DoD Awards $298.5M for REU Production Lots 7-11, Sole-Sourced to LONGBOW LLC

Contract Overview

Contract Amount: $298,531,206 ($298.5M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-03

End Date: 2027-04-30

Contract Duration: 2,430 days

Daily Burn Rate: $122.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REU PRODUCTION LOTS 7-11 OP 5 USA/FMS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $298.5 million to LONGBOW LLC for work described as: REU PRODUCTION LOTS 7-11 OP 5 USA/FMS Key points: 1. Significant contract value of $298.5 million for REU production. 2. Sole-sourced award to LONGBOW LLC raises questions about competition. 3. Long contract duration of 2430 days (approx. 6.6 years) suggests a long-term need. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating specialized defense components.

Value Assessment

Rating: questionable

The contract's value of $298.5 million is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts or market rates. The firm fixed price structure provides some cost certainty, but the lack of competition limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to LONGBOW LLC. This method bypasses competitive processes, potentially leading to higher costs for taxpayers and limiting opportunities for other qualified vendors. The rationale for sole-sourcing is not provided.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these REU production lots.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the necessity and justification for a sole-source award. Potential impact on the broader defense supply chain if competition is stifled.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
No small business participation indicated

Positive Signals

Firm fixed price contract type
Clear delivery order structure

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often driven by specific military requirements and can be subject to limited vendor pools.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests that the prime contractor, LONGBOW LLC, is likely a large business, and opportunities for small businesses within this specific award are absent.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the justification for not competing the contract is sound. Accountability for the procurement process and cost management is crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited visibility into justification
No small business participation
Long contract duration may lead to obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $298.5 million to LONGBOW LLC. REU PRODUCTION LOTS 7-11 OP 5 USA/FMS

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 $298.5 million.

What is the period of performance?

Start: 2020-09-03. End: 2027-04-30.

What is the specific justification for awarding this substantial contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's impossible to assess the validity of bypassing competition. To ensure fair pricing, the government might rely on historical pricing, independent cost estimates, or price analysis techniques, but these are less effective than competitive market forces.

What are the potential risks associated with a long-term, sole-source contract for critical aircraft parts, particularly regarding technological obsolescence and supply chain resilience?

Long-term sole-source contracts risk technological obsolescence if the sole provider doesn't innovate or if alternative technologies emerge. Supply chain resilience can be weakened as reliance on a single vendor increases vulnerability to disruptions. Furthermore, the lack of competition can disincentivize the sole provider from investing in efficiency or advanced manufacturing, potentially leading to higher long-term costs.

How does this sole-source award impact the overall effectiveness of the Department of the Army's procurement strategy for aircraft parts, especially concerning innovation and cost efficiency?

Sole-source awards, while sometimes necessary, can reduce overall procurement effectiveness by limiting exposure to innovative solutions and competitive pricing pressures. This specific award may hinder the Army's ability to foster innovation within the broader supplier base and achieve optimal cost efficiencies that competition typically drives. It suggests a potential reliance on a single vendor for critical components.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $378,280,973

Exercised Options: $378,280,973

Current Obligation: $298,531,206

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $5,982,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0055

IDV Type: IDC

Timeline