Department of the Army awarded $13.8M contract for aviation rescue hoists to Goodrich Corporation

Contract Overview

Contract Amount: $13,888,114 ($13.9M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2007-07-06

End Date: 2010-04-29

Contract Duration: 1,028 days

Daily Burn Rate: $13.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GOODRICH CORPORATION, AVIATION INTERNAL RESCUE HOIST PURCHASE P/N 42305-3

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to GOODRICH CORPORATION for work described as: GOODRICH CORPORATION, AVIATION INTERNAL RESCUE HOIST PURCHASE P/N 42305-3 Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The duration of the contract (1028 days) suggests a significant need for these specialized aviation components. 3. The award to Goodrich Corporation, a known entity in aviation manufacturing, indicates a reliance on established suppliers. 4. The absence of small business participation raises concerns about equitable distribution of federal contracting opportunities. 5. The fixed-price contract type aims to control costs, but the lack of competition limits the government's ability to secure the best possible pricing. 6. The procurement falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a broad category with varying market dynamics.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its sole-source nature and the specialized equipment involved. Without competitive bids, it's difficult to ascertain if the $13.8 million represents a fair market price. The contract's duration and the nature of the equipment suggest a critical need, which may influence pricing. However, the lack of competition inherently limits the government's leverage to negotiate more favorable terms or identify cost-saving opportunities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Goodrich Corporation, was considered. This approach is typically used when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium for this equipment due to the absence of competitive bidding. The government missed an opportunity to leverage competition to drive down costs and ensure the most cost-effective acquisition.

Public Impact

The primary beneficiaries are likely military aviation units within the Department of the Army requiring specialized rescue hoist capabilities. The contract delivers critical equipment for search and rescue operations, potentially saving lives in combat or humanitarian missions. The geographic impact is likely focused on military bases and operational theaters where these aircraft are deployed. The contract supports jobs within Goodrich Corporation's manufacturing facilities, contributing to the aerospace and defense workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases cost to taxpayers.
Lack of small business participation means missed opportunities for smaller firms in the supply chain.
Long contract duration could indicate potential for cost overruns if not managed tightly.
Specialized nature of the equipment may limit viable alternative suppliers, reinforcing sole-source concerns.

Positive Signals

Award to a known manufacturer like Goodrich Corporation suggests a focus on reliability and proven technology.
Fixed-price contract type provides cost certainty for the government, assuming the initial price is reasonable.
The contract addresses a critical operational need for aviation rescue capabilities.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. This industry is characterized by specialized production, often involving complex engineering and stringent quality control. The market size for such niche components can vary, but it is generally tied to the overall health and spending of the defense and aerospace industries. Comparable spending benchmarks are difficult to establish without more specific product details, but large defense contracts for aircraft components can run into hundreds of millions or billions of dollars.

Small Business Impact

This contract did not include a small business set-aside, nor does the data indicate any subcontracting plans with small businesses. This suggests that the procurement was not structured to specifically benefit small businesses. Consequently, opportunities for small businesses to participate in supplying or supporting this acquisition were likely limited. This could represent a missed opportunity to foster growth and innovation within the small business defense contracting ecosystem.

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 firm-fixed-price structure, which places the cost risk on the contractor. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the pricing justification more difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aviation Parts Procurement
Search and Rescue Equipment
Department of Defense Aircraft Maintenance
Sole-Source Defense Contracts
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to GOODRICH CORPORATION. GOODRICH CORPORATION, AVIATION INTERNAL RESCUE HOIST PURCHASE P/N 42305-3

Who is the contractor on this award?

The obligated recipient is GOODRICH 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 $13.9 million.

What is the period of performance?

Start: 2007-07-06. End: 2010-04-29.

What is the track record of Goodrich Corporation in fulfilling similar sole-source contracts for the Department of Defense?

Assessing Goodrich Corporation's track record on similar sole-source contracts requires a deep dive into historical contract data. Generally, established defense contractors like Goodrich have extensive experience delivering complex systems. However, sole-source awards, by definition, lack direct competitive performance comparisons. The government relies on past performance evaluations and existing relationships. For this specific contract, the 'VA' award code suggests a 'Veteran Affairs' or similar designation, which might imply specific performance considerations or historical dealings. Without access to detailed past performance reviews or specific contract histories for Goodrich's sole-source awards of aviation rescue hoists, it's difficult to definitively state their track record in this precise context. However, the fact that they were awarded this contract suggests they met the government's criteria for a sole responsible source at the time of award.

How does the $13.8 million cost compare to market rates for similar aviation rescue hoists, considering it was a sole-source award?

Directly comparing the $13.8 million cost to market rates for similar aviation rescue hoists is challenging due to the sole-source nature of this award. Sole-source contracts inherently bypass the competitive bidding process that typically drives prices towards market equilibrium. Without competing offers, it's difficult to establish a definitive 'market rate' for this specific procurement. The government likely relied on internal cost estimates, historical pricing for similar (though not identical) equipment, or data from other non-competitive procurements. The absence of competition means the government may not have achieved the lowest possible price. To conduct a true market comparison, one would need access to pricing data from other manufacturers for comparable hoists, ideally obtained through competitive solicitations, which is not available for this specific contract.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $13.8 million contract on a sole-source basis include: 1. **Higher Costs:** Without competition, the contractor has less incentive to offer the lowest possible price, potentially leading to overpayment by the government. 2. **Reduced Innovation:** A lack of competitive pressure can stifle innovation, as the awarded contractor may not feel compelled to offer improved or more cost-effective solutions. 3. **Limited Accountability:** While performance is still monitored, the absence of competing alternatives reduces the government's leverage if performance issues arise. 4. **Potential for Complacency:** The awarded contractor might become complacent, knowing that alternative suppliers are not being considered. 5. **Barriers to Entry:** Sole-source awards can discourage potential new entrants into the market, limiting future competition. The government must have a strong justification for sole-sourcing to mitigate these risks.

What is the expected effectiveness of these aviation rescue hoists in supporting Department of the Army operations?

The expected effectiveness of these aviation rescue hoists is high, given their critical role in supporting Department of the Army operations. Aviation rescue hoists are essential equipment for search and rescue (SAR) missions, enabling the recovery of personnel from inaccessible locations, whether in combat zones, disaster areas, or during training exercises. The procurement of these hoists signifies a commitment to enhancing the survivability of aircrews and ground personnel. Their effectiveness is directly tied to their reliability, lifting capacity, and integration with specific Army aircraft platforms. While the contract itself doesn't detail operational metrics, the investment of $13.8 million underscores the perceived importance and anticipated effectiveness of this equipment in fulfilling vital life-saving and operational support functions for the Army.

How does this $13.8 million contract compare to historical spending patterns for aviation parts and auxiliary equipment by the Department of the Army?

Comparing this $13.8 million contract to historical spending patterns requires analyzing broader Department of the Army (DA) expenditures in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) category. The DA is a major consumer of aviation parts, with annual spending often reaching billions of dollars across numerous contracts. A single contract of $13.8 million, while substantial for a specific item, represents a relatively small fraction of the DA's total aviation procurement budget. Historical data would likely show numerous contracts of similar or larger magnitudes for various aircraft components, engines, and related systems. The significance of this particular contract lies more in its specific function (rescue hoists) and its sole-source award mechanism rather than its dollar amount relative to the DA's overall aviation spending.

What are the implications of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification for this contract?

The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) indicates that this contract is for components or accessories used in aircraft, but not necessarily the primary structure or propulsion systems. This broad category encompasses a wide range of products, from landing gear components and avionics to specialized equipment like rescue hoists. For this contract, it means the procurement is focused on a specific, albeit critical, auxiliary function. The implications include a potentially diverse supplier base within this NAICS code, though the specialized nature of rescue hoists might narrow the field considerably. It also suggests that the contract value, while significant at $13.8 million, is part of a larger ecosystem of aircraft part manufacturing that supports the overall defense and aerospace industries.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9133L07T0220

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1550 VALLEY VISTA DR, DIAMOND BAR, CA, 38

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,888,114

Exercised Options: $13,888,114

Current Obligation: $13,888,114

Contract Characteristics

Cost or Pricing Data: NO

Timeline