DoD's $148M contract for aircraft parts awarded to ES3 Prime Logistics Group Inc
Contract Overview
Contract Amount: $14,814,426 ($14.8M)
Contractor: ES3 Prime Logistics Group Inc
Awarding Agency: Department of Defense
Start Date: 2025-02-19
End Date: 2033-02-28
Contract Duration: 2,931 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: DAMPER,SHIMMY
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101
Plain-Language Summary
Department of Defense obligated $14.8 million to ES3 PRIME LOGISTICS GROUP INC for work described as: DAMPER,SHIMMY Key points: 1. Contract value: $148,144,260 over 9.7 years. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Fixed Price with Economic Price Adjustment (FPEPA) introduces potential for cost overruns. 4. Sector: Defense Logistics Agency (DLA) procurement for aircraft parts.
Value Assessment
Rating: fair
The contract's fixed-price with economic price adjustment structure requires careful monitoring to ensure costs remain reasonable compared to market fluctuations and similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process was intended. However, the specific exclusion criteria need review to ensure maximum price discovery.
Taxpayer Impact: Taxpayer funds are committed to a long-term contract with potential for price adjustments, necessitating robust oversight to ensure value for money.
Public Impact
Ensures continued availability of critical aircraft parts for the Department of Defense. Supports a long-term supply chain for defense logistics. Potential for price increases due to economic adjustments could impact overall defense budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may lead to higher than anticipated costs.
- Long contract duration (nearly 10 years) increases exposure to market volatility.
- Exclusion of sources in competition needs justification to ensure fairness and best pricing.
Positive Signals
- Full and open competition aims for best value.
- Contract supports critical defense readiness.
- Established vendor for potentially specialized parts.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending benchmarks for similar DLA contracts would be useful for comparison.
Small Business Impact
The data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine their participation or exclusion.
Oversight & Accountability
Oversight will be crucial to manage the economic price adjustment clause and ensure the contractor meets delivery schedules and quality standards throughout the contract's long duration.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost escalation due to EPA.
- Long-term commitment exposes government to market volatility.
- Justification for source exclusion requires scrutiny.
- Lack of explicit small business participation data.
- Contract performance monitoring over a decade is resource-intensive.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to ES3 PRIME LOGISTICS GROUP INC. DAMPER,SHIMMY
Who is the contractor on this award?
The obligated recipient is ES3 PRIME LOGISTICS GROUP INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $14.8 million.
What is the period of performance?
Start: 2025-02-19. End: 2033-02-28.
What specific aircraft parts are covered under this contract, and what is their criticality to defense operations?
The contract covers 'DAMPER,SHIMMY' and other aircraft parts. While specific criticality is not detailed, these components are essential for the operational readiness and maintenance of military aircraft. Understanding the exact nature and function of these parts would allow for a more precise assessment of the contract's importance and associated risks.
How will the economic price adjustment be calculated, and what safeguards are in place to prevent excessive cost increases?
The economic price adjustment (EPA) mechanism is typically tied to specific economic indices or material costs. Safeguards would include pre-defined caps on adjustments, regular reviews of the indices used, and requiring the contractor to provide detailed cost breakdowns to justify any requested price changes, ensuring transparency and fairness.
What was the rationale for excluding certain sources during the 'full and open competition after exclusion of sources' process?
Excluding sources typically occurs when specific technical capabilities, proprietary information, or unique manufacturing processes are required, and only a limited number of vendors possess them. The rationale needs to be clearly documented and justified to ensure it doesn't unduly restrict competition and that the government is still achieving the best possible value and price.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 550 WEST C ST STE 1630, SAN DIEGO, CA, 92101
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $14,814,426
Exercised Options: $14,814,426
Current Obligation: $14,814,426
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRHA118D0002
IDV Type: IDC
Timeline
Start Date: 2025-02-19
Current End Date: 2033-02-28
Potential End Date: 2033-02-28 00:00:00
Last Modified: 2025-10-10
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