DoD Awards $8.2M for Aircraft Parts, Competition Method Raises Questions
Contract Overview
Contract Amount: $8,211,257 ($8.2M)
Contractor: Defense Systems and Solutions
Awarding Agency: Department of Defense
Start Date: 2021-03-10
End Date: 2026-06-30
Contract Duration: 1,938 days
Daily Burn Rate: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: US BASE CAR
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $8.2 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: US BASE CAR Key points: 1. Contract value is $8.2 million over nearly 6 years. 2. Competition method is 'Full and Open Competition After Exclusion of Sources', suggesting potential limitations. 3. Risk of overpayment exists due to the specific competition method. 4. Spending is within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $8.2 million for aircraft parts over almost 6 years appears moderate. Benchmarking against similar contracts is difficult without more specific details on the parts and their complexity. The 'Full and Open Competition After Exclusion of Sources' method warrants scrutiny for potential price inflation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method implies that while open to all, specific sources were initially excluded, which could limit the competitive landscape and potentially impact price discovery.
Taxpayer Impact: The taxpayer impact is uncertain but could be higher if the limited competition led to inflated pricing compared to a truly open bid process.
Public Impact
Ensures availability of critical aircraft parts for the Department of the Army. Supports jobs in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector in Alabama. Potential for increased costs to taxpayers due to the competition method used.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Competition method may limit price discovery.
- Lack of specific part details hinders cost analysis.
- Long contract duration could lead to price escalation.
Positive Signals
- Supports critical defense needs.
- Awarded to a company in Alabama, potentially supporting local economy.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for defense readiness, but requires careful oversight to ensure competitive pricing and value for money.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method requires careful justification and oversight to ensure it serves the government's best interest and does not unduly restrict competition, potentially impacting accountability for pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition due to source exclusion.
- Potential for price inflation.
- Lack of detailed product information.
- Long contract duration.
- Unclear small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.2 million to DEFENSE SYSTEMS AND SOLUTIONS. US BASE CAR
Who is the contractor on this award?
The obligated recipient is DEFENSE SYSTEMS AND SOLUTIONS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $8.2 million.
What is the period of performance?
Start: 2021-03-10. End: 2026-06-30.
What specific aircraft parts are being procured, and how does their complexity influence the contract value?
The provided data lacks specifics on the exact aircraft parts. Understanding the complexity, technological requirements, and rarity of these parts is crucial for accurately assessing the $8.2 million contract value. Without this detail, it's difficult to determine if the price is justified or if it represents a fair market value for the goods.
How did the exclusion of certain sources impact the competitive bidding process and final pricing?
The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was open, specific entities were initially barred. This exclusion could have reduced the number of potential bidders, potentially leading to less aggressive pricing. An analysis of the excluded sources and the rationale behind their exclusion is necessary to gauge the true impact on price discovery and taxpayer value.
What mechanisms are in place to ensure cost-effectiveness and prevent overpayment throughout the contract's duration?
Given the contract's duration of nearly 6 years and the competition method, robust oversight is essential. Mechanisms like regular price reviews, performance metrics, and clear contract modification procedures are vital. The government should actively monitor market prices for similar parts and ensure that any price adjustments are fully justified and reflect actual cost changes.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 631 DISCOVERY DR, HUNTSVILLE, AL, 35806
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,211,257
Exercised Options: $8,211,257
Current Obligation: $8,211,257
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ18D0001
IDV Type: IDC
Timeline
Start Date: 2021-03-10
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-12-31
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