DoD awards $473.8M for aircraft engines and spares, with a significant portion for gas turbines

Contract Overview

Contract Amount: $29,488,061 ($29.5M)

Contractor: Industria DE Turbo Propulsores

Awarding Agency: Department of Defense

Start Date: 2004-11-18

End Date: 2008-03-10

Contract Duration: 1,208 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: 200508!000895!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0026 !A!N! !N! ! !20041118!20071230!473848745!47 !473848745!N!INDUSTRIA DE TURBO PROPULSORES!CTRA. TORREJON- AJALVIR KM!MADRID !SP!* !00000! !SP!* !* !SPAIN !+000015840000!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336412!E! !3! ! ! ! ! !20200930!B! ! !A! !A!Y!J!2!008!N!1G!Z!N!Z!B!SP!Y!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $29.5 million to INDUSTRIA DE TURBO PROPULSORES for work described as: 200508!000895!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0026 !A!N! !N! ! !20041118!20071230!473848745!47 !473848745!N!INDUSTRIA DE TURBO PROPULSORES!CTRA. TORREJON- AJALVIR KM!MADRID !SP!* !00000! !SP!* !* … Key points: 1. Contract value of $473.8 million for aircraft engines and spares. 2. Focus on gas turbines and jet engines for aircraft. 3. Contract awarded to Industria de Turbo Propulsores. 4. Performance period spans from November 2004 to March 2008. 5. This contract falls under the broader category of Aircraft Engine and Engine Parts Manufacturing. 6. The contract type is a Definitive Contract with Fixed Price terms. 7. Competition was Full and Open after exclusion of sources.

Value Assessment

Rating: fair

The total contract value is $473.8 million. While specific performance metrics or unit costs are not detailed in the provided data, the fixed-price nature suggests a defined cost structure. Benchmarking against similar contracts for aircraft engines and spares would be necessary for a comprehensive value assessment. The duration of the contract (over 3 years) indicates a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition level is described as 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially limiting the overall pool of bidders. The number of bidders is not specified, making it difficult to fully assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in less aggressive pricing than a truly full and open competition with a larger number of bidders. Taxpayers may have paid a premium due to the restricted bidding environment.

Public Impact

The U.S. Army benefits from the supply of critical aircraft engines and spare parts. Services delivered include the provision of gas turbines and jet engines for aircraft. The contract supports aviation readiness and operational capabilities for the Department of Defense. The contract has implications for the aerospace manufacturing workforce, particularly in specialized engine production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices.
Contract duration is substantial, requiring ongoing monitoring.
Lack of detailed performance data makes value assessment challenging.

Positive Signals

Fixed-price contract provides cost certainty.
Award to a specialized manufacturer ensures relevant expertise.
Contract supports critical defense aviation needs.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically the manufacturing of aircraft engines and components. The market for these specialized parts is characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is critical for maintaining military aviation capabilities. Comparable spending benchmarks would typically involve other large-scale engine procurements for military aircraft.

Small Business Impact

The provided data does not indicate any small business set-asides or subcontracting plans associated with this contract. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor engages in subcontracting with small businesses, which is not specified here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the terms of the fixed-price definitive contract, ensuring delivery of specified engines and spares. Transparency is facilitated by contract databases, but detailed operational performance data may be less publicly accessible.

Related Government Programs

Aircraft Engine Procurement
Aviation Maintenance and Repair
Defense Logistics and Supply Chain
Aerospace Manufacturing Contracts

Risk Flags

Limited competition may impact price.
Lack of detailed performance metrics.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to INDUSTRIA DE TURBO PROPULSORES. 200508!000895!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0026 !A!N! !N! ! !20041118!20071230!473848745!47 !473848745!N!INDUSTRIA DE TURBO PROPULSORES!CTRA. TORREJON- AJALVIR KM!MADRID !SP!* !00000! !SP!* !* !SPAIN !+000015840000!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336412!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is INDUSTRIA DE TURBO PROPULSORES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2004-11-18. End: 2008-03-10.

What is the specific type of aircraft or platform these engines and spares are intended for?

The provided data does not specify the exact aircraft or platform for which these engines and spares are intended. The Product Service Code (PSC) '336412' and the North American Industry Classification System (NAICS) code '336412' both point to 'Aircraft Engine and Engine Parts Manufacturing.' This indicates a focus on the components themselves rather than a specific end-use platform. However, given the award is to the Department of the Army, it is highly probable these are for military rotorcraft or fixed-wing aircraft operated by the Army, such as helicopters or transport planes, requiring robust and reliable engine systems.

How does the unit cost of these engines compare to similar military or commercial engine procurements during the contract period?

The provided data does not include specific unit costs for the engines or spares procured under this contract, only the total award value of $473.8 million over a period of approximately 3.5 years (November 2004 to March 2008). To compare unit costs, one would need to know the exact quantities of engines and spares purchased. Benchmarking would involve accessing historical pricing data for comparable military engine programs (e.g., other Army aviation contracts, Air Force engine procurements) or even commercial aviation engine sales from the same period. Without quantity and unit price details, a direct comparison is not feasible based solely on the total contract value.

What were the key performance requirements and delivery schedules outlined in the contract?

The provided data indicates the contract type is 'FIXED PRICE' and the duration is 1208 days (approximately 3.35 years), with a start date of 2004-11-18 and an end date of 2008-03-10. However, the specific performance requirements, such as engine reliability metrics, thrust ratings, fuel efficiency targets, or detailed delivery schedules for individual components or engines, are not included in this data extract. These details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not provided here. The fixed-price nature implies that the contractor is obligated to meet defined specifications and delivery timelines.

What is the track record of Industria de Turbo Propulsores in fulfilling large defense contracts prior to and during this period?

The provided data identifies 'INDUSTRIA DE TURBO PROPULSORES' as the contractor. To assess their track record, one would need to examine their contract history with the U.S. government, looking at past performance on similar defense contracts, particularly those involving aircraft engines and spares. This would involve searching databases for previous awards, contract modifications, past performance reviews, and any instances of contract disputes or terminations. Without access to this broader historical contract data, it's difficult to definitively assess their track record specifically for this $473.8 million award.

Were there any significant contract modifications or change orders issued during the life of this contract?

The provided data extract does not contain information about contract modifications or change orders. It presents the initial award details, including the total value, period of performance, and contract type. To determine if modifications occurred, one would need to consult the contract's official file, which would include all amendments, change orders, and supplemental agreements. Such modifications could alter the contract's scope, value, or delivery schedule, and are crucial for a complete understanding of the contract's evolution.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 8

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CTRA. TORREJON- AJALVIR KM, MADRID

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline