DoD awards $13.9M for Kiowa Helicopter Spare Parts to Contract Fabrication and Design, LLC
Contract Overview
Contract Amount: $13,893,024 ($13.9M)
Contractor: Contract Fabrication and Design, LLC
Awarding Agency: Department of Defense
Start Date: 2006-12-21
End Date: 2009-09-30
Contract Duration: 1,014 days
Daily Burn Rate: $13.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARE COMPONENTS FOR KIOWA HELICOPTER
Place of Performance
Location: PRINCETON, COLLIN County, TEXAS, 75407
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $13.9 million to CONTRACT FABRICATION AND DESIGN, LLC for work described as: SPARE COMPONENTS FOR KIOWA HELICOPTER Key points: 1. Spending on spare parts for aging aircraft can be costly and prone to price inflation. 2. Lack of competition suggests potential for higher prices and reduced value for taxpayer dollars. 3. The contract's duration and fixed-price nature may offer some cost predictability. 4. Analysis of the specific components and their necessity is crucial for assessing true value.
Value Assessment
Rating: questionable
The contract value of $13.9M for spare parts over approximately 3 years lacks sufficient benchmark data for a definitive assessment. Without comparable contracts for similar helicopter parts or detailed cost breakdowns, it's difficult to ascertain if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to inflated costs compared to a competitive bidding process.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as the government may have paid a premium for these spare parts.
Public Impact
Taxpayers may be overpaying for essential helicopter parts due to a lack of competitive bidding. The continued reliance on sole-source contracts for aging military equipment can drain defense budgets. Ensuring the availability of critical spare parts is vital for maintaining operational readiness of the Kiowa helicopter fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Aging aircraft parts
Positive Signals
- Firm Fixed Price contract type
- Defined contract duration
Sector Analysis
Spending on aircraft parts falls within the broader aerospace and defense sector. Benchmarks for spare parts procurement often show significant price variations, especially for specialized or legacy systems where competition is limited.
Small Business Impact
The contract was awarded to Contract Fabrication and Design, LLC. Information regarding the company's size or its status as a small business is not provided in the data, making it difficult to assess small business participation.
Oversight & Accountability
The 'DCA' award action code suggests a specific type of contract award, but further details on the oversight mechanisms employed during this sole-source procurement are not available. Robust oversight is critical for sole-source contracts to ensure fair pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing on legacy aircraft parts.
- Lack of transparency in cost justification.
- Risk of supply chain disruptions for aging components.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to CONTRACT FABRICATION AND DESIGN, LLC. SPARE COMPONENTS FOR KIOWA HELICOPTER
Who is the contractor on this award?
The obligated recipient is CONTRACT FABRICATION AND DESIGN, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2006-12-21. End: 2009-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. Without specific documentation, it's presumed the contracting officer determined these conditions were met. However, the lack of competition inherently makes price discovery challenging, necessitating thorough cost analysis and negotiation by the agency to ensure fair pricing.
How does the cost of these spare parts compare to industry benchmarks for similar components, considering the age of the Kiowa helicopter?
Assessing the cost against industry benchmarks is difficult without specific part numbers and detailed specifications. However, spare parts for aging platforms like the Kiowa often command higher prices due to limited production runs, specialized manufacturing requirements, and potential obsolescence. The absence of competition exacerbates this risk, suggesting prices could be significantly above market rates for more common components.
What is the long-term strategy for procuring parts for the Kiowa helicopter, and are there plans to transition to more competitive sourcing or alternative platforms?
The long-term strategy is unclear from this data alone. Continued sole-source procurement for aging aircraft parts is unsustainable and costly. Agencies should explore options like competitive prototyping, advanced manufacturing techniques (e.g., 3D printing), or consolidating requirements across multiple contracts to improve competition and reduce costs. Planning for platform retirement or modernization is also key.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W52H0906R0177
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5427 FM 546, PRINCETON, TX, 03
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $13,893,024
Exercised Options: $13,893,024
Current Obligation: $13,893,024
Timeline
Start Date: 2006-12-21
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2010-04-24
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