DoD awards $27M contract for aircraft engine parts, with a 1,132-day duration

Contract Overview

Contract Amount: $27,029,250 ($27.0M)

Contractor: Acmt, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2028-10-31

Contract Duration: 1,132 days

Daily Burn Rate: $23.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AUGMENTOR LINER, COM

Place of Performance

Location: MANCHESTER, HARTFORD County, CONNECTICUT, 06042

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to ACMT, INC. for work described as: AUGMENTOR LINER, COM Key points: 1. Contract value appears reasonable given the extended performance period and specialized nature of aircraft components. 2. Full and open competition suggests a healthy market for these parts, potentially leading to competitive pricing. 3. The firm-fixed-price structure shifts cost risk to the contractor, which is generally favorable for the government. 4. Performance is tied to aircraft engine parts manufacturing, a critical component of defense readiness. 5. This contract falls within the broader Defense Logistics Agency's mission to support military aviation. 6. The contractor, ACMT, Inc., is positioned to deliver essential components for defense aircraft.

Value Assessment

Rating: good

The contract value of $27.03 million over approximately 3.7 years (1132 days) suggests an average annual value of roughly $7.3 million. Without specific unit cost data or comparable contract benchmarks for 'AUGMENTOR LINER, COM', a precise value-for-money assessment is challenging. However, the firm-fixed-price nature and full competition indicate a structured approach to pricing. The benchmarked annual spending for this NAICS code (336412) is $2.39 billion, placing this contract as a relatively small portion of the overall market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though not explicitly quantified in the provided data, is implied by the competition type. This approach generally fosters price discovery and allows the government to select the offer that represents the best value, considering both price and technical factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, which could lead to inflated costs.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other branches of the Department of Defense requiring these specific aircraft engine components. The contract delivers critical parts necessary for the maintenance and operational readiness of military aircraft. The geographic impact is primarily national, supporting defense supply chains, with potential localized economic benefits in Connecticut where the contractor is based. Workforce implications include potential job creation or retention at ACMT, Inc. and its suppliers within the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines for critical aircraft parts.
Reliance on a single contractor for a specific component could pose a risk if performance issues arise.
Fluctuations in raw material costs could impact the contractor's profitability and potentially lead to future price increase requests, despite the fixed-price nature.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The contractor, ACMT, Inc., is likely experienced in manufacturing specialized aerospace components.
The extended contract duration allows for stable supply and planning for the Defense Logistics Agency.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft engine and engine parts manufacturing (NAICS 336412). This industry is characterized by high technological barriers to entry, stringent quality control requirements, and significant government procurement. The total U.S. federal spending in this sector is substantial, with benchmarks indicating billions spent annually. This contract represents a specific procurement within that larger ecosystem, ensuring the availability of essential components for military aviation.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, ACMT, Inc., may engage small businesses as subcontractors to fulfill parts of this contract, contributing indirectly to the small business ecosystem within the aerospace supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA), which ensures contractor compliance with terms and conditions. The firm-fixed-price nature inherently places cost control responsibility on the contractor. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Agency Contracts
Aerospace Manufacturing
Military Engine Components
Fixed-Price Contracts
DoD Supply Chain Management

Risk Flags

Potential supply chain vulnerability for specialized components.
Contractor performance risk over extended duration.
Reliance on specific manufacturing capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to ACMT, INC.. AUGMENTOR LINER, COM

Who is the contractor on this award?

The obligated recipient is ACMT, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2025-09-25. End: 2028-10-31.

What is the historical spending pattern for ACMT, Inc. with the Department of Defense?

Analyzing the historical spending with ACMT, Inc. requires access to comprehensive contract databases. Without specific historical data for ACMT, Inc., it's difficult to provide a precise pattern. However, contracts for specialized components like aircraft engine parts often involve long-term relationships due to the high barriers to entry and the need for proven quality and reliability. If ACMT, Inc. has previously secured similar contracts, it suggests a track record of meeting DoD requirements. Conversely, a lack of prior significant awards might indicate this is a new or expanded role for the company, potentially introducing more risk regarding performance consistency and delivery.

How does the $27.03 million contract value compare to similar 'AUGMENTOR LINER, COM' procurements?

A direct comparison of the $27.03 million contract value for 'AUGMENTOR LINER, COM' to similar procurements is challenging without access to a database of comparable contracts for this specific part. The value is spread over 1132 days (over 3 years), making the annual value approximately $7.3 million. Factors influencing this value include the complexity of the part, material costs, manufacturing processes, and required quality certifications. The benchmarked annual spending for the broader NAICS code 336412 ($2.39 billion) indicates this contract is a specific, potentially niche, procurement within a large market. A detailed comparison would necessitate identifying other contracts for the same or functionally equivalent parts, considering quantity, specifications, and contract type.

What are the primary risks associated with this firm-fixed-price contract for aircraft engine parts?

While firm-fixed-price (FFP) contracts are generally favorable for the government by shifting cost risk to the contractor, several risks remain. For this contract, key risks include potential contractor underperformance where ACMT, Inc. might struggle to meet quality standards or delivery schedules, leading to aircraft downtime. There's also a risk of contractor default, though less likely for established firms. Material cost volatility could squeeze contractor margins, potentially leading to requests for equitable adjustments or impacting future bidding. Furthermore, if the 'AUGMENTOR LINER, COM' is a highly specialized or sole-source component from a materials perspective, supply chain disruptions for those raw materials could impact ACMT, Inc.'s ability to fulfill the contract, even under FFP terms.

How effective is full and open competition in ensuring value for money for specialized defense components?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized defense components. It allows a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. For components like aircraft engine parts, where technical specifications are critical, this process enables the government to evaluate not only price but also technical merit, past performance, and delivery capabilities. The Defense Logistics Agency's choice of this method suggests confidence in the market's ability to supply these parts competitively. However, the effectiveness hinges on the number and capability of the bidders; a limited pool of highly specialized firms might still result in higher-than-expected prices, even with open competition.

What are the implications of the contract's duration (1132 days) on program stability and cost?

The contract duration of 1132 days (approximately 3.7 years) offers significant advantages for program stability and cost predictability. For the Department of Defense, a longer duration ensures a consistent supply of critical aircraft engine parts, reducing the risk of stock-outs and operational disruptions. It allows for better long-term planning and resource allocation. From a cost perspective, longer-term contracts can sometimes lead to more favorable pricing as the contractor can achieve economies of scale in production and amortize setup costs over a larger volume. It also reduces the administrative burden and costs associated with frequent re-competitions. However, it also locks the government into the current pricing structure for the duration, potentially missing out on market price reductions if costs decrease significantly.

What is the significance of the NAICS code 336412 (Aircraft Engine and Engine Parts Manufacturing) in the context of this award?

The NAICS code 336412 signifies that the contract is for the manufacturing of aircraft engines and engine parts. This is a highly specialized and critical sector within the defense industrial base. Companies operating under this code must adhere to rigorous quality standards (e.g., AS9100) and often possess advanced manufacturing capabilities. The benchmarked annual spending of $2.39 billion for this sector indicates its substantial importance to national defense and the aerospace industry. Awarding a contract within this NAICS code to ACMT, Inc. means the company is recognized as capable of producing components that meet the stringent requirements for military aircraft engines, contributing directly to aviation readiness and sustainment.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPRTA124R0198

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 369 PROGRESS DR, MANCHESTER, CT, 06042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,029,250

Exercised Options: $27,029,250

Current Obligation: $27,029,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline