DoD Awards $2.4M for Linear Valves to Eaton Aerospace, Sole-Source Contract
Contract Overview
Contract Amount: $2,443,500 ($2.4M)
Contractor: Eaton Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2025-12-31
End Date: 2027-12-27
Contract Duration: 726 days
Daily Burn Rate: $3.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VALVE,LINEAR,DIRECT
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90039
Plain-Language Summary
Department of Defense obligated $2.4 million to EATON AEROSPACE LLC for work described as: VALVE,LINEAR,DIRECT Key points: 1. Contract awarded to a single supplier, raising questions about price competition. 2. Eaton Aerospace is a significant player in the aerospace components market. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Spending falls within the 'Other Metal Valve and Pipe Fitting Manufacturing' sector.
Value Assessment
Rating: questionable
The contract's value of $2.44 million for linear valves lacks a competitive benchmark. Without competing bids, it's difficult to assess if the price is fair and reasonable compared to market rates for similar components.
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 may lead to higher costs for taxpayers as there was no opportunity for multiple vendors to bid.
Taxpayer Impact: The lack of competition suggests taxpayers may be paying a premium for these valves, as the government did not leverage market forces to secure the best possible price.
Public Impact
Military readiness may be impacted if these valves are critical components. Taxpayers may bear the cost of a non-competitive pricing structure. Dependence on a single supplier could create future supply chain vulnerabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential for overpayment
Positive Signals
- Award to established supplier
- Definitive contract provides clear terms
Sector Analysis
This contract falls under the 'Other Metal Valve and Pipe Fitting Manufacturing' sector. Spending benchmarks for this specific niche are difficult to ascertain without more granular data, but valve manufacturing is a critical industrial base component.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. This suggests the prime contractor is likely a larger entity, and there's no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is justified and that future procurements explore competitive options where feasible.
Related Government Programs
- Other Metal Valve and Pipe Fitting Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- No small business participation indicated.
Tags
other-metal-valve-and-pipe-fitting-manuf, department-of-defense, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.4 million to EATON AEROSPACE LLC. VALVE,LINEAR,DIRECT
Who is the contractor on this award?
The obligated recipient is EATON AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2025-12-31. End: 2027-12-27.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must conduct market research and price analysis to ensure the negotiated price is fair and reasonable, often relying on historical pricing, commercial price lists, or cost breakdowns from the contractor.
What is the criticality of these linear valves to the Department of Defense's operations, and what are the risks associated with a sole-source supply chain?
The criticality of these valves depends on their specific application within military systems. A sole-source supply chain introduces risks such as price escalation, limited innovation, potential disruptions if the sole supplier faces issues, and reduced leverage for the government in future negotiations. Understanding the criticality helps assess the overall risk to operational readiness.
How does the $2.44 million contract value compare to industry benchmarks for similar linear valves, and what is the potential impact on taxpayer funds?
Without specific technical details and competitive bids, direct comparison to industry benchmarks is challenging. However, a sole-source award inherently carries a risk of higher costs compared to a competed contract. The $2.44 million could represent a fair price if justified by unique specifications or market conditions, but it also presents a potential for overpayment if competitive forces were not engaged.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Metal Valve and Pipe Fitting Manufacturing
Product/Service Code: VALVES
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
Parent Company: Eaton Corporation Public Limited Company
Address: 4690 COLORADO BLVD, LOS ANGELES, CA, 90039
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,443,500
Exercised Options: $2,443,500
Current Obligation: $2,443,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-31
Current End Date: 2027-12-27
Potential End Date: 2027-12-27 00:00:00
Last Modified: 2026-01-06
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