DoD awards $2.6M contract for aircraft landing lights, with 1 bidder and 1168 days duration

Contract Overview

Contract Amount: $2,644,800 ($2.6M)

Contractor: CEF Industries, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2026-12-08

Contract Duration: 1,168 days

Daily Burn Rate: $2.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8510159002!LIGHT,LANDING,AIRCR

Place of Performance

Location: ADDISON, DUPAGE County, ILLINOIS, 60101

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to CEF INDUSTRIES, LLC for work described as: 8510159002!LIGHT,LANDING,AIRCR Key points: 1. Value appears reasonable given the long contract duration and specialized nature of aircraft components. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. Contract duration of nearly 3.5 years presents a moderate risk for obsolescence or changing requirements. 4. This contract supports the sustainment of existing military aircraft fleets. 5. The award falls within the broader category of defense logistics and aircraft parts manufacturing. 6. Performance is tied to a fixed-price structure, shifting risk to the contractor.

Value Assessment

Rating: good

The contract value of $2.64 million over approximately 3.2 years (1168 days) suggests an average annual spend of around $825,000. Benchmarking this without specific part numbers is challenging, but for specialized aerospace components, this level of investment is not unusual. The firm fixed-price nature indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. Compared to similar long-term sustainment contracts for aircraft parts, the pricing appears within a reasonable range, assuming the lights are complex and meet stringent military specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for more streamlined procurement processes and potentially fewer bidders than full and open competition. The data indicates only one bid was received. While SAP is intended for smaller dollar value procurements, its use here with a single bidder raises questions about the breadth of outreach and potential market limitations for this specific part. The limited competition means the government did not benefit from a wide range of price proposals, potentially leading to a less competitive price than if multiple firms had bid.

Taxpayer Impact: A single bidder in a procurement process, even under SAP, means taxpayers may not have received the most competitive pricing possible. The government's negotiating position is weakened, and the potential for cost savings through robust competition is diminished.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches relying on aircraft for operations. The contract delivers essential landing lights, critical for aircraft safety and operational readiness, particularly during nighttime or low-visibility conditions. The geographic impact is national, supporting military aviation operations across various bases and deployment locations. Workforce implications include supporting jobs in the manufacturing sector, specifically within companies specializing in aerospace electrical components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of limited competition leading to suboptimal pricing.
Long contract duration increases the potential for component obsolescence or the need for specification updates.
Reliance on a single bidder could indicate a narrow market or challenges in attracting multiple suppliers for specialized parts.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Contract supports critical safety equipment for military aircraft.
Awarding agency (DLA) specializes in logistics and supply chain management for defense needs.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components. The market for specialized military aircraft parts is often characterized by high barriers to entry due to stringent quality, safety, and certification requirements. While the specific NAICS code (336320 - Motor Vehicle Electrical and Electronic Equipment Manufacturing) is broad, the application is highly specialized. Comparable spending benchmarks are difficult without specific part details, but the defense sector consistently invests billions annually in aircraft sustainment and component replacement.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting plans specifically targeting small businesses. Given the specialized nature of aircraft components and the likely size of the manufacturing firms involved in defense contracts, it is plausible that the prime contractor is a larger entity. The lack of explicit small business set-aside or subcontracting goals means there is limited direct benefit to the small business ecosystem from this specific award, though the prime contractor may engage small businesses in their broader supply chain.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency (DLA), is responsible for the oversight of this contract. As a definitive contract awarded under SAP, it is subject to standard procurement regulations and oversight. Transparency is provided through contract databases like FPDS. Accountability is primarily driven by the firm fixed-price terms and delivery schedules. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Aircraft Parts and Auxiliary Equipment
Defense Logistics Agency Procurement
Military Aircraft Sustainment
Aerospace Electrical Components

Risk Flags

Limited Competition
Long Contract Duration
Single Bidder

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to CEF INDUSTRIES, LLC. 8510159002!LIGHT,LANDING,AIRCR

Who is the contractor on this award?

The obligated recipient is CEF INDUSTRIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-12-08.

What is the specific part number or technical specification for the 'LIGHT,LANDING,AIRCR' being procured?

The provided data abbreviates the item as 'LIGHT,LANDING,AIRCR' with the code '8510159002!LIGHT,LANDING,AIRCR'. However, a specific part number or detailed technical specification is not included in this summary. This level of detail is crucial for a precise technical and cost analysis. Without it, comparisons to other landing lights or assessments of technological advancement are speculative. Landing lights can range from simple incandescent bulbs to complex LED arrays with integrated control systems, each carrying vastly different cost structures and performance characteristics. Understanding the exact specification would allow for a more accurate benchmark against similar military or commercial aviation components.

How does the $2.64 million total contract value compare to historical spending on similar landing lights by the DoD?

Direct historical spending comparisons for this specific 'LIGHT,LANDING,AIRCR' are not possible with the provided data alone. To conduct such a comparison, one would need to query contract databases for procurements of the exact part number or functionally equivalent landing lights across different fiscal years and agencies. The current contract's value of $2.64 million over nearly 3.5 years averages approximately $750,000 annually. If this represents a significant increase or decrease compared to previous procurements of the same or similar items, it could indicate changes in market prices, component complexity, or demand. Without historical data, it's difficult to ascertain if this represents good value over time.

What are the specific risks associated with a single bidder responding to this solicitation under SAP?

A single bidder presents several risks. Firstly, it significantly weakens the government's negotiating power, potentially leading to a higher price than if multiple bids were received. The government cannot leverage competition to drive down costs. Secondly, it raises concerns about market health; a lack of competition might indicate that the market for this specific part is small, dominated by one supplier, or that potential bidders were deterred by contract terms, specifications, or administrative burdens. This reliance on a single source increases vulnerability to supply chain disruptions, price hikes, or quality issues if that sole provider faces difficulties. It also limits opportunities for innovation and cost reduction that competition often fosters.

What are the performance metrics or quality assurance measures tied to this firm fixed-price contract?

While the contract is 'FIRM FIXED PRICE', implying the contractor bears cost risk, specific performance metrics and quality assurance measures are not detailed in the provided summary. Typically, such contracts would include clauses related to delivery schedules, defect-free delivery, adherence to technical specifications, and potentially warranty provisions. Quality assurance would likely involve government inspection and acceptance testing at the point of delivery or manufacturing facility. Failure to meet these implicit or explicit performance standards could result in contract remedies, such as rejection of goods, withholding of payment, or even termination. The effectiveness of oversight depends on the rigor of the government's inspection and acceptance processes.

What is the expected lifespan or service life of these landing lights, and how does the contract duration align with it?

The expected lifespan or service life of the specific 'LIGHT,LANDING,AIRCR' is not provided. However, the contract duration is 1168 days, approximately 3.2 years. For critical aircraft components like landing lights, service life can vary significantly based on usage hours, environmental conditions, and technological design. A contract duration of over three years suggests either a need for a substantial quantity of lights to be delivered over that period, or that the lights are expected to have a service life that aligns with or exceeds this procurement window. If the lights have a shorter operational lifespan than the contract duration, it implies multiple replacements or a continuous supply requirement, which needs careful management to avoid obsolescence or premature failure.

What is the track record of CEF INDUSTRIES, LLC in supplying similar aerospace or defense components?

Information regarding the specific track record of CEF INDUSTRIES, LLC in supplying similar aerospace or defense components is not included in the provided data. A thorough assessment would require reviewing their past performance on government contracts, including delivery timeliness, quality of products, and adherence to specifications. Databases like the Contractor Performance Assessment Reporting System (CPARS) would typically contain such information, though access may be restricted. Understanding their history with similar items, especially those with stringent military requirements, is crucial for evaluating the risk associated with this award and predicting successful contract performance.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Motor Vehicle Electrical and Electronic Equipment Manufacturing

Product/Service Code: LIGHTING FIXTURES, LAMPS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPRPA123R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Calspan Technology Holding Corporation

Address: 320 S. CHURCH STREET, ADDISON, IL, 60101

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: $2,644,800

Exercised Options: $2,644,800

Current Obligation: $2,644,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline