DoD awards $6.2M for aircraft frames to Kerns Manufacturing Corp. under sole-source contract

Contract Overview

Contract Amount: $6,199,263 ($6.2M)

Contractor: Kerns Manufacturing Corp.

Awarding Agency: Department of Defense

Start Date: 2018-03-12

End Date: 2022-12-30

Contract Duration: 1,754 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FRAME,FRONT,AIRCRAF

Place of Performance

Location: LONG ISLAND CITY, QUEENS County, NEW YORK, 11101

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to KERNS MANUFACTURING CORP. for work described as: FRAME,FRONT,AIRCRAF Key points: 1. Significant award value for specialized aircraft components. 2. Sole-source award raises questions about price competition. 3. Potential risk associated with single supplier dependency. 4. Manufacturing sector focused on defense supply chain.

Value Assessment

Rating: questionable

The contract value of $6.2M for aircraft frames appears high given the lack of competitive bidding. Without market research or comparison to similar contracts, it's difficult to assess if this price is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competition. Dependence on a single manufacturer could create supply chain vulnerabilities. Limited transparency into the justification for a sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited small business participation

Positive Signals

Contract awarded to a US-based manufacturer
Definitive contract provides clear terms

Sector Analysis

This contract falls within the miscellaneous general purpose machinery manufacturing sector, specifically supporting defense logistics. Spending in this niche area can be high due to specialized requirements and limited suppliers.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award, as the awardee is not identified as a small business and the contract was not set aside for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and the pricing was fair. Accountability for the procurement process is crucial.

Related Government Programs

All Other Miscellaneous General Purpose Machinery Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without competition.
Dependency on a single supplier.
Limited transparency in procurement justification.
No identified small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to KERNS MANUFACTURING CORP.. FRAME,FRONT,AIRCRAF

Who is the contractor on this award?

The obligated recipient is KERNS MANUFACTURING CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2018-03-12. End: 2022-12-30.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the justification for the sole-source award. A thorough review would require accessing the contract file to examine documentation supporting the decision, such as the necessity of unique capabilities or the unavailability of other sources.

How does the awarded price compare to industry benchmarks for similar aircraft frames, considering the lack of competition?

Without competitive bids, a direct price comparison is challenging. An independent cost analysis or benchmarking against publicly available data for comparable components would be necessary to assess if the $6.2M price is reasonable and reflects fair market value.

What measures are in place to ensure the quality and timely delivery of aircraft frames from Kerns Manufacturing Corp. under this definitive contract?

The definitive contract structure implies established terms for quality and delivery. However, ongoing monitoring by the Defense Logistics Agency, including performance reviews and inspections, is essential to ensure compliance and mitigate risks associated with a sole-source supplier.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3714 29TH ST, LONG ISLAND CITY, NY, 11101

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

Financial Breakdown

Contract Ceiling: $6,199,263

Exercised Options: $6,199,263

Current Obligation: $6,199,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline