DoD Awards $18.5M for Aircraft Parts to Goodrich Corp, Lacking Competition
Contract Overview
Contract Amount: $18,462,000 ($18.5M)
Contractor: Goodrich Corporation
Awarding Agency: Department of Defense
Start Date: 2024-08-30
End Date: 2027-01-31
Contract Duration: 884 days
Daily Burn Rate: $20.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES
Place of Performance
Location: HALTOM CITY, TARRANT County, TEXAS, 76137
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.5 million to GOODRICH CORPORATION for work described as: SPARES Key points: 1. Significant contract value of $18.5 million awarded. 2. Sole-source award to Goodrich Corporation raises competition concerns. 3. Contract duration extends to January 2027, impacting long-term value. 4. Focus on 'Other Aircraft Parts' suggests a specialized, potentially critical need.
Value Assessment
Rating: questionable
The contract value of $18.5 million for aircraft parts needs further benchmarking against similar sole-source awards. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The absence of competition for this $18.5 million contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Reliance on a single supplier could create supply chain vulnerabilities. Future procurements in this category may be influenced by this sole-source decision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Definitive contract type
- Firm Fixed Price contract
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413) is critical for defense readiness. Spending benchmarks for this category, especially for sole-source awards, are essential for evaluating cost-effectiveness.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to Goodrich Corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that competition was appropriately waived.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration increases long-term cost risk.
- No indication of small business participation.
- Limited transparency on price justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.5 million to GOODRICH CORPORATION. SPARES
Who is the contractor on this award?
The obligated recipient is GOODRICH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $18.5 million.
What is the period of performance?
Start: 2024-08-30. End: 2027-01-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. The Department of Defense should have conducted a price analysis, potentially using historical data or independent cost estimates, to validate the reasonableness of the firm fixed price before awarding the contract to Goodrich Corporation.
What are the potential risks associated with a long-term, sole-source contract for critical aircraft parts?
A long-term, sole-source contract for critical aircraft parts poses risks such as price escalation over time without competitive pressure, potential for supplier complacency, and vulnerability if the sole supplier faces production issues or goes out of business. This could lead to extended downtime for aircraft and increased costs for the government.
How does the firm fixed price (FFP) contract type mitigate or exacerbate the risks of a sole-source award in this context?
A Firm Fixed Price (FFP) contract aims to provide cost certainty for the government by fixing the price regardless of the contractor's actual costs. While FFP is generally preferred, in a sole-source scenario, the 'fixed' price might be inflated if not properly negotiated or benchmarked, thus the benefit of cost certainty is diminished without competitive pressure.
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
Solicitation ID: SPRRA122R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 4630 N BEACH ST STE 100, HALTOM CITY, TX, 76137
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: $18,462,000
Exercised Options: $18,462,000
Current Obligation: $18,462,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-08-30
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-09-17
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