DoD awards $24.8M for aircraft actuators, with limited competition and a long performance period

Contract Overview

Contract Amount: $24,866,380 ($24.9M)

Contractor: Moog Inc

Awarding Agency: Department of Defense

Start Date: 2020-01-29

End Date: 2024-12-31

Contract Duration: 1,798 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACTUATOR,ELECTRO-ME

Place of Performance

Location: ELMA, ERIE County, NEW YORK, 14059

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to MOOG INC for work described as: ACTUATOR,ELECTRO-ME Key points: 1. Contract value of $24.8M over nearly 5 years suggests a significant need for these critical aircraft components. 2. The 'NOT COMPETED' award raises questions about potential cost savings and market engagement. 3. A long performance period of 1798 days could indicate a stable, long-term requirement or a lack of agile procurement. 4. The contract is for 'ACTUATOR,ELECTRO-ME', a specialized component vital for aircraft operation. 5. The awardee, MOOG INC, is a known entity in the aerospace components sector. 6. The fixed-price contract type aims to provide cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific unit cost data or comparisons to similar electro-mechanical actuator procurements. The total award of $24.8 million over almost five years, while substantial, needs to be evaluated against the quantity and specific type of actuators procured. Given the sole-source nature, there's a risk that the pricing may not reflect the most competitive market rates. Further analysis of historical pricing for similar components from Moog Inc. or other suppliers would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, MOOG INC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required technology or capability, they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can result in taxpayers paying a premium due to the absence of competitive pressure on pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units, ensuring the operational readiness of aircraft. The contract delivers essential electro-mechanical actuators, critical for the functioning of various aircraft systems. The geographic impact is primarily within the Defense Logistics Agency's operational sphere, supporting military aviation readiness. The contract supports the workforce at MOOG INC, a company specializing in aerospace components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Long contract duration could indicate a lack of market dynamism or potential for price escalation if not managed carefully.
Sole-source awards limit opportunities for small businesses to participate in this segment of the defense supply chain.

Positive Signals

Fixed-price contract type provides cost certainty.
Awardee is an established manufacturer in the aerospace sector, suggesting potential for reliable delivery.
Contract ensures continued availability of critical aircraft components for military operations.

Sector Analysis

The market for aerospace components, including actuators, is highly specialized and dominated by a few key manufacturers. Companies like MOOG INC operate within a sector characterized by stringent quality requirements, long product development cycles, and significant barriers to entry due to technical expertise and certifications. This contract fits within the broader Defense Logistics Agency's mission to provide essential parts and services to maintain military aircraft, a significant segment of the defense industrial base.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large corporation, it does not directly benefit small businesses through set-asides. The absence of subcontracting requirements means that opportunities for small businesses to participate in the supply chain for these specific actuators are not explicitly mandated by this contract.

Oversight & Accountability

The oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) and the Department of Defense's contracting and financial management oversight bodies. As a sole-source award, it may receive heightened scrutiny to ensure the justification for non-competition is valid and that pricing is fair. Transparency is limited due to the lack of public competition details, but contract performance would be monitored through standard government reporting mechanisms.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Defense Logistics Agency Procurement
Aerospace Component Supply Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to MOOG INC. ACTUATOR,ELECTRO-ME

Who is the contractor on this award?

The obligated recipient is MOOG INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2020-01-29. End: 2024-12-31.

What is the specific type and function of the 'ACTUATOR,ELECTRO-ME' being procured, and which aircraft platforms will it support?

The 'ACTUATOR,ELECTRO-ME' refers to electro-mechanical actuators, which are devices that convert electrical energy into mechanical motion to control various aircraft systems. These can include flight control surfaces (like ailerons, elevators, rudders), landing gear deployment, thrust reversers, and other critical functions. While the specific aircraft platforms are not detailed in the provided data, electro-mechanical actuators are common across a wide range of military aircraft, from fighter jets to transport planes and helicopters. The Defense Logistics Agency (DLA) procures these parts to ensure the operational readiness and maintainability of the DoD's diverse aviation fleet. The exact model and application would be specified in the detailed contract statement of work.

What is the justification for awarding this contract on a sole-source basis to MOOG INC?

The justification for a sole-source award typically falls under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or possesses unique capabilities. For electro-mechanical actuators, this could be due to proprietary technology, specialized design requirements unique to a particular aircraft, or the need for seamless integration with existing systems where only the original equipment manufacturer (OEM) can provide compatible parts. MOOG INC is a well-established manufacturer of motion control systems and components for the aerospace industry, suggesting they may hold patents or possess the exclusive manufacturing knowledge for these specific actuators. A formal justification document (e.g., a Justification and Approval or J&A) would detail the precise reasons for foregoing competition.

How does the $24.8 million contract value compare to historical spending on similar actuators by the Defense Logistics Agency?

Without access to historical spending data for specific electro-mechanical actuators or comparable components procured by the Defense Logistics Agency (DLA), a direct comparison is not possible. The $24.8 million award over nearly five years represents a significant, ongoing investment in critical aircraft parts. To assess its comparability, one would need to analyze DLA's procurement history for actuators with similar technical specifications, performance requirements, and intended aircraft platforms. Factors such as inflation, technological advancements, and changes in fleet size or operational tempo would also influence historical spending patterns. A comprehensive analysis would involve querying contract databases for similar items and evaluating trends in unit costs and total contract values over time.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($24.8 million) and duration (nearly 5 years) include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market visibility into alternative solutions or cost-saving opportunities. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, a long-term sole-source arrangement can create vendor lock-in, making it difficult and costly to switch suppliers in the future if performance issues arise or better alternatives become available. There's also a risk that the government's requirements might evolve, and the sole-source contractor may not be the best positioned to adapt without significant renegotiation.

What oversight mechanisms are in place to ensure the performance and value of this sole-source contract?

Oversight for this sole-source contract would involve several layers. The Defense Logistics Agency (DLA) contracting officers are responsible for monitoring contractor performance against the contract's terms and conditions, including delivery schedules, quality standards, and technical specifications. Contract specialists and quality assurance representatives would likely conduct regular reviews. Given the sole-source nature, there may be additional scrutiny on price reasonableness, potentially involving cost analysis or audits by the Defense Contract Audit Agency (DCAA). Performance metrics and reporting requirements would be stipulated in the contract, allowing the government to track progress and identify any deviations. Inspector General offices within the DoD may also conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 JAMISON RD, EAST AURORA, NY, 14052

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: $24,866,380

Exercised Options: $24,866,380

Current Obligation: $24,866,380

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $11,985,798

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX17D9418

IDV Type: IDC

Timeline