DoD Awards $17.7M Engineering Services Contract to Fulcrum Concepts LLC for Aircraft Parts
Contract Overview
Contract Amount: $17,721,141 ($17.7M)
Contractor: Fulcrum Concepts LLC
Awarding Agency: Department of Defense
Start Date: 2021-06-10
End Date: 2027-09-30
Contract Duration: 2,303 days
Daily Burn Rate: $7.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES FOR MEL
Place of Performance
Location: MATTAPONI, KING AND QUEEN County, VIRGINIA, 23110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to FULCRUM CONCEPTS LLC for work described as: ENGINEERING SERVICES FOR MEL Key points: 1. Contract awarded to Fulcrum Concepts LLC for engineering services related to aircraft parts. 2. The contract has a significant value of $17.7 million. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these engineering services.
Public Impact
Citizens may question the justification for a sole-source award in a potentially competitive market. The long duration of the contract (until 2027) means sustained taxpayer investment. Transparency regarding the necessity of sole-source procurement is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports critical aircraft parts manufacturing
- Long-term engagement provides stability
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is vital for national defense and aerospace. Spending in this area is often driven by specific technological needs and long-term sustainment requirements, making competitive benchmarking challenging.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or possible.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The Department of the Army should provide clear justification for the sole-source decision.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of transparency in justification
- Limited oversight visibility due to non-competition
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to FULCRUM CONCEPTS LLC. ENGINEERING SERVICES FOR MEL
Who is the contractor on this award?
The obligated recipient is FULCRUM CONCEPTS 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 $17.7 million.
What is the period of performance?
Start: 2021-06-10. End: 2027-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without further documentation, it's unclear if alternatives were explored. A thorough review by the contracting officer and potential justification waivers are usually required to proceed with non-competitive procurement, ensuring it aligns with federal acquisition regulations.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
Cost control in a CPFF contract relies heavily on robust government oversight, detailed cost monitoring, and clear performance metrics. The government must actively audit incurred costs, scrutinize indirect rates, and ensure the fixed fee remains appropriate. Regular performance reviews and milestone tracking are essential to prevent scope creep and ensure the contractor meets objectives efficiently.
What are the potential risks associated with a long-term, sole-source contract for engineering services in the defense sector?
Risks include potential price escalation over the contract's lifespan, reduced incentive for the contractor to innovate or improve efficiency due to lack of competition, and the possibility of vendor lock-in. Furthermore, if the contractor's capabilities become obsolete or their performance falters, the government may face significant challenges and costs in transitioning to a new provider.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911W621R0004
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1776 PATRIOT WAY, MATTAPONI, VA, 23110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $25,164,053
Exercised Options: $22,029,878
Current Obligation: $17,721,141
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-06-10
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-07
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