LONGBOW LLC awarded $358.5M for aircraft parts, with no competition over a decade

Contract Overview

Contract Amount: $358,549,785 ($358.5M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2006-05-31

End Date: 2016-12-31

Contract Duration: 3,867 days

Daily Burn Rate: $92.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $358.5 million to LONGBOW LLC for work described as: Key points: 1. Significant contract value awarded without competitive bidding raises questions about price efficiency. 2. The long duration of the contract (over 10 years) suggests a sustained need but also potential for price escalation. 3. The absence of competition indicates a potential lack of market pressure to drive down costs. 4. This contract represents a substantial portion of spending within the 'Other Aircraft Parts' manufacturing sector. 5. The firm fixed-price structure offers some cost certainty but doesn't inherently guarantee value for money without competition. 6. The contract's performance period spans a significant portion of the last decade, indicating long-term reliance on the contractor.

Value Assessment

Rating: questionable

The contract's value of $358.5 million over approximately 10 years, awarded on a sole-source basis, makes direct value-for-money assessment challenging. Without competitive bids, it's difficult to benchmark against market rates or determine if the pricing reflects optimal efficiency. The firm fixed-price nature provides cost predictability, but the lack of competition means taxpayers may not have benefited from the lowest possible price achievable through a competitive process. Further analysis would require access to cost breakdowns and comparisons with similar sole-source awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source procurement. This means that only one offer was solicited and considered. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to secure the best possible pricing. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to higher prices compared to competitively awarded contracts.

Taxpayer Impact: Sole-source awards mean taxpayers likely paid a premium, as there was no competitive pressure to reduce costs. This lack of competition limits transparency in pricing and potentially reduces the overall value for taxpayer dollars spent.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Department of the Army) and potentially military personnel relying on the aircraft parts supplied. The contract delivers essential 'Other Aircraft Parts and Auxiliary Equipment' crucial for maintaining military aviation readiness. The geographic impact is primarily linked to the contractor's location in Florida (FL), though the ultimate use of the parts is national. Workforce implications include employment at LONGBOW LLC and its supply chain, contributing to the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a large-value contract raises concerns about potential overpricing and reduced value for taxpayer money.
The extended contract duration (over 10 years) without re-competition could indicate a missed opportunity for cost savings.
Sole-source awards can sometimes be a symptom of market failures or inadequate planning, warranting further investigation into the procurement process.
Limited transparency into the justification for sole-sourcing makes it difficult to fully assess the necessity and fairness of the award.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, mitigating risks associated with cost overruns.
The contract's long duration suggests a consistent and potentially critical need for the supplied aircraft parts, indicating reliability.
The award to LONGBOW LLC, a company operating in the aerospace sector, likely supports specialized manufacturing capabilities.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a critical component of the broader aerospace and defense industry. This contract, valued at over $358 million, represents a significant investment within this niche. The market for specialized aircraft components is often characterized by high barriers to entry due to technical expertise, certifications, and established relationships with prime contractors or government agencies. Without competitive bidding, it's challenging to benchmark this contract against industry standards or assess the overall market size for these specific parts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Furthermore, there is no explicit information regarding subcontracting plans for small businesses. The sole-source nature of the award further reduces the likelihood of direct opportunities for small businesses to participate in this specific contract, potentially limiting their access to this segment of federal spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, the justification for not competing would have undergone internal review. Transparency is limited due to the lack of public competition details. Inspector General (IG) jurisdiction would apply if allegations of fraud, waste, or abuse arise. The long duration necessitates ongoing performance monitoring to ensure continued compliance and value.

Related Government Programs

Aircraft Component Procurement
Defense Logistics Agency (DLA) Contracts
Aerospace Manufacturing Contracts
Sole-Source Defense Procurements
Long-Term Government Contracts

Risk Flags

Sole-source award raises value-for-money concerns.
Lack of competition limits price discovery.
Extended contract duration without re-competition.
Potential for contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $358.5 million to LONGBOW LLC. See the official description on USAspending.

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 $358.5 million.

What is the period of performance?

Start: 2006-05-31. End: 2016-12-31.

What was the specific justification provided by the Department of the Army for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Typically, justifications for sole-sourcing include factors such as unique technical capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. Without access to the specific contract file or justification documentation (e.g., a Justification and Approval document), the precise reasons remain unknown. However, for a contract of this magnitude and duration in the defense sector, common justifications often revolve around specialized parts essential for specific aircraft platforms where alternative suppliers are non-existent or lack the necessary qualifications and certifications.

How does the per-unit cost of the aircraft parts supplied under this contract compare to similar parts procured competitively?

A direct comparison of per-unit costs is not feasible with the provided data. The contract was awarded sole-source, meaning there were no competing bids to establish a market-driven price. To perform such a comparison, one would need access to the detailed pricing structure of this contract (e.g., unit prices for specific part numbers) and compare it against unit prices for identical or functionally equivalent parts procured through competitive solicitations by the Department of Defense or other federal agencies. Benchmarking would also involve considering factors like volume discounts, contract duration, and the specific technical requirements of the parts.

What are the key performance indicators (KPIs) used to measure the success and value of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for contracts involving the supply of aircraft parts, typical KPIs would likely include on-time delivery rates, quality acceptance rates (minimizing defects), adherence to technical specifications, and potentially responsiveness to urgent requirements. The 'firm fixed-price' nature suggests that cost control is a primary objective, but measuring 'value' beyond meeting specifications and delivery schedules would require assessing factors like the contractor's efficiency, innovation, and overall support throughout the contract's long duration. Performance would be monitored by the Army Contracting Command or relevant program office.

What is LONGBOW LLC's track record with the Department of Defense, particularly regarding sole-source contracts?

The data indicates LONGBOW LLC has been awarded this specific contract worth $358.5 million by the Department of the Army. The fact that it was a sole-source award spanning over 10 years suggests a potentially established relationship or a recognized capability. To assess their broader track record, one would need to examine other contracts awarded to LONGBOW LLC, including their types (competitive vs. sole-source), values, performance history (e.g., past performance ratings), and any history of disputes or contract terminations. A comprehensive review would reveal if this sole-source award is an anomaly or part of a pattern.

Have there been any significant changes in the scope or pricing of this contract since its initial award in 2006?

The provided data shows the contract was awarded on May 31, 2006, and ended on December 31, 2016, with a total value of $358,549,784.68. It was a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type and awarded as 'NOT COMPETED'. The duration was 3867 days (approximately 10.6 years). Without access to contract modification history, it's impossible to determine if there were changes in scope or pricing. However, for long-duration contracts, modifications are common to adjust for inflation, scope changes, or updated requirements. The total value suggests a stable or potentially increasing requirement over its life, but specific details on modifications are not available in this summary.

What is the estimated market size for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' within the defense sector?

Estimating the precise market size for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' within the defense sector is complex and depends heavily on the specific types of parts included. This category is broad and can encompass everything from specialized engine components and avionics to structural elements and maintenance equipment. Industry reports and market research firms often provide figures for the overall aerospace and defense MRO (Maintenance, Repair, and Overhaul) market, or specific segments like military aircraft components. However, a definitive figure for this exact NAICS code ('336413') within the defense context would require specialized market analysis, considering factors like the size of the active military aircraft fleet, planned upgrades, and sustainment budgets across different branches of the armed forces.

Industry Classification

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

Product/Service Code: FIRE CONTROL EQPT.

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

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 SAND LAKE RD, ORLANDO, FL, 32819

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline