Parker-Hannifin Corporation awarded $7.3M for UH-60 Black Hawk engine parts, a sole-source definitive contract

Contract Overview

Contract Amount: $7,310,472 ($7.3M)

Contractor: Parker-Hannifin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-11-30

End Date: 2025-11-28

Contract Duration: 729 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ONE TIME BUY FOR UH60

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92618

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to PARKER-HANNIFIN CORPORATION for work described as: ONE TIME BUY FOR UH60 Key points: 1. Contract awarded for a one-time buy of critical aircraft engine components. 2. Sole-source award suggests limited market options or specific technical requirements. 3. Definitive contract structure indicates a firm commitment for the specified period. 4. The contract duration of 729 days aligns with anticipated supply chain needs. 5. Fixed-price terms provide cost certainty for the Department of the Army. 6. The award falls under the Aircraft Engine and Engine Parts Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $7.3 million for UH-60 engine parts is a one-time buy. Without comparable sole-source awards or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract offers predictability. Benchmarking against similar sole-source procurements for specialized aviation components would be necessary for a more robust evaluation of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor can provide the required goods or services due to proprietary technology, unique capabilities, or urgent needs. The lack of competition limits price discovery and may result in higher costs compared to a fully competed procurement.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.

Public Impact

The Department of the Army benefits from the acquisition of essential components for its UH-60 Black Hawk helicopters. This contract ensures the continued operational readiness and maintenance of a critical military aviation asset. The services delivered are directly related to the sustainment of defense capabilities. The geographic impact is primarily within the Department of Defense's operational footprint, with potential implications for maintenance facilities in California where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to suboptimal pricing.
Lack of transparency in sole-source justifications can obscure true value for money.
Dependence on a single supplier for critical components poses supply chain risk.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarding to Parker-Hannifin, an established aerospace supplier, suggests reliability.
Contract supports the operational readiness of essential military aircraft.

Sector Analysis

The Aircraft Engine and Engine Parts Manufacturing sector is a critical component of the aerospace and defense industry. This contract, valued at $7.3 million, represents a small but significant procurement within this specialized market. The industry is characterized by high barriers to entry, stringent quality standards, and a reliance on advanced technology. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition awards for similar high-value, specialized aviation components.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of aircraft engine parts and the sole-source award, it is unlikely that small businesses were directly involved as prime contractors. However, Parker-Hannifin Corporation may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the definitive contract structure and firm fixed-price terms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Sustainment
Aircraft Engine Component Procurement
Aerospace Manufacturing Contracts
Department of Defense Aviation Maintenance

Risk Flags

Sole-source award
Potential for higher costs due to lack of competition
Supply chain dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to PARKER-HANNIFIN CORPORATION. ONE TIME BUY FOR UH60

Who is the contractor on this award?

The obligated recipient is PARKER-HANNIFIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2023-11-30. End: 2025-11-28.

What is Parker-Hannifin Corporation's track record with the Department of Defense for similar aircraft engine parts?

Parker-Hannifin Corporation is a well-established global manufacturer of motion and control technologies and systems. They have a significant history of supplying components to the aerospace and defense sectors, including the Department of Defense. While this specific award is a one-time buy for UH-60 engine parts, the company routinely receives contracts for various aircraft systems and components. Analyzing their past performance on similar contracts, including delivery timeliness, quality adherence, and pricing trends, would provide further insight into their reliability and value proposition for this specific procurement. Their extensive experience suggests a strong understanding of military specifications and operational requirements.

How does the $7.3 million value compare to typical sole-source procurements for specialized aircraft engine parts?

The $7.3 million value for a one-time buy of UH-60 engine parts is moderate within the context of specialized aerospace procurements. Sole-source awards for critical, high-technology components can range significantly, from hundreds of thousands to tens or even hundreds of millions of dollars, depending on the complexity and quantity. Without specific details on the exact parts being procured and their criticality, a direct comparison is difficult. However, this amount suggests a procurement of a defined set of components rather than a broad, long-term supply agreement. Benchmarking against other sole-source awards for similar engine components for military aircraft would be necessary to determine if this price point is competitive within its niche.

What are the primary risks associated with this sole-source award for the Department of the Army?

The primary risks associated with this sole-source award are related to cost and supply chain. Without competition, there is a risk that the price paid is higher than it would be in a competitive environment. The government has less leverage to negotiate favorable terms. Furthermore, reliance on a single supplier, Parker-Hannifin Corporation, for these critical UH-60 engine parts creates a potential supply chain vulnerability. Any disruptions in Parker-Hannifin's production, quality control issues, or changes in their business strategy could directly impact the Army's ability to maintain its helicopter fleet. This necessitates robust contract management and potentially proactive supplier relationship management to mitigate these risks.

How does this contract contribute to the overall effectiveness and readiness of the UH-60 Black Hawk fleet?

This contract is crucial for maintaining the operational readiness and effectiveness of the UH-60 Black Hawk fleet. The UH-60 is a workhorse helicopter for the U.S. Army, used for troop transport, medical evacuation, and various combat support missions. Ensuring a steady supply of critical engine parts is fundamental to keeping these aircraft airworthy and mission-capable. By procuring these components, the Department of the Army is investing in the sustainment of a vital asset, directly supporting its ability to execute its missions effectively. The one-time buy nature suggests it addresses a specific, identified need for replacement or repair parts.

What are the historical spending patterns for UH-60 Black Hawk engine parts, and how does this award fit in?

Historical spending patterns for UH-60 Black Hawk engine parts typically involve a mix of competitive and sole-source procurements, often through larger sustainment contracts or specific component buys. The Army likely has ongoing requirements for these parts due to the large number of UH-60s in its inventory and their extensive operational use. This $7.3 million award represents a specific, discrete procurement event. It may be part of a larger, multi-year strategy for fleet sustainment or address an immediate need identified through maintenance schedules or operational demands. Analyzing past spending data would reveal the frequency and value of similar component procurements, helping to contextualize this award within the broader lifecycle support of the Black Hawk fleet.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ22R0043

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Purolator Facet, Inc.

Address: 16666 VON KARMAN AVE, IRVINE, CA, 92606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,310,472

Exercised Options: $7,310,472

Current Obligation: $7,310,472

Actual Outlays: $784,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline