DoD's $837.7M Longbow contract for aircraft equipment saw no competition, raising value concerns

Contract Overview

Contract Amount: $147,030,004 ($147.0M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-11

End Date: 2012-01-31

Contract Duration: 2,395 days

Daily Burn Rate: $61.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200512!004943!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0239 !A!N! !N! ! !20050711!20051215!837750223!837750223!837750223!N!LONGBOW LIMITED LIABILITY COMP!5600 SAND LAKE RD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000015000000!N!N!000000000000!AD24!RDTE/SERVICES-DEMO/VALID !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!U!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $147.0 million to LONGBOW LLC for work described as: 200512!004943!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0239 !A!N! !N! ! !20050711!20051215!837750223!837750223!837750223!N!LONGBOW LIMITED LIABILITY COMP!5600 SAND LAKE RD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORAN… Key points: 1. The contract's lack of competition suggests potential overpayment and limited price discovery. 2. A single bidder for a large defense contract warrants scrutiny of the procurement process. 3. The cost-plus-fixed-fee structure may incentivize higher spending without strict cost controls. 4. Performance dates span over six years, indicating a long-term need for these aircraft parts. 5. This contract falls within the broader 'Other Aircraft Parts' manufacturing sector. 6. The absence of small business involvement is noted, with no set-aside provisions. 7. Oversight of this sole-source award is critical to ensure fair pricing and performance.

Value Assessment

Rating: questionable

The total award amount of $837.7 million for 'Other Aircraft Parts and Auxiliary Equipment' is substantial. Without competitive bidding, it is difficult to benchmark the value for money. The cost-plus-fixed-fee contract type, while sometimes necessary for R&D or uncertain scopes, can lead to higher costs if not managed tightly. Comparing this to similar sole-source awards for specialized aircraft components would be necessary for a more definitive value assessment, but the lack of competition is a primary indicator of potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Longbow LLC, was solicited. The data indicates no other bidders were considered. This lack of competition significantly limits the government's ability to negotiate the best possible price and may result in higher costs for taxpayers. It suggests that either only Longbow LLC possessed the necessary capabilities or the procurement strategy did not adequately explore competitive options.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding. This can lead to higher overall spending for the same goods or services.

Public Impact

The primary beneficiary is the Department of Defense, specifically aviation and missile command, receiving critical aircraft equipment. The contract delivers 'Other Aircraft Parts and Auxiliary Equipment', essential for maintaining and operating military aircraft fleets. The geographic impact is primarily within Florida, where the contractor is located, and wherever the supplied parts are deployed. Workforce implications include jobs at Longbow LLC and potentially its subcontractors, supporting the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Cost-plus-fixed-fee contract type can incentivize higher costs.
Limited transparency due to sole-source nature.
No small business participation noted.

Positive Signals

Contract addresses a specific need for aviation and missile command.
Long contract duration suggests sustained operational requirements.
Contractor is a known entity in the defense sector.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace and defense industry. This industry is characterized by high technological barriers to entry, stringent quality requirements, and significant government spending. The market size for defense aerospace components is substantial, driven by military modernization and sustainment programs. This specific award represents a portion of the DoD's investment in maintaining its aviation capabilities, fitting within a landscape of specialized suppliers.

Small Business Impact

This contract does not appear to have any small business set-aside provisions, as indicated by 'ss: false'. Furthermore, there is no indication of subcontracting goals for small businesses. This means that the full value of the contract is likely to be performed by the prime contractor, Longbow LLC, and its direct suppliers, potentially excluding small businesses from direct participation in this significant award and limiting their opportunities within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. However, as a sole-source award, transparency is inherently limited compared to competitively bid contracts. Accountability measures would rely heavily on the contract terms, performance metrics defined within the Cost Plus Fixed Fee structure, and the government's ability to monitor expenditures and deliverables closely. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Defense Aviation Procurement
Missile Systems Components
Military Aircraft Sustainment
Sole-Source Defense Contracts

Risk Flags

Lack of Competition
Cost-Plus-Fixed-Fee Contract Type
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.0 million to LONGBOW LLC. 200512!004943!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0239 !A!N! !N! ! !20050711!20051215!837750223!837750223!837750223!N!LONGBOW LIMITED LIABILITY COMP!5600 SAND LAKE RD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000015000000!N!N!000000000000!AD24!RDTE/SERVICES-DEMO/VALID !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is LONGBOW LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $147.0 million.

What is the period of performance?

Start: 2005-07-11. End: 2012-01-31.

What is the track record of Longbow LLC in delivering similar aircraft equipment to the DoD?

Longbow LLC, as a limited liability company, has been involved in defense contracting. While specific details on their track record for this exact type of 'Other Aircraft Parts and Auxiliary Equipment' require deeper investigation beyond the provided data, their existence as a contractor for a $837.7 million award suggests a capacity to handle large-scale defense obligations. Further analysis would involve examining past performance reviews, delivery history on previous contracts, and any documented issues or successes related to their product lines and services provided to the Department of Defense or other government agencies. Understanding their specific expertise in the components covered by this contract is crucial for assessing the justification of a sole-source award.

How does the $837.7 million award compare to historical spending on similar 'Other Aircraft Parts' by the DoD?

The provided data indicates a single award of $837.7 million for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' to Longbow LLC. To compare this to historical spending, one would need to analyze aggregate data for the Product Service Code (PSC) or NationalНаименование (NAICS) code associated with this contract over previous fiscal years. This would involve querying databases like USAspending.gov or the Federal Procurement Data System (FPDS) for total obligations in the 'Other Aircraft Parts' category. Without this broader context, it's difficult to ascertain if $837.7 million represents an increase, decrease, or stable level of spending for this type of equipment. However, the magnitude of this single award suggests a significant investment in this category during the contract's performance period.

What are the specific risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract of this magnitude?

A sole-source CPFF contract of $837.7 million carries several significant risks. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated costs as the contractor faces no market-based incentive to offer the lowest price. Secondly, the CPFF structure, while providing flexibility, can incentivize the contractor to incur higher costs to increase the fixed fee, which is often a percentage of the actual costs. This creates a risk of cost overruns and reduced cost-consciousness. For taxpayers, the primary risk is paying more than necessary for the required equipment. Effective government oversight, stringent auditing, and clear performance metrics are crucial to mitigate these risks, but the inherent structure presents a higher risk profile than fixed-price competitive contracts.

What specific aircraft or missile systems does this contract support?

The contract data specifies the National Наименование (NAICS) code as '336413' and the Product Service Code (PSC) as 'AD24', both relating to 'Other Aircraft Parts and Auxiliary Equipment'. While the data does not explicitly name the specific aircraft or missile systems, this category typically includes components such as landing gear, air conditioning systems, fuel systems, electrical systems, and other non-engine related parts for fixed-wing aircraft, helicopters, and potentially missile airframes. Given the contractor is 'LONGBOW LIMITED LIABILITY COMP', it is highly probable that this contract supports systems related to the Longbow missile program or associated helicopter platforms (like the Apache) that utilize it, although the broad NAICS code allows for wider application.

What is the justification provided for awarding this contract on a sole-source basis?

The provided data indicates the contract type as 'NOT COMPETED' (CT: 'N'), which is synonymous with a sole-source award. However, the specific justification for this sole-source determination is not included in the abbreviated data string. Typically, justifications for sole-source awards must meet specific criteria outlined in the Federal Acquisition Regulation (FAR), such as the existence of only one responsible source, a public exigency, or a treaty/international agreement. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to detail the government's rationale. This lack of transparency regarding the justification is a common concern with sole-source procurements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 SAND LAKE RD, ORLANDO, FL, 90

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline