DoD awards $18M for aircraft structural components, with a 2007 contract for components from Triumph Fabrication

Contract Overview

Contract Amount: $17,999,483 ($18.0M)

Contractor: Triumph Fabrication - Orangeburg

Awarding Agency: Department of Defense

Start Date: 2007-05-21

End Date: 2009-12-30

Contract Duration: 954 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ORDER FOR AIRFRAME STRUCTURAL COMPONENTS

Place of Performance

Location: EAST ALTON, MADISON County, ILLINOIS, 62024

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to TRIUMPH FABRICATION - ORANGEBURG for work described as: ORDER FOR AIRFRAME STRUCTURAL COMPONENTS Key points: 1. The contract value of $18M appears reasonable for specialized aircraft structural components, though a direct comparison requires detailed cost breakdowns. 2. Awarded under full and open competition, suggesting a competitive bidding process that should have yielded fair market pricing. 3. The contract duration of 954 days (approx. 2.6 years) is typical for such specialized manufacturing orders. 4. The fixed-price contract type shifts risk to the contractor, which can be beneficial for the government if costs are well-managed. 5. The award to Triumph Fabrication, a known entity in aerospace manufacturing, provides some assurance of capability. 6. The specific components ordered are critical for airframe integrity, highlighting the importance of quality and reliability.

Value Assessment

Rating: good

The contract value of approximately $18 million for airframe structural components is within a typical range for specialized aerospace manufacturing. Benchmarking against similar contracts for aircraft parts requires access to detailed specifications and quantities. However, given the nature of structural components, which demand high precision and quality control, the price appears to be a fair reflection of the complexity and materials involved. The firm fixed-price structure suggests that the contractor is responsible for managing costs, which can lead to better value if executed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders in such a competitive environment typically drives prices down towards market rates, fostering price discovery. The specific number of bidders is not provided, but the designation suggests a robust competition that should have resulted in a favorable outcome for the government.

Taxpayer Impact: Full and open competition generally ensures that taxpayer dollars are used efficiently by promoting a marketplace where contractors vie for the best price and quality. This process helps prevent overpayment and encourages innovation among suppliers.

Public Impact

The primary beneficiaries are the Department of Defense and its air operations, ensuring the structural integrity and operational readiness of aircraft. The services delivered include the manufacturing and supply of critical airframe structural components, essential for aircraft safety and performance. The geographic impact is primarily linked to the contractor's facility in Orangeburg, South Carolina, and potentially the locations of military units receiving the aircraft. Workforce implications include employment at Triumph Fabrication and its supply chain, supporting skilled manufacturing jobs in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen manufacturing challenges arise, though mitigated by the firm fixed-price contract.
Dependence on a single contractor for a critical component could pose supply chain risks if not managed proactively.
Ensuring consistent quality and adherence to stringent aerospace specifications requires robust government oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
Contractor (Triumph Fabrication) has established experience in aerospace manufacturing.
Components are critical for airframe structural integrity, ensuring operational readiness.

Sector Analysis

The aerospace manufacturing sector is characterized by high barriers to entry, stringent quality requirements, and significant R&D investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413). The global aerospace market is substantial, with defense procurement forming a significant segment. Spending on aircraft components is driven by fleet readiness, modernization programs, and new aircraft acquisitions. Comparable spending benchmarks would typically be found within defense budget allocations for aircraft sustainment and component manufacturing.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor, Triumph Fabrication, is likely a large business, there may be subcontracting opportunities for small businesses within their supply chain. The extent of small business participation would depend on Triumph Fabrication's subcontracting plan and the availability of qualified small business suppliers for the specific components required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) or the relevant branch of the Department of Defense responsible for logistics and sustainment. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver conforming goods by the specified deadlines. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace Component Procurement
Defense Logistics and Sustainment
Airframe Structural Repair and Overhaul
Military Aircraft Maintenance

Risk Flags

Potential for quality control issues in specialized manufacturing.
Supply chain disruption risks.
Contractor performance variability.
Long-term sustainment and obsolescence management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to TRIUMPH FABRICATION - ORANGEBURG. ORDER FOR AIRFRAME STRUCTURAL COMPONENTS

Who is the contractor on this award?

The obligated recipient is TRIUMPH FABRICATION - ORANGEBURG.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2007-05-21. End: 2009-12-30.

What is the historical spending pattern for airframe structural components by the Defense Logistics Agency?

The Defense Logistics Agency (DLA) historically spends billions annually on aviation parts and components to support military readiness across all branches. This includes a wide array of items, from raw materials and basic structural elements to highly complex integrated systems. Spending patterns are influenced by fleet age, modernization initiatives, operational tempo, and specific aircraft maintenance schedules. While this specific $18 million order is a discrete event, DLA's overall aviation procurement budget reflects a consistent and substantial demand for such components. Analyzing historical DLA spending data for NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing) and related categories would reveal trends in volume, value, and types of components procured over time, providing context for the significance of individual awards like this one.

How does the firm fixed-price contract type impact the government's risk and potential for cost savings compared to other contract types for this procurement?

A firm fixed-price (FFP) contract, like the one awarded here, places the primary risk of cost overruns on the contractor. This means the government agrees to pay a set price regardless of the contractor's actual costs, incentivizing the contractor to manage expenses efficiently and complete the work within budget. For the government, this offers significant cost certainty and predictability, making budgeting easier. However, if the contractor significantly underestimates costs or encounters unexpected difficulties, they bear the loss, which could potentially lead to quality compromises if not carefully monitored. Compared to cost-plus contracts, FFP generally offers better value when the scope of work is well-defined and risks are manageable, as is often the case with established component manufacturing.

What is Triumph Fabrication's track record with Department of Defense contracts, particularly for structural components?

Triumph Fabrication, as part of the larger Triumph Group, has a substantial track record of supplying components and services to the Department of Defense and other aerospace customers. Their expertise typically lies in complex aerostructures, including metallic and composite components, which aligns with the nature of this contract. Reviewing publicly available contract databases would reveal the volume and value of past awards to Triumph Fabrication from DoD agencies. While specific performance metrics for individual contracts are often not public, their continued success in winning competitive bids suggests a history of meeting quality, delivery, and cost requirements. Any past performance issues or significant disputes would be a key area for further investigation.

What are the potential implications of this contract award on the broader aerospace supply chain and small business participation?

This contract, valued at $18 million, contributes to the overall demand within the aerospace manufacturing sector. It supports the prime contractor, Triumph Fabrication, and likely stimulates activity within its own supply chain, which may include numerous smaller suppliers. While this specific award was not a small business set-aside, the prime contractor may engage small businesses as subcontractors for materials, specialized processes, or component parts. The health of the aerospace supply chain relies on a robust network of manufacturers, both large and small. Contracts like this help sustain the ecosystem, potentially creating opportunities for small businesses that can meet the stringent quality and certification requirements of the defense aerospace industry.

How does the geographic location of the contractor (Orangeburg, SC) influence logistics and delivery timelines for the DoD?

The geographic location of Triumph Fabrication in Orangeburg, South Carolina, has logistical implications for the Department of Defense. Proximity to major military depots, airfields, or transportation hubs can influence shipping costs and delivery times. South Carolina offers access to ports and a well-developed transportation infrastructure, which can facilitate both inbound material supply and outbound delivery of finished components. For the DoD, managing these logistics is crucial for ensuring timely availability of parts to maintain aircraft readiness. The contract duration of 954 days suggests that lead times and production schedules were factored into the planning, and the location's logistical advantages or disadvantages would have been considered during the bidding process.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W58RGZ07R0327

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Triumph Group, Inc. (UEI: 807636451)

Address: 1301 W 1ST ST STE C, GRANITE CITY, IL, 13

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,676,858

Exercised Options: $17,999,483

Current Obligation: $17,999,483

Contract Characteristics

Cost or Pricing Data: NO

Timeline