Army awards $89M to Longbow LLC for Apache helicopter refurbishment supporting UK, with no competition

Contract Overview

Contract Amount: $88,991,889 ($89.0M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-28

End Date: 2023-09-30

Contract Duration: 2,102 days

Daily Burn Rate: $42.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI), IN SUPPORT OF THE APACHE ATTACK HELICOPTER PROJECT OFFICE AT REDSTONE ARSENAL, HUNTSVILLE, AL, HAS A REQUIREMENT FOR FCR MMA REFURBISHMENT PROGRAM IN SUPPORT OF THE UK.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $89.0 million to LONGBOW LLC for work described as: THE ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI), IN SUPPORT OF THE APACHE ATTACK HELICOPTER PROJECT OFFICE AT REDSTONE ARSENAL, HUNTSVILLE, AL, HAS A REQUIREMENT FOR FCR MMA REFURBISHMENT PROGRAM IN SUPPORT OF THE UK. Key points: 1. Contract awarded to Longbow LLC for critical Apache helicopter refurbishment. 2. Significant value of $88.99 million highlights the importance of the program. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The contract falls within the Aircraft Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $88.99 million for refurbishment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition could lead to taxpayers bearing a higher cost for these essential helicopter refurbishments.

Public Impact

Ensures continued operational readiness of Apache helicopters for the UK. Supports a critical defense capability for an allied nation. Potential for higher costs due to sole-source nature impacts taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value without competitive benchmark

Positive Signals

Supports allied defense capabilities
Addresses critical equipment refurbishment needs

Sector Analysis

This contract is within the Aircraft Manufacturing sector, specifically for the refurbishment of Apache attack helicopters. Spending in this area is often driven by defense needs and long-term equipment sustainment strategies.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award, as the prime contractor is Longbow LLC and the 'sb' field is false.

Oversight & Accountability

The contract was awarded by the Army Contracting Command - Rock Island. Oversight is crucial to ensure the refurbishment meets all specifications and that the sole-source pricing is justified.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competition.
Potential for cost overruns due to lack of price discovery.
Limited transparency on price reasonableness.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.0 million to LONGBOW LLC. THE ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI), IN SUPPORT OF THE APACHE ATTACK HELICOPTER PROJECT OFFICE AT REDSTONE ARSENAL, HUNTSVILLE, AL, HAS A REQUIREMENT FOR FCR MMA REFURBISHMENT PROGRAM IN SUPPORT OF THE UK.

Who is the contractor on this award?

The obligated recipient is LONGBOW 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 $89.0 million.

What is the period of performance?

Start: 2017-12-28. End: 2023-09-30.

What is the justification for awarding this contract sole-source, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. The contracting officer must still conduct a price analysis to ensure the price is fair and reasonable, often by comparing to historical prices, other government contracts, or commercial price lists, even without direct competition.

What are the risks associated with a sole-source contract for critical defense equipment refurbishment?

Sole-source contracts carry risks of inflated pricing due to the absence of competitive pressure. There's also a potential for reduced innovation and less incentive for the contractor to improve efficiency or quality beyond minimum requirements. This can lead to higher long-term costs and potentially less optimal outcomes for the government.

How does this contract contribute to the overall effectiveness and readiness of the UK's Apache helicopter fleet?

By refurbishing existing Apache helicopters, this contract directly contributes to maintaining and enhancing the operational effectiveness and readiness of the UK's fleet. It ensures these critical assets remain capable of performing their intended missions, supporting national security and allied defense commitments.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5600 W SAND LAKE RD MP 205, ORLANDO, FL, 32819

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,991,889

Exercised Options: $88,991,889

Current Obligation: $88,991,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline