DLA Spares Contract for Mechanical Power Transmission Equipment Reaches $301M, Awarded to PCX Aerostructures
Contract Overview
Contract Amount: $30,145,500 ($30.1M)
Contractor: PCX Aerostructures, LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-15
End Date: 2021-12-30
Contract Duration: 990 days
Daily Burn Rate: $30.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DLA SPARES: CONNECTING LINK, RIG
Place of Performance
Location: NEWINGTON, HARTFORD County, CONNECTICUT, 06111
Plain-Language Summary
Department of Defense obligated $30.1 million to PCX AEROSTRUCTURES, LLC for work described as: DLA SPARES: CONNECTING LINK, RIG Key points: 1. The contract value of $301.46 million indicates significant demand for mechanical power transmission equipment within the Defense Logistics Agency. 2. PCX Aerostructures, LLC secured this award, suggesting a competitive landscape for specialized aerospace components. 3. The contract's duration (990 days) and firm-fixed-price structure aim to control costs and provide predictable spending. 4. This spending falls under NAICS code 333613 (Mechanical Power Transmission Equipment Manufacturing), a critical sector for defense readiness.
Value Assessment
Rating: good
The contract value of $301.46 million appears reasonable given the duration and the specialized nature of mechanical power transmission equipment for defense applications. Benchmarking against similar large-scale defense component contracts would provide further validation.
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,' indicating a competitive process that allowed for multiple bidders after an initial exclusion. This method likely fostered price discovery and ensured fair market value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense logistics needs.
Public Impact
Ensures availability of critical mechanical power transmission components for military aircraft and vehicles. Supports the operational readiness of U.S. armed forces by maintaining essential equipment. Contributes to the defense industrial base by awarding contracts to manufacturers like PCX Aerostructures. The firm-fixed-price contract provides cost certainty for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Reliance on a single awardee for critical components could pose a risk if performance issues arise.
Positive Signals
- Full and open competition ensures competitive pricing.
- Firm-fixed-price contract provides cost predictability.
- Long-term contract supports sustained readiness.
Sector Analysis
This contract falls within the manufacturing sector, specifically producing mechanical power transmission equipment vital for defense applications. Spending benchmarks for similar defense component contracts are typically in the millions, aligning with this award's scale.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for this contract, ensuring the procurement and supply of equipment for the U.S. military. Oversight would involve monitoring performance, delivery schedules, and adherence to contract terms.
Related Government Programs
- Mechanical Power Transmission Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain vulnerabilities.
- Dependence on a single prime contractor.
- Limited visibility into subcontracting opportunities for small businesses.
- Risk of obsolescence for specialized components over time.
Tags
mechanical-power-transmission-equipment-, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to PCX AEROSTRUCTURES, LLC. DLA SPARES: CONNECTING LINK, RIG
Who is the contractor on this award?
The obligated recipient is PCX AEROSTRUCTURES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $30.1 million.
What is the period of performance?
Start: 2019-04-15. End: 2021-12-30.
What is the specific type of mechanical power transmission equipment being procured, and how critical is it to current military operations?
The contract specifies 'DLA SPARES: CONNECTING LINK, RIG,' suggesting components related to power transmission systems, likely for aircraft or ground vehicles. The significant value and duration imply these are critical parts essential for maintaining the operational readiness and functionality of various military platforms, ensuring mission capability.
What were the key factors that led to the exclusion of other sources initially, and how did this impact the final pricing?
The exclusion of sources likely stemmed from specific technical requirements, proprietary technology, or unique manufacturing capabilities possessed by PCX Aerostructures. While this might limit initial competition, the subsequent 'full and open' phase after exclusion aims to ensure competitive pricing among qualified bidders, mitigating potential price inflation from a sole-source situation.
How does the per-unit cost of these components compare to industry benchmarks, and what is the projected taxpayer impact over the contract's life?
Without specific unit data, a direct per-unit cost comparison is not feasible. However, the $301.46 million contract value over approximately 2.75 years suggests substantial investment. The firm-fixed-price structure provides cost certainty, but the overall taxpayer impact depends on the efficiency of production and the necessity of these components for defense readiness.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Mechanical Power Transmission Equipment Manufacturing
Product/Service Code: MECHANICAL POWER TRANSMISSION EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: PCX Aerostructures LLC (UEI: 146254474)
Address: 300 FENN RD, NEWINGTON, CT, 06111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,145,500
Exercised Options: $30,145,500
Current Obligation: $30,145,500
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRRA117D0161
IDV Type: IDC
Timeline
Start Date: 2019-04-15
Current End Date: 2021-12-30
Potential End Date: 2021-12-30 12:12:00
Last Modified: 2020-10-16
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