DoD Awards $13.3M for Aircraft Parts to TRANSAERO, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $13,320,261 ($13.3M)
Contractor: Transaero, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-05-14
End Date: 2015-07-30
Contract Duration: 2,633 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW CONTRACT
Place of Performance
Location: MELVILLE, SUFFOLK County, NEW YORK, 11747
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to TRANSAERO, INC. for work described as: NEW CONTRACT Key points: 1. Contract value of $13.3 million awarded to TRANSAERO, INC. 2. Procurement falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is 2633 days, spanning from May 2008 to July 2015.
Value Assessment
Rating: fair
The contract value of $13.3 million for aircraft parts over a 7-year period appears reasonable given the duration and the nature of specialized equipment. Benchmarking against similar contracts for 'Other Aircraft Parts' would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible prices through a competitive process.
Public Impact
Ensures continued availability of critical aircraft parts for defense operations. Supports the aerospace manufacturing sector through government contracts. Long contract duration suggests a need for sustained supply chain support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7 years) may introduce risks related to obsolescence or price fluctuations.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition, promoting competitive pricing.
- Contract supports a critical defense need for aircraft parts.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is a niche but vital part of the broader aerospace and defense industry. Spending in this area is driven by military readiness and aircraft sustainment needs.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses were excluded from the competition or if the prime contractor is a large business.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, suggesting established oversight mechanisms. The long duration may require periodic reviews to ensure continued compliance and value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (over 7 years).
- No small business participation indicated.
- Specific aircraft parts are not detailed, limiting precise cost analysis.
- Potential for price escalation over the contract term.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to TRANSAERO, INC.. NEW CONTRACT
Who is the contractor on this award?
The obligated recipient is TRANSAERO, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2008-05-14. End: 2015-07-30.
What was the average annual spending under this contract, and how does it compare to industry benchmarks for similar aircraft parts?
The total contract value is $13.3 million over approximately 2633 days (about 7.2 years), averaging roughly $1.85 million per year. Comparing this to industry benchmarks for similar aircraft parts would require detailed market research on pricing for specific components and their associated maintenance and support costs.
What specific risks were identified or mitigated during the full and open competition process for this long-term contract?
While the contract utilized full and open competition, the long duration (over 7 years) inherently carries risks such as potential obsolescence of parts, supply chain disruptions, and price volatility. Mitigation strategies might include robust contract clauses for price adjustments, material availability, and performance standards, though these are not detailed in the provided data.
How effectively did the full and open competition ensure cost savings for the taxpayer compared to other potential contracting methods?
Full and open competition is generally considered the most effective method for ensuring cost savings as it maximizes the number of potential bidders, fostering a competitive environment. The $13.3 million award over 7 years suggests a competitive price was achieved, but a definitive assessment of cost savings would require comparing this outcome to what might have been realized through sole-source or limited competition scenarios.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 35 MELVILLE PARK ROAD, SUITE 100, MELVILLE, NY, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,640,521
Exercised Options: $13,320,261
Current Obligation: $13,320,261
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-05-14
Current End Date: 2015-07-30
Potential End Date: 2015-07-30 00:00:00
Last Modified: 2014-06-26
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