2011-07-08. End: 2020-06-30.
What specific aircraft systems does this contract support, and how critical are these parts to overall fleet readiness?
The contract supports 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', specifically for aircraft braking systems. These parts are critical for the safe and effective operation of military aircraft. Ensuring a consistent and reliable supply chain for such components is paramount to maintaining the operational readiness of the Air Force and other branches that rely on these aircraft.
Given the 9-year duration, what mechanisms are in place to mitigate the risk of price increases due to inflation or material cost fluctuations?
The contract is a 'Firm Fixed Price' type, which generally shifts the risk of cost increases to the contractor. However, the long duration necessitates careful contract management. Mechanisms like periodic price reviews, economic price adjustment clauses (if included), or options for renegotiation at specific milestones could be in place to manage these risks.
How effectively did the 'Full and Open Competition' process ensure the best possible pricing and value for these specialized aircraft parts?
While 'Full and Open Competition' is designed to maximize value, the specialized nature of aircraft braking systems might limit the pool of qualified bidders. The effectiveness hinges on the clarity of the solicitation, the competitiveness of the bids received, and the government's negotiation strategy. A thorough review of the bidding process and awarded price against market benchmarks is needed.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Meggitt Aircraft Braking Systems Kentucky Corporation (UEI: 216242784)
Address: 1204 MASSILLON RD, AKRON, OH, 44306
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: $24,009,238
Exercised Options: $19,711,979
Current Obligation: $19,711,979
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2011-07-08
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2019-02-08
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