DoD awards $24M contract for F100 engine coolers to AMETEK Thermal Systems, raising competition concerns

Contract Overview

Contract Amount: $2,403,424 ($2.4M)

Contractor: Ametek Thermal Systems Inc

Awarding Agency: Department of Defense

Start Date: 2026-01-12

End Date: 2027-09-30

Contract Duration: 626 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COOLER, LUBRICAING IN SUPPORT OF THE F100 ENGINE.

Place of Performance

Location: GARDEN CITY, NASSAU County, NEW YORK, 11530

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to AMETEK THERMAL SYSTEMS INC for work described as: COOLER, LUBRICAING IN SUPPORT OF THE F100 ENGINE. Key points: 1. Contract awarded for critical aircraft engine components. 2. Sole-source award to AMETEK Thermal Systems Inc. 3. Potential for higher costs due to lack of competition. 4. Defense sector spending on aircraft parts is substantial.

Value Assessment

Rating: questionable

The contract value of $24,034,240 for engine coolers appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is reasonable compared to potential market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no competition. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending, impacting taxpayer funds allocated for defense.

Public Impact

Ensures continued operational readiness for F100-powered aircraft. Supports the critical supply chain for military aviation. Potential for increased maintenance costs if pricing is not optimized.

Waste & Efficiency Indicators

Waste Risk Score: 38 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for price inflation

Positive Signals

Supports critical defense asset
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically for aircraft engine parts. Spending in this area is crucial for maintaining military readiness, but often involves specialized, high-cost components.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure the pricing is fair and reasonable, and to explore future competitive opportunities.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of small business participation.
Dependency on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to AMETEK THERMAL SYSTEMS INC. COOLER, LUBRICAING IN SUPPORT OF THE F100 ENGINE.

Who is the contractor on this award?

The obligated recipient is AMETEK THERMAL SYSTEMS INC.

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: 2026-01-12. End: 2027-09-30.

What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or lack of available alternatives. However, without competitive bidding, rigorous internal review and cost analysis are essential to validate the pricing. Agencies should document the rationale thoroughly and explore options for future competition, perhaps through market research or by breaking down the requirement.

What is the potential risk to the F100 engine's operational readiness if AMETEK Thermal Systems faces production issues?

A sole-source award concentrates risk with a single supplier. If AMETEK experiences production delays, quality control issues, or financial instability, it could directly impact the availability of critical engine components. This could lead to aircraft downtime and reduced operational readiness for the Department of Defense, necessitating contingency planning.

How does this contract's pricing compare to similar components or previous procurements for the F100 engine?

Without competitive bids, direct comparison is challenging. However, an analysis of historical pricing for similar F100 engine components, or even components for comparable engines, could provide a benchmark. If this contract's unit price is significantly higher than previous awards or industry averages, it signals a potential issue with price reasonableness.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRTA125R0417

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ametek Inc

Address: 300 ENDO BLVD, GARDEN CITY, NY, 11530

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: $2,403,424

Exercised Options: $2,403,424

Current Obligation: $2,403,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline