DoD awards $17.3M for aircraft engine parts, with C. F. Roark Welding & Engineering securing the contract
Contract Overview
Contract Amount: $17,270,806 ($17.3M)
Contractor: C. F. Roark Welding & Engineering Company, Incorporated
Awarding Agency: Department of Defense
Start Date: 2009-09-11
End Date: 2014-06-15
Contract Duration: 1,738 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DUCT,EXHAUST,AIRCRA
Place of Performance
Location: BROWNSBURG, HENDRICKS County, INDIANA, 46112
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $17.3 million to C. F. ROARK WELDING & ENGINEERING COMPANY, INCORPORATED for work described as: DUCT,EXHAUST,AIRCRA Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract duration of 1738 days suggests a long-term need for these aircraft engine parts. 3. The firm fixed-price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 336412 points to specialized manufacturing capabilities. 5. The award was made by the Defense Contract Management Agency, a key DoD oversight body. 6. The contract was awarded in Indiana, potentially impacting the local economy and workforce.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The total award amount of $17.3 million over nearly five years suggests a moderate annual spend. Further analysis would require comparing the unit prices for the specific aircraft engine parts against market rates or similar government contracts to determine if the pricing was competitive and offered good value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was broad, specific reasons led to the exclusion of certain potential bidders. The presence of two bidders suggests a degree of competition, but the exact number of interested parties and the rationale for exclusions would provide a clearer picture of the competitive landscape. A more robust competition with more bidders could potentially drive prices lower.
Taxpayer Impact: The competitive nature of this award, even with exclusions, aims to ensure that taxpayer funds are used efficiently by selecting the most advantageous offer. However, understanding the impact on price discovery requires knowing why sources were excluded.
Public Impact
The Department of Defense benefits from the supply of critical aircraft engine parts, ensuring operational readiness. The contract supports the manufacturing sector, specifically in the area of aircraft engine components. The geographic impact is concentrated in Indiana, where the contractor is located, potentially creating or sustaining jobs. The services delivered are specialized manufacturing, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown makes it difficult to assess true value for money.
- The 'exclusion of sources' clause warrants further investigation into potential limitations on competition.
- Limited information on performance metrics makes it hard to gauge the contractor's track record on this specific award.
Positive Signals
- Awarded through full and open competition, suggesting a broad search for qualified vendors.
- Firm fixed-price contract provides cost certainty for the government.
- Contract duration indicates a sustained need and potential for a stable supply chain.
Sector Analysis
The aerospace manufacturing sector is a critical component of the defense industrial base, characterized by high technological barriers to entry and stringent quality requirements. Companies operating in this space, such as C. F. Roark Welding & Engineering, often specialize in niche manufacturing processes. The market for aircraft engine parts is substantial, driven by both military and commercial aviation needs. This contract fits within the broader category of defense procurement for aircraft sustainment and readiness.
Small Business Impact
This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is also no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses in its supply chain.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing contract administration and ensuring contractor performance. The firm fixed-price contract type inherently places cost risk on the contractor. Transparency regarding specific performance metrics and adherence to delivery schedules would be key areas for oversight. Further details on any Inspector General involvement or specific audit activities would provide a more complete picture of accountability.
Related Government Programs
- Aircraft Engine Manufacturing
- Defense Procurement
- Aerospace Parts Supply
- Military Aircraft Sustainment
Risk Flags
- Potential for limited competition due to source exclusions.
- Need for verification of quality control and performance metrics.
- Lack of detailed cost breakdown for value assessment.
Tags
defense, department-of-defense, aircraft-engine-parts, manufacturing, firm-fixed-price, full-and-open-competition, indiana, c-f-roark-welding-engineering-company-inc, defense-contract-management-agency, naics-336412
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to C. F. ROARK WELDING & ENGINEERING COMPANY, INCORPORATED. DUCT,EXHAUST,AIRCRA
Who is the contractor on this award?
The obligated recipient is C. F. ROARK WELDING & ENGINEERING COMPANY, INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2009-09-11. End: 2014-06-15.
What is the specific nature of the aircraft engine parts being manufactured under this contract?
The provided data indicates the contract is for 'DUCT,EXHAUST,AIRCRA,' which translates to ducts and exhaust components for aircraft engines. These are critical parts that manage airflow and exhaust gases within the engine system. The manufacturing of such components requires specialized materials, precise engineering, and adherence to strict quality control standards to ensure the safety and performance of the aircraft. The NAICS code 336412 further supports this, relating to the manufacturing of aircraft engine and engine parts.
How does the pricing of this contract compare to similar procurements for aircraft engine parts?
Without access to a detailed price breakdown or a database of comparable contract awards for identical or similar aircraft engine parts, a direct price comparison is not feasible. The total award of $17.3 million over approximately 4.8 years (1738 days) averages to about $3.6 million per year. To assess value, one would need to benchmark the unit costs of the specific ducts and exhaust components against market rates or other government contracts for similar items, considering factors like material, complexity, and quantity.
What are the potential risks associated with this contract for the Department of Defense?
Potential risks include performance issues where the contractor may fail to meet quality standards or delivery schedules, impacting aircraft readiness. Given the specialized nature of aircraft engine parts, supply chain disruptions or the contractor facing financial difficulties could pose a risk. The 'exclusion of sources' in the competition also presents a risk if it limited the pool of qualified vendors, potentially leading to less optimal pricing or innovation. Ensuring robust oversight of manufacturing quality and delivery timelines is crucial to mitigate these risks.
What is the historical spending pattern for aircraft engine parts by the Department of Defense?
Historical spending on aircraft engine parts by the DoD is substantial, reflecting the large and diverse fleet of military aircraft. This spending is driven by the need for routine maintenance, repair, and overhaul (MRO) of engines, as well as the procurement of new or replacement parts for upgrades and operational demands. Annual spending can fluctuate based on modernization programs, operational tempo, and the aging of aircraft fleets. Contracts like this one, for specific components, contribute to the overall significant investment in maintaining air power.
What is the track record of C. F. Roark Welding & Engineering Company, Inc. in fulfilling government contracts?
Information on the specific track record of C. F. Roark Welding & Engineering Company, Inc. for this particular contract is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government contracts, including on-time delivery rates, quality compliance, and any history of contract disputes or modifications. Their ability to secure this contract suggests they met the initial qualifications, but ongoing performance monitoring is essential.
How does the firm fixed-price contract type benefit the government in this scenario?
The firm fixed-price (FFP) contract type is beneficial for the government as it establishes a ceiling price that is not subject to adjustment based on the contractor's cost experience. This provides cost certainty and predictability for the DoD, allowing for more accurate budgeting and financial planning. The risk of cost overruns is transferred to the contractor, incentivizing them to manage their expenses efficiently and perform the work within the agreed-upon price. This is particularly advantageous for procurements where the scope of work is well-defined, such as the manufacturing of specific parts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 136 N GREEN ST, BROWNSBURG, IN, 04
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,270,806
Exercised Options: $17,270,806
Current Obligation: $17,270,806
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-11
Current End Date: 2014-06-15
Potential End Date: 2014-06-15 00:00:00
Last Modified: 2014-06-03
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