DoD awards $24.9M for C-5 landing gear actuators, with limited competition and potential for cost overruns

Contract Overview

Contract Amount: $24,911,754 ($24.9M)

Contractor: Triumph Gear Systems Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-20

End Date: 2025-09-20

Contract Duration: 365 days

Daily Burn Rate: $68.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-5 MAIN LANDING GEAR ACTUATORS, NEW PRODUCTION

Place of Performance

Location: PARK CITY, SUMMIT County, UTAH, 84098

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to TRIUMPH GEAR SYSTEMS INC for work described as: C-5 MAIN LANDING GEAR ACTUATORS, NEW PRODUCTION Key points: 1. The contract value of $24.9 million for new production landing gear actuators represents a significant investment in maintaining the C-5 fleet. 2. Limited competition for this contract raises concerns about price discovery and potential for inflated costs. 3. The firm-fixed-price contract type aims to control costs, but the lack of robust competition could undermine this. 4. The contract duration of 365 days suggests a focused effort on immediate supply needs. 5. The award to Triumph Gear Systems Inc. indicates a reliance on established suppliers for critical aircraft components. 6. The absence of small business set-asides means opportunities for smaller firms in this specialized manufacturing sector are limited.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparisons to similar actuator procurements. The raw dollar amount of $24.9 million for new production landing gear actuators for a specific aircraft type suggests a high unit cost, typical for specialized aerospace components. However, the lack of competitive bidding makes it difficult to definitively assess if the pricing represents good value for money or if it is inflated due to limited market engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Triumph Gear Systems Inc., was solicited. This approach is typically used when a specific capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of multiple bidders limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust internal cost analysis by the agency to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Air Force, ensuring the operational readiness of the C-5 Galaxy strategic airlift aircraft. The services delivered include the manufacturing of new landing gear actuators, critical components for aircraft safety and functionality. The geographic impact is national, supporting a key asset for military logistics and global power projection. Workforce implications include employment at Triumph Gear Systems Inc. and its supply chain, likely concentrated in areas with aerospace manufacturing capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of transparency in the sole-source justification could mask underlying issues.
Reliance on a single supplier for critical components creates supply chain vulnerability.
No small business participation noted, potentially missing opportunities for economic inclusion.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to an established supplier suggests a focus on reliability and proven performance.
Procurement supports the critical operational readiness of the C-5 fleet.

Sector Analysis

The aerospace manufacturing sector is characterized by high barriers to entry, complex supply chains, and stringent quality requirements. The production of specialized aircraft components like landing gear actuators falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry code (NAICS 336413). This sector is vital for national defense, requiring significant R&D investment and specialized expertise. The market size for such components is driven by military aircraft sustainment and modernization programs. This contract fits within the broader defense logistics and aircraft maintenance ecosystem, where specialized parts are crucial for maintaining fleet readiness.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there an indication of subcontracting goals for small businesses. The award to Triumph Gear Systems Inc., a large defense contractor, suggests that the primary focus was on securing the required components from an established source. This approach, while potentially ensuring timely delivery, limits opportunities for small businesses to participate in the defense supply chain for critical aircraft parts and may not foster the growth of smaller, specialized firms in this niche.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), which is responsible for procuring and managing supplies for the U.S. military. Accountability measures are embedded in the firm-fixed-price contract type, which obligates the contractor to deliver the specified goods at the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

C-5 Galaxy Sustainment Program
Defense Logistics Agency Aircraft Parts Procurement
Aerospace Component Manufacturing Contracts
Strategic Airlift Fleet Maintenance

Risk Flags

Sole-source award
Potential for price inflation due to limited competition
Supply chain dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to TRIUMPH GEAR SYSTEMS INC. C-5 MAIN LANDING GEAR ACTUATORS, NEW PRODUCTION

Who is the contractor on this award?

The obligated recipient is TRIUMPH GEAR 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 $24.9 million.

What is the period of performance?

Start: 2024-09-20. End: 2025-09-20.

What is the historical spending pattern for C-5 landing gear actuators, and how does this award compare?

Analyzing historical spending for C-5 landing gear actuators requires access to detailed contract databases and specific procurement histories. Without that granular data, a direct comparison is difficult. However, the current award of $24.9 million for new production actuators suggests a significant investment. If previous procurements were for repairs or overhauls, the cost might be higher due to the 'new production' aspect. If similar new production contracts existed, comparing the unit cost and total value would be crucial. A trend of increasing costs over time, especially with limited competition, could indicate potential value-for-money concerns that warrant further investigation into market dynamics and contractor efficiency.

What specific justification was provided for the sole-source award of this contract?

The justification for a sole-source award typically falls into categories such as urgency of need, unique capabilities, or lack of adequate competition. For critical aircraft components like landing gear actuators, the justification might stem from the need for specific, proprietary designs or the limited number of manufacturers capable of producing parts that meet stringent military specifications. The Defense Logistics Agency (DLA) would have had to document why other sources were not considered adequate or available. Without access to the official sole-source justification document (e.g., a Justification and Approval - J&A), it's impossible to detail the exact reasons, but it likely centers on technical requirements or supply chain continuity for a vital defense asset.

What are the potential risks associated with relying on a single supplier for critical aircraft components like landing gear actuators?

Relying on a single supplier for critical components like landing gear actuators presents several significant risks. Firstly, it creates a vulnerability in the supply chain; any disruption at the supplier's facility (e.g., natural disaster, labor strike, financial instability) could halt production and impact aircraft availability. Secondly, the lack of competition can lead to price escalation over time, as the supplier faces no market pressure to offer competitive pricing. Thirdly, it can stifle innovation, as there is less incentive for the sole supplier to invest in process improvements or alternative technologies. Finally, it can limit the government's leverage in contract negotiations, potentially leading to less favorable terms and conditions.

How does the firm-fixed-price contract type mitigate risks in this sole-source scenario?

The firm-fixed-price (FFP) contract type is designed to shift cost risk from the government to the contractor. In this sole-source scenario, the FFP structure means that Triumph Gear Systems Inc. is obligated to deliver the landing gear actuators at the agreed-upon price, regardless of their actual costs incurred. This provides the government with cost certainty and protects against unexpected cost increases during contract performance. While it doesn't address the potential for an initially inflated price due to lack of competition, it does ensure that the government pays the negotiated price for the specified deliverables, preventing cost overruns on the contractor's part.

What is the track record of Triumph Gear Systems Inc. in supplying similar aircraft components to the DoD?

Triumph Gear Systems Inc. is a known entity within the aerospace and defense industry, specializing in the design, manufacture, and overhaul of complex mechanical systems, including landing gear, actuation, and power transmissions. They have a history of supplying components to various military aircraft programs. Assessing their specific track record for C-5 landing gear actuators would involve reviewing their past performance on similar contracts, including on-time delivery, quality metrics, and any history of contract disputes or performance issues. Generally, companies awarded sole-source contracts for critical components often have a demonstrated history of capability and reliability, though specific performance data would be needed for a comprehensive evaluation.

Are there any performance metrics or quality assurance measures specified in this contract to ensure the actuators meet DoD standards?

While the specific details of the contract's performance metrics and quality assurance clauses are not provided in the summary data, it is standard practice for defense contracts, especially for critical aircraft components, to include stringent requirements. These typically involve detailed specifications for materials, manufacturing processes, testing procedures (e.g., functional tests, stress tests), and acceptance criteria. The contract would likely reference relevant military standards (MIL-SPECs) and require the contractor to implement a robust Quality Management System (QMS), such as AS9100. The Defense Contract Management Agency (DCMA) would typically provide oversight to ensure compliance with these quality and performance requirements.

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: SPRWA123R0021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Triumph Group, Inc.

Address: 6125 SILVER CREEK DR, PARK CITY, UT, 84098

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: $24,911,754

Exercised Options: $24,911,754

Current Obligation: $24,911,754

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline